Building world class analytics capability at Global In-house Centre. Advisory, India Analytics

Transcription

1 Building world class analytics capability at Global In-house Centre Advisory, India Analytics

2 Analytics can add significant value to businesses by accelerating growth, improving business performance and offering protection. Organizations across the world are keen to take advantage of the transformational power of analytics and are looking for new ways to create a competitive edge. The purpose accomplished by analytics for an organization can be classified into three areas: After technology and finance, the next wave of growth for SSCs in India is through setting up Analytics centres of excellence (CoEs). These Analytics CoEs can enhance the productivity of companies existing operations and create new assets for their global organizations. Accelerate growth Improve business performance Sales Cost Support business growth, product development and pricing strategy through analytics: Customer analytics Pricing analytics Social media and digital analytics Increase financial and operational efficiency by identifying the right cost reduction initiatives and performance improvement areas through: Enterprise performance management Agile cost-focused analytics program Process performance analytics Protect Secure Protect your business by getting ahead of significant risks and monitor what can be a threat to your business with analytics including: Risk Analytics Contract Lifecycle Management Records Management With such benefits, organizations are making a beeline to invest in Analytics capabilities and technology. 500 million The number of tweets posted every day. Source: Twitter* 90% 90% of the world s data was created in the last two years. Source: IBM* 40ZB The volume of data being generated each year will end up reaching 40 Zettabytes 21 zeroes. Source: IDC* The amount of spend on Big Data IT in Source: Gartner* US$34 billion 4.4 million The number of people estimated to be working in analytics and big data by Source: Gartner* *Research Source: Capital Insights from EY Transaction Advisory Services Issue 9 1Q14 2 Building world class analytics capability at SSCs

3 However, when organizations try to embrace analytics, they face challenges such as: Strategy: Organizational design, scalability, lack of clarity in ownership and responsibility Siloed approach to BI, Analytics and data implementation leading to different standards, methodologies, skills and tools developed and used across different geographies or business functions Unnecessary additional costs due to duplication of skills, technology and methodologies People: Lack of qualified resources and difficulty in getting the right resources at the right time Process: Complex and diverse processes and IT systems Siloed approach leading to failure in monitoring and reusing analytics components deployed elsewhere in the organization Technology: Issues in aligning technology to strategic business goals On-demand availability of analytics to the business users at any given point of time Siloed approach to BI, Analytics and data implementation leading to concerns on quality of information/data available Setting up Analytics CoEs can help in addressing several of these challenges. In this context, the SSCs established by organizations offer significant synergies and could definitely be the right place to develop this capability Shared service centres are the ideal choice to be the enterprise wide Analytics service provider Many companies are already reaping the more obvious benefits of a shared service centre improved efficiency and control, deeper support for business units, and freedom that allows people across the enterprise to focus on what they do best. However, there is more potential value hidden under the surface. Shared service centre data touches the entire enterprise employees, vendors, customers, and partners. Analytics at SSC can highlight potential fraud or regulatory noncompliance, pinpoint customers headed for financial trouble, single out hiring practices that undermine employee retention and more. Marketing, Finance, and HR all crave analytic insights, but few functional areas can afford their own data mining operation. As a provider of analytic services, the shared service centre s investments in tools, people, and processes can benefit the entire enterprise. Since SSCs are already exposed to substantial business processes and are an integral part of everyday business, providing analytics service is a logical extension to the scope of a shared service centre. Building world class analytics capability at SSCs 3

4 EY s methodology to create a strong Analytics capability in shared service centres EY has an optimized out of the box Enterprise Intelligence Solution Centre methodology to set up, deploy and operate Analytics CoEs. EY s Analytics repository (KPIs, dashboards, Advanced Analytics Approach notes and toolkits) will help the CoE team deliver analytics thought leadership and develop analytics quickly. We can: Help the client to set up Analytics COEs; our Analytics Leadership Team has extensive experience in advising clients across people-process-technology to set up an Analytics CoE. Be the chosen Analytics enabler for an organization and deliver analytics as a service by setting up dedicated Analytics Labs and teams for clients and manage the entire Analytics requirements. Act as an incubator and provide Analytics as a service till the client s Analytics COE is up and running The EY Advantage Sector knowledge: Sector aligned competencies and experienced team Knowledge of sector-specific issues and business needs Domain knowledge: Domain-specific competency and experienced domain SMRs coming from both industry and consulting background Analytics knowledge: Experienced Econometrics, Statisticians and Modellers Tried and tested repeatable components and repository IT enablement: Capability to deliver end-to-end, single window services across most technology platforms EY s Enterprise Intelligence Solution Centre model is a framework/model to set up, deploy and operate analytics CoEs. EY s Enterprise Intelligence Solution Centre is an industrialized, high-performance Business Intelligence (BI), Analytics & Information Management delivery methodology, backed by a strong set of accelerators, methodologies and templates including Rapid Design Visualization, an estimation tool, Demand Management processes, industry KPI libraries, MDM and Data Quality frameworks. It is a permanent and formal organizational structure, staffed by individuals from business and IT, with defined tasks, roles, responsibilities and processes, who support and promote effective use of BI, analytics and data to drive business strategy. 4 Building world class analytics capability at SSCs

5 EY s Analytics repository of KPIs and advanced analytics frameworks/data models/toolkits. KPIs Advanced analytics approach and data models Ftth Rollup based on Customer Value Qos for Customer Experience Overview of our Proposed Approach Short Description Following a segmentation analysis, High Churners can be identified. Using propensity modeling, accurate estimations of a customer s probability to the firm can be provided. Its prevalent importance is due to its potential to assist with the design of proactive retention campaigns. Key Benefits Commercial Dashboard Network Influencer discovery based on CDR's The customer s current status of activity is treated as the dependent variable (i.e. 1: in-active, 0: active) We conduct an iterative model development process to gradually introduce and exclude variables The final propensity models that are selected bring together statistical accuracy and business sense The accuracy of the models is assessed on the basis of the validation dataset Identify, define and generate variables Obtain accurate estimations of a customers probability to churn Identify the customers with the highest probability to churn and, thus, sort by decreasing value order Detect the factors with a significant effect on a customer s probability to churn Therefore, we can indirectly infer the most important causes that may lead to a customer s possible departure, so that we can design the most appropriate retention campaigns Process Description Mapping Customer Journey Methodologies Hypothesis development Data Preparation Propensity Modeling Customer Age (owner) Customers gender (K=Female, M=Male) Type of residence (appartment, house.) number of DSL subscriptions (ADSL + VDSL) on owner Number of fiber subscriptions on owner Numer of POTS (plain old telephony) subscriptions on owner estimated household size (customers and others) number of Mobile Broad band subscriptions on owner Number of Mobile Post paid subscriptions on owner number of mobile pre paid subscriptions on owner Did the subscription get cancelled in the following month? Device category (smartphone, feature phone etc) Does the device support HD Voice? Does the device support LTE (4G)? The model name of the device The operating system of the device The manufacturer of the device Does the device support touch screen? The form factor of the device Number of days the phone insurance have been active Number of days FriFamilie has been active on the subscription Sum NOK voice 1 month ago (last month) Sum NOK voice 2 months ago (last month -1) Sum NOK voice 3 months ago (last month -2) Sum of total MB last month Sum of total MB 2 months ago (last month -1) Sum of smallscreen MB last month Sum of smallscreen MB 2 months ago (last month -1) Sum domestic voice minutes last month Sum domestic voice minutes 2 months ago (last month -1) Sum domestic voice minutes last 3 months (sum of.. LAST1,LAST2,LAST3) Number of days the subscription has been active Sum of SMS (domestic) last month Sum of SMS (domestic) 2 months ago (last month -1) Sum of SMS (domestic) 3 months ago (last month -2) The name of the price plan Churn pressure. The number contacts that churned last month Weighted 'churn pressure', ie the sum of relational strength to all contacts Churnet last month As above but weighted in relation to the total relational strength to all friends. (Volume ratio of churna contacts) number of contacts Weighted degree, ie the sum of all relational forces. (Derived from total sms + voice volume to friends) Share contacts outside MNO Overall strength relational contacts who are MNO(off-net) Number of your ten closest friends who Churnet last month Share sms to kontaketer after 17 Share of voice calls to contacts by 17 Specify & Revise the Model Train the model on the actual and test datasets Iterate until satisfactory results are achieved Customer Targeting Case studies Interpret the results Frameworks Tipping Point Conjoint analysis to identify improvement levers for the offer portfolio of a broadband operator Geomarketing & analytical market sizing for a greenfield broadband operation in Nigeria Customer segmentation for the launch of a French MVNO Conjoint analysis and product comparison for a leading UK operator Conjoint analysis and product comparison for a Jordanian operator Geomarketing & analytical market sizing for a greenfield broadband operation in Indonesia Marketing segmentation of Broadband customers for a leading French operator Customer Analytics implementation with daily monitoring for a Moroccan operator QoS report of strategic BTS for a leading Algerian operator Direct marketing allocation effectiveness for a leading French operator Marketing & communication spending effectiveness roll-out for a major handset manufacturer Implementation of a tool to assist the diagnosis and offer migration of customers for a French telco operator Diagnosis of customer database and performance for a telecom B2B distributor Shift from an audience assessment to an RoI assessment in digital marketing for a French operator For an operator in North Africa, setting up ATL and BTL campaigns to stimulate usage, facilitate service migration, and increase customer retention For a leading operator in Ivory Coast, defining and establishing the CBM unit (mission, roadmap, organization and procedures) For a French operator, specify 180 campaigns to be tested & perform business modeling ( value, usage, migration, retention recapture) Assist challenger operator in Kenya to initiate CBM: segmentation, campaigns design & tests, process & organization set-up, action plan, training Optimizing RoI of Direct Marketing Budget for a Telco Operator Quantitative analysis and recommendations to optimize the level of handset subsidies Route optimization of maintenance technicians 3 EY s global advantage Social Media Analytica CoE EY Data Centre Digital Analytics CoE EY Data Centre Global Talent Hub Global Talent Hub EY Data Centre Our team of 3,500 analytics professionals, with easy access to world-class analytics tools, enables us to provide effective analytics services to SSCs from day one. Our Analytics teams have wide exposure to world-class data extraction, analysis and reporting tools and technologies. With such apparent benefits, adopting analytics is the way forward for organizations in order to remain competitive. EY, with its extensive experience, can help in setting up, incubating and institutionalizing analytics as a culture in your organization. Building world class analytics capability at SSCs 5

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7 EY offices Ahmedabad 2 nd floor, Shivalik Ishaan Near C.N. Vidhyalaya Ambawadi Ahmedabad Tel: Fax: Bengaluru 6 th, 12 th & 13 th floor UB City, Canberra Block No.24 Vittal Mallya Road Bengaluru Tel: Fax: (12 th floor) Fax: (13 th floor) 1st Floor, Prestige Emerald No. 4, Madras Bank Road Lavelle Road Junction Bengaluru Tel: Fax: Chandigarh 1 st Floor, SCO: Sector 9-C, Madhya Marg Chandigarh Tel: Fax: Chennai Tidel Park, 6 th & 7 th Floor A Block (Module 601, ) No.4, Rajiv Gandhi Salai, Taramani Chennai Tel: Fax: Hyderabad Oval Office, 18, ilabs Centre Hitech City, Madhapur Hyderabad Tel: Fax: Kochi 9 th Floor, ABAD Nucleus NH-49, Maradu PO Kochi Tel: Fax: Kolkata 22 Camac Street 3 rd floor, Block C Kolkata Tel: Fax: Mumbai 14 th Floor, The Ruby 29 Senapati Bapat Marg Dadar (W), Mumbai Tel: Fax: th Floor, Block B-2 Nirlon Knowledge Park Off. Western Express Highway Goregaon (E) Mumbai Tel: Fax: NCR Golf View Corporate Tower B Near DLF Golf Course Sector 42 Gurgaon Tel: Fax: th Floor, Tower D&E Cyber Green, DLF Phase-3, Gurgaon Haryana Tel: th floor, HT House Kasturba Gandhi Marg New Delhi Tel: Fax: th & 5 th Floor, Plot No 2B, Tower 2, Sector 126, NOIDA Gautam Budh Nagar, U.P. India Tel: Fax: Pune C-401, 4 th floor Panchshil Tech Park Yerwada (Near Don Bosco School) Pune Tel: Fax: Contact us: For more information about how our team can help you and your business, please contact: N Balaji Tel: n.balaji@in.ey.com Kunal Mhaske Tel: kunal.mhaske@in.ey.com Jayendran GS Tel: jayendran.gs@in.ey.com Jasjeet Singh Tel: jasjeet.singh@in.ey.com Upendra Sai Tel: upendra.sai@in.ey.com Building world class analytics capability at SSCs 7

8 Ernst & Young LLP EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata Ernst & Young LLP. Published in India. All Rights Reserved. EYIN ED None This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. YTG EY refers to the global organization, and/or one or more of the independent member firms of Ernst & Young Global Limited