BIG DATA

TRANSFORMS BUSINESS Bill Schmarzo CTO, EMC Global Services @schmarzo

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We’re In The Golden Age Of Data! Enterprise

Partner

External

Unstructured Credit Data

Shipping Data

Forecast Data

Location Data

Structured (Transactional)

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Sensor, Telemetry

Sales Data

Social, Video, Mobile, Public Data

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New Data Popping Up Every Day… Sports Nutrition

Sporting Goods Manufacturers

Healthcare Provider

Insurance Companies

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First Aid Products

Sporting Goods Retailers

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Big Data Business Model Maturity Index Measures the degree to which the organization has integrated big data and advanced analytics into their business model

Business Metamorphosis Data Monetization

Business Optimization

Business Monitoring © Copyright 2013 EMC Corporation. All rights reserved.

Business Insights

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The Big Data MBA

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Multiple Big Data Business Impact Areas Sales & Marketing

Operations

Finance

• Acquire more customers

• Optimize network performance

• Rationalize products

• Retain existing customers

• Predict maintenance problems

• Close unprofitable channels

• Cross-sell/up-sell

• Eliminate shrinkage

• Increase inventory turns

• Increase market basket

• Predict utilization/capacity

• Increase asset utilization

• Increase store traffic

• Increase fill-rates

• Reduce DSO

• Optimize pricing and yield

• Reduce out-of-stocks

• Reduce SG&A

• Increase conversion rate

• Consolidate suppliers

• Reduce T&E

• Improve ad effectiveness

Increase Top Line © Copyright 2013 EMC Corporation. All rights reserved.

• Reduce fraud and waste

Reduce Costs

Reduce Risks 6

Big Data Business Value Drivers Big Data Business Drivers

Data Monetization Impacts

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Structured Data: More Detailed Transactional Data (e.g., POS, CDR, RFID, Credit card)

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Enable more granular, more detailed decisions (localization, seasonality, multi-dimensionality)

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Unstructured Data: Diverse internal (email, consumer comments) and external (social media, mobile) data

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Enable more complete decisions (new metrics, dimensions and dimensional attributes)

Data Velocity: Low-latency (“Realtime”) Data Access

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Enable more frequent, more timely decisions (hourly versus weekly; ondemand analytic model updates)

Predictive Analytics: Causality, Predictors, Instrumentation, Experimentation

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More actionable, predictive decisions (Optimize, Recommend, Predict, Score, Forecast)

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Infrastructure Human Resource Management Technology Development

Service

Marketing and Sales

Outbound Logistics

Operations

Procurement

Inbound Logistics

Support Activities

Michael Porter’s Value Chain Analytics

Primary Activities Michael E. Porter "Competitive Strategy: Techniques for Analyzing Industries and Competitors” 1980 © Copyright 2013 EMC Corporation. All rights reserved.

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Michael Porter’s Five Forces Analysis New Market Entrants • • • • •

Entry ease/barriers Geographical factors Incumbents resistance New entrant strategy Routes to market

• • • • •

Number and size of firms Industry size and trends Fixed v. variable cost bases Product/service ranges Differentiation, strategy

Supplier Power • • • • •

Brand reputation Geographical coverage Product/service quality Customer relationships Bidding capabilities

Competitive Rivalry

Buying Power • • • • •

Buyer choice Buyers size/number Change cost/frequency Product/service importance Volumes, JIT scheduling

Product/Technology • • • •

Alternatives price/quality Market distribution changes Fashions and trends Legislative effects

Michael E. Porter "Competitive Strategy: Techniques for Analyzing Industries and Competitors” 1980 © Copyright 2013 EMC Corporation. All rights reserved.

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What’s Important to Foot Locker? Strategic Priorities • Become the Power Merchandiser of athletic footwear and apparel with clearly-defined Brand Banners • Develop a compelling Apparel Assortment • Make our stores and internet sites Exciting Places to shop and buy • Increase the Productivity of all of our assets Foot Locker’s 2010 Annual Report

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Value Chain: Improve Merchandising Inbound Logistics • Use real-time POS data to identify and notify suppliers of potential out-ofstock situations more quickly

Operations • Use real-time POS and RFID data to manage markdowns, identify slow and no movers and optimize in-store inventory

Infrastructure

Human Resources

• Deploy predictive, real-time merchandising dashboards to store and department management

• Use social media data to forecast promotion demand in order to optimize labor scheduling

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Outbound Logistics • Leverage social and mobile data to uncover merchandising insights to optimize merchandising performance Technology

• Use in-memory analytics to alert management regarding merchandising performance changes

Sales / Marketing • Use Conversion Attribution Analysis to optimize ad placement and messaging more quickly

Service • Combine Social Media with POS data to identify potential product or service performance problems

Procurement

• Use merchandising insights from granular POS data to negotiate superior supplier terms and conditions

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Five Forces: Improve Merchandising Competitive Rivalry

Buyer Power

Supplier Power

• Use Cross-media Attribution Analysis to outflank competition on cross-channel pricing and promotional effectiveness

• Leverage Sentiment Analysis from social sites to identify micropopulation merchandising trends to improve customer targeting

• Leverage POS and RFID data to identify “hot” products more quickly than competitors to “lock in” supplier inventories

• Provide suppler dashboards to leverage merchandising insights to help suppliers minimize inventory and distribution costs

• Leverage A/B Testing to uncover merchandising messaging and placement category insights

• Leverage realtime customer engagement data to optimize on-site customer monetization

• Leverage POS and RFID data to cancel or return slow movers and no movers to minimize merchandise markdown costs

• Leverage predictive analytics to recommend in-flight supply chain adjustments to key channel partners

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Product & Technology

New Market Entrants • Monitor social media and mobile data for merchandising trending insights that can be used to pre-empt new market entrants

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How Do I Get Started? © Copyright 2013 EMC Corporation. All rights reserved.

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Business Drives Big Data Initiative Big Data requires strong IT and LOB collaboration

Align To Initiatives

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Prioritize Use Cases

Determine Data & Technology

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Begin With Big Data Vision Workshop Identify Where And How Big Data Provides Competitive Advantage  Identify Big Data uses cases  Acquire and prepare structured and unstructured data  Build and continuously refine analytic models  Publish insights into applications

 Measure decision effectiveness © Copyright 2013 EMC Corporation. All rights reserved.

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Summary

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Big Data Transforms Business

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Big Data Requires Business and IT Collaboration

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EMC Can Help You Get Started Today

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Questions and Answers

To submit a question use the Q & A Panel located in the lower left hand corner of your screen. Thank you!

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THANK YOU

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