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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
ToC - Agenda
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.
3Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
ToC - Agenda
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.
4Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
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
5Copyright © Capgemini 2012. All Rights Reserved
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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.
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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
7Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
ToC - Agenda
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.
8Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
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.
9Copyright © Capgemini 2012. All Rights Reserved
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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
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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
11Copyright © Capgemini 2012. All Rights Reserved
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HADOOP - Specific Big Data Architecture
12Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
ToC - Agenda
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.
13Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
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.
14Copyright © Capgemini 2012. All Rights Reserved
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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
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
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
15Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
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
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
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
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
16Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Image you could do this …
17Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
ToC - Agenda
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.
18Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
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
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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
20Copyright © Capgemini 2012. All Rights Reserved
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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
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