1 Copyright © 2014 Tata Consultancy Services Limited

Importance of Predictive Analytics to Business AgilityTCS Predictive Analytics Event

N. Sarma

Vice President & Head of Analytics and Insights

2 TCS Public

Agenda

Business Challenges & Applications

What’s Next with Predictive Analytics

TCS Case Studies

3 TCS Confidential

3

Data: The New Natural Resource

Market Trends

Social Media

Customer Satisfaction &

Loyalty

ConsumerBehavior

Price & Promotions

Sustainability Issues• Demand and supply

forecast accuracy• Inventory

Management

• Effective pricing• Managing losses• Sourcing efficiency• Capacity Utilization

• Market Share• Share of voice• Brand health• Demand growth

Utilityenterprise

4 4TCS Sensitive

Moving up the Analytics Value Chain

Busi

ness

Val

ue

Solution Sophistication

Data Management

Reporting

Descriptive Analytics

Predictive Modeling

Optimization

5 5TCS Sensitive

Pertinent Challenges that Plague most Businesses

Personalization Stock

out

Fraud Loss

Optimal Pricing

Credit Loss

Marketing ROI

Customer Engageme

nt

IMPERATIVES FOR BUSINESS

AGILITY

6 6TCS Sensitive

BFS Insurance

Energy&

Utilities

Hi-Tech

LifeSciences

MfgMedia

Retail

Telecom

Travel

Industry

Predictive Analytics, a Game Changer for every Industry

•Anticipate Risk & Fraud•Manage credit lines and collections•Customer profitability & churn• Improve Marketing ROI

•Optimal Maintenance Scheduling•Routing and Load Factor Optimization•Demand & Sales Forecasting

•Service Plan Optimization•Churn Analytics•Preventive Asset Maintenance•Network Optimization

•Inventory optimization•Optimal Pricing•Campaign Analytics•Loyalty & Churn analysis

• Demand based pricing • Optimal Program Planning• Market Sentiment• Marketing ROI

• Set Premiums• Improve Customer Loyalty•Improve Marketing ROI•Customer Life-time Value

•Improve Collections•Cost Assessment•Optimal Tariff•Load Planning•Optimize Production

•Pricing Optimization•Supply Chain Optimization•Demand Planning •Inventory Forecasting

•Sales force Optimization•Call Profitability•Risk based site monitoring •Demand Forecasting

•Demand Forecasting•Optimal Pricing•Warranty data analytics•Failure Prediction

Prediction is key to the success of any business

7 TCS Confidential

7

TCS Provides end to end Analytics to a large global market research company

7

Advanced AnalyticsCovers Predictive

Modeling of Market Mix, Price, Promotion

& Assortment

Measurement Science

Delivers Statistical Analysis and Data

Management

Client ServicesProvides Insights,

Foresights & Trends in

Business & Consumer

Watch ServicesAnalyzes & tracks TV,

Mobile, Internet, Social Media to measure brand

performance

Analytics as a Service50%

Saving in Client Service Executive time

>30% Improvement in

Cycle Time

Global HubsCreated for Top 5

Customers

Design CentreBuilt to create new methodologies

& experiment techniques

TrainingFor New Joiners

8 TCS Confidential

8

TCS Analytics Helps Shape a Large Australian Bank’s Strategy

8

Sales Reports Provide insights on branch performance, sales trends

& profitability

BASELHelps manageCapital Risk

Marketing AnalyticsEnables identification of

target customers and promote the right offers

Service Analytics Supports call center capacity planning that determines right

response time to satisfy customer

Data ManagementConsolidates data, cleanses &

hosts it on a platform for a single version of truth

Analytics COEContributes significantly in shaping the bank’s strategy across

Revenue growth, Profitability, Loss reduction, Service excellence

9

Decision Support

Ch

urn

An

alyticsC

amp

aign

An

alytics

So

cia

l Med

ia L

iste

nin

g &

An

aly

tic

s

Consumer Insights

Predictive Analytics

Sales &

Marketin

g A

nalytics

Supply Chain

Media Planning

Market Basket

Spend Analytics

Capacity Analytics

SKU Rationalization

Loyalty Analytics

Assortment Planning

Pricing Analytics

Inventory Optimization

Demand Forecasts

Marketing Mix

Customer Segmentation

$ 15 MMOpportunity identified for new product launch through

price optimization

200%Increase in campaign response

rate

$ 70 MMAdditional revenues by

increasing response to marketing campaigns

2-3%Inventory reduction through

accurate demand forecasting and right pricing

$ 5 MMOpportunity identified by

marketing budget optimization

HR Analytics

Delivering value through analytics

30%Increase in chargeable premium for maintenance

of risky assets, by a Turbine Manufacturer possible with TCS’s stochastic forecasting models

, 70% Reduction in scheduling TAT .

$ 120 MCredit Loss Saves and $ 450 M in revenues for Top 5 Bank

10

• Steering group• Program management office• Delivery structure• 3rd Party management

• Business metrics impact• “Prove performance”

• Business analysis• Change management• Value demonstration• Business development• Business process

expertise• Training - modeling,

statistical analysis, tools• Knowledge sharing

AaaS• Data integration• Capacity planning• Environment

management

• Data management• Data quality• Stewardship• Knowledge management

• Analytical methods• Analytical models & Validation• Re-use of components • Software tools• Analytics Maturity plan

• Process / Workflow• Agility & Service levels• Standards / Consistency

• Complex problem solving• Emerging technologies• Disruptive applications• Next gen Insights delivery

& Visualization

INTEGRATED TEAM - GLOBAL HUB – VALUE DRIVEN - ENHANCED END USER EXPERIENCE

Analytics as a Service – Engagement Model

IT ServicesBusiness SolutionsConsulting

Thank You