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The Importance of an Information Driven Digital StrategyIan West – Head of Analytics and Information Management
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Agenda
• The Digital World
• What’s changed
• How to approach the opportunity
• Implications
• Summary
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The Digital Universe is huge – and is growing exponentially
250 M Vehicles by 2020
2,500,000+content upload/min
300,000+tweets sent/min
50,000+ app downloads/min
Internet
of Things
Conne
cted
World
SocialDigi
tal
Econo
my
Market size to grow from $22.7 Bn in 2015 to $173.3 Bn in 2020
Connected Vehicles
Wearable technology
Digital revenues Digital products & services to double from 22% to 41% of revenue by 2019
The number of connected things will reach 25 billion by 2020
Source: Gartner, public domain
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The rules of business are changing in the Digital world
Connected and digital operations driven by self service and machine learning
Shift from “Transactional model” to “Interactional model”
Customer delight delivered by interaction
between touch pointsDigital
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Digital Business generates opportunities to create value from data
1. CollectIntegrate data from multiple channels to develop a 360 degree view
2. Compute Analyse aggregated data to derive actionable insights
3. ConsumeEnsure seamless omni channel customer experience
4. RepeatEstablish business processes to ensure delight customers at every touch point, every time
Source: Partner websites
Shopping
Reviews
Offer evaluation
Devices on the go Online
conversations
Consumption
Value Chain
DemographicsDecision
Customer life cycle
Advocacy
Preference
Regulation
Transactionover !
Needs vs wants
In session behavior
InteractionChannels
Loyalty
LISTENfor improved
understanding of the customer
ENGAGEWith the right
audience through the right channel
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Information Poor
Insights StarvedData Rich
Digital success lies in the effective use of Information AssetsToday many enterprises are
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A Very Important Decade
INDUSTRIAL
2010 2020
DIGITAL
7
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Embrace the Dual Mandate
Business Re-imagined
New levels of performance efficiency to reduce cost and operating expenses
New digital business capabilities to drive relevance & growth
Running Better
Running Different
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What’s Stopping or Slowing an Information Driven Digital Strategy?
What are you going to do with my Data?
Why should I share it with you in first place?
How secure is my Information? What
happens if your lake is hacked and my
information is stolen?A fear of drowning in your Data Lake - If I do nothing
then I wont risk getting out of my depth and I will avoid the
huge associated cost!
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What’s Changed?
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There Is Nothing New Under The Sun …
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2005
2014
12
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IN 2012 - PEOPLE SNAPPED 380 BILLION PHOTOS, BUT KODAK WENT BANKRUPT
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IN 2012 - AMERICANS SPENT $114 BILLION ON BOOKS, BUT BORDERS CLOSED DOWN
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Changing Customer Behaviour
Today’s consumers are empowered, buy
omni-channel and seek instant gratification
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How to approach the opportunity
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What’s New?
1 2 3 4 5Digitisation Data Organisation Insights Explanation Change
Technology Enablement!
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(1) Digitise Information
Most of our writing and commerce is now fully digitized
5 Megabytes!
IBM 350 RAMAC
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(2) Organise Information
Computer Science has developed ways to organize and retrieve this universe of data
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(3) Extract Meaningful Insights
Business Intelligence and Advanced Analytics employed on top of Data
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I’m Digitised-Organised-Analysed – Job Done?
1 2 3Digitization Data Organization Insights
You are probably
here
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The Quest for Real Change … The Last Mile!!!
1 2 3Digitisation Data Organisation Insights
Data JournalismExtracting and packaging insights in context
of specific business problems
Analytical StorytellingBehavioral changes in decision-making and
operations told through the power of stories
4 5Explanation Change
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(4) Explain Insights – Data Journalism
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(5) Change Behaviour Based On The Insights
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Types of Digital Data
25
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Hive from British Gas
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A snapshot of disruptors capitalising on Data
TechRetail
TransportBFSI
Real EstateMedia
Telecoms
Source: FT.com, HBR
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Implications when things go wrong!
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When Stories Fail To Correctly Tell The Facts
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Missing the pattern
MISSION FAILURE. Mars Orbiter 1999
The Story Frequent course corrections.Individually, “within limits”. Collectively, “should have told us something was wrong.”
Orbiter burned up or bounced off into space
Miscalculation in trajectory caused by an unintended and undetected mismatch between metric and English unit of measurementResult
Reason
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When a story is told but not remembered
1982: The O-Ring
has no backup
1986: “The putty provides redundancy”
MISSION FAILUREChallenger Shuttle 1986
The Story
Tragedy
Cold weather effected the O-Rings and there was no backup to a failure.
1982, it was determined the O-Rings were ‘Critical 1’ meaning there was no backup. However, mission controllers were uninformed and still thought the putty provided redundancy.
Reason
Teams located at multiple locations had different information perceptions.
Result
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When hard math confronts high emotion
Algorithms Run AmokSydney Hostage Crisis, Dec. 2014
The Story
Bad publicity
As clarified by UBER in a blog post.“It's unfortunate that the perception is that Uber did something against the interests of the public. We certainly did not intend to."
Uber's surge pricing algorithm automatically hikes prices as people try to get away from downtown café.
Reason
Result
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Summary
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Digital across the business landscape
Autonomics Hologram BOTS
Social IOT MFG 3.0
Experience and Personalization
KnowledgeService
Accessibility, Convenience
Availability, Quality and Affordability
Digital 4.0
Digital 3.0
Digital 2.0
Digital 1.0
Sensors E- ComRFIDs
POS ATMs Computers
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SHAPE THE FUTUREDELIVER DIGITAL VALUE DRIVEN BY INFORMATION
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Operational efficiency throughAccessibility, Convenience
Improve product efficiencyAvailability, Quality and Affordability
Customer Satisfaction Experience and Personalization
Grow the business through new channels
Past buys, searches, history, preferences,
location, family, friends…
Customers
Products, services, institutional knowledge powered by Big Data…
Employees
Demand trends, servicing needs, stock information,
delivery challenges…
Partners
Products usage, feature preferences, service requirement…
Products
Code Halos CollideIgnition that catalyzes new opportunities
Code Halos Digital
spearheading (R)Evolution
An Information Driven Digital World
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Summary
Technology and behaviour are driving change
Enterprises are recognising Data as an Asset
Information Drives the Digital World