REPORT STATE OF ANALYTICS AT DOMESTIC FIRMS IN INDIA By Analytics India Magazine & INSOFE

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1 REPORT STATE OF ANALYTICS AT DOMESTIC FIRMS IN INDIA 2018 By Analytics India Magazine & INSOFE

2 CONTENTS Introduction Analytics Penetration vs. Analytics Maturity Analytics Penetration vs. Maturity: Ecommerce Definitions & Companies Analytics Penetration vs. Maturity: Private Sector Banking Analytics Penetration vs. Maturity: Oil Drilling & Refineries Foreword Analytics India has teamed up with INSOFE to study the state of analytics at domestic firms in India. The study aims to understand the penetration, maturity and adoption of Analytics and Data Science at Indian Firms. The idea is to throw light on the key trends in large Indian firms around analytics adoption and the key trends in the Analytics function in India. The study details about which sectors have the highest adoption rate in the India and which cities have highest adoption rates, with detailing out which groups in an organisation are mainly supported by the analytics function. 09 Analytics & DS In Indian Firms- Key Trends 11 Indian Firms- Key Metrics For Analytics Functions 15 Analytics Penetration vs. Maturity: Public Sector Banking 16 Analytics Penetration vs. Maturity: Auto 19 Analytics Penetration vs. Maturity: Utilities 21 Conclusion 2 3

3 INTRODUCTION recent study indicates that A Indian analytics, data science and big data industry is estimated to be $2.71 billion in revenues and growing at a healthy rate of 33.5% CAGR. This suggests that Indian domestic firms are doing quite well for themselves and is slowly becoming deep-rooted with its presence in various industries. Tapping on to the growing analytics industry, this year s study on the state of analytics at domestic firms in India aims to bring a quick insight into how the analytics scenario is evolving in the domestic market. The study has been done in association of INSOFE, which is one of the leading schools in the area of data science and big data analytics in India. We looked at 50 large Indian firms across industries that have adopted analytics to improve business. These companies are from industries such as auto, private banks, public banks, financial services companies, infrastructure, steel, power, telecommunications, utilities, ecommerce, oil drilling and refineries. The study brings a deeper picture on key trends in data science market in India, key metrics for analytics functions, the analysis of analytics penetration and analytics maturity in the market for industries such as public sector banking, private sector banking, auto, ecommerce, oil drilling and refineries, and more. 4 5

4 DEFINITIONS & COMPANIES For this study, we analysed 50 large-sized companies in India by revenues as of IT service providers in India are not a part of this study. However, some leading startup unicorns and ecommerce players were included in the study. Analytics penetration is a metric that denotes the degree of infusion of analytics function in an organisation. It quantifies the approximate number of analytics professionals employed by the organisation for every employee within the whole firm. So, a penetration of 1% should be read as 1 analytics or data science professional for every 100 employees with an organisation. Analytics maturity is the metric to quantify the quality and depth of analytics adopted within an organisation. Maturity is a combination of three factors: 1. Employee tenure 2. Percentage of advanced analytics & data science in the analytics function 3. Employee seniority in that organisation Analytics adoption is calculated at a penetration of less than 0.75% i.e. an organisation does not even have one analytics professional to support 133 employees within the organisation. Or it can be said that if a company has adopted analytics, then it would have at least one employee to support every 133 employees. It is important to note that these are relative metrics and organisations as plotted here are based on a comparative study with respect to each other and should not be compared to other organisations outside this study. Also, the values may differ in terms of global standards. Another point to keep in mind in this study is that the numbers would be negatively biased towards organisations that outsource their analytics functions heavily. 6 7

5 infrastructure oil drilling & refineries steel ADOPTION RATE OF ANALYTICS IN LARGE INDIAN FIRMS BY INDUSTRY ANALYTICS & DATA SCIENCE IN INDIAN FIRMS KEY TRENDS power banks- public sector utilities auto financial services ecommerce telecommunications banks- private sector The overall adoption of analytics & data science at large Indian firms is around 64%. That s a healthy adoption rate given most of these large firms are into traditional businesses like energy & utilities. Telecom, financial services, ecommerce & private sector banks have almost 100% adoptions rates. There is some level of analytics & data science being executed in these organisations, especially the large ones. Infrastructure sector has almost no adoption of analytics. 0% 20% 40% 60% 80% 100% Rate of Analytics adoption ADOPTION RATE OF ANALYTICS IN LARGE INDIAN FIRMS BY FUNCTION others hr administrative finance & operations sales & marketing 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Rate of Analytics adoption 44% of all analytic functions for Indian firms are based out of Mumbai, followed by Delhi NCR at 31% Almost 94% of analytics functions are based out of just three cities Mumbai, Bangalore & Delhi/ NCR 44% of analytics functions in large Indian organisations support the sales & marketing group. Whereas 33% support the finance & operations group 8 9

6 power ecommerce oil drilling & refineries auto telecommunications financial services utilities banks- private sector steel banks- public sector AVERAGE TENURE OF ANALYTICS FUNCTIONS Number of Years Average tenure of analytics professionals INDIAN FIRMS KEY METRICS FOR ANALYTICS FUNCTION On an average, large Indian firms have an analytics penetration of 2.8%. This essentially implies that for every 36 employees in an organisation, 1 employee is in some shape and form associated with data and analytics. Analytics penetration is typically higher for new age ecommerce firms and lower for traditional firms in India. The average tenure of analytics professionals at Indian firms is 3.4 years. Public sector banks, even though with low adoption have the highest analytics tenure among India firms, at almost 5 years. On the other hand, ecommerce firms, with high adoption of analytics, have a much lower analytics tenure at 2.5 years. MEDIAN EXPERIENCE FOR ANALYTICS TEAMS oil drilling & refineries steel ecommerce banks- public sector utilities banks- private sector financial services auto power telecommunications The median experience level of analytics professionals with Indian firms is 7.5 years. Analytics professionals in Indian telecom firms have the highest experience at 9 years. Oil drilling & refineries have the lowest at 5.9 years Number of Years 10 11

7 analytics maturity Quadrant II Quadrant I ANALYTICS PENETRATION VS. MATURITY Telecom Ecommerce Like the previous year, here we analysed various sectors on the basis of analytics penetrations and analytics maturity. Auto Steel Private Sector Banks Power Financial Services Utilities Oil Drilling & Refineries Quadrant III analytics penetration Quadrant IV Following conclusions can be made from the graph: Unlike last year, there does not seem to be a correlation between maturity & penetration. Till last year, maturity and penetration were negatively correlated implying that as firms grow in terms of their analytics penetration, they tend to lose on depth and maturity. This might be changing now as firms are getting more mature in deploying their analytics solutions. Ecommerce is the only sector to be in the first quadrant, which signifies that it is both high on penetration and maturity. Data science forms the core to ecommerce sector and all mid to large ecommerce firms have some form of analytics adoption within the firm. The highest number of sectors lie in quadrant II. This is good indication of adoptions as well as relative maturity of analytics functions within these sectors. The analytics build-up for ecommerce is so high that it makes other sectors almost appear in a vertical line (have same penetration). Inmobi has the highest penetration of analytics and data science. Traditional businesses with large overlap with either government and/or manufacturing are in quadrant III, signifying both low relative maturity and penetration than other sectors. This can be either due to slower adoption, the design of the organisation itself or lack of use cases

8 ANALYTICS PENETRATION VS. MATURITY PRIVATE SECTOR BANKING ANALYTICS PENETRATION VS. MATURITY PUBLIC SECTOR BANKING Private sector banking in India score high on maturity of analytics and data science deployed in the organisations, which is slightly lower than telecom and ecommerce industry. Finance & operations are the two primary functions where private sector banks deploy analytics. Marketing is the third function where analytics gets deployed. Mumbai is the top city where analytics functions of private Indian banks functions. Public sector banking in India has the lowest analytics penetration among other sectors, and just slightly higher than oil drilling and refineries sector. We looked at eight large publicsector banks and just four out of them seem to have some level of adoption of analytics. Union Bank of India & IDBI Bank have the largest analytics penetration among their peers. Again, Mumbai is the top city where analytics functions of public Indian banks functions. Given the focus that GoI has on latest technologies, it would surely be most applicable in the public sector banks in India

9 ANALYTICS PENETRATION VS. MATURITY AUTO ANALYTICS PENETRATION VS. MATURITY ECOMMERCE Auto sector has high adoption rate of analytics and data science. 5 out of 6 auto companies in India have some form of analytics adoption. Mahindra & Mahindra have the highest penetration of analytics & data science relative to its peers. It also has the highest maturity. Most analytics functions in auto industry supports the sales and business development units. Most analytics functions in auto industry are based out of Mumbai, followed by NCR. Ecommerce has emerged as one of the largest adopters of analytics and is evident with their focus on hiring senior analytics professionals. It is the leading sector in India in terms of both analytics penetration and maturity. Inmobi has the highest penetration of analytics & data science compared to its peers. It also has the highest maturity. Most analytics functions in ecommerce industry support the marketing and business development units; followed by operations and supply chain. Inmobi is followed by Shopclues in terms of analytics penetration

10 ANALYTICS PENETRATION VS. MATURITY OIL DRILLING & REFINERIES ANALYTICS PENETRATION VS. MATURITY UTILITIES We looked at 8 large-sized oil drilling & refinery companies in India. Analytics adoption is dismally low in this sector. Just 1 out of 4 large sized companies have some form of analytics adoption. This subsequently goes down further with mid-sized companies. Reliance Industry is leader in this space in terms of analytics adoption. Both in terms of penetration and maturity, RIL scores high. We looked at 5 large-sized utilities companies in India. Analytics adoption is high in this sector. 4 out of 5 large-sized companies in this sector have some form of analytics adoption. Hindustan Unilever (HUL) is leader in this space in terms of analytics adoption. Both in terms of penetration and maturity, HUL scores high

11 CONCLUSION The study is indicative of the fact the analytics adoption is witnessing a growth in various industries, including both large firms and traditional businesses. In terms of numbers, the overall adoption of analytics and data science in large firms is around 64% which is significantly high compared to last year. However, there are certain industries such as infrastructure that has almost no analytics adoption, and this could be due to lack of resources to set up analytics facility. Overall, we see ecommerce emerging as one of the largest adopters of analytics and this could be attributed to their focus on hiring senior analytics professionals in their team. In terms of analytics contributing to various functionalities, it was seen that around 44 percent analytics functions support sales and marketing groups, whereas 33% support finance and operations group. In terms of correlation between maturity and penetration, unlike last year, there does not seem to a correlation between them. Till last year, maturity and penetration were negatively correlated. This implied that as firms grew in analytics penetration, they lagged in maturity, but this might be changing now as firms are getting matured with deploying their analytics solutions

12 ABOUT ANALYTICS INDIA MAGAZINE ABOUT INSOFE Founded in 2012, Analytics IndiaMagazine has since been dedicated to passionately championing and promoting the analytics ecosystem in India. It chronicles the technological progress in the space of analytics, artificial intelligence, data science, big data by highlighting the innovations, players in the field, challenges shaping the future, through the promotion and discussion of ideas and thoughts by smart, ardent, action-oriented individuals who want to change the world. Analytics India Magazine has been a preeminent source of news, information and analysis for the Indian analytics analytics ecosystem by covering opinions, analysis and insights on the key breakthroughs and developments in data-driven technologies as well as highlighting how they are being leverages for future impact. With a dedicated editorial staff and a network of more than 250 expert contributors, AIM s stories are targeted at futurists, AI researchers, Data science entrepreneurs, analytics aficionados and technophiles. INSOFE is the world s leading researchdriven educational institution in Applied Engineering with 12 full-time and 4 adjunct world-renowned faculty members holding PhDs from elite international universities and having worked as CXO s in large analytics firms. INSOFE has campuses located in Hyderabad, Bangalore and offers its flagship program PGP in Big Data Analytics in collaboration with Kirloskar, Pune. In addition to training over 1000 students a year through its classroom program, INSOFE works with over 100 corporations globally to train CXO s, Mid-Level managers and engineers. Disruptive technologies including AI, Blockchain, IoT are poised to change how we work and operate in the coming decades. INSOFE s mission is to help organizations and individuals adopt these technologies using training as the primary tool. Faculty Academically all faculty are extremely qualified holding PhDs from elite universities across the Globe. INSOFE has world-renowned faculty with commendable research experience and having worked with leading consulting firms like Abercrombie, Ford etc. The faculties have incubated a product in Blockchain and created one in Data Science called INTUCEO. The institute is currently working on IoT for Driver Monitoring, Computer Vision, NLP. R&D INSOFE s faculty actively involves itself in applied research, consulting and product development through INSOFE Labs. Current focus areas include pattern extraction, text analytics, image mining using deep learning and blockchain analytics. Currently, these are applied to retail, healthcare and manufacturing verticals. The extreme edge research that INSOFE faculty participates in is subsequently fed into the curriculum thereby making the program industry challenging. Corporate Transformation Driven by analytics expertise, INSOFE engages with corporates to build COEs and deliver compelling Data Science solutions. INSOFE is actively pursuing consulting and research in an array of industry verticals. Each project is headed by an expert with rich consulting and business experience. INSOFE also offers uniquely customised training programs for corporates that are developed in co-collaboration mode. Such programs help establish Centers of Excellence and Tiger Teams in Data Science, Analytics and Big Data by getting them hands-on with cuttingedge technologies. Achievements INSOFE students are leading analytical teams in top Fortune companies. Many students have got admission offers and/or gone on to pursue their MS from top universities around the globe such as Northwestern University, Cornell University, the University of Texas at Austin, National University of Singapore, ETH Zurich in Switzerland, Royal Holloway - The University of London, etc. INSOFE is the only institute empowering organizations at the global level with cutting-edge technologies to build tiger teams and CEOs. The institute delivers classroom training programs in 10 countries. INSOFE students have so far written three books and have filed for 3 patents in the field of Big Data Analytics. The American IT Magazine CIO.com listed INSOFE s Big data Certification 22 23

13 among 26 Big Data Certifications that will Pay off. The list includes similar certifications from Stanford & Columbia Universities. Awards INSOFE Bagged the award for Academic Excellence in Big Data & Analytics which was part of 4th Big Data Analytics & Insights summit conducted on 20th July 2017 in Bengaluru, India. INSOFE received the Education Leadership Award in Dewang Mehta National Education Awards (Regional Round) in January INSOFE s was awarded Certificate of Excellence in Education by ASSOCHAM for being a part of ASSOCHAM India s TOP SME 50 Index in the fourth ASSOCHAM SME s Excellence Award PGP in Big Data Analytics INSOFE s PGP in Big Data Analytics includes both faculty-driven lectures and hands-on lab sessions driven by seasoned Data Scientists. Each week, students spend 16 hours in the classroom learning concepts and gaining hands-on experience in the latest Data Science technologies. They solve real-world problems as part of the midterm hackathons and finally work on project hackathon and defend their work. All INSOFE students are guaranteed a paid internship opportunity during the program giving them invaluable hands-on expertise with building prototypes. INSOFE is known for providing leaders to the field of Data Science. The course structure, curriculum and its admission process, make sure that no bean is left unturned in delivering quality to the industry. MSc. in Data and Business Analytics This is a unique and formidable course the world has ever witnessed, an extreme-edge engineering program intertwined seamlessly with the breadth of its business applications, thus challenging the frontiers of knowledge. The twinning program starts with Semester 1 at INSOFE with an intense course that deep dives into breakthrough technologies like AI, Deep Learning, Machine Learning and Big Data Engineering. After completing this course, students enter the 2nd Semester of this course to be pursued at Rennes School of Business, France. This program equips students with key analytical methods and tools that will allow them to become leaders in data-driven decision making by tapping into disruptive technologies. Career Services In addition to delivering world class quality content, INSOFE also extends its support in helping students shape promising careers in data science through Career Services. The Career Services team provides a 360-degree service designed to nurture every aspect of the students personality. Regular campus drives, dedicated interview line-ups at employer site, strong industry network and an active Career Services team benefit INSOFE students with comprehensive placement support. In the last 10 months, 419 companies have interviewed INSOFEans with 3 interviews scheduled on an average every day. Organisations from different domains hire INSOFE graduates on daily basis at different levels of hierarchy: Data Scientists Data Engineers Data Architects Data Consultants Product Managers Head of Analytics roles ADDENDUM 1 List of Companies analysed, by Sector Auto Tata Motors M&M Hero Motocorp Maruti Suzuki Bajaj Auto Ashok Leyland Banks (Private Sector) ICICI Bank Axis Bank HDFC Bank Banks (Public Sector) Union Bank Bank of India Central Bank Bank of Baroda SBI IDBI Bank Canara Bank PNB Financial Services Power Finance REC Infrastructure (General) Larsen BHEL Oil Drilling and Refineries Reliance HPCL GAIL IOC ONGC Petronet LNG MRPL Chennai Petro Power ReNew Power Power Grid Corp NTPC Utilities HUL ITC Vedanta UltraTechCement Hindalco Ecommerce Inmobi Shopclues Paytm Zomato Flipkart Swiggy Ola Snapdeal Steel Tata Steel JSW Steel SAIL Telecommunication Idea Cellular Bharti Airtel 24 25

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