The document discusses a study by IBM on "Generation D" enterprises that are data-rich and analytically driven. Generation D enterprises are more likely to use insights from analytics to automate processes, believe cloud is transforming their business, and engage customers via digital channels. They also excel at developing customer insights and use more advanced analytics like predictive and prescriptive analytics. The Generation D approach correlates with improved performance on key metrics and being more effective at addressing business challenges.

1. © 2014 IBM Corporation
October 2014
Inside the mind of Generation D:
What it means to be data-rich and analytically driven

2. NOTE: Surveyed 1,089 respondents across 5 industries (i.e., Telco, Finance, T&T, Consumer Packaged Goods and Retail), all major geographies, and 70% large
enterprise /30% medium enterprises; Additionally, 50 in-depth qualitative interviews were conducted. Data is weighted according to by GMV opportunity. © 2014 IBM Corporation
© 2014 2 IBM Corporation

3. © 2014 IBM Corporation
The majority of enterprises recognize that data and analytics are
transforming their industry and professions
3 © 2014 IBM Corporation

4. © 2014 4 © 2 I0B14M I BCMo Crporoproaratitoionn

5. There are four distinct approaches to data and analytics… and one group of
enterprises uses insights, cloud, and engagement very differently
2x more likely to automate processes and
decisions based on insights from analytics2
2x more likely to believe cloud is
transforming their business model3
2x more likely to engage customers
via digital channels (mobile and social)4
© 2014 IBM Corporation
5
Generation D enterprises are:
3x more likely to excel at developing insights
regarding their customers and marketplace1
Data and analytics
Cloud
Engagement
Traditional
Analytically
ambitious
Generation D:
Data-rich,
analytically driven
Data-rich,
analytically enabled
1 How effective is your enterprise in doing the following today where 1 is 'not effective at all' and 5 is 'extremely effective.‘? 2 Please rate each of the following
statements to the degree that they describe your enterprise where 5 is 'describes your enterprise completely' and 1 is 'does not describe your enterprise at all.'
3 To what extent do you agree or disagree that each of the following statements describes your enterprise where 1 is ‘do not agree at all’ and 5 is ‘agree
completely’? 4 To what extent are you using digital channels in the following ways: ‘already using’, ‘plan on using’, ‘not using’
Analytic maturity
Data breadth and sophistication
19%
31%
21%
29%

6. © 2014 IBM Corporation
The Generation D approach correlates with better than average
performance across a variety of key performance indicators (KPIs)
Generation D reports improved performance over peers on KPIs1
+10%
+6%
+17%
6 1 For each measure… please indicate approximately how your business performs on that measure
+13%
+6%
+13%
points
points
points
points
points
points

7. More Generation D enterprises are extremely effective at addressing
business challenges1
2.9x
3.0x
36% 14% 2.6x
© 2014 IBM Corporation
Generation D All others
46% 18%
7 1 How effective is your enterprise in doing the following today? Please rate on a scale of 1 to 5, where 1 is 'not effective at all' and 5 is 'extremely effective.
Generation D
versus all
others
34%
37%
43%
42%
33%
Developing new revenue streams
Penetrating new markets
Improving interactions with customers
Operating efficiently
Managing risk
Responding to security threats
Faster time to market
3.7x
2.5x
2.4x
9%
13%
18%
14%
14%
2.5x

8. Generation D enterprises are more likely to combine advanced data with
sophisticated analytics
4x more likely to use
prescriptive analytics
to inform most processes and strategic decisions within
the enterprise 2
© 2014 IBM Corporation
Data breadth and sophistication
8
Analytical maturity
2.2x more likely to use advanced
data sources such as, unstructured text,
location data, audio, video and mobile
application data1
1.5x more likely to use traditional data
sources such as transactional, CRM,
supplier, log, publicly available and
purchased data1
2.9x more likely to use
predictive analytics, and
1 To what extent are you using each of the following as input to your company's analytic process? ‘already using’, ‘plan on using’, ‘not using’. 2 Please indicate how each of the
following types of analytics is used in your business where 1 is ‘not used at all’ and 5 is ‘deeply embedded into most, if not all processes and strategic decisions’.

9. Generation D enterprises use a wider variety of more-sophisticated analytic
skills and capabilities
3.9x
© 2014 IBM Corporation
9 1 Please indicate which of the following capabilities and skill sets are being utilized in your business today
Generation D All others
Generation D
versus all
others
67%
Engage in video/audio analytics
Use natural language text analytics
Conduct next best action modeling
Use simulations
3.2x
1.8x
1.5x
29%
23%
42%
44%
93%
89%
74%

10. Improving the customer
experience with real-time data
• A trucking company wanted to
revamp their communication with
drivers on the road.
• It equips all of the company’s trucks
with a telematics system that logs
GPS, engine use, and
speed/braking data.
• The real-time information allows the
company to provide updated quotes
and delivery status while optimizing
fuel costs and reducing its mobile
units by 60%.
© 2014 IBM Corporation
Data and analytics examples
Optimizing high cost
inventory through
gamification and simulation
Pricing insurance policies
faster by combining
traditional and advanced data
• A jewelry retailer sought an
alternative to in-store testing as
a way to minimize carrying costs
and quickly gauge demand for
new products.
• The company runs online
gamifications with their existing
customers to understand product
preferences and price sensitivity.
• Better able to time new market
entries and reduce inventory costs.
A 60% increase in new product
success rate.
• An insurance company needed
to make home inspections
more efficient.
• By gathering aerial property images
from external data sources, they
can calculate the square footage of
a house without a physical home
inspection.
• Home inspections have been
reduced from almost 100% of new
policies to 40%.
10 50 qualitative interviews were conducted in addition to the 1089 quantitative surveys. The use-cases on 10, 13, and 16 come from those qualitative interviews.

11. © 2014 11 © 2 I0B14M I BCMo Crporoproaratitoionn

12. Generation D enterprises view cloud as key to enabling transformation
2.5x
© 2014 IBM Corporation
12
Generation D All others
1 To what extent do you agree or disagree that each of the following statements describes your enterprise where 1 is ‘do not agree at all’ and 5 is ‘agree
completely’? 2 To what extent is your business deploying each of the following solutions in a cloud environment? ‘already using’, ‘plan on using’, ‘not using’ 3
Does your enterprise use API-based services offered by other companies?
Generation D
versus all
others
60%
56%
54%
53%
Believe cloud is transforming their business model1
Use cloud for analytics2
Use cloud for data management2
Use API-based services3
1.9x
1.8x
1.8x
31%
23%
30%
29%

13. © 2014 IBM Corporation
Cloud examples
Competing faster on
the cloud
13
Building an optimized
schedule by combining data
in the cloud
Using APIs to
speed performance
• A real estate company desired to
collect and distribute property
information between employees
faster.
• Through a cloud database, the
company gives employees the
ability to sort through existing data
and upload their own, such as
photographs of properties and
location information, while in the
field.
• It now has a competitive advantage
during time-sensitive biddings and
can predict imminent vacancies.
• A restaurant chain sought
collaborative opportunities between
its siloed data sources.
• It hosts its previously disparate
databases on the cloud, allowing for
a unified view of all its information,
most importantly the customer
loyalty program and the scheduling
program.
• The company is now able to assign
their best-selling servers to the
busiest shifts, driving a 2% increase
in revenue.
• A bank wanted to give their
institutional clients access to some
of its efficient, in-house capabilities.
• The bank offers API services over
the cloud which provide access to
proprietary platforms and stream
real-time data.
• Institutional clients can now view
real-time information (e.g.,
exchange rates) and perform
actions such as foreign exchange
transactions more easily.

14. © 2014 14 © 2 I0B14M I BCMo Crporoproaratitoionn

15. Generation D enterprises are embracing new ways to engage customers,
employees and partners
2.0x
© 2014 IBM Corporation
15
Generation D All others
79%
74%
1 Which communication type does your business primarily use for customers? ‘personalized’, ‘customized by segment’, ‘non-customized 2 To what extent are
you using digital channels in the following ways? ‘already using’, ‘plan on using’, ‘not using’ 3 Please rate each of the following statements to the degree that
they describe your enterprise where 5 is 'describes your enterprise completely' and 1 is 'does not describe your enterprise at all.‘ 4 To what extent do you
agree or disagree that each of the following statements describes your enterprise where 1 is ‘do not agree at all’ and 5 is ‘agree completely’?
Generation D
versus all
others
59%
70%
Personalize interactions with customers
Engage customers via mobile and social
Use mobile and social to drive business processes
Extensively share data and analytics internally3
Link customers, employees, and partners to better
engage the market4
1.7x
1.8x
1.6x
35%
39%
40%
43%
70% 34% 2.1x

16. © 2014 IBM Corporation
Engagement examples
Reducing churn through
social media and audio
analytics
16
Harnessing mobile and
analytics to better engage
customers
Using social to evolve
enterprise collaboration
• A telecom company wanted to
better forecast individual customer
defections before they happened.
• The company analyzes social
media comments, call center audio,
contract expiration dates, network
data and other factors responsible
for turnover.
• Customers are assigned a
“propensity to churn” score and are
targeted with offers designed to
increase the likelihood of retention.
• A retail giant needed an improved
mobile app to counter competitive
digital channels.
• The company compiles and
analyzes purchasing histories and
consumer feedback from individual
customers.
• The new mobile app sends
personalized coupons, reminds
buyers of price-matching offers on
relevant goods, and can direct in-store
customers to nearby sites for
out-of-stock items.
• A financial services firm with a
dispersed workforce sought to
increase collaboration beyond
traditional e-mail and phone
communication.
• It has created a web portal that
allows employees to upload, view
and edit projects in real-time.
• The portal cuts down on travel
costs and increases the speed and
flow of information.

17. © 2014 17 © 2 I0B14M I BCMo Crporoproaratitoionn

18. Generation D is clearly adopting a more systematic approach to data and
analytics, cloud and engagement
1.6x
© 2014 IBM Corporation
Have a coordinated cross-functional
or centrally owned strategy for:
18
Generation D All others
Generation D
versus all
others
68%
59%
1.5x
1.4x
1.5x
45%
38%
47%
40%
59%
65%

19. Generation D enterprises infuse data and analytics throughout the business
1.5x
© 2014 IBM Corporation
19
Generation D All others
Generation D
versus all
others
Educate employees on the use of data and analytics1
Provide data and analytics in real time2
Extensively share data and analytics internally3
2.7x
1.6x
31%
40%
43%
85%
60%
70%
1 Please indicate which of the following capabilities and skill sets are being utilized in your business today. 2 Please indicate how each of the following types of
analytics is used in your business where 1 is ‘not used at all’ and 5 is ‘deeply embedded into most, if not all processes and strategic decisions’. 3 Please rate
each of the following statements to the degree that they describe your enterprise where 5 is 'describes your enterprise completely' and 1 is 'does not describe
your enterprise at all.‘

20. Is your enterprise part of Generation D? What are they doing differently?
Generation D:
Data-rich,
analytically driven
© 2014 IBM Corporation
Generation D is:
20
Traditional
Analytically
ambitious
Data-rich,
analytically enabled
© 2014 IBM Corporation
Infusing the majority of processes and decisions with
analytics
Tackling complex data sources and applying more
predictive and prescriptive analytics
Managing more of their data and analytics on
the cloud
Moving toward mobile and social as their primary
methods of engaging customers
Changing their culture, not just their technology

21. © 2014 IBM Corporation
To learn more about the study, please visit
21
ibm.com/ibmcai/gen_d
© 2014 IBM Corporation

22. © Copyright IBM Corporation 2014
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Produced in the United States of America
October 2014
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Notes and sources:
Inside the mind of Generation D: What it means to be data-rich and
analytically driven. IBM Center for Applied Insights. October 2014.
http://ibm.com/ibmcai/gen_d.
© 2014 22 IBM Corporation