Some useful concepts related to IT/Analytics for GD/PI process

Business Process Management

This is a management practice that provides for governance of a business process environment
towards the goal of improving agility and operational performance. It is a disciplined approach
to identify, design, execute, document, monitor, control and measure both automated and
non-automated business processes to achieve consistent, targeted results consistent with an
organizations strategic goals.

What is a business process?

It is a series of steps designed to produce a product or a service. Some processes result in a
product or service that is received by the organization’s external customer. Processes can be
simple/complex, short/long running function/industry specific etc.

5 essential points to be remembered for BPM are:

A business process consists of a “sequence” of tasks. One task performed alone by one person
is not a business process.

1. A business process is structured or semi – structured. They are not performed on an ad

hoc basis but the sequence are dictated by logic or rules

2. The tasks can be performed in series or parallel.

3. There must be at least 2 or more individuals or applications involved as players performing

different tasks in workflow.

4. The sequence of tasks must have the purpose of reaching a common goal or outcome.

Customer Relationship Management

CRM is a mind-set philosophy that puts customers in the centre of the enterprise’s operations: It
is a tool that is necessary to track information that allows the enterprise to provide not just good
service but great service as well. CRM software provides a 360° view of the customer, integrating
customer information at every touch point.
Why CRM?

1. It costs up to 10 times more to lure and win over a new customer

2. Fierce Competition: Here customers will find alternate sellers

3. 80-20 percent rule: 80% profit gained from 20% of the customers. One should know who
those 20% customers are:

• When customers are scarce: For competition in the market, winning a customer is
difficult

• When customers are well informed: Our customers know about CRM and different
options of vendors. Hence we need to provide them with extra value addition.

4. When products are significantly standardized, switch the sellers at virtually zero cost

5. When it is economically feasible for customers to purchase the input from several
suppliers rather than one

CRM enablers:

• Sales force automation

• Marketing

• Service

• Analytics

• Single View of customer

Analytics domain
Analytics:
Analytics is the discovery and communication of meaningful patterns in data. Especially valuable
in areas rich with recorded information, analytics relies on the simultaneous application of
statistics, computer programming and operations research to quantify performance. Analytics
often favours data visualization to communicate insight. Firms apply analytics to business data,
to describe, predict, and improve business performance

Web Analytics:
Throughout our everyday lives, when browsing on an online store, using a member card to buy
groceries on sale, or sharing special offers from our favourite coffee shop on our social networks,
each of us continually drops pieces of intelligence. With nearly every click we make, data about
our online activity is being collected; it would be difficult to find a website that didn’t monitor
and analyse its usage in some way. This process of monitoring and analysing the usage is
performed as a part of web analytics

Web analytics is not just a tool for measuring web traffic but can be used as a tool for business
and market research, and to assess and improve the effectiveness of a web site. Web analytics
applications can also help companies measure the results of traditional print or broadcast
advertising campaigns. It helps one to estimate how traffic to a website changes after the launch
of a new advertising campaign. Web analytics provides information about the number of visitors
to a website and the number of page views. It helps gauge traffic and popularity trends which is
useful for market research.

Social Media analytics:

Social media analytics is the practice of gathering data from blogs and social media websites and
analysing that data to make business decisions. The most common use of social media analytics
is to mine customer sentiment in order to support marketing and customer service activities.

Risk analysis:
Risk analysis is a technique used to identify and assess factors that may jeopardize the success of
a project or achieving a goal.

This technique also helps to define preventive measures to reduce the probability of these factors
from occurring and identify countermeasures to successfully deal with these constraints when
they develop to avert possible negative effects on the competitiveness of the company.
Predictive analytics:
Encompasses a variety of techniques from statistics, modelling, machine learning, and data
mining that analyse current and historical facts to make predictions about future, or otherwise
unknown, events

In business, predictive models exploit patterns found in historical and transactional data to
identify risks and opportunities. Models capture relationships among many factors to allow
assessment of risk or potential associated with a particular set of conditions, guiding decision
making for candidate transactions.
What is SMAC?
SMAC is an acronym that stands for Social, Mobility, Analytics and Cloud. These technologies
are considered to be the driving forces in Information technology in the coming years. These
technologies have wide ranging applications for each and every business sector and can refine
the way in which business operates.

While each of SMAC by themselves is high potential for businesses, the integration of Social,
Mobility, Analytics and Cloud (e.g., mobile inputs driving real-time analytics) has a multiplier
effect. The sum is greater than its parts.

SMAC creates an ecosystem that allows a business to improve its operations and get closer
to the customer with minimal overhead and maximum reach. The proliferation of structured
and unstructured data that is being created by mobile devices, sensors, social media, loyalty
card programs and website browsing is creating new business models built upon customer
generated data. None of the four technologies can be an afterthought because it's the
synergy created by social, mobile, analytics and cloud working together that creates a
competitive advantage.

Social media has provided businesses with new ways to reach and interact with customers,
while mobile technologies have changed the way people communicate, shop and work.
Analytics allow businesses to understand how, when and where people consume certain goods
and services and cloud computing provides a new way to access technology and the data a
business needs to quickly respond to changing markets and solve business problems. While
each of the four technologies can impact a business individually, their convergence is proving to
be a disruptive force that is creating entirely new business models for service providers.

The integration of the technologies requires clear policies and guidelines as well as
management tools that can automate business processes. The media company Netflix is
often cited as an example of a business that has successfully harnessed the power of SMAC.

Retailers are strategically deploying the SMAC Stack across key business processes to
combine the best of virtual and physical retail shopping experiences. Now a customer’s
mobile device can signal store management while they’re shopping. Advanced analytics arm
associates with the right knowledge about that shopper so they can provide more valuable
assistance. And customers can compare products, get information and redeem targeted
offers from the Cloud while in store.

Social technology applications

The social aspect of SMAC is very critical for business marketing. For every business, people
are its most valuable asset. Social platforms give the power of sharing with people. It helps
them connect with other customers and to the business as well. This provides an excellent
platform for sharing of information between customers-customers, customers-business and
vice-versa.

An example, ICICI bank a year ago came out with a scheme called iWish. This is a variable
recurring deposit program targeted at the Gen-Y also known as ‘the Facebook generation’. In
this program, a customer can create a saving goal (which can be categorized under electronics,
house, etc.). ICICI bank gave an option to share the details of goal through Facebook and if your
friends want to help you in reaching the goal, they can contribute towards the goal. This
product has helped ICICI with a wide customer base of young people.

Mobile technology applications

Cisco Systems predicts that by the end of 2016, the number of mobile-connected devices will
exceed the number of people on earth. Last year's mobile data traffic of 18 exabytes (an
exabyte has 18 zeros after it) was nearly 18 times the size of the entire global internet in
2000. These stats are sufficient in their might to suggest the potential of mobile technologies
for business. Smartphones and tablets have drastically improved the connection between
businesses and their customers.

Mobile technologies allow businesses to connect with their customers on the move. We have
come long from a static business world. The day is not far when there will be no requirement
for conventional markets and their offices. This can greatly help companies cut down on
costs, and in turn they can provide a better customer experience.
However, mobile technology applications for companies face three major challenges

• Scalability of mobile infrastructure to cater to exponentially growing customer

base
• Availability of servers handling mobile requests 24/7
• Security in transactions is the biggest of all the challenges.

Analytics technology applications

One of the greatest advantages of using social and mobile analytics is the enhancement of
customer relationship and a better understanding about the consumer behaviour and
preferences. Based on the immersive data of spending patterns of customers, companies
offer a wide variety of services and add-on products to their customers. Customers are often
pleased by the personalized services offered by their companies. This helps them in
customer retention and overall customer relationship management.

An application of analytics in banking services that is widely used these days is the credit
rating of the customer. Customer’s overall banking history is accounted for while
determining the credit score. Based on this credit score banks can decide whether to give a
loan to the customer or not. Thus it can help banks in reducing bad debts and frauds.

Cloud technology applications

Last but not the least; cloud can be termed as one of the most powerful technology of the four.
Through the usage of cloud technologies shared resources, software, and information are
provided to computers and other devices as a utility.

Businesses benefit from cloud computing by avoiding the purchase of expensive

infrastructure, hardware, and software in exchange for access to remotely executed
software and remotely stored data. It allows employees and consumers to access data in
locations outside of the home. Employees become more productive, and consumers are
more educated.

One big example, for application of cloud technologies is the way PayPal has revolutionized
the banking transactions. PayPal has no physical presence and provides all its services
through the cloud. The simple and easy payments facilities that PayPal provides have made
it a big hit in the merchant payment systems.

Cloud services provide all time availability of data and thus can help in providing real-time
services 24/7. These technologies have truly made the world a global place for business.
BIG Data

What is it?

Data that exceeds the processing capacity of conventional database systems and is too big –
terabytes or petabytes, moves too fast, or doesn’t fit the strictures of your database
architectures. The data is increasing at exponential pace – both structured and unstructured, and
the technology is increasing according to Moore`s law which is helping the companies to store &
process such huge amount of data.

What is the use of Big Data?

There is a potential treasure trove of unstructured data: weblogs, social media, email, sensors,
and photographs that can be mined for useful information, and understanding of this kind of data
needs more than just storage and computing capacity, it requires advances in understanding of
data, as this data is subjective and context depended. Big data can unlock significant value by
making information usable at much higher frequency leading to better decision making.

As organizations create and store more data in digital form, they are able to collect more accurate
and detailed performance information on everything from product inventories to sick days, and
therefore can boost performance. Leading companies are using data for forecasting to adjust
their business according to the demand.

Big data allows more accurate segmentation of customers and hence better delivery of services.
For example, retailers usually know who buys their products. Use of social media and web log
files from their e-commerce sites can help them understand who didn't buy and why they chose
not to. This can enable much more effective micro customer segmentation and targeted
marketing campaigns, as well as improve supply chain efficiencies.

Finally, big data can be used to improve the development of the next generation of products and
services. For instance, insurance companies know in advance which customers are likely to leave
them in future and on what service aspect they should work on to stop that attrition.
Characteristics of Big Data – 4V model
Volume:

It is the most attractive factor because of which companies want to analyse data as it leads to
more accuracy for predictions. High volume of data requires scalable storage and distributed
querying approach, along with high processing machines and statistical sampling techniques.

Variety:

It is the most significant factor and ability to process the variety of information will determine the
future of big data and analytics. Majority of data available is in unstructured form – from social
network, text information, image information, audio and video. According to analysts 80% of the
data is not numeric which is difficult to process directly into application but is extremely vital for
decision making.

Velocity:

It is the rate at which data is being produced and processed to meet demand. The torrent of data
being produced is through clicks on internet via computers, tablets and smartphones.

Variability:

The flow of data is highly inconsistent and can be highly periodic. Example sales of crackers are
more during Diwali and New Year as compared to the rest of the year. This periodicity of data is
difficult to manage especially with social media involved.

Big Data Solutions

The kind of complexity involved due to unstructured data requires developing sophisticated
algorithms and logic. It requires a combination of business, IT, math and behavioral sciences to
define and systematically capture the insights from the data.

The technologies used to manage and help in extracting the information from data are SAS, SQL,
Hadoop, parallel processing, clustering, large grid environments and cloud computing.
IoT and M2M – Changing Modern Day Business Models

Internet of Things (IoT)

In simple terms, IoT can be defined as a system where multiple devices communicate with
each other through sensors and digital connectivity. They talk to each other, work in tandem,
and form a combined network of services.

“A world-wide network of interconnected objects uniquely addressable, based on standard

communication protocols.” (EPoSS 2008)

Machine to Machine (M2M) Solutions

M2M solutions contain a linear communication channel between various machines that enables
them to form a work cycle. It’s more of a cause and effect relation where one action triggers the
other machinery into activity.

M2M and IoT – The difference

If you developed a sensor network before the IoT acronym came along, you’d be forgiven for
thinking IoT is just lipstick on M2M. M2M is often associated with point solutions or a fleet of the
same kind of thing — a system of Wi-Fi thermostats, a flow sensor network in an oil-refinery, a
vehicle location system, home automation, all the heart monitoring telemetry in a hospital. For
some in the industry, M2M means anything with a cellular modem on a particular carrier’s
network.

Long story short, the key takeaway is that M2M is almost synonymous with isolated systems of
sensors and islands of telemetry data. In contrast, the IoT is trying to marry disparate systems
into an expansive system view to enable new applications — that’s not only the big idea, it’s the
one key difference between M2M and IoT.

“If you consider M2M in the next larger context, you get the IoT.” – Landon Cox

For example, in the example given below, three M2M applications are then being combine to give
a healthcare solution.
Application in Various Industry Sectors
Automotive

Consumers want the digital experiences in their vehicles to align with the ones they enjoy
everywhere else. When tied to the IoT, the car is an integral part of the interdependent web of
information flow, turning data into actionable insight both inside the car and in the world around
it. IoT is making for a connected future with multiple automobile techs as part of the Connected
Car Environment and various other V2X applications including Vehicle-to-Vehicle (V2V), Vehicle-
to-People (V2P) and Vehicle-to-Grid (V2G for smart energy).

Manufacturing

Manufacturers are harnessing ever-increasing amounts of data from equipment and suppliers.
The ability to analyse data from every link of the manufacturing value chain helps companies
increase efficiency, keep production running smoothly, and reduce costs. Characteristics of the
new intelligent manufacturing environment include:

1. Smart Assembly – converged intelligent networks are reducing downtime by allowing

remote access to systems and partners and delivering precision, resiliency, and reliability
from the plant floor to the enterprise.
2. The Visual Factory – emerging networking and connectivity solutions enable a dashboard
view of multi-plant environments, enhancing efficiency, safety and return on assets.
3. Plant-wide Visibility – Internet Protocol (IP) network technology connects enterprise
applications with device-level production data in real time, allowing faster information
flows, faster decisions, and greater market responsiveness.
4. Plant Alarm and Event Resolution – open standards enable users to connect with sensor-
level networks that detect malfunctions instantly (and often before they occur) to create
higher levels of overall equipment (OEE) effectiveness.
Energy

Through the IoT, the power grid’s countless devices can share information in real time to
distribute energy more efficiently. Consumers, businesses, and utility providers get the
information they need to better manage their energy-connected things to consume less energy.
As already mentioned V2G and V2H concepts are too providing huge impetus to this growing
focus on continuous transformation and transfer of energy for maximum efficiency of energy
usage and availability.

The Issues
1. Creating attractive and sustainable user interfaces
Connected slow cookers and smart plugs may be turning on geeks today but, if user
experiences are not improved quickly, the smart home dream is at risk of going belly up.
As a case in point, take one of the connected home’s leading lights — literally. Philips’
Hue lightbulbs impress aficionados for being controllable via a mobile app from any
location. That’s fine for truly remote control — for instance, illuminating a room from
hundreds of miles away — but, at home, smartphone control is positively retrograde.
Want to turn on the bedroom light? Sure, just pick up your smartphone, enter the unlock
code, hit your home screen, find the Hue app, and flick the virtual switch. Suddenly, the
smart home has turned a one-push task into a five-click endeavour, leaving Philips in the
amusing position of launching a new product, Tap, to effectively replicate the wall
switches we always had.
2. Security and Privacy
If you read the news, the average person can get as much frightened about the Internet
of Things as businesses become excited about it. Obviously, for solutions to become
successful, they have to gain large scale adoption in the marketplace, which they won't
get, if customers fear the potential for intrusion in their privacy, (For example, Fitbit was
in the news for it was reported that its band tracked sexual activity which was later
available on the Google Search), abuse of data (employer gets access to health data) or
remote even manipulation of their homes, cars and so on. To address these issues, you
need to have a proper concept to ensure data privacy, transparency over what data you
record and what you do with it (if people discover otherwise, say good bye to your
reputation) and obviously all kinds of state-of-the art technology in place to ensure
security, integrity, availability etc.
3. Interoperability and Lack of Standards
We also need standardized data formats and semantics (think DLNA, Bluetooth profiles
etc.). They describe how devices can operate together. Once that is in place, vendors can
develop solutions that customers can mix and match rather than isolated silos. This does
not only lower development cost for the vendor but makes it future proof for the
customer. Standards will probably emerge in various domains such as energy, health,
mobility, and smart home at different points in time.

Conclusion
All in all, IoT is here to stay. Some feel the tech is over hyped and the issues remain valid hurdles.
But work is fastidiously going on in various sectors on winning over these hurdles as companies,
big and small alike, realize the infinite possibilities rendered possible by IoT. There is a huge
potential here, and we have only just started seeing the scope. It remains to be seen how much
of this potential will we be able to convert into actual user applications which make peoples’
everyday lives better and provide business with new revenue streams and business model. From
the interview point of view, IoT is one of the facts everyone will be expected to understand but
few will be able to explain it in a business context. Hopefully this compendium will give the push
in right direction to start bridging the gaps.

Prepared By,
Team ThinC
The Business Technology Club
MDI Gurgaon