competing in the digital economy

w w w . c g n g l o b a l . c o m

CGN GLOBALCompeting in the Digital Economy

March 2014

2 | CGN Global - Confidential

Agenda

• Defining the digital spectrum

• Business @ speed of light

• Big Data, Hairy decisions, Audacious results

• The customer – value equation


The digital spectrum is a multi dimensional living, evolving ecosystem and there is a recipe that works for you and your customers – you just have to find it!

Channel to market

Real time decision making

Target resolution

Privacy

Framing the contextual problem becomes a critical first step in the digital economyData drives business drives data

… and so on


Superior business models in the digital age will have to deliver on competing business priorities without dropping the ball

Closeness to customer

Product / Service innovation

Operational excellence

Crowd sourceTele-management

Zero

late

ncy

Ultrascale

Micro-targetedGeo-located

Psychographicsconvergence

A/B testing

Access / availability

Technology is forcing traditional businesses to decouple their processes and arrive at newer models to remain relevant under continuously evolving market conditions


Competing in the digital age involves synthesizing relevant insight from multiple data sources – structured and unstructured…… AND ACTUALLY DOING SOMETHING WITH IT!

Technology capabilities are moving from just analytics to actionable insight but the truly transformative scenario would be adaptive decision making.


Healthcare: Patient centric approach to delivering value in an integrated care delivery environment

Asset tracking for improved utilization

Patient tracking from the time the patient walks into

the door

Resource monitoring

for improved productivity

Reduction in the lead time to serve patients, through real time data collection & analytics

capability

LocationLocationWhere are patients within the facility?

Where is staff within the facility?

Where are devices/assets within the facility?

Traffic Patterns

Hot/Cold zones within the facility

Dwell times

Core metrics: unique visitors, visits etc.

Repeat visitor ratio, visit frequency, recency

Key MetricsKey Metrics

IdentityIdentity

Who is in the facility?

What is the profile of patients within the facility?

AnalyticsAnalyticsHow many patients are in the facility

Where do patients spend most time

What are the paths they take

How many are repeat visitors


Healthcare: The true business value of big data is in delivering structural cost improvement and improving financial stability of the enterprise

Salaries & Wages

51%

Services &

Supplies27%

D&A5%

Revenue100%

Higher operating network efficiencies

Optimized fixed costs & procurement

Gain

Increased throughput resulting in greater visits & revenues

Higher efficiency of administrative activities through technology interventions

Operating Income4%

Other exp11%

Interest exp2%

Impact on Provider

• Fewer resources & associated costs

• Reduced administrative & transaction costs

• Ability to generate greater revenues through improved patient throughput

• Improved resource & asset utilization

Right sized assets


CPG / Retail: Putting the customer in charge of the product discovery and buying experience and allowing unfettered exchange of information in return for real value

Susie goes to the store

Susie decides to host a party and checks out wine options online

Connect with Susie as she looks at inventory at a client’s web

property (FB page, Twitter handle, website, etc.)

Promote the client app / web property / products in Susie’s

and her “look alikes’” news feed and sends her coupons / ads /

app downloads

Recognize her smartphone as she enters the store and tracks her as she walks towards the

wine aisleShe walks through the store occasionally stopping to check out various products

Suggest other products based on her current location as well as

recommended wine pairings with those products. Additionally, it sends

her relevant coupons and offers

She completes her trip and checks out

Update her profile with the list of

products bought for future

recommendations

Susie goes online to review the wines

Update the sentiment profile for the product and aggregates feedback to the

retailers and brands

Brand Awareness

Personalized Promotions

Social Sentiment

Product Innovation

Dynamic Pricing

Customer Engagement

Susie invites her friends and downloads the app


CPG / Retail: The power of the medium is in connecting with the core audience with pin point accuracy and scaling that universe using network effects with efficiency

Reach – 3,500k

Reach – 2,500k

Reach – 120k

Step 1:Identifying the most engaged audience

• Core audience on FB (177K) and Twitter (30K)• Subset of this audience interacting with a

particular video post – 50K• Look alike audience harvesting – 100K to 120K• Targeted, personalized messaging through

sentiment and emerging theme analysis• 3-5% app download – 3K to 6K

Step 2:Expanding

reach across the web

• Expand audience on Youtube (500K) and ShareThis (1,000K to 1,500K)

• Understand audience psychographic and behavioral characteristics

• Look alike audience harvesting – 2,000K to 2,500K

• 1-3% app download – 20K to 75K

Step 3:Reaching

audiences in context

• Incentivize engaged audience to spread the message through their network – 1,000K

• 1-1.5% additional app download – 10K to 15K• 2 way communication with 100K consumers

inside stores through the app• Store analytics and strategic screen marketing in

context of the shopping activity

Converting an ever expanding universe of

engaged eyeballs to spending consumers


CPG / Retail: The digital journey roadmap drives distinct value to the business performance buckets at each stage – The key is tracking and measuring it

SG&A22%Own Data

• Key statistics• Correlated price and volume movements• “Halo” effects

Digital Media Advertising Platform• Increase ROI on advertising• Micro targeted messaging• Behavioral segmentation

Location Based Services• Extend online profile to physical location• In context messaging• Personalized app content management

Integrated Business Decision Support• Extend online profile to physical location• In context messaging• Personalized app content management

Stage 1

Stage 2

Stage 3

Stage 4

Gross Margin

32%

Revenue100%

Net Margin10%

Cost of Goods Sold 68%





34%

11%

SG&A22%

SG&A22%21%

SG&A21%

SG&A21%

13%


Automotive: A seamless customer experience delivering actionable sales insight for a frictionless buying process

Sam goes online to research a car

System analyzes his behavior and influencers

System tracks Sam’s choices and preferences

System alerts dealership of Sam’s choice and identifies his vehicle

Sam walks into a dealership

System tracks Sam’s data and enriches profile

Sam buys a car

System tracks Sam’s comments and sentiment

Sam goes online to talk about his experience

System prompts personalized messages for

a new car

Sam is ready for a new car

System up-sells service packages

Sam brings his car for service

Sam configures a car online


Automotive: The business value lies in creating an ecosystem of engaged consumers and developing multiple touch points through the relationship lifecycle

Actionable intelligence from real live conversations across 700 M users and 50,000 brands and live location feed from every single customer in the dealership

Track and target influencers for your context

Win mindshare across the competitive landscape

Take the online relationship into the dealership and vice versa

Execute end to end from insight generation, targeted messaging as well as relationship management

One source of data to track the whole lifecycle from intent generation to first time purchase, servicing and then repeat buyer


Insurance: Real time catastrophe response management to optimize field resource deployment and service distressed policy holders in their times of need


ImpactFin&Strat Levers

Insurance: The business value comes from recognizing that efficient response to crisis not only minimizes the impact of the catastrophe but also creates lasting brand equity

Accurate claims processing

• Right resource, right place, right time• Early response, limited damage• Lesser time in ancillary support (hotel,

rental cars, etc) → lesser expense

• Cost of latency for claims adjustment

• Cost of ancillary support / affected policy holder

Combined ratio ↓

Optimized resource deployment

• Predictive resourcing models• Real time monitoring of ground realities• Targeted response with required

resource instead of max coverage

• # of deployed resources• Optimized mix of deployed

resources (training, supervisory, etc.)

Expenses ↓

Procurement efficiencies

• Proactive positioning based on real time feedback for optimized response

• Pre-staging reduces prices of hotel rooms, rental cars, etc.

• Pre buy impact on ancillary support / affected policy holder

• Reduced wastage

Expenses ↓

Brand equity & market share

• Real time sentiment management• Proactive engagement with policy

holders and quick response• Visible leadership

• Market share• Cost of retention vs. cost of

acquisition• Competitive pricing advantage

Premium income ↑

SourceBenefit


A fair and transparent exchange of information for commensurate value between the provider and consumer drives sustainability

VALUE = QUALITY PRICE

Performance

Best in class

Frictionless experience

Features & attributes

Customized offering

Highly responsive

$

Personal information

Time

Competing in the digital economy is about generating business (value) by serving greater market complexity (quality) without sacrificing operational simplicity (price)


SAURABH DEYSENIOR MANAGERE. [email protected] P. 617.755.4881

THANK YOU