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11.15.12 CBIG Event - Kalvin & Vantiv Presentation


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"Institutionalizing Analytics into Decision Making - A Case Study"

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11.15.12 CBIG Event - Kalvin & Vantiv Presentation

  1. 1. InstitutionalizingAnalytics intoDecision MakingCincinnati Business Intelligence Group Presenters:November 15, 2012 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. 2. A Leading Integrated Payment Processor in the U.S. Merchant Network Card Issuer Acquiring Services Processing Merchant Services Financial Institution Services #3 Ranked U.S. Merchant Acquirer in Total Transactions 9% Market Share in the U.S. based on number of FI customers #1 Ranked U.S. Merchant Acquirer in PIN Debit Transactions 1,300 Financial Institution relationships across the U.S. #2 Ranked U.S. Merchant Acquirer in Transaction Growth Vantiv is Well Positioned as a Market Leader
  3. 3. 12b+ Transactions at 400k+ Merchant LocationsProcessed Annually through a Single Platform Single, Integrated Technology Platform Leading Merchant Leading Financial Services Provider Institution Services Provider Proprietary Technology Platform Integrated Business Comprehensive Suite of Services Diverse Distribution Channels Strong Execution Capabilities
  4. 4. Hot Trends• Enhanced Exposure• Expanded Opportunity• “Major” Area of Study
  5. 5. Hot Mess• Up-front vs. Back-end• Speed vs. Accuracy• Form vs. Functionality
  6. 6. 5 things we’re doing to acceleratethe Institutionalization of Analyticsinto Decision Making at .
  7. 7. 1. Defining & Scoping What Analytics Is
  8. 8. Macro Level Analytics!?!? Analytics!?!?Descriptive Predictive Analytics!?!? Analytics!?!? Micro Level
  9. 9. Macro Level “Top of House” Monthly Business Financials ForecastsDescriptive Predictive Segment Specific Customer Level Reporting Predictions Micro Level
  10. 10. 2. Location, Location, Location
  11. 11. 3. Managing the “All or Nothing” Mentality
  12. 12. Where We Will Be Where We AreWhere We Were
  13. 13. 4. Balancing Accuracy & Understandability
  14. 14. “The test of a first rate intelligence is the ability to hold twoopposing ideas in mind at the same time and still retain the ability to function.” -F. Scott Fitzgerald Key lessons learned from data visualization at
  15. 15. 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
  16. 16. Visualizations deliver organizational buy-in.Total Signature Revenue by Month – Vantiv Merchant Direct Feb. ’12 Spring ’11 Fall ’11 Pricing January ’12 Action 1 Pricing Actions Action 2 Actions+Durbin Action 3 Pricing Actions$20,000,000$18,000,000 Incremental Pricing Ef f ect Baseline Volume Ef f ect$16,000,000$14,000,000 29% 42% 50% of of of total total total$12,000,000$10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 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
  17. 17. Visualizations deliver organizational buy-in.Revenue by Industry Revenue Margin by Industry100% = $_B $_B $_B 24% 29% 32% Z% Industries 5-7 48% Y% 48% Industries 2-4 49% Industry 1 X% 27% 23% 19% 2010 2011 2012
  18. 18. Keep it Simple, Statistician.Simplicity elevates insight to value.
  19. 19. Get in the weeds… … But don’t get lost.
  20. 20. 5. Pushing Intelligence to the “Front Line”
  21. 21. From Push to Pull Presenting intelligence through datavisualization pulls executive strategies to the front-line
  22. 22. Discover the “Unknown Unknowns” - Donald Rumsfeld
  23. 23. Real Time and Proactive – What is it?
  24. 24. Real Time and Proactive – What does it take? Information Action Distance Decision Set Set Predict and Analytics Act ProcessSource: Richard Hackathorn at
  25. 25. So, what is Analytical Process? Business Analytics Information Problem • Health Check • Shifts in Margin Dashboard • Attrition issue • Customer • Lower Margin Customer Migration Report Acquisition • Price/Attrition • Volume Mix Shift Alerts Measure Activate Operationalize •KPIs • Cross Sell and update •Dashboards • Up Sell strategy •ROI • Reduce Price • Add-On
  26. 26. Speed of Analytics – Why business reaction is slow? business event data stored Lost Business Value information delivered action Capture taken Latency Analysis Latency Captured Decision Business Latency Value Source: Richard Hackathorn at Time
  27. 27. Speed of Analytics – How can we increase speed? business event data stored Lost Business Value information delivered action taken Captured Business Value Source: Richard Hackathorn at Time
  28. 28. Speed of Analytics – Getting Real Time ……. business event data Lost Business Value stored information delivered action taken Captured Business Value Source: Richard Hackathorn at Time
  29. 29. Data to Insights - How Traditional Process works? Decision Makers Integrated Data Warehouse and BI Data Integration Data Marts Presentation Tool Data Analytics Data sources Report Consumers Business Analysts 6-8 months 6-8 months 6-8 months End to End Data Analytics Solution
  30. 30. We are building data and delivering insights at the sametime Integrated Data Warehouse and BI Data Integration Data Marts Data sources Analysts and Business Users Presentation Tool Decision Makers KalvinTellTM – An Integrated Enriched and Solution Analytical Intelligent Data Engine Analytical Data Synchronization Analysts Business Users Decision Makers Feedback Process ( Update Analytical Models)
  31. 31. KalvinTell – An Integrated Analytical Engine for faster TMturnaround Data Data Probabilistic Security KalvinTell – an automated TM Integration Model Logic Logic end-to-end solution with Survival up-to-date predictive Report analytics embedded within Calculations data layer & Business Rules Data Quality Logic Data sources Segmentation Multiple Regression Targeted Pricing audience Strategy Growth Attrition KalvinTell Rate ™ WebI (Kalvin’s Analytical Mobility Upside Engine) potential Explorer Dashboards
  32. 32. Merchant Centric Analytics Roadmap Health Merchant PredictiveDiagnostics Check to to Engagement Analytics enables... Reporting drive... grow... & Growth– Analysis – Customer Migration – Retention Modeling – Relevant– Trends Reporting – Attrition Modeling Communications– Segmentations – Key Drivers & Metrics – Revenue and Margin – Merchant – Customer Loyalty Forecasting Product– Capture Enhancements relevant – Customer attrition – Pricing Strategy attributes – Merchant Behavioural Selection (targeting)
  33. 33. Real Time in Days Cross Sell or Up Sell Pricing and Attrition AlertsWhat? What Next? Merchant Centric Segmentation Real Time in Months
  34. 34. Key Takeaways 36
  35. 35. Thank You!