Luciano Wheatley PesciSLC|SEM June 17th 2015

THE DATAPOCALYPSE & HOW TO SURVIVE IT PROFITABLY

My two data hats

Founder & Director, University of Utah,

Utah Community Research Group

(UtahCRG) Teach economics, applied research & data

analytics, and American economic development

Co-Founder and CEO, Emperitas

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The datapocalypse

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“ Forty percent of businesses in this

room, unfortunately, will not exist in

a meaningful way in 10 years…

[because of a failure to act on data]

” -John Chambers, Outgoing CEO, Cisco

Only the profitable will survive

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The only way to be profitable in a market economy is to

have no competitors (otherwise you’re just offering a

commodity).

Profitable “price setting” companies have been

differentiating themselves in three ways with mixed

success…

Profit = (revenue) - (costs)

B2C price discrimination (today)

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Personalized Pricing

Extremely Unpopular (for now)

Personalized Product

Extremely Risky (for now)

Segment Submarkets

Totally Possible (now)These methods drive revenue by capturing more of the

customer’s willingness to pay. But some customers come with higher costs…Profit = (revenue) - (costs)

C2B price discrimination (today)

It’s increasingly possible for customers to “reverse price discriminate.” For example, my grandfathered Verizon plan allows me to use UNLIMITED data for a fraction of the real cost.

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Profit = (revenue) - (costs)

A new era of perfect information

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A well-functioning, profitable, market economy is based on the existence of perfect information which has been an assumption until recently. Technology is rapidly changing

that…

Technology will drive perfection

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Image source: http://www.solidsmack.com/wp-content/uploads/2015/01/Unknown.png

Data silos = organizational coffins

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Most organizations are failing to unify the data they’ve created among departments and divisions.

The companies that don’t succeed in fusing customer-level costs to their customer acquisition efforts will be the first among the 40% of businesses who die.

RIP(Brand Logo Here)

A.I. is part of the solution…

Humans are obsolete for the task of processing and analyzing this much data. The solution (deep learning) involves machines programmed to learn a task rather than run a process.

Amy, my artificial intelligence personal assistant, does this with calendar requests. Want to setup a time to hangout? CC her on an email to me and we’ll connect in person:

Luciano@emperitas.com amy@x.ai 10

…conversations are the rest

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People can’t be understood through impressions, clicks, or

sales data alone (even if it’s all connected).

Conversations with your customers give you the

theoretical framework necessary to interpret the data

presented by A.I.

Talk With

Customers

TODAY!

Your roles will change (for the better)You won’t target “markets” anymore.

You’ll segment to the individual level using A.I. and face-

to-face insights in order to offer each customer a unique

product at their maximum willingness to pay (and they’ll

love you for it).

This is how you will profitably survive the datapocalypse.

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Luciano Wheatley PesciSLC|SEM June 17th 2015

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Thank you for having me!