Presenters: Scott DeAngelo - SVP Pricing, Vantiv Sarah Barber - Director, Pricing, Vantiv Shankar Ranganathan - VP Analytics, Kalvin

1. Institutionalizing
Analytics into
Decision Making
Cincinnati Business Intelligence Group Presenters:Cincinnati Business Intelligence Group
November 15, 2012
Presenters:
Scott DeAngelo, Senior Vice President of
Strategic Pricing & Portfolio Management,
Vantiv
Sarah Barber, Director of Strategic Pricing
& Portfolio Analytics, Vantiv
Shankar Ranganathan, Vice President of
Analytics & Strategy, Kalvin

2. Merchant Services Financial Institution Services
Card Issuer
Processing
Merchant
Acquiring
Network
Services
A Leading Integrated Payment Processor in the U.S.
#3 Ranked U.S. Merchant Acquirer
in Total Transactions
#1 Ranked U.S. Merchant Acquirer
in PIN Debit Transactions
#2 Ranked U.S. Merchant Acquirer
in Transaction Growth
9% Market Share in the U.S. based
on number of FI customers
1,300 Financial Institution
relationships across the U.S.
Vantiv is Well Positioned as a Market Leader

3. Leading Merchant
Services Provider
Leading Financial
Institution Services Provider
Single, Integrated
Technology Platform
12b+ Transactions at 400k+ Merchant Locations
Processed Annually through a Single Platform
Proprietary Technology Platform
Integrated Business
Comprehensive Suite of Services
Diverse Distribution Channels
Strong Execution Capabilities

4. Hot Trends
• Enhanced
Exposure
• Expanded• Expanded
Opportunity
• “Major” Area
of Study

5. • Up-front vs.
Back-end
• Speed vs.
Hot Mess
• Speed vs.
Accuracy
• Form vs.
Functionality

6. 5 things we’re doing to accelerate
the Institutionalization of Analytics
into Decision Making at .

7. 1. Defining & Scoping
What Analytics Is

8. Macro Level
Descriptive Predictive
Analytics!?!? Analytics!?!?
Micro Level
Descriptive Predictive
Analytics!?!? Analytics!?!?

9. Macro Level
Descriptive Predictive
“Top of House”
Financials
Monthly Business
Forecasts
Micro Level
Descriptive Predictive
Segment Specific
Reporting
Customer Level
Predictions

10. 2. Location, Location,
Location

13. 3. Managing the “All or
Nothing” Mentality

14. Where We Will Be
Where We AreWhere We Are
Where We Were

15. 4. Balancing Accuracy
& Understandability

16. “The test of a first rate intelligence is the ability to hold two
opposing ideas in mind at the same time and still retain the
ability to function.”
-F. Scott Fitzgerald
Key lessons learned from data
visualization at

17. Data tells the narrative…
Opposing ideas by default work against each other.
But if we think of opposing ideas like a magnetic force-- the very force that
causes like magnets to push against each other also causes attraction.
To get them to work together all relies on how they are positioned.
…if that data is well-positioned

18. Visualizations deliver
organizational buy-in.
Total Signature Revenue by Month – Vantiv Merchant Direct
Feb. ’12
$18,000,000
$20,000,000
Pricing Effect
Spring ’11
Pricing Actions
Fall ’11 Pricing
Actions+Durbin
January ’12
Pricing ActionsAction 1 Action 2 Action 3
Incremental
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
02/01/10
03/01/10
04/01/10
05/01/10
06/01/10
07/01/10
08/01/10
09/01/10
10/01/10
11/01/10
12/01/10
01/01/11
02/01/11
03/01/11
04/01/11
05/01/11
06/01/11
07/01/11
08/01/11
09/01/11
10/01/11
11/01/11
12/01/11
01/01/12
02/01/12
Volume Effect
29%
of
total
42%
of
total
50%
of
total
Baseline

19. Visualizations deliver
organizational buy-in.
Z%
Revenue by Industry Revenue Margin by Industry
24%
29% 32%
100% = $_B $_B $_B
X%
Y%
27%
23%
19%
48%
48%
49%
2010 2011 2012
Industries 5-7
Industries 2-4
Industry 1

20. Keep it Simple, Statistician.
Simplicity elevates insight to value.

21. Get in the weeds…
… But don’t get lost.

22. 5. Pushing Intelligence
to the “Front Line”

23. From Push to Pull
Presenting intelligence through data
visualization pulls executive strategies to the
front-line

24. Discover the “Unknown Unknowns”
- Donald Rumsfeld

25. Real Time and Proactive – What is it?

26. Decision Set
Predict
and
Act
Information
Set
Real Time and Proactive – What does it take?
Analytics
Process
Action Distance
Process
Source: Richard Hackathorn at TDAN.com

27. So, what is Analytical Process?
• Shifts in Margin
Business
Problem
• Attrition issue
• Lower Margin Customer
Acquisition
• Volume Mix Shift
Analytics
• Health Check
Dashboard
• Customer
Migration Report
• Price/Attrition
Alerts
Information
• Volume Mix Shift
Alerts
• Cross Sell
• Up Sell
• Reduce Price
• Add-On
Activate
Operationalize
and update
strategy
•KPIs
•Dashboards
•ROI
Measure

28. Speed of Analytics – Why business reaction is slow?
BusinessValue
business
event
data
stored
information
delivered
Business
Capture
Latency
Analysis
Latency
Decision
Latency
Time
action
taken
Captured
Business
Value
Source: Richard Hackathorn at TDAN.com
Lost

29. Speed of Analytics – How can we increase speed?
business
event
data
stored
information
delivered
BusinessValue
Time
action
taken
Business
Captured
Business
Value
Source: Richard Hackathorn at TDAN.com
Lost

30. Speed of Analytics – Getting Real Time …….
business
event
data
stored
information
delivered
action
taken
BusinessValueLost
Time
Captured
Business
Value
Source: Richard Hackathorn at TDAN.com

31. Data to Insights - How Traditional Process works?
Data sources
Data Integration Data Marts
PresentationTool
Decision Makers
Report
Consumers
Integrated Data Warehouse and BI
DataAnalytics
PresentationTool
Business
Analysts
DataAnalytics
End to End Data Analytics Solution
6-8 months 6-8 months 6-8 months

32. We are building data and delivering insights at the same
time
Data sources
Data Integration Data Marts
PresentationTool
Analysts
and
Business Users
Integrated Data Warehouse and BI
Enriched and
Intelligent Data
PresentationTool
Feedback Process ( Update Analytical Models)
KalvinTellTM
– An
Integrated
Solution Analytical
Engine
Decision Makers
Analysts
Business Users
Decision Makers
Analytical Data Synchronization

33. KalvinTellTM
– An Integrated Analytical Engine for faster
turnaround
Data
Integration
Logic
Report
Calculations
& Business
Rules
Data
Quality
Logic
Data
Security
Logic
Multiple
Regression
Survival
Segmentation
Probabilistic
Model
Data sources
KalvinTellTM – an automated
end-to-end solution with
up-to-date predictive
analytics embedded within
data layer
KalvinTell
™
(Kalvin’s
Analytical
Engine)
Growth
Targeted
audience
WebI
Dashboards
Upside
potential Explorer
Attrition
Rate
Pricing
Strategy
Mobility

34. Merchant Centric Analytics Roadmap
Diagnostics
Health
Check
Reporting
Predictive
Analytics
Merchant
Engagement
& Growthenables...
to
drive...
to
grow...
– Customer Migration
Reporting
– Retention Modeling – Relevant
Communications
– Analysis
Reporting
– Key Drivers & Metrics
– Customer Loyalty
– Customer attrition
– Attrition Modeling
– Revenue and Margin
Forecasting
– Pricing Strategy
Communications
– Merchant
Product
Enhancements
– Merchant
Behavioural
Selection
(targeting)
– Trends
– Segmentations
– Capture
relevant
attributes

35. Real Time in
Days
What? What Next?
Pricing and
Attrition Alerts
Cross Sell or
Up Sell
Real Time in
Months
What? What Next?
Merchant
Centric
Segmentation

36. 36
Key Takeaways

37. Thank You!Thank You!