Increasingly, product managers are using analytics to increase the value of their products in exciting new ways. MIT Principal Research Scientist Dr. Barb Wixom will share her latest research about how companies are using analytics to reinforce, streamline, or enrich products—and how companies can generate maximum customer value. She will present examples from companies and explain what it takes to execute these kinds of analytics efforts.

1. Are you Creating Enough
Product Value with Analytics?

2. Dr. Barbara Wixom
Principal Research Scientist MIT
Our Speaker

3. 245 First Street
E94–15th Floor
Cambridge, MA 02142
p 617.253.2348
f 617.253.4424
cisr@mit.edu | cisr.mit.edu
MIT CISR’s Mission
Founded in 1974 and grounded in the MIT
tradition of rigorous field-based research, MIT
CISR helps executives meet the challenge of
leading dynamic, global, and information-
intensive organizations. Through research,
teaching, and events, the center stimulates
interaction among scholars, students, and
practitioners.
2018 MIT CISR Research Projects
• What is a Modular Producer and Why
Should My Company Care?
• Coordinating an Ecosystem to Maximize
your Value
• Creating Competitive Products and
Services with Analytics
• How to Make Analytics Your Business
• Managing Organizational Explosions
During Digital Transformation
• Creating a Digital Innovation Toolkit
• Investing in the Digital Workplace for
Agile@Scale
• Becoming Digitally Savvy
• Designed for Digital: How Established
Companies Are Reinventing Themselves
• Digital Imperatives for Boards of
Directors
• Mapping the Future IT Unit
Aetna, Inc.
Air Canada
Allstate Insurance Co.
ANZ Banking Group Ltd.
(Australia)
Australia Post
Australian Securities &
Investments Commission
(ASIC)
Australian Taxation Office
AustralianSuper
B2W Companhia Digital
(Brazil)
Banco Bradesco S.A.
(Brasil)
Banco do Brasil S.A.
Bank of Queensland
(Australia)
Barclays (UK)
BBVA (Spain)
Bemis Company, Inc.
Biogen
BMW Group
BNP Paribas (France)
BNY Mellon
The Boston Consulting
Group, Inc.
Canadian Imperial Bank
of Commerce
Cardinal Health, Inc.
Caterpillar, Inc.
CEMEX (Mexico)
Chevron Corporation
CHRISTUS Health
Chubb & Son
Cochlear Limited
(Australia)
Commonwealth
Superannuation Corp.
(Australia)
CPPIB (Canada)
CSBS
DBS Bank Ltd. (Singapore)
DentaQuest
El Corte Inglés (Spain)
Equifax
ExxonMobil Global
Services Company
Fairfax Media (Australia)
Ferrovial Corporacion, S.A.
(Spain)
Fidelity Investments
FrieslandCampina
(The Netherlands)
General Electric
Genworth Financial
GlaxoSmithKline (UK)
Hanover Insurance Group
Heineken International
B.V. (The Netherlands)
Insurance Australia Group
Iron Mountain
Johnson & Johnson
LKK Health Products Group
Ltd. (HK, China)
Marathon Oil Corp.
Markel Corp.
Mars, Incorporated
McGraw-Hill Education
National Australia Bank
Ltd.
National Disability
Insurance Scheme
(Australia)
New Zealand Govt.—
GCIO Office
Nielsen
Nomura Holdings, Inc.
(Japan)
Nomura Research Inst.,
Ltd. (Japan)
Nordea Bank
Northwestern Mutual
OCP S.A.)
Organisation for Economic
Co-operation and
Development (OECD)
Origin Energy (Australia)
Owens Corning
PepsiCo Inc.
Pioneer Natural Resources
USA Inc.
Posten Norge (Norway)
Principal Financial Group
Procter & Gamble
QBE
Raytheon Company
Reserve Bank of Australia
Royal Bank of Canada
Scentre Group (Australia)
Schindler Digital Business
AG (Switzerland)
Schneider Electric
Industries SAS (France)
Standard Bank Group
(South Africa)
State Street Corp.
Suncorp Group (Australia)
Swinburne University of
Technology (Australia)
Sydney Water (Australia)
TD Bank N.A.
Teck Resources Ltd.
(Canada)
Tenet Health
Tetra Pak (Sweden)
Trinity Health
USAA
Westpac Banking Corp.
(Australia)
WestRock
World Bank
MIT CISR gratefully acknowledges the support and contributions of its Research Patrons and Sponsors.
AlixPartners LLP
Avanade
BT
Huawei Technologies
Co., Ltd. (China)
ISACA
LTI
Microsoft Corporation
PricewaterhouseCoopers
Advisory Services LLC
CISR Research Patrons CISR Research Sponsors
15 April 2018

4. MIT CISR defines data monetization
Source: Wixom, B. H. “Cashing In on Your Data,”
MIT CISR Research Briefing, Vol. XIV, No. 8, August 2014.
“Converting
(directly or
indirectly) data and
analytics into
financial capital.”

5. Combines analytics
with a product to increase
the customer value
proposition
Can reinforce, streamline
or enrich an offering’s
usage or experience
An exciting way to monetize is through data wrapping
Wrap
$

6. Examples of data wrapping abound

7. Data wrapping at Capital One

8. Data wrapping at Capital One

9. Data wrapping: combines
analytics with a product to
increase the customer
value proposition
Source: Wixom, B.H. and J.W. Ross, “Profiting
from the Data Deluge,” Center for IS Research
Briefing, XV, 12 (December 2015).
✓ Generates financial returns through
product revenues
✓ Product owners critical for driving results
✓ Usage and sentiment metrics measure
success
✓ Goal is to inspire action that benefits the
customer

10. Use cases fall along the customer journey
Example: Party Planner
Example: Merchant Logos
Wixom, B.H. and Schüritz, R.M., “Creating Customer Value Using Analytics,” MIT CISR Research Briefing, Vol. XVII, No. 11, November 2017.
Example: SCAN Scene Classifier

11. Think about the data wrapping use
case(s) underway at your organization

12. Use cases can offer data, insight or action
Example: Party Planner
Example: Merchant Logos
Wixom, B.H. and Schüritz, R.M., “Creating Customer Value Using Analytics,” MIT CISR Research Briefing, Vol. XVII, No. 11, November 2017.
Example: SCAN Scene Classifier
Reports, dashboards,
visual representations
and APIs
Suggested next steps,
aberrational activities,
benchmarks, and alerts
Automated or manual
intervention, self-
service
Action
Insight
Data

13. Where should companies want use cases to fall? Why?
Example: Party Planner
Example: Merchant Logos
Wixom, B.H. and Schüritz, R.M., “Creating Customer Value Using Analytics,” MIT CISR Research Briefing, Vol. XVII, No. 11, November 2017.
Example: SCAN Scene Classifier
Reports, dashboards,
visual representations
and APIs
Suggested next steps,
aberrational activities,
benchmarks, and alerts
Automated or manual
intervention, self-
service
Action
Insight
Data

14. Vertical integration matters
Example: Party Planner
Example: Merchant Logos
Wixom, B.H. and Schüritz, R.M., “Creating Customer Value Using Analytics,” MIT CISR Research Briefing, Vol. XVII, No. 11, November 2017.
Example: SCAN Scene Classifier
Reports, dashboards,
visual representations
and APIs
Suggested next steps,
aberrational activities,
benchmarks, and alerts
Automated or manual
intervention, self-
service
Action
Insight
Data
CustomerValue

15. Wrapping requires responsive analytics
Wixom, B.H. and Schüritz, R.M., “Creating Customer Value Using Analytics,” MIT CISR Research Briefing, Vol. XVII, No. 11, November 2017.
Analytics
Analytics help the
company create analytics-
fueled customer-facing
features and experiences
Exceptional data
Sophisticated data science tools and techniques
Acceptable data use
Analytics-savvy product innovation, development,
management

16. Customer intimacy helps
the company achieve a
current, accurate
understanding of customer
needs and actual behavior
Wrapping requires customer intimacy
Wixom, B.H. and Schüritz, R.M., “Creating Customer Value Using Analytics,” MIT CISR Research Briefing, Vol. XVII, No. 11, November 2017.
Digital channels
A/B testing
Customer-specific analytics
Physical retail outlets
Customer Intimacy

17. Analytics and Customer Intimacy drive customer value
Wixom, B.H. and Schüritz, R.M., “Creating Customer Value Using Analytics,” MIT CISR Research Briefing, Vol. XVII, No. 11, November 2017.
Analytics
Customer Intimacy
Customer
Value
Analytics help the
company create analytics-
fueled customer-facing
features and experiences.
Customer intimacy helps
the company achieve a
current, accurate
understanding of customer
needs and actual behavior.
Sophisticated
wrapping
Meaningful
wrapping

18. Assess your own data wrapping…
Add customer value:
✓Improve ease of use of product
✓Improve usefulness of product
✓Increase engagement with product
✓Improve product acquisition/delivery
✓Reduce time/effort of product use
✓Help the customer make money
✓Help the customer save money
How does the firm capture value?
Higher product price
More product sales
Lower cost to serve
Direct charge
Are the data/analytics:
Hard to replicate?
Rare?
Sticky?

19. MIT CISR 2018 Research:
We are investigating how data
wrapping adds value for organizations
Financial outcomes and competitive advantage

20. We invite you to take our survey to help us learn
more!
https://survey.qualtrics.com/jfe/form/SV_6o0Zq0uCuzA5i0B

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