Big Data Value to Business

Bill Schmarzo Dean of Big Data
Businesses don’t need a Big
Data Strategy……Businesses
need a Business Strategy
that incorporates Big Data

1. Business Data at the Individual “Raw” Level
instead of Abbreviated Aggregated Level
2.Access/Analyze/Action on all data regardless of its
structure – Chat, Weather, e-mail, IoT, CSR Notes, Survey, Images
3.Move from Descriptive Insights (What Happened) to
Prescriptive Insights (What most likely will happen and what action to take now)
4.Learn the Unknown/Unknowns – “Filter out the
Noise”…Detect anomaly’s that matter to the
business…. How much noise is in your data?
The Four Big Data Value
Drivers to Business

According to Accenture the #1 Impact of Big Data
over the next 5 years is:
Influencing Customer Relationships
http://numericjobs.com/wp-content/uploads/2014/09/High-Level-of-Big-Data-Satisfaction.pdf
Measured in:
 Improved Product/Service delivery times by optimizing the
Supply Chain leveraging Big Data Analytics (IoT)
 Elevated Customer Conversions by enriching customer
experience (CX) with AI Inside the CX for Next Gen NBO!
 Reduce Churn and Improve New Account Acquisition with
Big Data Prescriptive Actions powered by AI
 How would you like to Influence Customer Relationships?

Volume
SCALE OF DATA
Variety
DIFFERENT
FORMS OF DATA
Velocity
ANALYSIS OF
STREAMING
DATA
Veracity
UNCERTAINTY
OF DATA
Move from the FOUR V’s of Big Data
T
O
T
H
E
F
O
U
R
M’s
O
F
B
I
G
D
A
T
A

MAKE ME MORE MONEY
Big Data is about Economics….
➢ 20X to 50X less expensive to store-manage and analyze data on Big Data Platform than on
Legacy EDW’s e.g. $27,000 Terabyte TCO vs $1,000 TCO
➢ Elevate Conversion Rates by as much as 30% with AI in Omni-Channel
(https://www.forbes.com/sites/louiscolumbus/2016/06/04/machine-learning-is-redefining-the-enterprise-in-2016/#78f62df51871)
➢ Reduce Calls into Call Center by up-to 50% savings at $27.50 per call
➢ Optimize Supply Chain increasing on-time delivery’s & customer sat scores
➢ Increase Brand Loyalty with Distinct Competitive Advantage – Priceless

How Effective is your Organization at
Leveraging Data and Analytics to
Power the Business?
Big Data Value to Business Stages
EDW to BDW Costs Savings
Based on Bill Schmarzo Big Data MBA program

98% Organizations start here:
Load/Dump Data into Big Data Lake to gain the
20X to 50X Savings

Big Data is Not about Big
Data….Big Data is about
ALL Data…

Trustworthy, not just Actionable, Insights on 100% of
your Structured, Unstructured & Untruncated
“RAW” Data

Big Data is about getting to
ONE

Move from Descriptive (What happened) to Prescriptive
(what most likely will happen and what action to take)
Quantify & Prescribe at the Individual Level
Personalized Next Best Offer Inside Omni-Channel Journey
ONE Enterprise Answer (instead of different ones like today)
Prescriptive Equipment Maintenance Actions (IoT)
Internal Threat Detection/Prevention (Fraud)
Pattern Detection (Identify Unknown Unknowns that matter to business)

Big Data is about Financial
Value to Business

Most Organizations Monetize Insights on Data not Actual Data….Unless DATA is
your primary business e.g. Catalina Marketing, Pinsight, Experian, NTTData
Start with Monetizing Your Own “Internal Data Insights” Create new revenue
streams and make current ones more profitable….
1. Enriched Customer Experience with AI inside the CX to elevate conversion
rates, increase ARPU, reduce calls into CARE, mitigate Churn while elevating NPS
2. Predict IoT Repair prior to failure in real-time
3. Finally have ONE Enterprise Answer instead of several departmental ones
watch: https://youtu.be/NXQqtRRGD0A as presented at Tableau Conference
4. Increase Brand Loyalty by becoming a data driven business

How much Value can Big Data
Deliver to Your Business?

 How Organizations Compete
 How Organizations value themselves and report to Wall-Street
 How Organizations Hire
 How Organization Grows

Increase Top of the Funnel Qualified Leads by 18%
Worth millions in monthly in new account business
Big Data Business Marketing Use Case
Elevate campaign conversion rates by 14%
Worth millions in monthly in new sales volume
Increase average revenue per User (ARPU) by 7%
Worth millions per month in sales value
Mitigate Churn by 3%
Worth millions in customer acquisition costs (@ $600 per)

Repeat the process
for each identified
business case
3–6 week process
12-16 week process
6-9 month process
Operationalize
Use Case
Integrate analytics into operational and
management processes; facilitate changes
across people, process, data and technology
Proof of
Value Lab
Build Out Use Case in Big
Data Lab to quantify the
value to business
Envisioning
Engagement
Identify business use
case, stakeholders &
required data
Where to Start

Challenge Question?
What do you do in your daily
work that Moves the Profit
Needle Forward for your
business?
Keith Tarter
kdtarter@outlook.com
214-616-1262

Big Data Value to Business

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