Welcome!

Release Management Authors: David H Deans, Liz McMillan, Jnan Dash, Lori MacVittie, Gilad Parann-Nissany

Related Topics: @CloudExpo, @BigDataExpo, @ThingsExpo

@CloudExpo: Blog Feed Post

Key to Data Monetization | @CloudExpo #IoT #BigData #Analytics #AI #DX #DigitalTransformation

Many organizations are associating data monetization with selling their data

Many organizations are associating data monetization with selling their data. But selling data is not a trivial task, especially for organizations whose primary business relies on its data. Organizations new to selling data need to be concerned with privacy and Personally Identifiable Information (PII), data quality and accuracy, data transmission reliability, pricing, packaging, marketing, sales, support, etc. Companies such as Nielsen, Experian and Acxiom are experts at selling data because that’s their business; they have built a business around gathering, aggregating, cleansing, aligning, packaging, selling and supporting data.

So instead of focusing on trying to sell your data, you should focus on monetizing the customer, product and operational insights that are gleaned from the data; insights that can be used to optimize key business and operational processes, reduce security and compliance risks, uncover new revenue opportunities, and create a more compelling customer and partner engagement.

For organizations seeking to monetize their customer, product and operational insights, the Analytic Profile is indispensible. While I have talked frequently about the concept of Analytic Profiles, I’ve never written a blog that details how Analytic Profiles work.  So let’s create a “Day in the Life” of an Analytic Profile to explain how an Analytic Profile works to capture and “monetize” your analytic assets.

Analytic Profiles
Analytic Profiles provide a storage model (think key-value store) for capturing the organization’s analytic assets in a way that facilities the refinement and sharing of those analytic assets across multiple business use cases. An Analytic Profile consists of metrics, predictive indicators, segments, scores, and business rules that codify the behaviors, preferences, propensities, inclinations, tendencies, interests, associations and affiliations for the organization’s key business entities such as customers, patients, students, athletes, jet engines, cars, locomotives, CAT scanners, and wind turbines (see Figure 1).

Figure 1: Analytic Profiles

Analytic Profiles enforce a discipline in the capture and re-use of analytics insights at the level of the individual key business entity (e.g., individual patient, individual student, individual wind turbine). The lack of an operational framework for capturing, refining and sharing the analytics can lead to:

  • Inefficient use of data engineering and data science resources
  • Analytics projects unattached to high value business initiatives
  • Limited organizational learning capture and application
  • Difficulty gaining organizational buy-in for investments in analytic technologies, resources, and skillsets
  • Difficulty building credibility as a trusted business advisor
  • Lack of re-usable assets that make future use cases more cost efficient and dramatically increase Return on Investment (ROI)

Let’s see how an Analytic Profile works.

Analytic Profiles in Action
Let’s say that you are the Vice President of Analytics at an organization that tracks individual purchase transactions via a registered on-line account and/or a loyalty program (e.g., retail, hospitality, entertainment, travel, restaurant, financial services, insurance). You’ve been asked to apply data and analytics to help the organization “increase same location sales” by 5%.

After executing a Vision Workshop (very smart move, by the way!) to identify, validate, prioritize and align the business stakeholders around the key business use cases, you’ve come up with the following business use cases for the “Increase Same Location Sales” business initiative:

  • Use Case #1: Improve Campaign Effectiveness
  • Use Case #2: Increase Customer Loyalty
  • Use Case #3: Increase Customer Store Visits
  • Use Case #4: Reduce Customer Attrition

“Improve Campaign Effectiveness” Use Case
To support the “Improve Campaign Effectiveness” use case, the data science team worked with the business stakeholders to brainstorm, test and confirm that they needed to build Demographic and Behavioral Segments for each individual customer. The Demographic segments are based upon customer variables such as age, gender, marital status, employment status, employer, income level, education level, college degrees, number of dependents, ages of dependents, home location, home value, work location and job title.  The Behavioral segments are based upon purchase and engagement transactions such as frequency of purchase, recency of purchase, items purchased, amount of money spent, coupons or rebates used, discounts applied, returns and consumer comments.

Figure 2 shows the Customer Analytic Profile for Customer WDS120356 resulting from the “Increase Campaign Effectiveness” use case.

Figure 2: Improve Campaign Effectiveness

Note: a customer will NOT be in a single Demographic or Behavioral segment, but will likely reside in numerous different Demographic and Behavioral segments based upon combinations of the demographic attributes and purchase activities.

As a result of this use case, we have created and captured in the Analytic Profile numerous demographic and behavioral segments for each individual customer. These demographic and behavioral segments are now available across different use cases.

“Improve Customer Loyalty” Use Case
The next use case is “Increase Customer Loyalty.” The data science team again begins the process by brainstorming with the business stakeholders to “identify the variables and metrics that might be better predictors of customer loyalty.” The data science team starts the analytics process by re-using the data that was placed into the data lake for use case #1, but gathers additional data to support the development, testing and refinement of a Customer Loyalty Score.

As part of their analytic modeling process, the data science team decides that the Behavioral Segments created for use case #1 can be re-used to support the “Increase Customer Loyalty” use case, but find that they can improve the predictive capabilities of the Behavioral Segments with the additional data.

Consequently, the data science team completes two tasks in support of the “Increase Customer Loyalty” use case:

  • Creates a new Customer Loyalty Score comprised of data from the use case #1 plus new data sources
  • Improves the predictive capabilities of the pre-existing Behavioral Segments (now version controlled as version 1.1)

Figure 3 shows the updated Customer Analytic Profile for Customer WDS120356 resulting from the “Increase Customer Loyalty” use case.

Figure 3: Increase Customer Loyalty Use Case

It is critical to note that the beneficiary of the improved Behavioral Segments – at no additional cost – is use case #1: Improve Campaign Effectiveness. That is, the performance and results of the “Increase Campaign Effectiveness” use case just improved at no additional cost!

In order to realize this benefit, the analytics captured in the Analytic Profiles must be treated like software and include support for software development techniques such as check-in/check-out, version control and regression testing (using technologies such as Jupyter Notebooks and GitHub).

“Increase Customer Store Visits” Use Case
Let’s go through one more use case: “Increase Customer Store Visits.” The data science team again begins the process by brainstorming with the business stakeholders to “identify the variables and metrics that might be better predictors of customer visits.” The data science team again starts the analytics process by re-using the data that was placed into the data lake for use cases #1 and #2, but gathers additional data to support the development, testing and refinement of a Customer Frequency Index.

As part of their analytic modeling process, the data science team again decides that the Behavioral Segments updated for use case #2 can be re-used to support the “Increase Customer Store Visits” use case, and they find that they can again improve the predictive capabilities of the Behavioral Segments with the additional data necessary to support the “Increase Customer Store Visits” use case.

Figure 4 shows the updated Customer Analytic Profile for Customer WDS120356 resulting from the “Increase Customer Store Visits” use case.

Figure 4: Increase Store Visits Use Case

Again, the beneficiary of the updated Behavioral Segments – at no additional cost – are use cases #1 and #2 that find that the performance and results of those use case just improved at no additional cost.

Analytic Profiles Summary
Proceeding use case-by-use case, the Customer Analytic Profiles gets fleshed out and provide the foundation for data monetization through the results of improved business and operational processes and reduced security and compliance risks (see Figure 5).

Figure 5:  Fully Functional Customer Analytic Profile

The Analytic Profiles also provide the foundation for identifying new revenue opportunities; to understand your customer and product usage behaviors, tendencies, inclinations and preferences so well that you can identify unmet customer needs or new product usage scenarios for new services, new products, new pricing, new bundles, new markets, new channels, etc.

Embracing the concept of Analytic Profiles creates an operational framework for the capture, refinement and re-use of the organization’s analytic assets. This enables:

  • Leveraging analytic insights about key business entities across multiple business use cases.
  • Developing benchmarks that over time contribute to the optimization of future decisions.
  • Developing repeatable analytic processes to accelerate the adoption of analytics within your organization.
  • Justifying investment in analytics tools and data scientists to further increase the economic value of your data.
  • Extending the value of your analytic efforts by making your analytics consumable to other business stakeholders.
  • Gaining a better understand of what data you “don’t have” but “could have.”

Analytic Profiles help organization to prioritize and align data science resources to create actionable insights that can be re-used across the organization to optimize key business and operational processes, reduce cyber security risks, uncover new monetization opportunities and provide a more compelling, more prescriptive customer and partner experience.

So while you should not focus on selling your data (because it’s hard to quantify the value of your data to others), instead look for opportunities to sell the analytic insights (e.g., industry indices, customer segmentation, product and service cross-sell/up-sell recommendations, operational performance benchmarks) that support your target market’s key decisions. Your target market will likely pay for analytic insights that help them make better decisions and uncover new revenue opportunities.

The post Analytic Profiles: Key to Data Monetization appeared first on InFocus Blog | Dell EMC Services.

Read the original blog entry...

More Stories By William Schmarzo

Bill Schmarzo, author of “Big Data: Understanding How Data Powers Big Business”, is responsible for setting the strategy and defining the Big Data service line offerings and capabilities for the EMC Global Services organization. As part of Bill’s CTO charter, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He’s written several white papers, avid blogger and is a frequent speaker on the use of Big Data and advanced analytics to power organization’s key business initiatives. He also teaches the “Big Data MBA” at the University of San Francisco School of Management.

Bill has nearly three decades of experience in data warehousing, BI and analytics. Bill authored EMC’s Vision Workshop methodology that links an organization’s strategic business initiatives with their supporting data and analytic requirements, and co-authored with Ralph Kimball a series of articles on analytic applications. Bill has served on The Data Warehouse Institute’s faculty as the head of the analytic applications curriculum.

Previously, Bill was the Vice President of Advertiser Analytics at Yahoo and the Vice President of Analytic Applications at Business Objects.

@ThingsExpo Stories
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, discussed how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees learned how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He also looked at what good leadership must entail in order to accomplish this, and how IT managers can be the ...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, discussed the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information.
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
SYS-CON Events announced today that Calligo has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo is an innovative cloud service provider offering mid-sized companies the highest levels of data privacy. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalized support service from its globally located cloud platform...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...