ANALYTICS – AN INDUSTRY PERSPECTIVE

VIVEK KARMAKAR
AGENDA

1 Our role as analytics professional

2 Analytics for Smarter Processes

3 Trends in Analytics for Smarter Processes

4 Analytics Market & Roles

5 Use Cases
OUR ROLE AS ANALYTICS PROFESSIONAL
OUR ROLE

“The quiet statistician have changed our world; not

by discovering new facts or technical developments,
but by changing the ways that we reason,
experiment and form our opinions…”

– Ian Hacking
(Philosopher specializing in the philosophy of science)
ANALYTICS DEALS WITH UNCERTAIN PROBLEMS
We are dealing with “Probabilistic” problems. It often requires
quantitative approach to deliver “actionable insights”

• Who could upgrade to iPhone XR?

• Where should I invest more of my media budget?
• What are the top 10 videos you might like?
• What’s the appropriate time to restock my Levi's Jeans?
• Which oil well is going to run out of reserve?
• What are the different lifestyle groups amongst the customer
base?
IT DOES SO BY PROVIDING INSIGHTS, WHICH ARE ACTIONABLE
Actionable Insights:
• Conditional probabilities
likelihood, scenarios and
likely effects of actions /
decisions, trends,
understanding connectivity,
• Concepts / Segments:
Finding a few segments,
discovering hidden
dimensions and measuring
constructs / concepts…
Insights Application
People who bought A, B & C and Recommendation
part of specific demographic engine,
group has higher chance to buy Personalized mail
Levi's jeans
An electric wire near coastal area Electric wire
has 5% higher chance to develop replacement
corrosion compared to desert planning process
area
There are 6 different natural Use the as input
groups of SKUs based on their to strategic
price, sales, inventory related supply chain
behavior planning process
ACTIONABLE INSIGHTS TO SMARTER PROCESSES
 AN EXAMPLE OF SIMPLE PROCESS

Email Campaign for New User, who downloads and registers for an App (e.g.: Notes)
Sense

New user No App activity Used the App Used the App
registration for 5 days for 3 times for 10 times

Sends email
Act

Sends welcome Sends activation Sends email for

requesting
email reminder reference
feedback

Objective: Constraint:
• Improve activation • Maintain budget constraints
• Improve feedback
• Increase acquisition through references
 INJECTING ANALYTICS FOR SMARTER PROCESS
Sense

New user No App activity Ongoing app

registration for X days usage statistics

First time App Chance of

Learn

Chance of Chance of
usage doesn’t response for
response for response for
increase after re-activation
feedback reference
X days email

Decide target Decide target Decide target

Decide

population population population

based on based on based on
budget budget budget

Sends email Sends email for

Sends welcome Sends activation
Act

requesting reference
email reminder
feedback
ANALYTICS FOR SMARTER PROCESSES

A Smart Process can

focus on optimizing
Learn Sense business outcome
apart from execution of

Operationalize
Intelligence

Optimize the process.

Business
Outcome
This is enabled by data
driven knowledge, and
Decide Act operationalized
through integration with
business processes
THERE ARE TWO TYPES OF DECISION PROCESSES
Human Assisted
Decision is taken / approved by Humans based
on personal judgement or assisted by data
driven insights:
• Which store should have more of HP
Gaming laptops
• Which media channel should be over-
invested for advertisement on HP Spectre
line of laptops
• How much discount should I provide for
upcoming Holi sale for OnePlus
• How effective is the latest drug on Malaria as
per the clinical trial results
Autonomous
Decisions are taken and acted upon by
autonomous machines driven by algorithms:
• YouTube video recommendations & in-video
advertisements
• Real time machine health related alerts in
control center & recommended actions
• Fraud detection alerts in Credit / Debit card
transaction
• Customer feedback categorization in
ecommerce portal (e.g. Flipkart)
• Online recommendation in Amazon, Netflix,
Flipkart etc.
DATA & ANALYTICS LANDSCAPE - 2018
• Infrastructure
• Storage
• Database
• Data Transformation / ETL
• TPU/GPU Compute
• Data Science / Machine
Learning
• Visualization
• AI API market

• Applications - Horizontal Functions

• Applications – Industry specific
• Applications – Digital Analytics

• Data Providers & APIs

• Analytics Services
• Consulting organizations
HOW SOME OF THEM ARE RATED BY ADVISORS

Gartner Magic Quadrant for Gartner Magic Quadrant for Forrester Wave Enterprise
Data Science platforms, 2019 Data Management, 2019 Insights Service Provider, 2018
 DECISION PROCESS MATURITY FROM ANALYTICS VIEWPOINT
How can we decide
5
Autonomous and serve top three
offers during the
decisions ongoing browsing
session
4 What’s the top three offers
Optimize
Operationalize

for each customer to

optimize response rate and
choices expected sales
3 What’s the expected
Simulation sales uplift for promoting
products A, B, C through
driven tactics X, Y, Z
2 What were the top
Intelligence products, tactics during
Black Friday promotion
assisted in last two years.
1 How can we learn the
Test & relationship between
“segments”, “offer” &
learn channel through
experimentation

Intelligence
SMARTER PROCESSES - TRENDS
DECISION AUGMENTATION
• 44% of business value
driven by analytics will
come from decision
support and decision
augmentation

• Analytics will drive

utilization of smart
products for Asset
Maintenance &
Customer Behavior
Studies
FRONT OFFICE
• Customer Data Platform,
Event triggered Marketing,
Mobile marketing analytics,
Multichannel campaign
segmentation, Multitouch
attribution, Social analytics

• Customer Engagement
Center Performance
Management,Virtual
Customer Assistants,

• Field service workforce/

Payroll optimization

• B2C Dynamic pricing, Price

Optimization and
management for B2B, PPM
for New product
development (Back office)
BACK OFFICE
• Supply Chain visibility,
Warehouse planning and
scheduling, Warehouse
planning & modeling

• Device monitoring
analytics. Application
performance monitoring
analytics,

• Workforce / Workplace
Analytics,Voice of
Employee

• Retail analytics for

Healthcare payers, Text
Analytics for Scientific
research
ANALYTICS MARKET & ROLES
 GLOBAL MARKET SNAPSHOT

Analytical Research Cognizance: IDC (International Data Corporation)

Global Advanced Analytics Market Size, Companies and Worldwide revenue for Data & Business Analytics
Industry Growth Expected market to reach $260 billion by 2022
$165.68 billion by 2025 with CAGR 33.24%
https://www.reuters.com/brandfeatures/venture-capital/article?id=60336

January’19 report from Indeed showed a 29%

Market Research Future increase in demand for data scientists year over year
Global Data Analytics Market to be $159 billion by and a 344% increase since 2013
2022 with a CAGR OF 31% https://searchbusinessanalytics.techtarget.com/feature/De
https://www.marketresearchfuture.com/reports/data-analytics-market mand-for-data-scientists-is-booming-and-will-increase
INDIA MARKET SNAPSHOT

• India is the second-biggest analytics jobs hub after the US

• It accounts for one in 10 data science openings in the world
• 76% increase compared to last year

https://qz.com/india/1297493/india-has-the-most-number-of-data-analytics-jobs-after-us/
INDIA MARKET BY TYPE OF ORGANIZATION

% of Analytics Jobs by Company Type

https://www.analyticsindiamag.com/study-analytics-and-data-science-jobs-in-india-2018-by-edvancer-aim/
ANALYTICS SKILL

Statistics
Business Intelligence for
+ = Business Outcome
+ +
Tech
Data
ROLES – JOB FUNCTION - SKILL

Identifies business areas for analytical Business strategy. process, administration, Driving business outcomes,
Business / Functional
solution & drives business outcome Change management

Designs analytical solution for business Domain understanding, Process KPIs, Analytics solution, Insights
Consultants
problems. Interacts with Business & Tech. presentation, Project governance

Designs data sourcing, storage architecture

Data Data Modeling, Database, ETL
and serves data to consumers

Designs statistical algorithms for

Algorithm Algorithm, R, SQL, Python
descriptive, predictive analysis

Designs user interface & visualizations for

Viz Tableau, Power BI, UI/UX Design process
insights consumption

Integrates analytical outputs to business

SI Middleware, API etc.
processes
IN ORGANIZATIONS LIKE

Indian Business Analytics Information Captive

Houses Services Technology Centers

Analytics Analytics
Consulting Advisors
Products Platforms

Data Provider
Mobile Tech Education Government
Organizations
WORKFORCE TRANSFORMATION - CROWD & FREELANCE

Source: Open Assembly, Fall 2018

CITIZEN DATA SCIENTIST

• A business function person with

interest and aptitude to use data for
descriptive & predictive insights

• “Power users” who can perform

both simple and moderately
sophisticated analytical tasks that
would previously have required more
expertise.

• Citizen data scientists provide a

complementary role to expert data
Source: Gartner
scientists. They do not replace the
expert data scientists
USE CASES
ENERGY & UTILITIES – POWERLINE REPLACEMENT

Western Power, an Australian power distribution company has 100,000 Kms of

power lines serving 1.1 Mn customers. The conductor replacement plans were
Business Objective designed based on engineering knowledge & rules like Age. They objective was to
analyze conductor replacement with other environmental factors and develop a
better conductor replacement plan

• Historical conductor maintenance & replacement information

Data • Metallic composition of conductor
• Geographic / Locational attributes – e.g. distance from sea shore, nearby bush etc.
• Historical weather information, rain, moister etc.
• Segmentation & Correlation analysis
• Decision tree models to understand the influence & interplay of
Solution different location, weather & factors
• The exploratory analysis and Decision tree model helped to develop an
optimized replacement plan

https://www.youtube.com/watch?v=M5BzdPZ-lo8
RETAIL – PERSONALIZED OFFER @ POS

A retailer in USA was keen to provide personalized experience to their

customers, and in turn optimize their loyalty marketing spend. Their objective
Business Objective was to identify & provide personalized Next Best Offers for each customers
and rollout the optimized offer for through direct mail, e -mail, POS & mobile
App channels
• Historic POS transactions
Data • Demographic information
• Recent Web / App searches on products
• Campaign offer response

• Customer behavior feature engineering

• Product interest features based on Web / App searches
Solution
• Offer level response models using logistic regression
• Prioritize best offers for each customer based on response probability
• Integrate personalized offers with delivery channels
CONSUMER GOODS – NEW PRODUCT FORECASTING

A cosmetic manufacturing organization was looking for a robust analytical

solution to develop sales forecast for new Lipstick shades they were
Business Objective planning to launch. Stable & accurate forecasting of new products is
critical to success of products launch as lower forecast will result into
lost opportunities, higher forecast results into financial loss.

• Product information like Brand, Shade, Price etc.

Data • Historical sales for new product & their product information
• Historical launch promotion tactics

• Brand, Shade & Price point matching to identify like products (Top 5)
• Develop forecasting model including promotion tactics used for product
Solution launch
• Ensemble the output from five different forecasting models to generate
forecast for new product
BANKING & INSURANCE – LOAN

A bank was observing a trend, where their customers were availing loans
from other banks. The objective was to find out customers, who is
Business Objective servicing a loan in a different bank. And who may take up loan from a
different bank in future

• Customer demographics information

• Customer account information
Data • Customer transaction details
• Transaction detail with other banks

• Exploratory analysis of regular transactions to other banks

• NLP analysis & categorization of transaction comments entered by
Solution customer for bank transfers
• Ageing analysis of estimated loan amount based on EMI transfers
• Logistic regression to identify other customer, who may like to avail loan
from other banks
THANK YOU
VKARMAKAR@GMAIL.COM
HTTPS://WWW.LINKEDIN.COM/IN/VIVEK-KARMAKAR-4A13031