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Copyright © SAS Institute Inc. All rights reserved. Embracing Big Data CMU Data Analytics Conference | September 22, 2017 Lonnie Miller Principal Industry Consultant, SAS

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Page 1: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

Copyright © SAS Inst itute Inc. A l l r ights reserved.

Embracing Big DataCMU Data Analytics Conference | September 22, 2017

Lonnie Miller

Principal Industry Consultant, SAS

Page 4: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

Copyright © SAS Inst itute Inc. A l l r ights reserved.

Embracing Big Data – Today’s Discussion

What Business Leaders Care About

Data, Technology & Effective Processes

Relevant Skills & Capabilities

Page 5: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

Copyright © SAS Inst itute Inc. A l l r ights reserved.

Page 6: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

Copyright © SAS Inst itute Inc. A l l r ights reserved.

Page 7: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

Copyright © SAS Inst itute Inc. A l l r ights reserved.

What Business Leaders Care About

Page 8: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

Copyright © SAS Inst itute Inc. A l l r ights reserved.

A 1-percentage-point increase incustomer loyalty translates into an additional

$700 million in revenue for GM

“”

Automotive News, 6/10/13

Page 9: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Page 10: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Executives Don’t Think About Big Data

olume

ariety

elocityV

Page 11: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Executives Think About WhatBig Data Will Do for Their Business

ctions

cceleration

dvantagesA

Page 12: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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How does analyticsinfluence ….

… human behavior?… loyalty?… quality?… safety?… content?

Page 13: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Commercializing Connected Vehicle Data

Safe driving

PAYD

PHYD

PFMD

Context aware

Fraud

detection

Optimal offers

Optimal fuel consumption

Influencing human behavior

in app, in car

Multi-modal user score

Verbatim and text

categorization

Eco- driving

Page 14: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Optimizing the Customer Experience

Personalization

Understand caller

intent

Recommendations Goodwill treatment

Discover meaningful

customer interests

or concerns

Placement into

profitable loyalty

tiers

Page 15: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Intelligent Customer Interactions

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How Does Advertising Benefitfrom Real-Time Analytics?

Page 17: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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How Does Advertising Benefitfrom Real-Time Analytics?

Page 18: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Manufacturing Excellence

Preventative

maintenance

Escalate early (perceived)

quality issues

Data mining for

root cause investigations

Situational repair

recommendations

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Better Business Planning

Model performance

(champion /

challenger

assessment)

Experiment with

alternative

forecast

techniques

Identify causal

factors

Demand Planning / Sales & Parts,

Contract & Delinquency Forecasting

Page 20: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Data, Technology and Effective Processes

Page 21: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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What Is This?

"PEJCU0Q+PEJldlJlcG9ydD48QmV2UmVwb3J0X0

luZGV4PjxyYXdSZXF1ZXN0PjIyQTAwNTwvcmF3U mVxdWVzdD48ZWN1QWNyb255bT5CUENNPC9l”

Page 22: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Raw Data from a Vehicle

Page 23: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Types of Big Data You Should Care About

Structured(e.g., numeric, fixed length)

Time-series(e.g., sales history)

Geospatial(e.g., lat/long, GPS)

Event(e.g., alerts)

Raw(e.g., POS terminal)

App logs(e.g., sign-in times)

Social media(e.g., tweets, blogs)

Weblogs, clickstream(e.g., mobile site visits)

Machine-generated(e.g., sensors, RFID)

Streaming, real-time(e.g., cloud altitude)

Unstructured(e.g., text)

Image(e.g., cancer cells)

Page 24: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

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Best Practices

Begin with the end in

mind

1. What problem are you solving?

2. What is its economic value?

Five Capabilities

1. Analytics from big data

2. In-stream analytics

3. Real-time reasoning

4. Data management

5. Model management

Have a Data Strategy

1. Identify

2. Store

3. Provision

4. Integrate

5. Govern

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What Could You Do If You Found These Customer Segments in Your Online Order Data?

1. Isolate profiles: profitability, seasonal or regional uniqueness

2. Identify popular SKUs per group

3. What’s common between #1 & #2?

4. Examine sentiment based on text, CSR notes, surveys &/or warranty records

5. Identified overlapping SKUs

What If … ?

$ AVG. $ SPEND / ORDER $$$$

Low

DEF

ECTI

ON

RIS

K

H

igh

(Customer Mix: 50%)

(Customer Mix: 40%)

(Customer Mix: 10%)

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Possible Roadmap & “Quick Wins”

1. Shipping (examine DCs) aiding most profitable segments?

2. Content audit (call center scripts, improved web or mobile site content changes based on sentiment or concepts via text analysis)?

3. Retention program for #3?

4. Price testing with #1?

5. Prioritize forecast initiative for overlapping SKUs

Strategic & TacticalMarketing Options

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Data Streams Real Time Decisions

Real Time Data Stores

Technology Enablers

Big Data Analytics

Streaming AnalyticsEvent Stream Processing

What transferrable

information can we capture and

pass from customers

and/or devices?

What relevant

business rules, filtering rules, analytical models,

interactions and/or offers should be

applied?

What business rules or

predictive models are available to

use?

What content exists creating a

relevant or differentiated experience?

How can we continuously receive

and examine customer or the

device?

1

23

Data Management

How reliable, uniform, usable is the data?

4

Model Management

Model performance? Model inputs? Model access/usage?

5

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RTDM will execute decisions to determine the best interaction:• (Illustrative ex:) Model uses owned vehicle segment, enrollment for

owner notifications, prior # service visits, new vehicle in-market score and prior customer pay amounts

• Customer Lifetime Value (CLTV) score is updated

RTDM will interface to SAS Marketing Optimization(MO) to retrieve optimized offer set

Example: On-site Service Offer Experience

Paige scheduled an appointment for aquick ‘how-to’ sessionto use the Car-Net®Security & Servicefunctions with her2017 Tiguan

1 Paige enters the VW retailer -while waiting for her appointment, she chooses to use the available, free Wi-Fi

2 In the lobby, ESP monitors thein-store router and detects Paigeentered the showroom

(based on router & cell phone)

3

ESP looks up Paige’s guest details based on phone / email / user information from her Volkswagen Credit account

4

5

RTDM pushes an SMS with an email link that reflects:• Highlights & benefits of an extended warranty plan • A reminder of other upcoming maintenance needs • The name of the onsite service managers she may speak

with to inquire about the offer

6

Paige receives the personalized message before she starts her Car-Net® training session

7

SAS Real Time Decision Manager

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“Goodwill” - Real-time Decisions0

-6 M

ont

h In

-Mar

ket

Mo

del

Long-Term Value (LTV) Model

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Source: The Five Essential Components of a Data Strategy, SAS 2016

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This is Madness!

Source: The Five Essential Components of a Data Strategy, SAS 2016

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Data Strategy

Source: The Five Essential Components of a Data Strategy, SAS 2016

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Is This Acceptable?

Source: Operationalizing and Embedding Analytics for Action, TDWI 2015

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Relevant Skills & Capabilities

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Page 36: Embracing Big Data Analytics... · RTDM will interface to SAS Marketing Optimization (MO) to retrieve optimized offer set Example: On-site Service Offer Experience Paige scheduled

Copyr i g ht © 2016, SAS Ins t i tu t e Inc . A l l r ights reser ve d .

Desired Qualifications

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Copyr i g ht © 2016, SAS Ins t i tu t e Inc . A l l r ights reser ve d .

Desired Qualifications

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Desired Qualifications

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Open Source Code

Analytics Competency Center

Innovation

Data Scientist

Big Data

Data Governance

Hadoop

Cloud

IoT

Machine Learning/AI

Discovery

Cybersecurity

Data Strategy

Open Source Stack

Talent Management

Data Prep

Storytelling

Connected “X”

HOT TOPICS

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• Data is the new bacon … but more bacon isn’t always good for us

• Begin with the end in mind … get your results into production

• Make analytics work at scale: automated, multi-user, secure

• Analytic skills: [CS] + [math] + [plain spoken] + [domain knowledge] $xxx,xxx

Embracing Big Data

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Questions / [email protected]

@AutosRCool