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Transcript of Capgemini ruurd dam
The Art & Science of becoming an Insights Driven BusinessRuurd Dam, September 2016
2Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Hello, Ruurd Dam is my name
Ruurd DamSVP, Global Practice Leader Customer Value Analytics Capgemini Digital |Insights & Data
3Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Our view: actionable insights are the engine of Digital Transformation ..
Digital Transformation…
Digital CustomerExperience Digital OperationsDigital Organization
& People
Digital Business Model
… driven by Insights
Real-time intelligence Cognitive & AI Actionable InsightsAgile ReportingAdvanced Analytics
Enterprise Data External Data IoTWeb & MobileSocial
Enabled by new data landscape
Enterprise-scale governed & secured
Embedded in Digital experience
Fueled by Data Science culture & capabilities
Fostering applied innovation
4Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
And this is how we scope and define Insights & Data
Customer Value Analytics is the interplay of data, technology, statistics and business processes to make a decisive impact on the customer journey
5Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Marketing nowadays is about combining Art & Science
“Creativity of the marketer is complemented by transaction or behaviour insights, derived from a variety of data sources, and produced to guide or strengthen business decision making”
6Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Case: market pressures have forced client to improve sales and margin growth
Illustrative
Vendors
RETAILER
7Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Client leveraged our catalog of practice-proven analytics & insights to kick start the project
Business domain Key use cases in our catalog
Brand Switching Community and Influencer Analysis & Targeting Customer Churn Customer Group Analysis Customer Lifetime Value Customer Support Analytics Household Exclusivity & Loyalty
Household Segmentation Launch & Campaign Analytics Live Content & Media targeting Loyalty Analytics Shopper Insights Top Shopper Identification Trip Mission/Market Basket
Cross Sell/Up Sell Digital Analytics Effective Pricing Innovation & Product Lifecycle Management Neural Net Demand Forecasting New Product Introduction/Adoption Plan-o-gram optimization,
Development & Space Management
Product Affinities Promo Optimization Sales force Management Sales Optimization Store Layout Optimization Store Segmentation Trade spend targeting Vendor Performance
Assortment Optimization Customer & Supplier/ Supply Chain collaboration Demand & Supply Planning Inventory Visibility & Optimization Order orchestration Out-of-Shelf Analytics Predictive Asset Maintenance
Stock allocation management Supply Chain Network Optimization
8Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
We typically start with engaging both Business and IT stakeholders and prioritize opportunities using our strategic Value Analytics matrix
BU
SIN
ESS
VALU
E
Phase 1Phase 2
Phase 3
High
LowDifficult EasyEASE OF IMPLEMENTATION
5
23
2
11
1
9
4
8
7
6
12
3
19
18
15
1413
20
16
10
43
38 29
28
27
26
25
24
222117
39
37
36
35
31
3042
4140
3234
Business Value Levers: Increase Sales, Reduce Cost, Improve Working CapitalEase of Implementation Levers: Data / Tool readiness, dependency on 3 rd party, organizational readiness & alignment etc
# Insights & Data Capability # Insights & Data Capability
1 Standardized Reporting 23 Program ROI2 Ad-hoc Analytics 24 Shopper Targeting
3 Household Segmentation (Protect, Recover, Develop Strategies) 25 Sweepstakes
4 Store Segmentation 26 Net Value Cost Analysis
5 Trip Mission / Market Basket 27 Exclusivity & Loyalty6 Shopper Insights 28 Effective Pricing7 Test & Control (A/B) Identification 29 Promo Decomposition8 Retail Labs (R&D) 30 Household Segmentation
9 Assortment Optimization 31 Category / HH Targeting
10 Brand & Pkg Switching 32 Marketing Mix Optimization
11 Out-of-Shelf Analytics 33 Product Lifecycle Management
12 Plan-o-gram optimization, Development & Space Management 34 Loyalty Analytics
13 New Product Introduction / Adoption 35 Customer Group Analysis14 Replenishment Planning 36 Neural Net Demand Forecasting 15 Top Shopper Identification 37 SC Network Optimization16 Product Affinities 38 Promotion Decomposition with ROI17 Household Exclusivity & Loyalty 39 Vendor Performance
18 Digital Analytics (e-com, social media etc). 40 Working Capital Analytics
19 Campaign Analytics 41 Store Layout Optimization20 Customer Lifetime Value 42 Predictive Asset Maintenance21 Customer Churn 43 Recruitment Effectiveness 22 Cross Sell / Up Sell
EXAMPLE
9Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Scope & Approach: two continents and multiple business domains
‒ Market: Canada (+200 stores), Netherlands (+250 stores)
‒ 25 Convenience Retail Categories, with value added insights services for top categories including
Tobacco, Beverages, Snacks (Salty Snacks, Chocolate, Gum/Mint/Candy)
Geographical & Product Scope: Proofs of Value in two continents, all categories
‒ Store segmentation based on Shopper Behavior‒ Out-of-Shelf identification corrective action‒ Assortment Optimization Eliminate volume transferable SKUs with no Shopper Rationale Give their
space to high performing/high Out-of-Shelf SKU’s‒ Effective Pricing Responsive Products and Price Points (Everyday and Promotion pricing)‒ Promotion Decomposition Elimination of non-productive promotions
‒ Centralized, easy-to-use database, and standard Category Review Reports in web portal‒ Analytics portal and Category Management Insights training‒ Category Analysis and Insights deliveries to Category Managers‒ Concrete, practical in-market A/B testing and implementation plan
Objectives: Focus on select foundational advanced analytics to address key business opportunities
10Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Deliverables
Setup Project plan & Scope
Value Discovery Analytics
Group1: Analytics
Planograms…
Persona Profiles & Needs
Store Clustering
End user Training Group2:Promotion Playbook
…
…
Sample data quality and completeness approval.
JDA licensing requirements
Tables & Reports
Visualized planograms
Group 1 & 2 In-market Testing & Evaluation
Objective & Process Alignment
11Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
A fruitful journey to date with more opportunity to grow together
Store Clustering
Out-of-Shelf Reduction Assortment Optimization
PricingPromotion
Plan-o-gram Design
Master Data Management
Store / Macro Space Design
Systems Optimization
Standard Category Reporting
12Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Business Value Defined
1. Single digit % net increase in Sales Revenue
2. Single to double digit % reduction in promotion costs with same or higher total sales
3. Single to double digit % reduction in inventory carrying costs
4. DD% margin improvement
Out-of-Shelf Reduction Assortment Optimization
Effective Pricing
Store Clustering
Promotion Decomposition, True ROI Measurement & Playbooks
Risk Levels Sales Preference Competitive
Price Resilience
1 LOW LOW LOW
2 LOW MEDIUM LOW
3 MEDIUM LOW LOW
4 MEDIUM MEDIUM LOW
5 LOW LOW MEDIUM
Demand Optimized Planograms
13Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Working with our clients it has been demonstrated how significant and measurable business value can be achieved
Efficiency and cost focus changing the way the company
is operated
Reduce Trade & Marketing
costs 5 – 25%Business Operation savings
3 – 10%IT Operation savings 30%
Sales Effectiveness +10%
4x Marketing RoI
Sales +5%
Growth of existing business streams with increased
effectiveness
Sales +2.5%
Brand Value +10%Customer Satisfaction
+10%
Growth through new revenue streams and/or monetization
of data
14Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
… however, according our own research there are still many barriers to overcome
No obvious business value
Data Landscape ineffective
Scarcity of expertise
Cultural boundaries
15Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
MVP based delivery
Rapid Business Value realisation
Greenfield
Enabler for Innovation
Project based delivery
High Risk and high governance
Constrained by legacy
BusinessAnalytics
Traditional BI
And we also learned that neither a pure traditional BI nor an pure business analytics approach were the right approach
16Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Our lessons learned have been translated into a global approach to help clients to become an Insights Driven Business
Typical ‘Business Value NOW!’ Journey
Animate Data & Technology
Operate the Organization
12 weeks +9 months+6 months
Grow Insight - driven Business
Enhanced competitive advantage by continuously
embedding analytics capabilities into business
decisions
Demonstrate Business Value
Agile Analytics hothouse to prove value in real
life on concrete business challenges
Scale the Capability
Bring enterprise scalability to analytical
capabilities and solutions in business
Ignite the Journey
Ignited stake-holders for way forward
0,5-1 day
Activate business decisions with analysed facts
Manage the data and technology foundation
Organise for enduring capabilities and benefits
Factivate the Business
THANK YOU!