Unified real time analytics for eCommerce
- 1. Unified Real Time Analytics for eCommerce Ganeshwaran Jayachandran Product Management professional
- 2. Overview eCommerce sites are awash in data about the transactions, customers, products, price , etc. Retailers can’t leverage this flood of data and translate it to actionable insights for growing revenue, increase in profitability and efficiently operating the business. Today’s eCommerce world needs appropriate technology that enables merchants and retailers to effectively use information for business transformation. Unified Real Time Analytics - It provides customers up to the moment visibility needed to understand and control the business.
- 3. Problem and Opportunity: Underlying problem - Analytics in eCommerce
- 4. Understanding the problem Dynamic KPIs ● Flash sales ● Order online from the Store front ● Customer centric KPI’s (Customer Life Time Value, Repeat customer rate) Integrated View ● Dynamic Inventory ● Storefront integration ● Proactive alerting Malicious Activities ● BOT Attacks ● Fraud alert
- 5. Business Case The purpose of Unified Real Time Analytics is to provide a holistic view of the business to online merchants and retailers. URTA is all about providing state of the art analytics centered around dynamic KPIs that matters for online merchants and retailers. Empower online merchants and retailers to take data driven decisions proactively.
- 6. Understanding the market: Evolution, Trends, Total Addressable Market
- 7. Market evolution and trends Self service BI Tools (00’s) Data visualization tools ● OLAP ● Data models ● Configurable Dashboards supporting ad-hoc analysis (filters) Advanced Analytics (today & tomorrow) Based on heavy data processing: ● Big data ● Predictive intelligence/Artificial intelligence ● Real time trends and suggestions Traditional BI Tools (90’s) Guided analytics and reporting ● Monthly/Quarterly Reports ● Dashboards
- 8. Worldwide eCommerce at a glance Source Statista
- 9. TAM - Total addressable market According to Gartner Worldwide analytics and business intelligence market to reach 18.3 billion in 2017 (i.e 7.3% increase since 2016). By the end of 2020, the market is expected to grow to 22.8 billion. eCommerce Analytics Market is expected to grow over 5 billion by 2023.
- 10. Target Market Retail analytics market was estimated over 2Billion in 2015 is estimated to grow at a CAGR of 19% and exceed over 5.5 Billion in 2023.
- 11. Target Market with a perspective on eCommerce World wide eCommerce 2.3 Trillion Global business analytics 18.3 Billion Analytics eCommerce 2 - 6 Billion
- 12. SWOT Analysis Streangths Deep understanding of predictive intelligence in eCommerce. Patents Weakness Immediately can’t offer solution to a large merchants. Scalability. Threats A lot of BI Tools are out there. Cheaper versions are available and easy to use (Google Analytics) Opportunity No single vendor is focussed on just eCommerce space. More than $5B industry. Growing B2B eCommerce.
- 13. URTA objective: Business analytics and intelligence
- 14. Target audience for URTA Target Audience Large merchants and retailers Personas (merchant/retailer side) Business leadership - VP or Dir of eCommerce, Technology leadership - Admin, Dir of online portal,
- 15. Unified Real Time Analytics - Product Concept Uptodate information of an eCommerce system. It is a revolutionary analytics platform specifically tailored for eCommerce and brings customer, business and system analytics together to retailers. It works with any data source and it will change the way retailers answer critical questions. ● Automatically analyses millions of rows of data and get predictive analytics with AI engines at the backend. ● Explore data quickly and automate actions with prebuilt utilities. ● Mobile integration
- 16. Value proposition Relevancy With changing landscape of eCommerce, retailers need more advanced analytics capabilities. Traditional approaches are inadequate. Value ● Analytics specifically tailored for eCommerce KPIs ● Predictive Intelligence ● Proactive alerting and Performance Monitoring Unique differentiation All in one package. Business intelligence combined with performance provides a holistic view of the entire eCommerce stack. Retailers don’t have to rely upon multiple vendors for their analytics anymore.
- 17. URTA Product Focus As we have seen so far, the key thing here is to focus on the specific use-cases for analytics in eCommerce space and provide a cutting edge solution that works across the board.
- 19. The Competition ● Google analytics ● IBM ● Tableau ● Microsoft ● … etc
- 21. Differentiator Features Tableau IBM URTA Dynamic baselining No No Yes Proactive Alerting No No (provides reactive alerts) Yes Predictive Intelligence No Yes (AI integration with watson) Yes
- 22. Financials: Production Cost & ROI
- 23. Estimated Implementation Cost(Initial Year) Expenses Cost Total Cost Development Hourly rate $100 One man year 2000 hrs Team size (Eng Mgr+QA+Dev) 5 Total Dev Cost $1M Fixed Cost Software licenses $400,000 Cloud hosting & deployment $100,000 Total Fixed Cost $500,000 Marketing/Demand Creation Product Marketing & Misc (Legal, Patent, Documentation, etc) $500,000 Total Product Cost 2M
- 24. ROI using NPV Initial product cost = 2M Projected Sales = $125,000 /month Discount Rate = 5% NPV in 34 months = $17,610.63 NPV is +ve after 34 months. Assm: Progressive development costs are ignored
- 25. Proposed Pricing Options Freemium: No cost sign up for first 3 months. Default package: $399/mon Comprehensive package: $999/mon Custom package (cherry pick): $199 per add on feature per month Correlated reports : $50 per report
- 26. The End
Editor's Notes
- #5: DKPI KPIs are not same throughout the year. They change all the time, KPI’s are not just seasonal either. KPIs have some correlation with events (e.g Olympics, Win/Loose events of teams like Patriots & Celtics). In late 90’s Commerce was mostly through big box retailers - KPIs are mostly static, Trend was easily understood. Turn of the millennium, partly storefronts & partly online (Boom for eCommerce) - KPI’s were changing, Price comparison became easy - Predictability became difficult due to the mix of storefront and online combined. Retailers need to tackle with both. In 2010’s mostly online shopping dominates eCommerce, social channels are maturing to provide good insights and generate traffic in online store - What are the KPI’s to derive insights for retailers? It has become so complex that retailers are struggling to understand the KPIs to precisely control their business.
- #8: According to Gartner, modern BI and analytics continues to expand more rapidly than the overall market, which is offsetting declines in traditional BI spending. The modern BI and analytics platform emerged in the last few years to meet new organizational requirements for accessibility, agility and deeper analytical insight, shifting the market from IT-led, system-of-record reporting to business-led, agile analytics including self-service. OLAP : Online Analytical Processing
- #9: https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/
- #11: There is no stat just for eCommerce analytics. But from available retail stats we can derive a conservative estimate.
- #12: Courtesy: https://www.linkedin.com/pulse/retail-analytics-market-size-exceed-usd-55-billion-2023-billore Retail analytics market size was estimated at over USD 2 billion in 2015 and is likely to grow at a CAGR of over 19% and exceed USD 5.5 billion by 2023. These systems create personalized shopping experience for customers by offering solutions to the retail industry in order to surge the customer loyalty. Large number of SMBs has conventional mortar retail outlets and is rapidly entering the online retail and thus offering huge opportunities to the vendors.
- #17: DKPI KPIs are not same throughout the year. They change all the time, KPI’s are not just seasonal either. KPIs have some correlation with events (e.g Olympics, Win/Loose events of teams like Patriots & Celtics). In late 90’s Commerce was mostly through big box retailers - KPIs are mostly static, Trend was easily understood. Turn of the millennium, partly storefronts & partly online (Boom for eCommerce) - KPI’s were changing, Price comparison became easy - Predictability became difficult due to the mix of storefront and online combined. Retailers need to tackle with both. In 2010’s mostly online shopping dominates eCommerce, social channels are maturing to provide good insights and generate traffic in online store - What are the KPI’s to derive insights for retailers? It has become so complex that retailers are struggling to understand the KPIs to precisely control their business.
- #24: ‘Moderate Class’ custom development companies Hourly rate = $100 One man year = 2000 hours Dev & QA = 4+1 Total Dev cost = 1M Marketing and misc = $500,000 Dev & Product Marketing = 1.5M Fixed cost Software licenses = $400,000 Cloud hosting = $100,000 Total cost = 2M
- #25: To calculate ROI many methods can be used. IRR, Payback can be used but NPV is popular CAPM or WACC also be used if risk profile is known We can plug risk profile in NPV also.
- #26: To calculate ROI many methods can be used. IRR, Payback can be used but NPV is popular CAPM or WACC also be used if risk profile is known We can plug risk profile in NPV also.