Big Data Innovation Summit

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Confidential | Copyright © Fractal Analytics 2012 1

Art

Science

The world of payments and business intelligenceA peek into the future

Sankar Narayanan, Fractal AnalyticsDirector – Client Servicing

Kamran Ashraf, Visa EuropeHead of Analytics and Information Services

Big Data Innovation SummitLondon, 19 April 2012

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What is Big data?


Are we Gold prospectors?Are we Gold prospectors?

Information overloadInformation overload

What is the question?What is the question?

Information & espionageInformation & espionage

®The father of modern day analytics and Big Data? – c.1854


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The world of payments and business intelligence


1. Predictive and accessible analytics

2. Sub-optimal models - Type

‘0’ and ‘A’

3. Critical success factors - T3 scorecard

4. Mobile and

convergence

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1.Learn from all customer behaviour data


Collaborative Filtering (learning from similar customers)Probabilistic Learning Algorithm

We use all data sources that provide information about a customer

Transaction data

Web behaviour Demographic

dataRewards

data

Shopper Intelligence

Self declared data

Product Intelligence

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1.Mapping labels to offers


Targeted OfferTargeted Offer

Customer Product Match : Medium

Offer : Wild Harvest Oatmeal x% off, Responsiveness: High, ROI: Medium, Attractiveness: LowOffer : Wild Harvest Oatmeal x% off, Responsiveness: High, ROI: Medium, Attractiveness: Low

Recent transactions Life events Recent Offers Rules

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Big data – Lets run a diagnostic on your organisation…

Big data plans (100%) Oops!

(5%)

Socialise benefits and get buy-in(65%)

Don’t knowDon’t know

YesYesNoNo

NoNo

Develop business case(25%)

Benefits realisation(1%)

NoNo

Wow ‘business’ with capability and design requirements (4%)

YesYes

YesYes

Business exploitation

strategy agreed?

Business exploitation

strategy agreed?

Budget allocated?

Budget allocated?

Exec buy-in?Exec buy-in?

…Very few organisations have tangible plans for leveraging Big data…Very few organisations have tangible plans for leveraging Big data


®2. Sub-optimal ‘Type 0’ and ‘Type A’ analytics engagement models


Digitisation of data, new data feedsDigitisation of data, new data feeds

Big data solutionsBig data solutions

Cutting edge modelsCutting edge models

Investment in pure science, no growth objectives

Investment in pure science, no growth objectives

Type AType A

Data governance, especially regulatoryData governance, especially regulatory

StrategicStrategic

Data warehouse consolidationData warehouse consolidationOperationalOperational

OptimisationOptimisation

Type 0Type 0‘0’ investment, no growth objectives‘0’ investment, no growth objectives

PlansPlansObjectivesObjectives

Longer lifecyclesLonger lifecycles

®3. Critical success factors (CSFs) in the BI/IT domain – T3 scorecard


…ever closer collaboration

Talent

Tangible

Trust

®3. Critical success factors (CSFs) in the BI/IT domain – T3 scorecard


Talent

Tangible

Trust

®3. Critical success factors (CSFs) in the Business domain


Move from product to customer view – value, behaviours, triggers and touch points

‘Must-have’ requirements which

WILL be applied to business problems

1. Leadership

2. Business application

3. Ownership

Vision, prototyping

ROI themes and ‘test & learn’

Metrics, KPIs = Data dictionary, quality

1Product

Product

Form

Form

TransactionTransaction

ChannelChannel

32

Usage – petrol offer in

cents or %

Activation – restaurant offer +50%

Test & learnThemes

Dormancy – holiday towel

offer +15%

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Leadership by the business and collaboration with BI – An example


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4. Mobile as an engine for growth


Technology convergence and rise of mobile paymentsTechnology convergence and rise of mobile payments

Within ten years:

50 billion devices will be connected to the Web

Payments initiated by mobile will outnumber transactions on plastic cards

38 years 13 years 4 years 3 years

It took….It took….

….to reach 50m users….to reach 50m users2 years 2 years 1 year

Telephone Television Internet iPod iPhone Facebook Android

Avoid extinction…Avoid extinction…

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4. Impact on the payments landscape


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In summary & thank you for listening!



2. Sub-optimal models - Type ‘0’ and ‘A’

3. Critical success factors – T3

scorecard

4. Future (of payments) is mobile and managing convergence is key


2. Sub-optimal models - Type ‘0’ and ‘A’

3. Critical success factors – T3

scorecard

4. Future (of payments) is mobile and managing convergence is key

Art

Science

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In case you didn’t know…


®Fractal’s clients achieve competitive advantage by institutionalising analytics


®Fractal’s clients achieve competitive advantage by institutionalising analytics


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