The Digital Economy Programme John Hand, Head Digital Economy Programme.
Competing in the Digital Economy
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Transcript of Competing in the Digital Economy
w w w . c g n g l o b a l . c o m
CGN GLOBALCompeting in the Digital Economy
March 2014
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Agenda
• Defining the digital spectrum
• Business @ speed of light
• Big Data, Hairy decisions, Audacious results
• The customer – value equation
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The digital spectrum is a multi dimensional living, evolving ecosystem and there is a recipe that works for you and your customers – you just have to find it!
Channel to market
Real time decision making
Target resolution
Privacy
Framing the contextual problem becomes a critical first step in the digital economyData drives business drives data
… and so on
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Superior business models in the digital age will have to deliver on competing business priorities without dropping the ball
Closeness to customer
Product / Service innovation
Operational excellence
Crowd sourceTele-management
Zero
late
ncy
Ultrascale
Micro-targetedGeo-located
Psychographicsconvergence
A/B testing
Access / availability
Technology is forcing traditional businesses to decouple their processes and arrive at newer models to remain relevant under continuously evolving market conditions
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Competing in the digital age involves synthesizing relevant insight from multiple data sources – structured and unstructured…… AND ACTUALLY DOING SOMETHING WITH IT!
Technology capabilities are moving from just analytics to actionable insight but the truly transformative scenario would be adaptive decision making.
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Healthcare: Patient centric approach to delivering value in an integrated care delivery environment
Asset tracking for improved utilization
Patient tracking from the time the patient walks into
the door
Resource monitoring
for improved productivity
Reduction in the lead time to serve patients, through real time data collection & analytics
capability
LocationLocationWhere are patients within the facility?
Where is staff within the facility?
Where are devices/assets within the facility?
Traffic Patterns
Hot/Cold zones within the facility
Dwell times
Core metrics: unique visitors, visits etc.
Repeat visitor ratio, visit frequency, recency
Key MetricsKey Metrics
IdentityIdentity
Who is in the facility?
What is the profile of patients within the facility?
AnalyticsAnalyticsHow many patients are in the facility
Where do patients spend most time
What are the paths they take
How many are repeat visitors
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Healthcare: The true business value of big data is in delivering structural cost improvement and improving financial stability of the enterprise
Salaries & Wages
51%
Services &
Supplies27%
D&A5%
Revenue100%
Higher operating network efficiencies
Optimized fixed costs & procurement
Gain
Increased throughput resulting in greater visits & revenues
Higher efficiency of administrative activities through technology interventions
Operating Income4%
Other exp11%
Interest exp2%
Impact on Provider
• Fewer resources & associated costs
• Reduced administrative & transaction costs
• Ability to generate greater revenues through improved patient throughput
• Improved resource & asset utilization
Right sized assets
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CPG / Retail: Putting the customer in charge of the product discovery and buying experience and allowing unfettered exchange of information in return for real value
Susie goes to the store
Susie decides to host a party and checks out wine options online
Connect with Susie as she looks at inventory at a client’s web
property (FB page, Twitter handle, website, etc.)
Promote the client app / web property / products in Susie’s
and her “look alikes’” news feed and sends her coupons / ads /
app downloads
Recognize her smartphone as she enters the store and tracks her as she walks towards the
wine aisleShe walks through the store occasionally stopping to check out various products
Suggest other products based on her current location as well as
recommended wine pairings with those products. Additionally, it sends
her relevant coupons and offers
She completes her trip and checks out
Update her profile with the list of
products bought for future
recommendations
Susie goes online to review the wines
Update the sentiment profile for the product and aggregates feedback to the
retailers and brands
Brand Awareness
Personalized Promotions
Social Sentiment
Product Innovation
Dynamic Pricing
Customer Engagement
Susie invites her friends and downloads the app
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CPG / Retail: The power of the medium is in connecting with the core audience with pin point accuracy and scaling that universe using network effects with efficiency
Reach – 3,500k
Reach – 2,500k
Reach – 120k
Step 1:Identifying the most engaged audience
• Core audience on FB (177K) and Twitter (30K)• Subset of this audience interacting with a
particular video post – 50K• Look alike audience harvesting – 100K to 120K• Targeted, personalized messaging through
sentiment and emerging theme analysis• 3-5% app download – 3K to 6K
Step 2:Expanding
reach across the web
• Expand audience on Youtube (500K) and ShareThis (1,000K to 1,500K)
• Understand audience psychographic and behavioral characteristics
• Look alike audience harvesting – 2,000K to 2,500K
• 1-3% app download – 20K to 75K
Step 3:Reaching
audiences in context
• Incentivize engaged audience to spread the message through their network – 1,000K
• 1-1.5% additional app download – 10K to 15K• 2 way communication with 100K consumers
inside stores through the app• Store analytics and strategic screen marketing in
context of the shopping activity
Converting an ever expanding universe of
engaged eyeballs to spending consumers
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CPG / Retail: The digital journey roadmap drives distinct value to the business performance buckets at each stage – The key is tracking and measuring it
SG&A22%Own Data
• Key statistics• Correlated price and volume movements• “Halo” effects
Digital Media Advertising Platform• Increase ROI on advertising• Micro targeted messaging• Behavioral segmentation
Location Based Services• Extend online profile to physical location• In context messaging• Personalized app content management
Integrated Business Decision Support• Extend online profile to physical location• In context messaging• Personalized app content management
Stage 1
Stage 2
Stage 3
Stage 4
Gross Margin
32%
Revenue100%
Net Margin10%
Cost of Goods Sold 68%
Cost of Goods Sold 68%
Cost of Goods Sold 68%
Cost of Goods Sold 68%
Cost of Goods Sold 66%
34%
11%
SG&A22%
SG&A22%21%
SG&A21%
SG&A21%
13%
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Automotive: A seamless customer experience delivering actionable sales insight for a frictionless buying process
Sam goes online to research a car
System analyzes his behavior and influencers
System tracks Sam’s choices and preferences
System alerts dealership of Sam’s choice and identifies his vehicle
Sam walks into a dealership
System tracks Sam’s data and enriches profile
Sam buys a car
System tracks Sam’s comments and sentiment
Sam goes online to talk about his experience
System prompts personalized messages for
a new car
Sam is ready for a new car
System up-sells service packages
Sam brings his car for service
Sam configures a car online
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Automotive: The business value lies in creating an ecosystem of engaged consumers and developing multiple touch points through the relationship lifecycle
Actionable intelligence from real live conversations across 700 M users and 50,000 brands and live location feed from every single customer in the dealership
Track and target influencers for your context
Win mindshare across the competitive landscape
Take the online relationship into the dealership and vice versa
Execute end to end from insight generation, targeted messaging as well as relationship management
One source of data to track the whole lifecycle from intent generation to first time purchase, servicing and then repeat buyer
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Insurance: Real time catastrophe response management to optimize field resource deployment and service distressed policy holders in their times of need
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ImpactFin&Strat Levers
Insurance: The business value comes from recognizing that efficient response to crisis not only minimizes the impact of the catastrophe but also creates lasting brand equity
Accurate claims processing
• Right resource, right place, right time• Early response, limited damage• Lesser time in ancillary support (hotel,
rental cars, etc) → lesser expense
• Cost of latency for claims adjustment
• Cost of ancillary support / affected policy holder
Combined ratio ↓
Optimized resource deployment
• Predictive resourcing models• Real time monitoring of ground realities• Targeted response with required
resource instead of max coverage
• # of deployed resources• Optimized mix of deployed
resources (training, supervisory, etc.)
Expenses ↓
Procurement efficiencies
• Proactive positioning based on real time feedback for optimized response
• Pre-staging reduces prices of hotel rooms, rental cars, etc.
• Pre buy impact on ancillary support / affected policy holder
• Reduced wastage
Expenses ↓
Brand equity & market share
• Real time sentiment management• Proactive engagement with policy
holders and quick response• Visible leadership
• Market share• Cost of retention vs. cost of
acquisition• Competitive pricing advantage
Premium income ↑
SourceBenefit
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A fair and transparent exchange of information for commensurate value between the provider and consumer drives sustainability
VALUE = QUALITY PRICE
Performance
Best in class
Frictionless experience
Features & attributes
Customized offering
Highly responsive
$
Personal information
Time
Competing in the digital economy is about generating business (value) by serving greater market complexity (quality) without sacrificing operational simplicity (price)
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SAURABH DEYSENIOR MANAGERE. [email protected] P. 617.755.4881
THANK YOU