Importance of predictive analytics to business agility
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Transcript of Importance of predictive analytics to business agility
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