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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
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
Leading MerchantServices 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
Hot Trends
• Enhanced Exposure
• Expanded • Expanded Opportunity
• “Major” Area of Study
• Up-front vs. Back-end
• Speed vs.
Hot Mess
• Speed vs. Accuracy
• Form vs. Functionality
5 things we’re doing to accelerate the Institutionalization of Analytics into Decision Making at .
1. Defining & Scoping What Analytics Is
Macro Level
Descriptive Predictive
Analytics!?!? Analytics!?!?
Micro Level
Descriptive Predictive
Analytics!?!? Analytics!?!?
Macro Level
Descriptive Predictive
“Top of House” Financials
Monthly Business Forecasts
Micro Level
Descriptive Predictive
Segment Specific Reporting
Customer Level Predictions
2. Location, Location, Location
3. Managing the “All or Nothing” Mentality
Where We Will Be
Where We AreWhere We Are
Where We Were
4. Balancing Accuracy & Understandability
“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
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
Visualizations deliver organizational buy-in.
Total Signature Revenue by Month – Vantiv Merchant Direct
Feb. ’12
$18,000,000
$20,000,000
Pricing Ef fect
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
02/0
1/1
0
03/0
1/1
0
04/0
1/1
0
05/0
1/1
0
06/0
1/1
0
07/0
1/1
0
08/0
1/1
0
09/0
1/1
0
10/0
1/1
0
11/0
1/1
0
12/0
1/1
0
01/0
1/1
1
02/0
1/1
1
03/0
1/1
1
04/0
1/1
1
05/0
1/1
1
06/0
1/1
1
07/0
1/1
1
08/0
1/1
1
09/0
1/1
1
10/0
1/1
1
11/0
1/1
1
12/0
1/1
1
01/0
1/1
2
02/0
1/1
2
Volume Effect
29% of total
42% of total
50% of total
Baseline
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
Keep it Simple, Statistician.
Simplicity elevates insight to value.
Get in the weeds…
… But don’t get lost.
5. Pushing Intelligence to the “Front Line”
From Push to Pull
Presenting intelligence through data visualization pulls executive strategies to the
front-line
Discover the “Unknown Unknowns”
- Donald Rumsfeld
Real Time and Proactive – What is it?
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
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 ShiftAlerts
• Cross Sell
• Up Sell
• Reduce Price
• Add-On
Activate
Operationalize and update
strategy
•KPIs
•Dashboards
•ROI
Measure
Speed of Analytics – Why business reaction is slow?B
us
ine
ss
V
alu
ebusiness
event
data stored
information delivered
Bu
sin
es
s
Capture Latency
Analysis Latency
DecisionLatency
Time
action taken
CapturedBusiness Value
Source: Richard Hackathorn at TDAN.com
Lo
st
Speed of Analytics – How can we increase speed?
business event
data stored
information delivered
Bu
sin
es
s V
alu
e
Time
action takenB
us
ine
ss
CapturedBusiness Value
Source: Richard Hackathorn at TDAN.com
Lo
st
Speed of Analytics – Getting Real Time …….
business event
data stored
information delivered
action takenB
usin
ess V
alu
eL
ost
Time
CapturedBusiness Value
Source: Richard Hackathorn at TDAN.com
Data to Insights - How Traditional Process works?
Data sourcesData Integration Data Marts
Pre
se
nta
tio
n T
oo
l
Decision Makers
Report Consumers
Integrated Data Warehouse and BI
Da
ta A
na
lyti
cs
Pre
se
nta
tio
n T
oo
l
Business Analysts
Da
ta A
na
lyti
cs
End to End Data Analytics Solution
6-8 months 6-8 months 6-8 months
We are building data and delivering insights at the same time
Data sources
Data Integration Data Marts
Pre
se
nta
tio
n T
oo
l
Analystsand Business Users
Integrated Data Warehouse and BI
Enriched and Intelligent Data
Pre
se
nta
tio
n T
oo
l
Feedback Process ( Update Analytical Models)
KalvinTellTM
– An Integrated Solution Analytical
Engine
Decision Makers
Analysts Business UsersDecision Makers
Analytical Data Synchronization
KalvinTellTM – An Integrated Analytical Engine for faster turnaround
Data Integration
Logic
Report Calculations & Business
RulesData
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
Merchant Centric Analytics Roadmap
DiagnosticsHealth Check
Reporting
Predictive Analytics
Merchant Engagement & Growthenables...
to drive...
to grow...
– Customer Migration Reporting
– Retention Modeling – Relevant Communications
– AnalysisReporting
– 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
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
Key Takeaways
Thank You!Thank You!