Enhancing BI with Predictive Analytics with Case Study
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The document discusses the integration of predictive analytics into business intelligence, highlighting its real-world applications through a marketing case study involving a major flooring manufacturer. It illustrates the improved decision-making processes and significant cost savings achieved by employing predictive models for sales and marketing strategies. Additional resources, including webinars and case studies, are provided for further exploration of these concepts.
Enhancing BI with Predictive Analytics with Case Study
- 1. ENHANCING BI WITH PREDICTIVE ANALYTICS Real World Applications
- 2. • Who am I and what am I doing here? • If this is the future, where’s my jetpack? • Marketing case study - The $1M BI column • But wait, there’s more… • Senturus Overview • Additional Resources Agenda Copyright 2017 Senturus, Inc. All Rights Reserved. 2
- 3. Presenters Copyright 2017 Senturus, Inc. All Rights Reserved. Arik Killion Advanced Analytics Architect Senturus, Inc. 3 Jim Frazier VP of Client Services Senturus, Inc.
- 4. Hundreds of Free Resources http://www.senturus.com/resources/ RESOURCE LIBRARY An extensive, free library of past webinars, demonstrations, whitepapers, presentations, helpful hints, and more. Copyright 2017 Senturus, Inc. All Rights Reserved. 4
- 5. This slide deck is from the webinar Enhancing BI with Predictive Analytics To view the FREE video recording and download this deck, go to: http://www.senturus.com/resources/enhancing-bi-with- predictive-analytics/ Hear the Recording Copyright 2017 Senturus, Inc. All Rights Reserved.
- 6. 6Copyright 2017 Senturus, Inc. All Rights Reserved. IF THIS IS THE FUTURE, WHERE’S MY JETPACK?
- 7. • Arik Killion – Advanced Analytics Architect for Senturus • 16 Years experience as a – Statistician – Data Analyst – Data Miner – Predictive Analyst – Knowledge Discovery Professional – Data Scientist – ?? • Spent 5 years as the Director of Analytics for a national marketing agency • Some companies I’ve worked with: Kraft Foods, Nestle/Gerber, Kia Motors, Honda/Acura, Mitsubishi, Verizon Wireless, JD Power, Nielsen Ratings, Allergan/Botox Who Am I? Copyright 2017 Senturus, Inc. All Rights Reserved. 7
- 8. The relevancy problem with Predictive Analytics If This is the Future, Where’s my Jetpack? “Hello, Mr. Yakamoto, welcome back to the Gap. How’d those assorted tank tops work out for you?” Minority Report, Dir. Steven Spielberg, Twentieth Century Fox, 2002 Copyright 2017 Senturus, Inc. All Rights Reserved. 8
- 9. The “art of the possible” is here, but most companies are not. If This is the Future, Where’s my Jetpack? Yes, it can even get a little creepy if you let it. Copyright 2017 Senturus, Inc. All Rights Reserved. 9
- 10. Advances in technology seems to have made things more difficult If This is the Future, Where’s My Jetpack? 10Copyright 2017 Senturus, Inc. All Rights Reserved.
- 11. Advances in technology seems to have made things more difficult If This is the Future, Where’s My Jetpack? 11Copyright 2017 Senturus, Inc. All Rights Reserved.
- 12. So, now what? To be continued… If This is the Future, Where’s My Jetpack? 12Copyright 2017 Senturus, Inc. All Rights Reserved.
- 13. The $1 Million BI Column 13Copyright 2017 Senturus, Inc. All Rights Reserved. MARKETING CASE STUDY
- 14. To view the FREE video recording and download this deck, go to: http://www.senturus.com/resources/enhancing-bi- with-predictive-analytics/ The Senturus comprehensive library of recorded webinars, demos, white papers, presentations and case studies is available on our website: http://www.senturus.com/resources/ Hear the Recording Copyright 2017 Senturus, Inc. All Rights Reserved.
- 15. The Company: • Major flooring manufacturer in the U.S. • $8.1B in revenue (2015) • Distribute to ~18,000 independent retailers in North America Marketing Case Study - The $1M BI Column 15Copyright 2017 Senturus, Inc. All Rights Reserved.
- 16. The Problem: • Floor sample units are a major investment • 1 Factory plant to produce year round • ~$3k-$4k per unit (materials, labor, shipping, setup) • Placement guided by relationships with company sales personnel • $12 million/year marketing line-item Marketing Case Study - The $1M BI Column 16Copyright 2017 Senturus, Inc. All Rights Reserved.
- 17. The Solution: • Compile historical sales, RFM Analysis on prior unit placement sites • Compile profile “fact” data for each store • Gather demographics for each store • Create outcome bands: – Green = exceeded margin cost of unit in 1 year for the related products – Yellow = broke even or came close – Red = fell short or didn’t even look like they tried • Build predictive models for each outcome within 3 brands (12 models) • Enable automated scoring of every retailer on a monthly basis with a voting mechanism to select the “best” outcome prediction Marketing Case Study - The $1M BI Column 17Copyright 2017 Senturus, Inc. All Rights Reserved.
- 18. Data prep – The “dirty” secret of advanced analytics Marketing Case Study - The $1M BI Column 18Copyright 2017 Senturus, Inc. All Rights Reserved. Retail Customer Timeline FinalResults SamplePlacementDate Post-Placement Data (example 12 Months) Pre-Placement Data (example 2 Years of history) Preparing the historical transactional data for predictive modeling
- 19. The Outcome: • Integration with BI report to sales for ordering sample unit placements • New “traffic light” column for likely predicted margin outcome • “Educational meetings” to help users understand approach and get buy-in • Saved $1.1 million in the first quarter of use Marketing Case Study - The $1M BI Column 19Copyright 2017 Senturus, Inc. All Rights Reserved. Customer Current RFM Score LuxurySoft Placement Superica Placement ArmorGuard Pet Placement ABC Flooring Inc. 100 Carpet Cube Corp. 85 Buzzy Bee Warehouse 23 Newport Floor 79 Bixby Carpets & Flooring 68 Super Fly Super Floors 94 Barry Good Carpeting 72 Brent's A1 Warehouse 54
- 20. Your jetpack! • How to start: – Start in a problem area that will have great impact – Realize you probably already have the data you need to start – Find a trusted adviser to help navigate – Most predictive project ROIs are between 3 & 12 months (particularly in marketing) – Systems can should be automated • Marketing is the tip of the iceberg: – Likelihood to respond, cross-sell/up-sell predictions – Employee growth and satisfaction – Customer/account loss prediction – Collections optimization – Accurate forecasts, demand planning, assortment planning – And many, many more… But Wait There’s More… 20Copyright 2017 Senturus, Inc. All Rights Reserved.
- 21. Here’s My Number, Call Me Maybe… 21Copyright 2017 Senturus, Inc. All Rights Reserved. Arik Killion Advanced Analytics Architect akillion@senturus.com 949 667 2745
- 22. To view the FREE video recording and download this deck, go to: http://www.senturus.com/resources/enhancing-bi- with-predictive-analytics/ The Senturus comprehensive library of recorded webinars, demos, white papers, presentations and case studies is available on our website: http://www.senturus.com/resources/ Hear the Recording Copyright 2017 Senturus, Inc. All Rights Reserved.
- 23. Business Analytics Consultants WHO WE ARE
- 24. Bridging the Gap Between Data & Decision Making Analysis Ready Data DECISIONS & ACTIONS Business Needs Analysis Ready Data Copyright 2017 Senturus, Inc. All Rights Reserved. 24
- 25. • Dashboards, Reporting & Visualizations • Data Preparation & Modern Data Warehousing • Self-Service Business Analytics • Big Data & Advanced Analytics • Planning & Forecasting Systems • Proprietary Analytics Connector Software Business Analytics Architects Copyright 2017 Senturus, Inc. All Rights Reserved. 25
- 26. 1000+ Clients, 2000+ Projects, 17+ Years Copyright 2017 Senturus, Inc. All Rights Reserved. 26
- 28. Upcoming Events Copyright 2017 Senturus, Inc. All Rights Reserved. http://www.senturus.com/events/ 28
- 29. Other Resources Copyright 2017 Senturus, Inc. All Rights Reserved. 29 http://www.senturus.com/senturus-resources/
- 30. Thank You! www.senturus.com info@senturus.com 888 601 6010 Copyright 2017 by Senturus, Inc. This entire presentation is copyrighted and may not be reused or distributed without the written consent of Senturus, Inc. Copyright 2017 Senturus, Inc. All Rights Reserved. 30