Gaining sustainable competitive advantage via Analytics
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Sharad Gupta has over 15 years of experience in analytics and consulting across risk, digital marketing, and strategy in banking and e-commerce. He has led teams and consulted for various financial institutions and companies. Currently he is the VP of E-Commerce and Analytics for APAC at VFS Global in Singapore. Previously he worked at McKinsey, Rocket Internet, I3 Consulting, GE Capital, and has extensive experience building analytics solutions, growth strategies, and digital marketing strategies.
Gaining sustainable competitive advantage via Analytics
- 1. 1 Achieving Analytics excellence for gaining competitive advantage This presentation is confidential and should not be reproduced (in whole or in part) nor summarised or distributed without the prior written permission of Sharad Gupta. The recipient(s) of this report agree(s) to keep its contents strictly confidential and undertake(s) not to disclose the information contained herein to any person other than those of its/their employees. Sharad Gupta T: +65-98626347 E: sharad_gupta90@yahoo.com April, 2015
- 2. 2 Efficiency focus Effectiveness focus Corporate and BU strategy focus Innovation focus ANALYTICS CAN HELP ORGANIZATIONS IN GAINING SUSTAINBALE COMPETETIVE ADVANTAGE Analytics Impact Time Actions Build best in class models Wide spread use of analytics in business Wide spread use of analytics for supporting corporate and BU strategy Adopt proprietary and Innovative analytics tools, systems to gain competitive advantage Current focus • Build best analytics team with good technical skills • Build best in class analytical models for solving high impact problems • Identify analytics initiatives across channel, products, countries • Align and prioritize analytics project inline with BU strategies and goals • Drive annual analytics strategy driven by corporate and BU strategy , goals • Continue to evolve in analytics sophistication • Instill analytics culture in frontline • Drive analytics strategy by BU and corporate strategy • Build innovative and proprietary analytics solutions to gain competitive advantage • Frontline and analytics drives innovation
- 3. 3 Analytics Impact Efficiency Effectiveness = EFFECIENCY & IMPACT ARE TWO KEY DIMENSIONS FOR CREATING SHORT TO MEDIUM TERM IMPACT • Sustainable top line or bottom line impact • Simplified and or faster decision making • Competitive advantage • Better customer experience • Cost savings • Higher revenue • Higher productivity • Ability to sustain the gains • Ease of implementation • Ability to control the outcome • Competitive edge provided by a solution • Usage by frontline teams • Communication of success Typical focus
- 4. Efficiency of analytics solutions Model & data improvements Geographic expansion Product expansion Segment expansion Use advanced techniques Improve current models Collect newer data • Using Machine learning instead of statistical model • Improve current model GINI by using better modeling technique • Find new data sources and use it in building better models Typical focus Description • Apply existing analytics solution in other regional entities • Apply existing analytics solution across other products e.g. expand model to saving accounts • Built segment specific solutions. Build segment specific models TYPICALLY, 80% OF ANALYTICS FOCUS IS IN ACHIEVING EFFICIENCY GAINS THROUGH MODEL AND DATA IMPROVEMENT Wider analytics usage and applications
- 5. Effectiveness of analytics solution Usage by business % Improvement & innovation Execution gaps $ revenue saved or earned Advertising & sharing the success story Strategic alignment Goal alignment Needs alignment • Ensuring analytics solutions facilitate BU strategy • Build analytics solutions which help business in achieving strategic goals • Analytics solutions that ease current pain points of business, customers Typical focus Description • Analytics solutions implemented, people trained properly • Revenue of cost impact of a solution • Communication of success stories across the organization EFFECTIVENSS OF ANALYTICS SOLUTIONS IS OFTEN NEGLECTED
- 6. 6 Analytics Impact Skills needed Efficiency • Hard skills driven with deep quant skills • Deep technical ( IT, modeling, data mining, econometrics, machine learning etc.) skills required to build efficient and state-of-the-art solutions • Specialist technical problem solving & research • Advanced science degrees(MS, PhDs etc.) Effectiveness • Soft skills driven with light quant skills • Understanding of BU and corporate strategy • General problem solving and passion for driving impact • Influencing skills across the level • Innovative problem solving • Strong communication and presentation skills • Thought partnership skills with senior and mid level business leaders Skills gaps in analytics organization High ANALYTICS EFFECTIVENESS IS IGNORED DUE TO SKILLS, FOCUS AND MISALIGNED PRIORITIES OF BUSINESS AND ANALYTICS TEAMS
- 7. 7 Significantly better risk measurement Credit policy and process redesign Risk reporting and IT implementation FOUR KEY STEPS REQUIRED FOR CREATING IMPACT THROUGH ANALYTICS IN SHORT TO MEDIUM TERM Details 2 3 1 • Hire people with mix of strategy and analytics backgrounds to play an interface between business and Analytics • Hire people with business experience across multiple functions e.g. Strategy, Marketing, Collections, Risk, operations and Analytics • Identify products, process, countries, channels for wider usage of analytics • Prioritize identified analytics initiatives based on likely impact and BU strategy • Hire people with Consulting and problem solving skills • Understand the BU strategy by product, channel, country after discussion with business , country, channel, product heads • Share the priority list of initiatives and get buy in. Develop co- ownerships and champions of analytics engagements • Hire people who can be thought partner for business units and influence business owners Significantly better risk measurement 2 1 Credit policy and process redesign Significantly better risk measurement 2 1 Align analytics and BU strategy 3 Drive wider analytics usage Hiring light quants with strategy consulting skills in Analytics teams 2 1 3 • Share success stories, challenges with senior leaders • Share analytics priorities and its likely impact • Hire people who can actively shape strategic agenda of business from Analytics point of view Engage senior leadership on analytics priorities 4 Relative importance High
- 8. 8 Name Qualification Experience Previous experience Designation and role Sharad Gupta VP E-Commerce and Analytics- APAC at VFS Global-Singapore Bachelor of Engineering (IIT, Rorkee, India), MS (State University of New York, USA) Sharad has over fifteen years of experience in the area of analytics and consulting across Risk, Digital marketing, &Strategy in Banking and e-commerce industries During this period, he has lead teams and consulted various financial institutions and industry organizations. Some of his recent engagements include: • Implementing an IRB program for one of the largest bank in UAE. The bank also merged with another big bank of UAE during the project. The project involved: – Conducting gap analysis on credit risk, market risk and operational risk preparedness for meeting criteria laid out by Basel II. Gap analysis focused on governance, conducting data audit, process audit, risk measurement approach and presence of back testing / stress testing skills, reporting systems for the measured risk • Customer life cycle management for large US bank and building all supportive predictive models • Consulted a Major Brazilian Bank on – Credit portfolio risk management and selection of correct portfolio management model • Growth strategy for a large Indian retail bank • SME business transformation for large Indian Bank • Setting up Marketing Analytics and Digital Marketing function for Rocket ventures( $1 billion + revenue covering foodpanda.com, Lazada.com and Zalora.com) • Building $10 million revenue retail and ecommerce businesses across APAC (India, China SEA) • Digital marketing strategy for a large UAE Bank • Private label credit card business acquisition strategy and predictive acquisition score cIards for Walmart • Retention strategy and analytics or large credit card issuer in US • Pricing strategy and analytics for large quick service US restaurant chain in Middle east with 300+ outlets • Store segmentation and sales strategy for Walmart US • Marketing budget ROI optimization for Rocket Internet ventures • Leading the organization of Indian Banker’s summit McKinsey & Company – Delhi as JEM, Rocket internet as CMO and Head of Analytics, I3 Consulting as CEO ,GE Capital – Bangalore, New York as Analytics Manager ABOUT SHARAD GUPTA