Redpill MBPS Analytics Over view

2009 IBM Corporation

Building a smarter planet

1. What is Analytics?
2. IBM Analytics

2009 IBM Corporation

Building a smarter planet

Analytics is defined by various people in different ways

Data Management? Predictive Modeling? Statistics? Reporting / MIS?

Optimization?

Database Marketing? 3

Operations Research?

Programs / Campaigns?
2009 IBM Corporation

Building a smarter planet

We define analytics as follows:

results through the study of business data using mathematical and statistical analysis for decision-making

driving business

2009 IBM Corporation

Building a smarter planet

1. What is Analytics?
2. IBM Analytics

2009 IBM Corporation

Building a smarter planet

IBMs Smarter Planet agenda has analytics at its core, making it the industry's most comprehensive vision for the future direction of business analytics

New Intelligence

Green & Beyond

SMARTER PLANET WITH ANALYTICS

Smart Work
Dynamic Infrastructure

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INSTRUMENTED

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INTELLIGENT
2009 IBM Corporation

INTERCONNECTED

Building a smarter planet

Analytics value proposition is focused on delivering business results using customer data

Domain expertise & knowledge of industry and client-specific business challenges

Integrated approach combining all components required to deliver results

Business results to the client and quick time to market Global delivery capability with a hybrid on-site & offsite model Technology agnostic model to ensure easy adaptation and flexibility
2009 IBM Corporation

Building a smarter planet

IBMs capabilities exist along the entire Analytics value curve driving different business benefits
Advanced Analytics
Segmentation, Predictive modeling and Optimization

Business Impact

Smarter Business Impact

Analysis
Multi-dimensional analysis so one can slice and dice

Smarter Insights

Value and Impact

Benchmarking
Key Performance Indicators (KPIs) / SLAs agreed upon by stakeholders

Effectiveness

Smarter Performance Management

Basic Reporting
Regulatory reporting that is reasonably automated

Smarter Reporting

Efficiency Data Management

ETL Consolidation of data
Smarter Data Management

Time and Resources

2009 IBM Corporation

Building a smarter planet

Our DifferentiatorSmarter Way of doing analytics

Traditional Analytics

IBM INTEGRATED ANALYTICS

IBM Market Intelligence Group IBM Client Business Value Group

IBM Research Labs

Combining Traditional & Asset-Based Analytics

IBM Assets
IBM Centre for Business Optimization

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2009 IBM Corporation

Building a smarter planet

Our recent acquisitions have further strengthened IBMs Analytics Capabilities

Market Leader as the Predictive Analytics Software

Redpill Solutions is a boutique analytics firm

SPSS Software has capabilities to build Analytical Solutions for

Customer Profitability Customer Acquisition and Retention Demand Forecasting Employee Hiring and Retention Fraud Detection

The firm specializes in

End to End Customer Management Services Strategy related services like GoTo Market Strategy, based on Customer Research and Innovation for new customer trends

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2009 IBM Corporation

Building a smarter planet

To deliver an improved out put

Research/ CBO Complex, One-Off Problem Analysis Advanced Analytics

Specialized Tools

Functional Capabilities

SPSS COBRA
Web Analytics

RedPill FAMS
Marketing Optimization Inventory Optimization

CELM DIOS

Claims Tool

Analysis

OAE
Text Mining Tool

SC Network Optimization

SNOW

Benchmarking Reporting Data Management

Cognos
BI Tool

Patent Analytics

SIMPLE

Data Management

Datastage

Voice Analytics

Linkage Discovery

Accelerated BI

TABI

... and many more

Assets
Tool & Service Assets Tool-based Assets
2009 IBM Corporation

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Building a smarter planet

Spanning different problem areas across industries

Segmentation Acquisition Portfolio Management IVR Analytics Churn Management Risk Management Spend Management Web Analytics Reporting Customer profiling to identify right set of customers for targeted campaigns Devising customer acquisition strategies and developing customized offerings based on analysis of internal / external data Screen out bad customers during acquisition process through Predictive modeling

Analytics-led Cross-sell campaigns to derive maximum value out off the current customer base
Reporting & Analysis around IVR Effectiveness to assess Customer Experience and identifying marketing opportunities Understanding business drivers for churn and accordingly devising retention strategies for proactively retaining high-value customers

Manage risks across customer lifecycle using application / behavior scorecards

Comprehensive spending profile enabling negotiations with the supply market, and driving bottomline savings Web / Portal analytics to facilitate customer analysis, increasing traffic and enhancing conversions Suite of End-to-End reporting and dash boarding solutions to drive quick and effective decisionmaking Customer Management Analytics Finance & Administration Analytics Human Resources Analytics Supply Chain Management Analytics

Industry Specific Analytics

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2009 IBM Corporation

Building a smarter planet

Illustrative Examples on Solutions *

* - Partial List
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2009 IBM Corporation

Building a smarter planet

Self-Service Optimization solution

Phase I
Intra IVR Analysis
Customer Experience
Are we resolving customer queries effectively in the IVR?
Reporting & Analysis around IVR Effectiveness First Inquiry Resolution Recall Rates trends Dominant Path Analysis Menu Option Usage Time Spent

Phase II
Floor Call Data Analysis
Cost Optimization
How can we reduce Operating expenses without impacting the service quality? Identifying floor Call Take out opportunities
Analyze Call Center Inquiry types and develop a roadmap & Cost Benefit analysis to Improving existing Functionalities Introduce new ones

Phase III
Cross Channel Analysis
Channel Optimization
Leveraging web to support customer queries Measures to Control
Usage Analysis (views, visits, users) Click Path Analysis Geosegmentation Hot/Cold Spots

Sales / Marketing
Are we exploiting all marketing opportunities on IVR?
Analysis on Cross Sell, Up Sell offerings and usage

Measures to Analyze
Geosegmentation Ad campaign analysis Click Stream Optimization Cross Channel navigation

Driving web usage

Efficiency

Effectiveness

Experience

Improved Customer Satisfaction + Increased Revenue + Reduced Costs

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2009 IBM Corporation

Building a smarter planet

Segmentation : Profile customer base and identify opportunity areas through Multivariate Segmentation technique
Step 1 Identify Customer Segments
Step 2 Profile Customer Segments

Step 4 Campaign Recommendations for segments based on insights

Step 3 Deep Dive analysis of segments to identify customer insights

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2009 IBM Corporation

Building a smarter planet

Attrition Management : Proactively retain potentially high value customer s through attrition scorecard & strategy
1
A decision tree / scorecard to predict the customer base who are likely to attrite
19 nodes 7 Key Decision Variables Amount of Credit/ Amount of debit (last 3 months) Principal Paid ratio Disbursal Amount/ EMI Worst DPD in last 6 months

2 Identify customers to be retained by the bank

through profitability estimates
Profits, USD/Customer

1,200 800 400

Most profitable customers

Customers who are over promoted with no returns 200 100 -10 -30 -60 -100 -350 Customers who can be allowed to attrite due to low returns 3 4 5 6 7 8 9 1 0 Worst

Decile 1 2 Best

Results in decrease in attrition as well as increase in revenues

$ 50K increase in Revenu es/ Program

3 Devise retention strategies for the selected

customer base (who may attrite)
Top- up Propensity model Cross- sell Model

30% decreas e in Attrition

Check with bank officers

Customer behavior & product holding patterns 2009 IBM Corporation

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Building a smarter planet

Segmentation : Identify key segment opportunities by combining internal and external customer data
Identify and profile market & internal customer segments
Market Data

Map internal segments to market to identify opportunity & ideal positioning

Wallet size (market) Wallet size (clients)

Customer segments in the market

Opportunity

Ideal positioning

Internal Data

Customer segments within existing customer base

Yearly turnover

External Segments

Internal Segments

Results in market share gain & efficient tracking of performance

Estimate potential & design go to market strategy

Expected $ revenue / market share from opportunity Incremental market share Incremental revenue Cash flows Segments strategy Mktg & Dist Strategy Campaigns & promotions Focus on analytics to balance risk
2009 IBM Corporation

Targets tied to estimated market

share gain

Higher market share Increased stickiness

Ideal positioning

How to capture the opportunity

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Building a smarter planet

Cross-sell/up-sell : Cross-sell relevant products to good customers through the use of behavior score-card and propensity models
1
Identify good customers based on behavior score
Example score-bands for a regional bank

Identify key attributes that determine customers likely to take x-sell / top-up offers

3 Find the customer base

you want to run cross-sell campaigns on
Same bank card owners Same bank other product owners Partner company customers

Loan Tenor Ever Top-up Ratio of loan-balance & loan disburse amount Loan balance Vintage of customer

Larger target base, with lower risk resulting in revenues and costsavings 30K
Before After

Rank ordered

0.6%

Rank order customers based on the propensity to respond to the campaign

100%
Top 2nd 3rd 4th 5th

46%

76%
18% 12% 8% 6% 4%

Increased Target Base

19

Reduced Bad rate

6th 7th 8th 9th Bottom

Deciles without Predictive modeling

Modeled data
2009 IBM Corporation

Building a smarter planet

Reporting & Automation Solution

Benefits: Process Standardization leading to Sustainability and enhanced Efficiency Easy Real-time Access and User-Friendly Drill-up & Drill-down Capabilities Mechanism to analyse and drive further insights enhancing Process Effectiveness

Data Services
Data Extraction Data cleansing and consolidation

Analysis Services
Calculation, Formatting, Consolidation, Reconciliation of Data Report Creation

Automation Services
Ad-hoc Queries Report Automation Generation of Reports and Graphs

Hosting Services
Hardware Software Network

People
Analysts Technicians Statisticians

Technology
Cognos, Brio, Hyperion, BO Datastage MS Excel / VBA, MS Access SAS / SPSS

Infrastructure
Servers, Storage Firewall, Internet, etc. Softwares

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2009 IBM Corporation

Building a smarter planet

Spend Analysis Solution

Provides an effective tool for consolidating company-wide data, establishing baselines and anchoring strategic sourcing decisions.

Process
Identify data sources
Cleanse and consolidate data
Comprehensive view of all expenditures, including buying Locations entities, segment, business units

Problems Addressed
Deliver Spend Analysis
A comprehensive spending profile enables negotiations with the supply market, and drives bottomline savings

Categorize Spend

Data required are usually found in a multitude of repositories and systems.

Categorize spend into hierarchical groups of goods and services that reflect supply market structure

Spend split by direct versus indirect capital expenditure versus expense materials versus services Spend profile by Invoice type Commodity/service by supplier Commodity by division/operating unit and buying location Number of suppliers by commodity/service

Lack of visibility into what is being purchased across the entire company Buying power is not fully exploited Spend data not readily available and/or accurate to support supplier management Multiple specifications for commodities within the same functions Prices vary among same items Small proportion of negotiable spend is under agreement

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2009 IBM Corporation

Building a smarter planet

Collections Solution
Business Objective
Increasing collection effectiveness without increasing operating expenses by adopting a smarter targeting strategy based on Customer risk scoring.

Impact / Benefits
Improving cash collections Reducing DSO Improving agent performance

Forecast Cash Flow Objective

Forecast Cash flow t + X period based on historical collection performance trends

Identify the gaps (projected and target) Objective

Quantify and Develop plan to address the gap between projected cash collections and target

Segment Objective
Categorize the customers based on historical payment behavior

Optimize Efforts Objective

Implement Collection treatment strategies

Data Requirement
3 years daily cash received Capacity utilized

Data Requirement
Account level treatment strategies

Data Requirement
~ 3 years transactional level payment data at a customer level

Data Requirement
Cash Forecast & targets

Benefit
Increased Cash Flow Improved Collections efficiency Enhanced Customer Satisfaction Lower Operating costs

Benefit
Enables Operations team to identify the gap between projected cash collections and target

Benefit
Enables Operations team to proactively address any deficit by prioritizing resources / segments

Benefit
Enables differential servicing strategies from a

Contact Channel
Contact Frequency

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2009 IBM Corporation

Building a smarter planet

Thank You

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2009 IBM Corporation