Talking Data Case analysis

Situation
Talking Data is a rapidly growing Big-Data analytics company founded by its CEO Leo Cui in
China. Starting from gaming industry clients, it currently serves a wide range of industries like
banking, retail, F&B, real estate, FMCG, etc. Offers tools, products and platforms for data
analysis, consulting services to help businesses to leverage data to make better-informed
decisions. The complete product-service package enabled Talking Data to provide customized,
end-to-end package to its clients. The company generated its revenue from three streams: Data
services, Data applications and Solutions. From 2015-2017, Its revenue had increased by 356%
and employee headcount had increased by 400%.
It had three organizational or business units -
DCU - Data Commercialization Unit
DTU - Data Transaction Unit
DPU - Data Partner Unit

Industry - Big Data analytics, digital services and consulting

Role - CEO, Leo Cui
Key Stakeholders - Partners, Clients (end-users), Data suppliers, Developers, Investors

Issue
Manage increasing complexity in a fast growing company.
Continue to grow in China and expand overseas in the global market
Sharpen innovative edge

Qualitative analysis

SWOT

S-
● Consulting services allowed Talking Data to go beyond ad-hoc and piecemeal tool or
data services and offer its clients integrated solutions that aligned with their respective
strategies and goals.
● In-house developed TDID, a unique data identification number system, was also a
secured and depersonalized identifier used to consolidate data across disparate devices
(smartphone, tablet, and laptop) and functions. One ID to map everybody and leverage
that information to rule them.
● Neutrality - Only neutral third-party data management platform (DMP) in China.
● Independence - resisted acquisition offers from several large companies, including
Baidu, Alibaba, and Tencent, choosing to remain an independent company to deepen its
“neutral” edge and expand on its own.
● Unique resource and key differentiating factor was the refined and rebuilt data analytics
platform.
● Strategic partnerships helped to better fulfil its clients’ business demands in a

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 comprehensive manner.

O-
● Fill a data analytics void in China - most businesses in China rarely used much data in
their decision-making.
● TalkingData University (TDU) would consequently grow the Big Data analytics market in
China, expanding TalkingData’s share of the pie.
● Acquire data science and data technology startups and companies in the US and China.
● Explore revenue sharing with clients and partners
● Two growth areas, namely marketing and financial businesses.

W-
● Quick change in strategy
● Lack of suitable reference points for benchmarking.
● Lack of requisite internal expertise to fully address the client’s concerns, particularly in
engaging and managing various stakeholder and user groups

T-
● Cooperation among data providers, data platforms, and service providers is an industry
norm, and TalkingData needs to transform itself to make it to the top.
● Threat of losing neutrality and independence by hostile takeover.

Alternatives
1. Remain in China, grow organically and exclusively build functional expertise within the
company to reduce dependency on partnerships.
2. Expand Overseas as well by acquiring high growth, high potential innovative tech
startups while sharing knowledge and developing collaboratively with partners.

Recommendation

Talking Data has a lot of growth potential if they expand globally as well as in China. They could
target tech startups (M&A) that have conducted groundbreaking research in the field of data
analytics. Talking Data would significantly benefit by acquiring these companies who already
have innovative leaders and diligent employees to align with their own strategic goals.

Knowledge sharing with partners along with revenue sharing. They should build strategic
partnerships to co-innovate and collaborate in technological inventions such as new products,
platforms, methodologies, improved workflows, better processes, models and business
reengineering.

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 They should also set a specific vision and define the company's strategy for a long term of 5
years. This would enable them to adhere to a defined organizational structure and objectives
and in managing increasing complexity in a fast growing company.

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