Date post: | 22-Jul-2015 |
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What’s the Big Deal
About Big Data?
And What You Need to do in 2015
A Guide for Non-Technical Managers
Agenda
What is “Big Data?”
What made Big Data possible?
What’s Happening Now
Importance of 2015
How to Make it Happen
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What Enabled the “Big Data”
Phenomenon?
The confluence of two major changes:
1.The explosion of data – both structured (rows and columns) and
unstructured (web swipes, GPS tracks, satellite feeds, etc.)
2. The development of new software and analytic paradigms that
can make sense of the data in near real-time.
Volume: The explosion of web activity,
the ability to track individual keystrokes
and to analyze “unstructured” data
(non-digital data, such as surveillance camera images) has produced an unprecedented flood of potential information.
Velocity: Long gone are the days of waiting for monthly reports, now, for some data, after lunch is too late.
Variety: Today’s data comes in all forms, from traditional reports to video camera film and web app swipes. It’s messy and impossible for traditional systems to understand.
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What is “Big Data”?
Computational Advances
New software is revolutionizing analytics:
1. Software that uses semantic (language) understanding to
compute
2. Hadoop: Open source distributed storage and processing
software for commodity servers.
3. R Open source statistical language (understands language)
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1. Creating information transparency and usability at a
much higher frequency and finer granularity.
2. Enabling modeling and simulation at a lower cost
compared to real-world experiments, accelerating the
innovation cycle.
3. Fine-grain segmenting of customers to understand
and target customers individually.
4. Substantially improving decision-making through
data-driven decision support that replaces/supports
humans.
5. Powerful driver of innovation - The ultimate goal.
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5 Ways Big Data Adds Value
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Consumer
Behavior
Product
Intelligence
Merchandising
& Store
Format
Ontology Trade
Promotion
Intelligence
Transportation/
Logistics
Intelligence
Synergy of
All Data
Common
Sense Engine
Loyalty and POS
Data
Shipping &
Logistics DateDemographic & Lifestyle
Date
Product and
Inventory Data
Syndicated DataStore Format &
Merchandising
Data
Result: Integrated Understanding
Are these developments new to you or is your company actively pursuing some or all of theses technological advances?
If you have employed new technology, what are you doing?
Have you had any discussions with customers – e.g. Walmart – about using Big Data Solutions such as Savings Catcher or WMX?
Are your Supply Chain folks moving to Big Data Analytics?
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Poll Questions
The advent of “Big Data” Analytics will cause seismic changes in the all
industries by providing truly new and more comprehensive analytics that can
drive a deeper insights.
For example:
Consumer behavior and the Digital Path to Purchase
Cognitive Supply Chain: Understand logistics variables, choke points and
potential problems before they happen
The true impact of Trade Promotion
Consumer satisfaction post-purchase
9*In professional golf, “Moving Day” is Saturday – the day competitors must make a
move to position themselves to win on Sunday.
2015 is “Moving Day” for CPG
What’s Happening Now
Examples of leading Big Data
Initiatives
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McCormick Web Site
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McCormick's FlavorPrint engages customers through
everyday interactions.
A simple promise: Tell it what you like and it recommends recipes
personalized to your tastes.
Those recommendations become more finely tuned to your tastes as
you continue to interact with the site.
Since the site was launched, users have doubled repeat usage and
increased time spent on the site nine-fold; and McCormick has seen
double-digit growth in spice purchases for FlavorPrint users.
Next: Incorporate users’ social networks, retailers and third-party
services like Foodily.
Digital Path to Purchase
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Wal-Mart acquires recipe-supplier Yumprint
Supermarket News, Feb 28, 2014
Wal-Mart Stores, Bentonville, Ark., said it has acquired Yumprint, a Seattle-
based company that provides access to recipes and meal-planning ideas.
Yumprint, … operates a website and mobile app that enable consumers to
search for recipes from thousands of food blogs, as well as to plan meals and
calculate nutritional information.
Walmart said Yumprint will become part of @WalmartLabs, the company’s
ecommerce division based in San Bruno, Calif., and will be utilized as part of
Walmart To Go, a delivery pilot being tested in Denver and the San
Francisco/San Jose area of Northern California. Walmart To Go enables
shoppers to use technology to have grocery orders delivered to their
homes or make them available for free pickup at participating stores.
Why Did Walmart Buy Yumprint?
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The Yumprint acquisition will allow Walmart to attack three of its major
problems:
1. Reduced shopper count: Yumprint will enable Walmart to access shoppers
from all socio -economic strata, regardless of where they shop today, with a
web presence at the Yumprint site.
2. Store on-shelf conditions will be largely irrelevant with the store pick-up
and delivery model.
3. Walmart will be taking a shot at major thorn-in-the-foot Amazon by
competing in its back yard – the on-line shopper.
Why Did Walmart Buy Yumprint?
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System Will Buy Media for Retailer –
And Its Suppliers
Chain Looks to Tap Growing Data Pool in Drive for
Efficiency
Advertising Age, July, 2014
“Now that digital and social media are
reaching what Walmart U.S. Chief Marketing Officer Stephen Quinn calls
"critical mass," the retail giant is reshaping its marketing team and changing
how it works with suppliers – including buying media for them.”
Advertising Age, July, 2014
In other words, WMX’s targeting combines Walmart’s own, powerful first-party
data on consumer purchasing behavior with social media data on what
consumers are saying and thinking about brands.
Walmart Exchange (WMX)
Big Data in Supply Chain:16
Holistic View, Analytics,
Insights, Predictions, Alerts,
& Sales Opportunities
Enterra’s CRP constantly
monitors the Value Chain
Enterra Solutions Major Motor Company Supply Chain Demonstration
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*What to Do? Emerging Roles
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CIO
Align tech w/biz goals; liase with IT;evaluate & choose IT vendors
Sales
Cust Sales Tech
Vendors
Marketing
CMT
Set tech vision for Mktg IT
Supply Chain
CSCT
ID's SC tech needs; liase with Man &
Sales
Internal Technology
Media Outlets
Information Officer:
Liase between
internal needs and
external resources to
ensure the best fit of
technology to needs.
Everyday interface
with the customers,
either as part of a
Customer Team or as a
representative of Sales
in general.
Role 2: Supply Chain
Ensures internal
departments
understand the
personnel and tech
issues that need to
be addressed, and
are in place.
Role 1: Chief
Information Officer
Role 2: Supply Chain
Tech.
Role 3: Dir., Cust.
Sales Tech.
Ensures internal
departments
understand the
important personnel
and tech issues, and
are in place.
Role 4: Chief
Marketing Officer
HUGE role for HR to assume, as well!
What to DO? Emerging Roles
1. Thorough internal analysis:
Enterprise-wide goals
Buy-in to goals and processes
Cross-Functional collaboration
Current systems analysis
What to DO?
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Competitive
Status
Business
Access State
Strategize Categories
Forward Thinking
Buttoned UpCategory Builder
Brand SupportBasic
Functionality
2. Formally involve your customers to better
understand what they value from their best
suppliers:
Retailers consistently tell us that those
suppliers that innovate and collaborate
are considered better partners – with real
business benefits – than those who do not.
Prepare for the Era of Big Data
Analytics
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1. Develop a formal position on Big Data Analytics
Hierarchy of needs/benefits
Potential price effectiveness/ROI
Structural implications
Customer buy-in
2. Prioritize
Supply Chain first – that’s where any short term money is.
• Unilever saw 40% improvement in 7-day forecasts
• Del Monte reduced inventory rates by 27 percent in
two years, decreasing pallet space requirements in
retailer distribution centers up to 65%
3. Make it a part of the culture to constantly improve analytics
Not Every Company can be P&G
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But every company can compete more
effectively
We Can Help
We purchase systems, tools, and
technology
Especially 2015, when many firms are
looking for and answer to the advent of
“Big Data” analytics
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Now is the Time When
Now is the Time When
We sandbag expectations
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(15)
(10)
(5)
-
5
10
15
20
A B C D E F G I J K L M N O Avg.
Business Results vs. 2014 Plan and 2013 Actual
vs Forecast vs. LY
Sometimes plans can be aggressive,
sometimes unrealistic.
We force tactics into poorly
defined strategies…and seek
self-preservation.
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We look for a panacea
Now is the Time When
Typical Outcomes
A T BEST – no change in performance
More likely
Expenses incurred
Confusion/frustration/time-wasted
Missed opportunities
Because the process lacked “Due Diligence” or analysis
to understand the BUSINESS ISSUE, leading to…
A repeat of the previous year’s problems
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How would you/do you measure the(expected) impact of “Big
Data” implementation?
Profit/Margin/Revenue
Supply Chain Efficiencies (timing, error rates, etc.)
Target Marketing
Customer Satisfaction
Other
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Poll Question
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How Can We Bend the Future?
Plan with comprehensive knowledge of:
Your enterprise SWOTS and objectives
Your customers’ attitudes, technology plans, desires and the attributes and services they value most from suppliers.
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Step 1: Internal
Diagnosis
Step 2: Retailer
Input
Step 3:
Implementation
Internal Strategy
Alignment:
• Sales,
Marketing,
Supply Chain,
Operations
Benchmark vs
the Competition
with key
customers
• How we rank?
• Why?
• What would be
the business
benefit if we
improved?
• Priorities
Implementation
• Detailed plan
• Broad
involvement
• Periodic
checkpoints
• Report back to
retailers
January – June
2015
July – September
2015
Sept. – December
2015 – Ongoing
“Moving Day” Initiatives
Big Data is No Longer the Future
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Why This (and Next) are More
Important Than Ever
2015 is “Moving Day”
Position Your Company to Win
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Contact ZAHN Consulting, LLC now to position your company
for success in the world of Big Data Analytics
It is not too late!
*Thank You for Attending
For a copy of this presentation – click here <link to a slideshare pres.>
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