Enabling Business Strategy with Effective Data Management

Data Management Planning & Analysis
San Francisco, March 7th

Enabling Business Strategy with Effective Data Management

Raoul Schuhmacher, Sr. Director Enterprise Architecture
Electronic Arts, Inc.

Today’s Agenda
• Overview of the Gaming Industry and Electronic Arts, Inc
• Case Study: Enabling EA to lead Digital-to-Consumer
‒ Common Master Data
‒ Data Integration
‒ Single Data Warehouse
‒ Common Metrics
‒ Business Intelligence
‒ CRM/Campaign Management

• Lessons Learned
• Q&A


Gaming Industry Outlook

100,000 • Media & Entertainment
$B
90,000 Industry includes
80,000 Television, Film, Music,
70,000
Radio, Video/Computer
60,000
50,000
Games, Publishing,
40,000
Advertising
30,000 • Games is one of the fastest
20,000 growing segments in the
10,000 media & entertainment
0 industry
2009 2010 2011 2012 2013 2014
Advertising 1,554 1,843 2,135 2,388 2,598 2,845
• Stable revenue stream in
PC 3,816 3,731 3,672 3,608 3,540 3,483
traditional console /
Wireless 7,313 8,467 9,642 10,957 12,021 13,061
packaged goods gaming
Online 11,655 14,127 17,068 20,781 25,258 30,593
Console/handheld 28,169 30,000 31,334 32,873 34,674 36,774
• High growth opportunities
Source: PwC Media & Entertainment Industry Outlook
in Online & Mobile gaming


Overview of Electronic Arts
• Founded in 1982 (Nasdaq: ERTS)
• GAAP Net Revenue for CY10 $3.48B
• Global Headquarters in Redwood City, California
• 8,000+ employees worldwide
• Leading global interactive entertainment software company. EA develops,
publishes, and distributes interactive software worldwide for video game
systems, personal computers, wireless devices and the internet.
• In 2010, EA launched five games which sold in more than five million units
each – FIFA 11, Medal of Honor, Madden NFL 11, Need for Speed Hot Pursuit
and Battlefield: Bad Company™ 2.
• In Western markets in the third quarter of fiscal 2010, EA was the #1
publisher in the Apple App StoreSM for both iPhone® and iPad™ and #1 on
Microsoft Windows® Phone 7.


Key Business Strategy: Lead Digital to Consumer


Consumer 360 Vision

Optimize D2C

Full Understanding of Wants and Needs
Marketing

Response
Customer
Demographics
History Development

Gameplay Engagement High Satisfaction Grow
Behavior Behavior & Loyalty Sales

Product Commerce Market
Profile Behavior Opportunity

Product
Development


How to get there?

• Foundational Building Blocks ….
– Common Master Data
– Data Integration
– Single data warehouse
– Common Metrics
• …. To enable Business Capabilities
– Reporting and Analytics
– Campaign Management


How to get there?

• Common Master Data
• Data Integration
• Single data warehouse
• Common Metrics
• Reporting and Analytics
• Campaign Management


Extensive set of offerings…
78

24

15

131

86
13
46
11

….anywhere you are

Approach
Governance and Process First, Technology Second
View information as strategic asset
1. Governance 2. Organization

•Data standards •Business Data Ownership

Link to strategic objectives
Drive by business value

•Data Quality •Data Management
•Data Stewards

Successful
MDM
3. Process 4. Technology

•Data creation •MDM System
•Data maintenance •EAI/ETL
•Workflow
•Presentation/Portal

Enable with change leadership

Governance

Business Community Information Technology

Master Data Organization (MDO)
 Clear ownership of MDM
 MDO comprised of decision-makers
 Stewardship and support partnership of Business Users and IT
 Leverages Governance Model from Project Initiation

Maintenance Change Management Data Quality & Controls
 Dedicated to the administration  Facilitates the Change Control  Focuses upon Data Quality
and maintenance of Master process  Performs Data quality audits for
Data  Work with Business/IT to drive adherence to standards
impact assessment  Assists with control
 Communicates Changes assessments
 Maintains and administrates  Tracks issues & drives
MDO standards and policies resolution


Benefits
Result Benefit
Data Consolidated, • Item Reduction from 250K to 75K (3:1 ratio)
Cleansed and • 000’s of items set to obsolete
Standardized • Key attributes like product status and release dates scrubbed

Global Governance and • Consistency and common understanding of product offerings supporting all
Ownership for Product business models
Data • Workflow, request / approval implemented with audit trail
• Decision-makers driving the process

Common, Central • Single point of entry and elimination of redundant data maintenance
Repository of Product Data processes.
• Standard master data syndication architecture
Quality, Security and • High-quality reporting by leveraging common definitions, governance and
Change Control with control
complete view of EA • Visibility drives quality
customer offerings

Ability to auto-generate • Gained efficiency from manual to automated process
EA’s Titles Master Plan • Single source of truth for product data; no manual tweaks

Enable an agile MDM • Flexibility to support new data requirements of emerging business models like
platform to support future Digital
growth • Ability to support business transformation initiatives


How to get there?

• Common Metrics


A Key Strategic Issue
• Is there a conflict between “Accelerate Growth”
Option 1: Point-to-Point Option 2: Hub-N-Spoke
and “Achieve Operational Efficiency”?!
• Tremendous complexity associated integrating
the various “nodes” – 20+ business units, 36+
products, 50+ territories, 600+ applications and
7500+ personnel IT
• Potential for propagating an inefficient
“point-to-point” operating model
• As complexity increases, ability to scale
Business Unit,
Territory,
decreases and costs start to skyrocket
Application,
etc.
• Must ensure Business Units (i.e., Studios &
Territories) solve for speed and increased
N (N-1) / 2 where N = # of nodes revenue while 1 where N = # of nodes
N + centralized Corporate Functions
8 (8-1) / 2 = 28 connections = 8 connections
solve for standardization and cost efficiency

What If We Add Another “Node” To Either Option? (i.e., Acquire
Another Company) © 2011 Electronic Arts – Slide # 15

Data Integration Services
Demand
• Point-to-point connectivity
Planning

• Distributed development and support, no governance,
VMI Logistics Integration cost „hidden‟ in projects, more overhead
Current State

• “Tightly coupled” integration, requires re-work for every
sender/consumer change, e.g. ERP consolidation roadmap will
require to change all interfaces
• Extensive regression testing upon change
ERP EDI • No re-use, no efficiency gains over time
• Perpetuates obsolete legacy environments
Reporting

• Publish/subscribe connectivity, reduced number of interfaces
Demand
Planning
• Integration factory approach, centralized governance,
development and support, less overhead, integration cost
visible
• “Loosely coupled” integration, shields systems from changes
Target State

VMI Logistics • Encourages data standardization, enables publish
iHub once/subscribe many paradigm
• Foundation to leverage for future integration needs
• Simplifies M&A integration
• Simplifies application consolidation/retirement
ERP Reporting • Integration Review Process to facilitate consistent decisions
• Enables roadmap to retire legacy


How to get there?

• Common Metrics


DW/BI Current State
Source Integration Aggregation Reporting

Data Warehouse Reporting
Source

Source Reporting

External Reporting

MDM
Reporting
ODS
ERP 1
Source EDW Data
Mart CDS

ERP 2
Source Reporting

ERP 3 Data Reporting
Mart
Source Web Dashboard
App
Source
Reporting
Source
Reporting
External
Data
Reporting
Source Mart
Metrics
Source
Analytics

Fragmented Source Systems Lack of data model
Silo reporting solutions
Multiple data stores
Point-to-Point Integration No business rule documentation
Multiple technologies


EDW/BI Target State
Source Integration Aggregation Reporting

Citadel
Source Citadel
Reporting and Analytics
Source Enterprise Data Model Services
External & Data Warehouse
Dashboards
MDM Data Itnegration Service (iHub)

Outbound Services Layer
Std Operational
ERP 1 Reporting
Source

ERP 2 Std Management
Reporting
Source

ERP 3 Ad hoc Reporting

Source

Source Self Service
Reporting
Source
External
Analytics
Source Services

Source CRM

Enterprise Data model Data integrity
Reporting/Analytics Service
Single Data Warehouse
Data Integration Security and compliance


Benefits
• Single source of truth for all enterprise information, ability to
gain new insight from having all data in a single place
– Global reporting on retail sales
– Consolidated reporting for all digital revenue sources

• Focus on gaining business value from data vs. chasing data
• Improved end-user experience due to consistent
presentation layer vs. multiple disparate tools
• Increased end-user productivity due to increased data
quality
• Reduced IT operations cost (h/w, s/w maintenance, s/w
licensing, support and development staff)

How to get there?

• Common Metrics
• Campaign


Digital Metrics Vision and Goal
Establish a set of metrics that can be held as constants across business units and
regions to enable us to drive and monitor revenue growth, operational efficiency,
profitability, and customer satisfaction in our Digital to Consumer business.

Three Tiers of Metrics

High level company wide metrics assessing health of
Executive business

Regional / Business Unit metrics used for tracking
Business performance against goals at detailed level
Management

Transactional Game specific stats and telemetry metrics used to
understand player and behavior trends


Governance
• Metrics Council - the governing body responsible to approve,
monitor, and review access and process changes to the Tool
• Power User – User with additional access to Reporting Data
SPONSORS
Model
CFO, CIO • Data Steward – User with additional governance
responsibilities. Data Stewards are representatives from
METRICS COUNCIL
Business Units, Functions, and Regions who will represent their
Governance
respective constituency during data definition and drive
adoption of agreed upon definitions within their respective
constituency, including any process changes and source system
POWER USERS DATA STEWARDS
data clean-up initiatives. They also act as first line trainers,
+Data Model +Governance
trouble-shooters, and point of communication.
SUPER USERS
• Super User – User with access to Tier 1, Tier 2, and Tier 3
Tier 1, 2, and 3
reports. Super users are further categorized into:
GENERAL USERS • Tier 1 Report – Predefined dashboards with basic filtering
Tier 1 and 2 capabilities for Executive and Management reporting
• Tier 2 Report – Predefined report templates with wizards
that guide the end User to create reports for specific
analysis
• Tier 3 Report – Dynamic report with option to add/remove
objects and build derived metrics
• General User – User with access to Tier 1 and Tier 2 reports


Framework of Key Metrics
Billing Studios Console 3rd Party Ads Retailers E-Tailers
Source Systems

Metric
Visits
Registered users
Game session Utilize business governance to
Payment methods 1. Agree on common metrics
Paying users
2. Agree on definition
Purchase
conversions 3. Define data sources
Net sales 4. Define roadmap
Revenue
Units ordered
Units sold
Cost
Gross profit


How to get there?

• Common Metrics


Reporting & Analytics

• Single set of reports based on consistent definitions of metrics and
dimensions
• Complete view of business performance
• Data structures enable self-service, ad-hoc reporting and analysis
• Improved data quality increases user productivity
• Timeliness of data accelerates ability to make decisions


How to get there?

• Common Metrics


What does Consumer 360 mean to CRM?

Leverage all available data source (all EA,
BESL strategic partnerships , events, etc.)

More opt-ins = more chances to
boost sales
APAC

Demographic Attitudinal
• Age • Influencer
• Country • Hard Core Leverage modeling/scoring & analysis to
• Platform •
• Genres / Games
Hit Buyer drive actionable customer profiling and
• Casual
played segmentation
Better targeting = more
Value Lifecycle engagement
• Prospect
• High, Medium, • New Customer
Low ARPU • Loyalist
value • Lapsed

CRM Use Examples - Custom Messaging
Personalization
• What’s New: New entitlement set-up
• How we can leverage it:
• Customize communications with gamers' favorite team,
character, weapon, class, position, etc.
• Custom emails acknowledging key in-game achievements

SEGMENTED COMMUNICATIONS
• What’s New: Ability to define, flag & store customer
segments within the database
• New segment (e.g. high-value, influencers, etc.) specific
highly targeted/relevant communications

“PROSPECT” Lifecycle Communications
• What’s New: Expanded sources of new “Prospects”
• Customized “welcome” emails for all new people to the
database (with personalized info on their situation/source)


CRM Use Examples – Custom Timing

DEMO & ONLINE PASS FOLLOW-UP
• What’s New: Consistent Entitlement set-up across games
• Automated follow-up after gamer engages with EA
• e.g. 100% follow-up with all Demo players

GAME-PROGRESS
• What’s New: Leverage new entitlements & telemetry
data to identify customers’ progress through the game
• Trigger of emails based on in-game activity
• e.g. Tips/tips delivered for gamers’ current level
• e.g. Engagement email sent when play stops/stalls

Conversion Communications
• What’s New: Access to EA Store data
• Automated follow-up emails on abandoned
shopping carts (to boost store conversion rates)


CRM Use Examples – Cross-sell/Up-sell

GAME FRANCHISE Cross-sell
• What’s New: Ability to profile & store statistical models
designed to predict the likelihood of future purchases
• Communications with 1-to-1 personalized new game recos

DOWNLOAD Up-sell/Conversion
• What’s New: Customer specific download sales data
• PDLC promotional emails based on past sales (i.e. if they
bought one gun they’re likely to buy another)

EA DIVISION Cross-sell
• What’s New: All EA Customer data in one location
• e.g. Pogo, Playfish, Mobile, Bioware, etc.
• New ability to target a much wider audience for marketing (e.g.
target Playfish FIFA Superstars opt-ins for FIFA World Cup & vice-
versa)


EA Roadmap
Previous Current Target
Step 1 Step 2 Step 3
State State State

List Pull Behavior Based Marketing
Better Targeted and Triggered
Database Marketing Customer
Marketing-Initiated Interaction

Ad Hoc Tools Closed Loop Marketing
Manual Marketing Integrated Analysis, Analytics,
Reliant on IT and Campaign Management.

Customer Initiated, Relationship
Relational DB
Driven, Dynamic Offer Generation
Sophisticated Tools
across multiple channels, Real-Time
Marketing less reliant on IT
Behavior Analysis.


Campaigns in Numbers

250
Observations
200
• Increasing reach
150 (300+%)
100
Delivered • Effectiveness not
Opened
50
Clicked
proportional to
0 volume
• Effectiveness higher
for highly targeted
campaigns
*) FY11 = Projection


Lessons learned

• Align initiatives to business strategies and prioiries
• Find areas of business sponsorship and start with governance;
without that target state will look like current state
• Define and implement process before technology; solve the what
before the how
• Consistently deliver incremental business value in context of a
strategic roadmap; maintain credibility with stakeholders
• Establish loosely coupled data integration based on standards;
flexibility to manage change
• Consider bringing all data related activities into one IT organization
to accelerate alignment and progress
• Plan data warehouse migrations carefully; they are complex


Enabling Business Strategy with Effective Data Management

Recommended

Recommended

More Related Content

What's hot

What's hot (15)

Viewers also liked

Viewers also liked (20)

Similar to Enabling Business Strategy with Effective Data Management

Similar to Enabling Business Strategy with Effective Data Management (20)

Recently uploaded

Recently uploaded (20)

Enabling Business Strategy with Effective Data Management