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Ibmcaigendb 141022122741-conversion-gate01
1.
© 2014 IBM
Corporation October 2014 Inside the mind of Generation D: What it means to be data-rich and analytically driven
2.
© 2014 IBM
Corporation2 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
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 IBM
Corporation4 © 2014 IBM Corporation
5.
© 2014 IBM
Corporation There are four distinct approaches to data and analytics… and one group of enterprises uses insights, cloud, and engagement very differently 5 Generation D enterprises are: 3xmore likely to excel at developing insights regarding their customers and marketplace1 Dataandanalytics1 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’ 2xmore likely to automate processes and decisions based on insights from analytics2 2xmore likely to believe cloud is transforming their business model3 Cloud 2xmore likely to engage customers via digital channels (mobile and social)4 Engagement Analyticmaturity Data breadth and sophistication Traditional Analytically ambitious Data-rich, analytically enabled Generation D: Data-rich, analytically driven 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) 6 1 For each measure… please indicate approximately how your business performs on that measure Generation D reports improved performance over peers on KPIs1 +10% +6% +17% +13% +6% +13% points points points points points points
7.
© 2014 IBM
Corporation More Generation D enterprises are extremely effective at addressing business challenges1 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 All others 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 2.9x 2.4x 3.0x 9% 13% 18% 14% 14% 46% 18% 2.6x36% 14% 2.5x
8.
© 2014 IBM
Corporation Generation D enterprises are more likely to combine advanced data with sophisticated analytics 8 Analytical maturity 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’. Data breadth and sophistication 2.2xmore likely to use advanced data sources such as, unstructured text, location data, audio, video and mobile application data1 1.5xmore likely to use traditional data sources such as transactional, CRM, supplier, log, publicly available and purchased data1 2.9xmore likely to use predictive analytics, and 4xmore likely to use prescriptive analytics to inform most processes and strategic decisions within the enterprise 2
9.
© 2014 IBM
Corporation Generation D enterprises use a wider variety of more-sophisticated analytic skills and capabilities 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 3.9x 1.5x 29% 23% 42% 44% 93% 89% 74%
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© 2014 IBM
Corporation Data and analytics examples 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. Optimizing high cost inventory through gamification and simulation Pricing insurance policies faster by combining traditional and advanced data Improving the customer experience with real-time 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%. • 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%.
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Corporation Generation D enterprises view cloud as key to enabling transformation 12 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 All others 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 2.5x 1.8x 31% 23% 30% 29%
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Corporation Cloud examples 13 Competing faster on the cloud 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.
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Corporation Generation D enterprises are embracing new ways to engage customers, employees and partners 15 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 All others 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 2.0x 1.6x 35% 39% 40% 43% 2.1x70% 34% 79% 74%
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Corporation Engagement examples 16 Reducing churn through social media and audio analytics 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.
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Corporation Generation D is clearly adopting a more systematic approach to data and analytics, cloud and engagement 18 Have a coordinated cross-functional or centrally owned strategy for: Generation D All others Generation D versus all others 68% 59% 1.5x 1.4x 1.6x 1.5x 45% 38% 47% 40% 59% 65%
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Corporation Generation D enterprises infuse data and analytics throughout the business 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 1.5x 31% 40% 43% 85% 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.‘ 60% 70%
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Corporation Is your enterprise part of Generation D? What are they doing differently? 20 Traditional Analytically ambitious Data-rich, analytically enabled Generation D: Data-rich, analytically driven © 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 Generation D is:
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Corporation To learn more about the study, please visit 21 ibm.com/ibmcai/gen_d © 2014 IBM Corporation
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Corporation22 © Copyright IBM Corporation 2014 IBM Corporation New Orchard Road Armonk, NY 10504 Produced in the United States of America October 2014 IBM, the IBM logo and ibm.com are trademarks of International Business Machines Corporation in the United States, other countries or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or TM), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. Other product, company or service names may be trademarks or service marks of others. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. XXX00000-USEN-00 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.
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To download the study picture book and view infographics and other materials relating to the study, please visit ibm.com/ibmcai/socialstudy
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