big data: is er werkelijk een business opportuniteit? (paul vandenhende, capgemini)

Big Data : Is there a real business opportunity ?

Symposium PC 218,

13 November 2012, Paul Vandenhende

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2Copyright © Capgemini 2012. All Rights Reserved

Presentation Title | Date

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What is Big Data ?How to implement it ?What type of business opportunities become possible by using Big Data

Analytics ?Big Data opportunity SWOT analysis.



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What is Big Data?

76 millionsmart meters

in 2009…200m by

2014

2+ billion people on the Web by end

2011

100s of millions of

GPS enabled devices sold

annually

4.6 billion camera

phones world wide

30 billion RFID tags

today (1.3B in 2005)

12+ TBs of tweet data

every day

25+ TBsof log data every day

Many PBsof data every

day

80%Of world’s data is unstructured



Big Data incorporates many different features

Big Data

Volume

Velocity

Variety

Veracity

• Big Data Solutions do not replace your existing information management processes and solutions.

• It adds an additional opportunity and use case.

http://timoelliott.com/blog/wp-content/uploads/2011/09/hadoop-vs-traditional.png



Classical business intelligence co-exists with Big Data

Traditional ApproachStructured and repeatable analysis

Big Data ApproachIterative & exploratory analysis

Business User determines what questions to be asked

ICT structures the data to answer that question in a repeatable way.

ICT creates a platform to enable creative discovery

Business User explores what questions could be asked.

Monthly Sales reportsProfitability analysisCustomer surveys

…

Brand sentimentFraud detectionProduct strategyAsset utilization



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Journey required to address the “Social Media” Challenge:

So how do you find a way of cutting through the noise and turning insight into action at scale?

Noise Insight Action

Filtering through the noise is hard enough – Social Media Monitoring tools are notoriously inaccurate. But insight without action is worthless.



Capgemini has developed a Big Data strategy, methodology and delivery capability to help clients take advantage of big data: Big Data Process Model

Development and Implementation Considerations

Managing integration of data sources

Big Data Methodology

Data Integration

Master data, governance & data quality & filters

Data Integrity

Dealing with new customer data sources

Privacy & Security

Models that deliver business value

Analytics Value

Big Data PoV

Acquisition Marshalling Analysis Action

New Business Model or Business Model Improvement

Collection of dataOrganization and

storing of dataFinding insights

Predictive modellingChanging business

outcomes

Data Governance

Tool’s choiceArchitectureM2M, ERP injection, dialog with suppliers...

Action

Be sure the first project step will be a success !

First useStructured, non structured modelling, ...

Data Storing



Capgemini Big Data Process Model

Collection of data from sources Traditional ETL but often

real-time “constant acquisition” due to volume & velocity

As data is often external – there are issues of security and trust

Licence for data, / privacy issues for external data

Open Data (publicly available sources like http://data.gov.uk/)

Organization (and storing) of data Large volumes / constant

feed Need to consider how it will

be consumed (real-time, ASAP, history) and filtered appropriately

Format – structured, semi-structured on unstructured

Modelling – from raw form to highly structured depending on source and use

Data lifecycle: transient vs. long term storage / archival

Finding Insight / predictive modelling Forward (prediction) rather

than historic Modelling behaviour – how

will customers react? When is the optimum time to replace parts….

Probabilistic rather than definitive

Text, voice and video analysis

Using Insights to change business outcomes

Outputs are: Human (e.g. reports and

analysis that people then act on)

Machine (more common with big data) – e.g. automatic assessment of customer to adjust offer (e.g. Amazon proposed products based on customer profile)

BPM technology / Real-time decisioning

Partners Information System

Master Data Management & Data Governance

ActionAcquisition Marshaling Analysis

http://data.gov.uk/



HADOOP - Specific Big Data Architecture



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Volumes of Global Online Customer Conversations as atJune 2011

The volume of customer conversations is exploding…

90mTweets per day

24 hoursVideo uploaded per minuteTo YouTube

600mFacebook users worldwide

24 hoursTime taken by Charlie SheenTo amass 1m Twitter followers

Control of the conversation has shifted to the customer. Customers are defining how, when and where they interact with brands, content & services.



Social Media is not just a topic for Customer Service, Marketing and PR

The breadth of potential beneficiaries across an organization:

Customersatisfactionlower costs

reduce churn

Customer Service

Provide service before a complaint reaches you

Facilitate customers to support one another

Reduce response times and

lower costs Deliver consistent multi-

channel experience Increase agent productivity Reduce customer churn

Risk / Compliance

Improve ability to more quickly identify and respond to fraudulent activity

Recruitment / HR

Identify what leavers/prospects are saying about you Identify new talent Increase employee loyalty and satisfaction, helping to reduce

recruitment costs

Sales

Generate leads and opportunities (through inbound marketing)

Increase ease with which you can contact prospects Transparency and instant feedback via peer-to-peer

reviews/recommendations) help increase sales

Marketing / PR

Enable user-to-user interaction on the social cloud (on their terms)

Low-cost way to get a powerful message across Improve understanding of customer needs

Technology Strategy



Reduce response times and lower costs

Deliver consistent multi-channel experience

Increase agent productivity Reduce customer churn

Corporate Strategy

Bring Voice of Customer into decision making Predict trends Improve MI Reporting Competitor watch

Product Development

Listen to your (potential) customers Optimise portfolio of products and services Leverage the creativity / knowledge of the crowd Lower development costs, reduce time to market and

increase success rate (minimises recalls)

Increase success ratelower costsreduce TTM

Customer-focused Strategyimprove

intelligence/MI

Customersatisfactionlower costs

reduce churn

Increaseproductivitylower costs

enhance brand reputation

Increase sales

extend potential customer

base

Increase employee

loyaltylower costs

Reduceanti-fraudulent

activity



Our clients are starting to reap the rewards of being among the first to take advantage of addressing this “Social Media” challenge…

Sample client feedback:

CustomerSatisfactionLower Costs

Reduce Churn

Customer Service



Reduce response times and

lower costs Deliver consistent multi-

channel experience Increase agent productivity Reduce customer churn

Risk / Compliance

Improve ability to more quickly identify and respond to fraudulent activity

Recruitment / HR

Identify what leavers/prospects are saying about you Identify new talent Increase employee loyalty and satisfaction, helping to reduce

recruitment costs

Sales

Generate leads and opportunities (through inbound marketing)

Increase ease with which you can contact prospects Transparency and instant feedback via peer-to-peer

reviews/recommendations) help increase sales

Marketing / PR

Enable user-to-user interaction on the social cloud (on their terms)

Low-cost way to get a powerful message across Improve understanding of customer needs

Technology Strategy



Reduce response times and lower costs

Deliver consistent multi-channel experience

Increase agent productivity Reduce customer churn

Corporate Strategy

Bring Voice of Customer into decision making Predict trends Improve MI Reporting Competitor watch

Product Development

Listen to your (potential) customers Optimise portfolio of products and services Leverage the creativity / knowledge of the crowd Lower development costs, reduce time to market and

increase success rate (minimises recalls)

Increase Success RateLower CostsReduce TTM

Customer-focused StrategyImprove

Intelligence/MI

CustomerSatisfactionLower Costs

Reduce Churn

IncreaseProductivityLower Costs

Enhance Brand Reputation

Increase Sales

Extend Potential Customer

Base

Increase Employee

LoyaltyLower Costs

ReduceAnti-fraudulent

Activity

This has transformed our ability to understand what customers are saying and their pain points. It helps us to define and prioritise our spending on customer initiatives.

– Canadian Bank

This significantly improves our ability to monitor customer issues and track emerging trends.

– UK High Street Bank“ ”

This is critical to us identifying and pre-empting cries for help and understand root causes. It also allows us to automatically take action.“

”– Leading Global Online Travel Company

“”

We now listen and act on customer data in our service department, our innovation and product development groups and in the market every day.

We get early warning for safety and warranty issues, and in many cases have mitigated expensive recalls. Recall avoidance has reduced our recall costs by 80% over the last 6 months.

In addition to product quality improvements, we have a better understanding of customer needs and wants and of our competition and what they are doing to win over customers.

“

”– Leading Global Appliance Manufacturer



Image you could do this …



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The Economist Intelligence Unit Survey:

What we found:

85% Say the issue is not about volume but the ability to analyse and act on the data in real time

9 out of10 say the decisions they’ve made in the past 3 years would have been better if they’d had all the relevant information

75% Believe their organizations to be data-driven

42% Survey respondents say that unstructured content is too difficult to interpret

but

The Deciding Factor: Big Data and Decision Making

26%is the level of performance improvement already seen from the application of big data analytics

41% is the level of performance improvement expected in the next 3 years

62% Dispute the proposition that most operational / tactical decisions that can be automated have been automated

56%Cited “organization silos” in the top three impediment to effective decision making

50% cited “shortage of data analyst”

You can find the full report at http://www.capgemini.com/bim

http://www.capgemini.com/bim



Strengths, Weaknesses, Opportunity, Threaths

STRENGTHS

Creates a wealth of new business opportunities

Impacts almost all processes of your value change

Creates a significant competitive advantage by enabling real-time response on business events.

WEAKNESSES

Lack of resources with big data knowledge

Investment ICT and business process redesign

A new information culture is a necessity empowered by management.

OPPORTUNITIES

Improvement to your bottom line avg. 26%

New business models bring you ahead of competition

THREATHS

Waiting to explore the opportunity will bring your company out of the race.

Dependence of social media

Legal : protection of privacy

Do not start without the proper methodology.

Big Data Opportunity



Contact information

Paul VandenhendeSenior Manager / BIM Service line [email protected]

Capgemini Belgium NVBessenveldstraat 19B-1831 Diegem

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THANK YOU

More insightfull information at http://www.capgemini.com/bim

mailto:[email protected]

http://www.capgemini.com/bim

The information contained in this presentation is proprietary.© 2012 Capgemini. All rights reserved.

www.capgemini.com

About Capgemini

With more than 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion.Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model.

Rightshore® is a trademark belonging to Capgemini

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big data: is er werkelijk een business opportuniteit? (paul vandenhende, capgemini)

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