PrADS Introduction & offerings 2017
- 1. Business Analytics – Solutions & Services Giving you a Decisive Edge
- 2. At the end of the day, all businesses want the same thing Higher Revenue Lower Cost Optimal Risk 1Business Analytics - Solutions & Services
- 3. The success of your business hinges on the extent of knowledge and understanding you have about your prospects, clients, competitors, partners, vendors and employees How much do you know now? What can you do to improve it? 2Business Analytics - Solutions & Services
- 4. Making sense of it ALL can give you the competitive edge 3 Demographic / Firmographic Business Transactions Financials Payment Behavior Credit History Rating Reports Rent Payments Social Profiles & networks Customer Reviews Supplier Feedback Employee Feedback Job Postings Management commentary Press Releases Litigation Data Industry News Business Analytics - Solutions & Services Good News is - They all leave a big “Data Trail” behind to help you understand and predict their behaviour. A lot of it is buried in your transactional systems. And a lot more is outside.
- 5. Find new customers, sell more to existing customers, offer right products at the right price & right time, increase customer loyalty, reduce operational cost, improve productivity, lower credit risk and delinquencies, reduce supply chain risks, enhance collection efficiency. We can help you exploit this data to get “insights” and make “decisions” that can help 4Business Analytics - Solutions & Services
- 6. In a nutshell, this is what we can do for you Text Mining Data Enrichment Proxies & Signals Data Preparation • Descriptive Analysis (What’s going on) • Predictive Models (What will happen) • Marketing • Sales • Operation • Finance & HR Statistical Analysis Improved Business Performance Unstructured Data External Data Internal Data Structured Data Unstructured Data Data Transformation 5
- 7. Business Analytics - Solutions & Services The Solutions, we offer Enable decisions that increase revenue, reduce costs, manage risks and improve business performance. 6 Customer Development Increase Average Revenue Cross sell & Up sell Reduce Churn Price Optimization Segmentation Marketing Market Sizing Forecasting Sentiment Analysis Campaign Management Operations Reduce Cost Increase Productivity Mitigate Supplier Risk Quality Management Preventive Maintenances Reduce Credit Risk Improve Collections Efficiency Credit & Collection Increase Customer Velocity Reduce Customer Cost Improve New Customer profile Customer Acquisition
- 8. Business Analytics - Solutions & Services New Model Development Continuous Model Monitoring Services Independent Validation & Verification (IV&V) of Models Third party audit of Analytics Information Management and Visualization The Services , we provide 7 Enable decisions that increase revenue, reduce costs, manage risks and improve business performance. End to end analytics services as your trusted analytics advisor
- 9. Business Analytics - Solutions & Services Focus on Business Value Link analytical outcomes with P&L New Model Development , ADEO™ Framework 8
- 10. “End Use Driven” approach focuses on key business issues and desired outcomes to deliver a solution that works Business Analytics - Solutions & Services “End Use Driven” approach focuses on key business issues and desired outcomes to deliver a solution that works Our Model Development , Approach 9
- 11. IV&V is a pre-production process to ensure that a model is • Useful to solve intended business problem • Delivering the right results as per specifications • Fit for production IV&V is essential • To mitigate business risk arising out of using inaccurate models • For compliance as many regulators require IV&V framework for critical models Best Practices • Written down framework for IV&V. • Clear separation between original development team and validation team. Ensuring Right Models, Built Right, Working Right Business Analytics - Solutions & Services Ensuring Right Models Built Right Independent Validation & Verification (IV&V) 10
- 12. Inputs Business Validation Outputs • Models (Scripts & Documents) • Development Data • Validate business objectives & expectations • Review model specifications • Validate model development & testing methodology Data Audit • Verify data sources & data definitions • Verify data quality & enrichment methods • Verify variables used in model development Statistical Verification • Discrimination Analysis • Score Distribution / Concentration Analysis • IV&V Report • Recommendation • (Fit) • (Unfit) Business Analytics - Solutions & Services IV&V Approach 11
- 13. Model Monitoring is a post-production process to ensure that a model is • Continuing to give desired business benefits with acceptable accuracy • Still suitable for production Model Monitoring is required • To assess impact of changes in macroeconomic environment and/or business strategy • Determine if any changes are required in the model • For compliance as many regulators require a model monitoring framework for critical models • Written down framework for continuous model monitoring • Minimum bi annual frequency • Separation between model users and model validation teams Ensuring Highly Accurate Models – Always. Business Analytics - Solutions & Services Best Practices Ensuring Highly Accurate Models – Always Model Monitoring Services 12
- 14. Inputs Business Validation Outputs • Model (Scripts & Documents) • Incremental Data • Validate model usage & results Data Audit • Verify data quality & consistency • Data preparation Statistical Verification • Discrimination Analysis. • Population Stability Analysis • Characteristic Stability Analysis • Calibration Analysis. • Score Distribution / Concentration Analysis • Model Monitoring Report • Recommendation • (No change) • (Minor change) • (Major change) Business Analytics - Solutions & Services Model Monitoring Approach 13
- 15. Unique “4A Methodology” comprising of 4 dimensions with a set of quantitative and qualitative parameters • Alignment: Assess the alignment of analytics function’s vision, objectives and deliverables with business objectives and priorities. • Ability: Measure the companies analytics capability to support growth in terms of people, process, tools and infrastructure. • Accuracy: Evaluate the accuracy of the analytical models based on historical data, statistical techniques and qualitative assessment. • Adoption: Investigate how models are adopted and used in the organization. 4A Approach Alignment • Strategy • Scope • Coverage • Business Feedback Ability • Infrastructure • People • Data Maturity • Capacity Adoption • Culture • Tools • Implementation Process • Business Impact Accuracy • Data Quality • Models Verification • Recalibration Process Measure the maturity of your Analytics organization and develop a roadmap to improve the same Analytics Audit Red- Needs Serious Improvement Amber- Needs some improvement Business Analytics - Solutions & Services Green- Needs little / no improvement 14
- 16. Proven track record in processing large amount of data to present meaningful information and valuable insights. Expertise across all leading data visualization tools Comprehensive services (business consulting, technical design, solution delivery and ongoing sustenance) Experience and Expertise A rich library of KPIs and standard reports Customize reports based on business Unique “End Use” approach for superior ROI. Business Analytics - Solutions & Services Information Management & Visualization Ready to Go Intelligence Integration Gather, process & aggregate the raw data Quality Improve & augment the processed data Exploitation Monitor usage & improve solution Intelligence Present actionable insights. Governance (Process, Policy & Procedure) 15
- 17. Dedicated team at D&B Technologies Global Centre of Excellence in Chennai, India Team comprising Economist / Statistician, Data Engineers and Functional expert Constant dialogue between client and D&B Technologies on business priorities and deliverables for the month Recommended when speed and agility are more important. Allows R&D bandwidth Follows waterfall model Delivery strictly adheres to the mandate Team size and composition is based on requirements Yields higher productivity and efficiency but lacks agility Recommended when requirements are clear / one time Engagement Models Analytics Center of Excellence (ACE) Program/Project based D&B Technologies recommends Project based approach for Risk Analytics and Analytics Center of Excellence (ACE) for Customer Analytics Business Analytics - Solutions & Services Recommend Project based approach for Specific requirements and Analytics Center of Excellence (ACE) for strategic outsourcing Engagement Models 16
- 18. • Quality metrics in accordance of Dun & Bradstreet World Wide Scoring Panel (WWSP) • World class infrastructure with highly talented team from most premier colleges in India. Global Expertise, Offshore Advantage • ‘End Use’ driven approach to provide implementable solutions for actual business problems. • Senior Management and Analytics team with extensive experience in delivering analytics solutions across industries. Business Focus End-to-End Solution • Most comprehensive solutions and services delivery approach from solution definition to implementation. • Ongoing engagement to seek continuous improvement and better business impact Differentiators A trusted partner to give your business a “Decisive Edge” 17Business Analytics - Solutions & Services
- 19. Analytics in Action 18 A large bank in middle east wanted to decentralize decision making and reduce turnaround time, while reducing credit losses Business Problem Developed a set of application score cards for each product. The key challenge was to enrich the data with usage of some proxies due to constraints on data quantity and quality.. Solution Offered Daily Throughput h 40% Application TAT i by 3 days Credit Losses i80 bps Success Story Improving Customers Acquisition and Credit Underwriting for a Retail Bank 11.4% 7.9% 2.1% 2.1% 2.1% 1.4% 0.7% 0.0% 0.0% 0.0% 0.0% 5.0% 10.0% 15.0% 1 2 3 4 5 6 7 8 9 10 Badrate Decile Bad Rate
- 20. Analytics in Action 19 The Client wanted to increase average revenue per customer for its commercial finance portfolio Business Problem Post customer segmentation and demographic profiling. A look- alike model was developed to predict which low & medium value customers are more likely to become high value customers & what products can be offered Solution Offered Success Story Improve Average Customer Revenue for an equipment finance company Avg. Ann. Sales Above $6.500 (4.8%) Avg. Ann. Sales Above $2,125 to $6,500 (13.5%) Avg. Ann. Sales Up to $2,125 (81.7%) Up Sell Pyramid 29.6% of Low 44.4% of Med 22 % Customers moved up the revenue ladder Average Revenue Per Customer h 28 %
- 21. Analytics in Action 20 Offer differentiated pricing to its customers to compete better in the market Mitigate credit risk for existing customers Business Problem Developed a suite of risk scorecards for existing customers for cards, unsecured and secured loan products to ascertain risk profile of customers and Pricing Plans based on probability of default, cost of funds and margin expectations Solution Offered Credit Losses i50 bps Offered 5 differential price points h In opportunity to cross sell Success Story Mitigating Credit Risk and offer Differential Pricing to retain customer Cumulative Customers (%) CumulativeProfit(%) 20 % 40% 60% 80% 100% 160 100 Actual Profit Unrealized Profit Potential Customer’s Profitability (Whale Curve) Mitigating Credit Risk
- 22. Analytics in Action 21 Gain deeper insights to understand key revenue drivers and improve marketing and sales return on investment Business Problem In-depth portfolio analysis helped reveal variables & characteristics of most desirable customers , using logistic regression a predictive model was developed to determine the probability of new prospect response Solution Offered Success Story A large postal services company in North America improved Marketing effectiveness and ROI per customer HIGH REVENUE MEDIUM REVENUE LOW REVENUE REVENUE CLUSTER PROBABILITY OF CONVERSION LOW MED HIGH Conversion Chart Response Rate h 28 % Average Revenue Per New Customer h 32 %
- 23. Thank You India Office Prince Infocity Level 9, Plot No. 286/1, Rajiv Gandhi Salai (OMR) Kandanchavadi, Chennai, India