How worldclass organizations use Complex Databases to drive growth and profitability - PowerPoint PPT Presentation

1 / 41
About This Presentation
Title:

How worldclass organizations use Complex Databases to drive growth and profitability

Description:

... airlines, 46,000 hotels, 50 car rental companies, and 70,000 vacation packages ... Sales can propose custom package for business customers based on usage ... – PowerPoint PPT presentation

Number of Views:194
Avg rating:3.0/5.0
Slides: 42
Provided by: andrewc9
Category:

less

Transcript and Presenter's Notes

Title: How worldclass organizations use Complex Databases to drive growth and profitability


1
How world-class organizations use Complex
Databases to drive growth and profitability
  • Ron Swift, Teradata VP of Cross Industry
    Solutions
  • For Rick Watsons Graduate MBA Class on
    Databases
  • At The University of Georgias Terry College of
    Business
  • September 27, 2006 Brooks Hall Room 316 8 AM

2
Teradata, Who We Are
  • Founded in 1979
  • 1.3B division of NCR Corporation
  • 4,200 World-Wide Professionals Dedicated to Data
    Warehousing
  • World class customer list continuing to add 100
    new customers/year
  • Strong penetration in leading global companies
    across multiple industries
  • Banking
  • Government
  • Insurance Healthcare
  • Manufacturing
  • Retail
  • Telecommunications
  • Transportation Logistics
  • Travel

FORTUNE 2004 Global Rankings
3
Agenda
  • Characteristics of Complex Databases
  • The Evolution of Databases for Business
    Intelligence and Active Service Processes
  • A Framework for utilizing complex data within
    Analytical Business Decision-Making processes
  • Case Examples of Realized Successes
  • Using Data and DW/BI for Profitability and
    Growth
  • Best Practices and Recommendations
  • Additional Resources available to you

4
Consolidated view of source systems
Operational Data
Web Logs
Enterprise Warehouse Management
Industry Logical Data Model
5
The Value of a Comprehensive Logical Data Model
Consolidating the Customer View
Enhancing Understanding
6
Example Teradatas Financial ServicesLogical
Data Model (FS-LDM) Release 8 with Basel II ERM
Extensions
  • Enhancements in support of the Basel II Accord
    and Enterprise Risk Management, for example
  • Market Risk per the
    1996/98
    Market Risk Amendment
  • Credit Risk swaps, derivatives, collateral
    and risk
    mitigation, securitization, and parameters
  • Pillar 3 structures added to support Basel II
    reporting
  • Logical Views for Credit Risk, Market Risk
    and
    Operational Risk

7
Integration driving Profitability Management
The Superior Value of Integrated Detailed Data
Business Value
Product/Sales Analysis
Channel Analysis
Customer Analysis
Profitability
Enterprise Analysis
Resource/ Supplier Data
Financial Data
Financial View
Value
EDW Investment
Customer Data
Customer View
Customer View
Transaction View
Transaction Data
Transaction View
Transaction View
Evolution To Enterprise View
Product View
Product Data
Product View
Product View
Product View
Data Mart Elimination
8
Knowledge Used for Cross Function and
Multi-Organizational Decisions
CEO
President
Marketing
Payments Receivables
Sales
Product or Services Production
Strategic Tactical Planning
Legal
Data Sources are Organized and Accessible to
all who need to know
9
Enterprise DW/BI Applications and Cross-
Organizational Knowledge within EDW
Strategic Objectives and KPIs
Customer Management
Financial Management
Supply Chain Analytics
Demand Chain Management
ProductDevelopment Analysis
CompetitiveAnalysis
HumanResources
Marketing and Services
Procurement Analysis
Fraud and Revenue Assurance
Customer Value Management
Cross-Selling
Sales Effectiveness And Resource Analysis
ChannelManagement
Differential Marketing, Pricing, Contracting
10
Teradatas ERM Vision Economic and Strategic
Value
Enterprise Initiative
Capital Mgmt
Compliance (Basel II)
ERM Dashboard
Pricing
RAROC
Integrated Risk Data Warehouse
Enterprise Customer Management
Enterprise Performance Management
Customer Data
Finance and Ops Data
LOB Initiative
11
EDW Business Solutions Portfolio
Products
Suppliers
Employees
Customers
Execs/Mgrs
Channels
BUSINESS PERFORMANCE MANAGEMENT
(Strategies, Planning, Forecasting, Budgeting, P
roduction, Process Measures, Financials,
Employee Productivity, Governance, Regulatory,
Services, Reporting, Business Improvements)
TERADATA BUSINESS SOLUTIONS (Designed and Imple
mented for High-Performance, Profitable
Decision-Making)

Demand Chain Management
E-Business Management
Financial/Risk Management
Profitability Analytics
Customer Management
Supply Chain Intelligence
TERADATAs ENTERPRISE DATA WAREHOUSE
WITH INDUSTRY LOGICAL DATA MODELS
Legacy
Oracle
Siebel
SAP
HR
OLTP
Sales
IBM
12
The Evolution of Intelligent Marketing and
Communications to Drive Growth, Profitability,
Loyalty, and Value
13
The Marketing and Analytical Evolution Focus on
the practices of business intelligence
Increasing Business Value and Impact
Increasing Decisioning Workload Complexity
Increasing Data Detail, Volume, Integration
Schema Sophistication
14
Case Study Examples of Successes
15
A case study of who is doing it.
Sources Study by Hugh Watson (UGA), Barbara
Wixon (UVA), and Jeff Hoffer (UDayton), 2004
Articles in Numerous Publications including
Harvard Business Review June 2005 The Diamonds
are in the Data by CEO Gary Loveman. Winner of
Numerous awards.
16
Harrahs Business Strategy
Established a Brand Identity Based on...
Source Academic Case study, Harrahs High
Payoff from Customer Information, Hugh J. Watson
and Linda Volonino 11/01.
17
HARRAHs -
HARRAHs
  • 4B / yr 40,000 employees
  • 30 Million in Total Rewards
  • Compute expected profitability for gaming,
    hotel, food per day
  • 36 share of gaming budget for Reward Members
    grew to 43
  • 800,000 surveys / year impacts bonus of
    front-line employees
  • (All pre-merger stats)

18
Closed-Loop Marketing Cycle
Using Compudigm And Teradata
  • Gaming Behavior
  • Predicted
  • Actual
  • Demographics
  • Other Detail Trans
  • Marketing Actions

19
Example of Analytical Success
Same store sales growth has increased
significantly -- year over year
Source Annual Reports
20
Best Practice Travelocity.com
21
Travelocity.com
  • The worlds 1 online travel destination
  • Users make reservations on most of the world's
    airlines, 46,000 hotels, 50 car rental companies,
    and 70,000 vacation packages
  • Using EDW and CRM to
  • Do click-stream analysis to discover how
    customers use the website
  • Turn lookers into bookers
  • Use data to differentiate the company
  • Define new customer communications
  • Conduct powerful loyalty programs
  • Leverage interaction knowledge to provide
    relevant and timely bulletins
  • Maintain high customer satisfaction and a
    conversion rate much higher than the competition

22
Move to Customer Focus
  • Using TCRM to
  • Analyze web behavior discover how customers use
    the website
  • Turn lookers into bookers
  • Conduct powerful loyalty programs
  • Use CRM to differentiate the company

23
The Result Travelocitys CRM ROI
  • CRMs incremental lift over baseline
  • 25 lift in booking conversion for recipients of
    event-driven campaigns such as post-booking and
    new member welcome
  • 50 -100 lift in bookings for recipients of
    targeted email promotions
  • 35 improvement in booking conversion for
    newsletter subscribers

24
Who is doing it... Union Pacific Railroad
  • The Goal
  • Gather data into one location for an enterprise
    wide view that provides better data quality,
    integration of silo legacy data,
    synchronization of the business, and easy access
    by business users
  • Utilize the EDW to drive revenue growth, improve
    cost management, and gain competitive
    intelligence
  • The Solution
  • Knowledge Centre serving over 4000 users asking
    175,000 questions every day
  • Applications supported by the EDW include billing
    resolution, locomotive utilization, car
    management and forecasting, business analysis,
    revenue variance analysis, cost and profitability
    measurement, price management, customer services,
    and others
  • The Performance Value
  • Estimated benefits are in excess of 100 million
    each year
  • Improvements in asset management, revenue
    collection, equipment utilization, profitability,
    planning, and customer relationships
  • 24 hour instant on-line access

25
Case Study Mobile Company
1 Year Payback by Significantly Reducing Churn
Marketing Areas Identify, Predict and Manage Ch
urn Customer Segmentation Creation of New
Offerings
  • Accurate prediction of churn candidates within 15
    days
  • Identification of reason for potential churn
  • Proactive action by Customer Service Reps to
    retain customer
  • Identification and targeting of most profitable
    customers
  • Development of custom offers (i.e. Regional
    Service Plans) in a day, not weeks
  • Higher take rate and increased offer
    profitability

26
Case Study Mobile Company
  • Customer historical call mix analysis in minutes,
    not days
  • Sales can propose custom package for business
    customers based on usage
  • Higher win rates, more calls by sales
  • Prompt knowledgeable response to customer
    complaints by engineering
  • Instant access to call records
  • Proactive identification of subscribers with
    dropped calls
  • Invoice quality control
  • Proactive identification of erroneous bills
    before sending to customer

Operational Areas Increased Sales Productivity b
y Commercial Salesforce Improved Customer S
ervice
27
Using Customer Knowledge and Channels to Increase
Profitability
The most powerful effect of Customer Relationship
Management is on the bottom line!
  • 2-Channel Shoppers are twice as likely to shop in
    the
  • store and spend twice as much
  • 3-Channel Shoppers--web, catalog and store--are
    three times as likely to shop in-store and spend
    three times as much.
  • 30-40 of sales at Sears.com involve customers
    purchase online but then pick up their products
    at a Sears store.
  • 20 of those pick-up customers then buy more
    products in the store

A tri-channel customer is worth between 5-10
times that of a one-channel customer and between
2-3 times a customer that shops using 2 channels
  • Average JCPenney.com customers spend 121 per
    year
  • Yearly spending increases to 502 if they also
    use the catalog
  • Yearly spending more than doubles to 1,050 if
    they use the catalog stores as well.

28
  • Segmentation
  • Defining, satisfying, growing, interacting,
    building, selling, profiling, modeling, RFM.
  • Focusing on segments with the highest value and
    best potential for advancement.
  • Using detailed knowledge to gain ROI and
    increased profits.
  • Product/Affinity Analysis
  • Identify product affinities
  • Understand what customers buy/when/how/RFM
  • Drill down to quickly explore patterns (active DW
    datasets)
  • Campaign / Interaction Management
  • Build / Model / Know and Re-Use Relevant customer
    communications
  • Drive relevant and timely personalized offers
  • Template process and verbiage for reuseable
    Targeted Campaigns
  • Integrate with segmentation, modeling, and
    communications
  • Learn from Interactions in person or on the web

29
New Strategies for combining key Analytical
Processes and Integrated Data to drive actions
Pattern Detection
Customer Behavior Analysis
Cross-Segment Analysis
Percentile Analysis
Response Analysis
Product/Affinity Analysis
30
Segmenting customers and using event-based
marketing to drive revenues and profits
JUMP 76
31
(No Transcript)
32
Using Information Access and Analytical
Infra-Structure can be utilized for driving growth
  • One View of the Customer

Direct Marketing
Relationship
Channel
Marketing
Datamart
Datamart
Information
Extermal
Data

Research
Data
Internal
Methodologies
Predictive Marketing
Credit Risk
Warehouse
Warehouse
Databases

Market

Datamart
Intelligence
Product
Datamart
Cards Direct Marketing
Global HR
Life event
identification
Brand Management
Communication
Effectiveness Tools
Information Management
Distribution
and micro market
Database Marketing -
Sales Program
analysis
Intelligent/Predictive Marketing Algorithms
Management
Campaign
Segment
Requirements
Pricing
Statistical
Identification
Segmentation
Methodologies
Optimisation
Models
methodology
standards
Individual
Market
Opportunities
Prospects
Source NAB
33
Customer Knowledge through Analytical CRM Techno
logies and EDW
  • Profiler is available on the Bankers Desk top

34
The cube, a concept developed at the National,
is now used in every Database CRM campaign. The
performance of each cell is the basis of
selection for the next round. Over time the
best combination of channel, offer and target
market is identified and future campaigns will
use only these cells. With this process the
cube effectively acts as a continuous
improvement process.
More information (Booklet)
35
Examples of a Few of the ways our customers have
used Teradata DW and CRM analysis
  • National Australia Bank
  • Is using personalization tools event-based
    triggers to meet customers at the point of need
    create optimal customer experiences
  • Achieved greater velocity - initiating 100 major
    campaigns in six months
  • Generated 570,000 sales leads in one year,
    representing 4.4 billion in new business
  • Achieved retention rates of 98.4 (88 would
    recommend the bank to acquaintances)
  • Bank of America
  • Is using "event-based triggers" to reach out to
    customers via large deposits, withdrawals,
    insufficient funds, and other "significant"
    events
  • Followed up on 6,000 identified leads in the
    first five weeks with Teradata CRM - and 40
    percent generated a sale or service opportunity
  • Generated 1 million in new business in one
    district in one week
  • Has achieved customer satisfaction at "9 or 10...
    on a 10-point scale"

36
Summary and Recommendations
37
The NCR Advanced StorePersonalized Direct
Communications
  • Personalized Marketing To Mobile Customers
  • Provides a direct response channel for
    personalized marketing to your mobile customers
  • Leverages rapid growth of text messaging to
    attract new customers target your existing
    customers
  • Cost effective channel to drive results by
    influencing individual customer behavior
  • Right offer to right person at right time and
    place
  • Bounce back promotions, up selling, cross
    department promotion
  • Communication of marketing program
  • Utilizes wireless messaging to increase sales,
    cut costs, and improve productivity
  • Carrier-grade platform hosted software, nothing
    to install (ASP)
  • Implement programs across networks, applications,
    devices
  • Technology, relationships and services to get
    business results

38
Generating More Visits, Sales, and Profits
All XYZ Soda products are 25 off today!
Visit your local Rons Grocery
Authorization code K1RL882 Expires on 10/31/
05 Visit www.RonsGrocery.com to learn about
new exiting products special promotions
designed for you !
  • Public promotion to drive store traffic
    knowledge of loyalty program
  • Toll free call or web to learn about promotions
    and other offers
  • Private offers delivered to targeted customers
    who have opted in

39
Additional Resources
  • Many case studies white papers at
    www.teradata.com
  • Special Defying the Limits Publications at
    www.crmproject.com Several articles by Ron
    Swift
  • Article Mastering Analytical Marketing
    Initiatives
  • Article Optimizing Customer Experiences
  • Article Accentuating Customer Profitability
  • Article The New Business Opportunity through
    CRM
  • www.TeradataUniversityNetwork.com (for
    Professors)
  • www.TeradataStudentNetwork.com (for Students)
  • Teradata Center for CRM at Duke Univ.
    www.teradataduke.org
  • Excellent Literature and Books
  • (see sources in these slides)

40
(No Transcript)
41
Thank you, Please feel free to contact me
For More Information review these books
Managing Customer Relationships by Peppers and
Rogers
Accelerating Customer Relationships by R. S. S
wift
The Value Factor by Lars Nyberg and Mark Hurd
Speaker Contact Ronald S. Swift - Teradata - a
Div. of NCR Corp. 1413 S.W. Osprey Cove - Port St
. Lucie, FL 34986-2018 Office Phone 1-772-344-16
22 Email Ron.Swift_at_NCR.com
42
How world-class organizations use Complex
Databases to drive growth and profitability
FINI
  • Ron Swift, Author of Accelerating Customer
    Relationships
  • and Teradata - Vice President, Cross Industry
    Solutions
  • For The Terry College of Business at Univ of
    Georgia
  • Dr. Rick Watsons Graduate Class in Database MIST
    7800
Write a Comment
User Comments (0)
About PowerShow.com