BDE2016

1. The Art & Science of becoming
an Insights Driven Business
Ruurd Dam, September 2016

2. 2Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Hello, Ruurd Dam is my name
Ruurd Dam
SVP, Global Practice Leader Customer Value Analytics
Capgemini Digital |Insights & Data

3. 3Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Our view: actionable insights are the engine of Digital Transformation ..
Digital Transformation…
Digital Customer
Experience
Digital Operations
Digital Organization
& People
Digital Business Model
… driven by Insights
Real-time
intelligence Cognitive & AI Actionable InsightsAgile ReportingAdvanced Analytics
Enterprise Data External Data IoTWeb & MobileSocial
Enabled by
new data
landscape
Enterprise-
scale
governed &
secured
Embedded
in Digital
experience
Fueled by
Data
Science
culture &
capabilities
Fostering
applied
innovation

4. 4Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
And this is how we scope and define Insights & Data
Customer Value Analytics is
the interplay of data,
technology, statistics and
business processes to
make a decisive impact on
the customer journey

5. 5Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Marketing nowadays is about combining Art & Science
“Creativity of the marketer is
complemented by transaction
or behaviour insights, derived
from a variety of data sources,
and produced to guide or
strengthen business decision
making”

6. 6Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Case: market pressures have forced client to improve sales and margin growth
RETAILER

7. 7Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Client leveraged our catalog of practice-proven analytics & insights to kick
start the project
Business domain Key use cases in our catalog
 Brand Switching
 Community and Influencer Analysis & Targeting
 Customer Churn
 Customer Group Analysis
 Customer Lifetime Value
 Customer Support Analytics
 Household Exclusivity & Loyalty
 Household Segmentation
 Launch & Campaign Analytics
 Live Content & Media targeting
 Loyalty Analytics
 Shopper Insights
 Top Shopper Identification
 Trip Mission/Market Basket
 Cross Sell/Up Sell
 Digital Analytics
 Effective Pricing
 Innovation & Product Lifecycle Management
 Neural Net Demand Forecasting
 New Product Introduction/Adoption
 Plan-o-gram optimization,
Development & Space Management
 Product Affinities
 Promo Optimization
 Sales force Management
 Sales Optimization
 Store Layout Optimization
 Store Segmentation
 Trade spend targeting
 Vendor Performance
 Assortment Optimization
 Customer & Supplier/ Supply Chain collaboration
 Demand & Supply Planning
 Inventory Visibility & Optimization
 Order orchestration
 Out-of-Shelf Analytics
 Predictive Asset Maintenance
 Stock allocation management
 Supply Chain Network Optimization

8. 8Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
We typically start with engaging both Business and IT stakeholders and prioritize opportunities
using our strategic Value Analytics matrixBUSINESSVALUE
Phase 1Phase 2
Phase 3
High
Low
Difficult EasyEASE OF IMPLEMENTATION
5
23
2
11
1
9
4
8
7
6
12
3
19
18
15
14
13
20
16
10
43
38
29
28
27
26
25
24
22
2117
39
37
36
35
31
3042
41
40
32
34
Business Value Levers: Increase Sales, Reduce Cost, Improve Working Capital
Ease of Implementation Levers: Data / Tool readiness, dependency on 3rd party, organizational readiness & alignment etc
# Insights & Data Capability # Insights & Data Capability
1 Standardized Reporting 23 Program ROI
2 Ad-hoc Analytics 24 Shopper Targeting
3
Household Segmentation (Protect,
Recover, Develop Strategies)
25 Sweepstakes
4 Store Segmentation 26 Net Value Cost Analysis
5 Trip Mission / Market Basket 27 Exclusivity & Loyalty
6 Shopper Insights 28 Effective Pricing
7 Test & Control (A/B) Identification 29 Promo Decomposition
8 Retail Labs (R&D) 30 Household Segmentation
9 Assortment Optimization 31 Category / HH Targeting
10 Brand & Pkg Switching 32 Marketing Mix Optimization
11 Out-of-Shelf Analytics 33 Product Lifecycle Management
12
Plan-o-gram optimization,
Development & Space Management
34 Loyalty Analytics
13 New Product Introduction / Adoption 35 Customer Group Analysis
14 Replenishment Planning 36 Neural Net Demand Forecasting
15 Top Shopper Identification 37 SC Network Optimization
16 Product Affinities 38 Promotion Decomposition with ROI
17 Household Exclusivity & Loyalty 39 Vendor Performance
18
Digital Analytics (e-com, social media
etc).
40 Working Capital Analytics
19 Campaign Analytics 41 Store Layout Optimization
20 Customer Lifetime Value 42 Predictive Asset Maintenance
21 Customer Churn 43 Recruitment Effectiveness
22 Cross Sell / Up Sell
EXAMPLE

9. 9Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Scope & Approach: two continents and multiple business domains
‒ Market: Canada (+200 stores), Netherlands (+250 stores)
‒ 25 Convenience Retail Categories, with value added insights services for top categories including
Tobacco, Beverages, Snacks (Salty Snacks, Chocolate, Gum/Mint/Candy)
Geographical & Product Scope: Proofs of Value in two continents, all categories
‒ Store segmentation based on Shopper Behavior
‒ Out-of-Shelf identification  corrective action
‒ Assortment Optimization  Eliminate volume transferable SKUs with no Shopper Rationale  Give
their space to high performing/high Out-of-Shelf SKU’s
‒ Effective Pricing  Responsive Products and Price Points (Everyday and Promotion pricing)
‒ Promotion Decomposition  Elimination of non-productive promotions
‒ Centralized, easy-to-use database, and standard Category Review Reports in web portal
‒ Analytics portal and Category Management Insights training
‒ Category Analysis and Insights deliveries to Category Managers
‒ Concrete, practical in-market A/B testing and implementation plan
Objectives: Focus on select foundational advanced analytics to address key business opportunities

10. 10Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Deliverables
Setup
Project plan & Scope
Value Discovery Analytics
Group1: Analytics
Planograms
…
Persona Profiles & Needs
Store Clustering
End user Training Group2:Promotion Playbook
…
…
Sample data quality and
completeness approval.
JDA licensing requirements
Tables & Reports
Visualized planograms
Group 1 & 2 In-market
Testing & Evaluation
Objective & Process
Alignment

11. 11Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
A fruitful journey to date with more opportunity to grow together
Store Clustering
Out-of-Shelf Reduction
Assortment Optimization
Pricing
Promotion
Plan-o-gram Design
Master Data
Management
Store / Macro
Space Design
Systems
Optimization
Standard Category
Reporting

12. 12Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Business Value Defined
1. Single digit % net
increase in Sales
Revenue
2. Single to double digit
% reduction in
promotion costs
with same or higher
total sales
3. Single to double digit
% reduction in
inventory carrying
costs
4. DD% margin
improvement
Out-of-Shelf Reduction Assortment Optimization
Effective Pricing
Store Clustering
Promotion Decomposition, True
ROI Measurement & Playbooks
Risk
Levels
Sales Preference
Competitive
Price Resilience
1 LOW LOW LOW
2 LOW MEDIUM LOW
3 MEDIUM LOW LOW
4 MEDIUM MEDIUM LOW
5 LOW LOW MEDIUM
Demand Optimized
Planograms

13. 13Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Working with our clients it has been demonstrated how significant and
measurable business value can be achieved
Efficiency and cost focus
changing the way the company
is operated
Reduce Trade & Marketing
costs 5 – 25%
Business Operation savings
3 – 10%
IT Operation savings 30%
Sales Effectiveness +10%
4x Marketing RoI
Sales +5%
Growth of existing business
streams with increased
effectiveness
Sales +2.5%
Brand Value +10%
Customer Satisfaction
+10%
Growth through new revenue
streams and/or monetization
of data

14. 14Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
… however, according our own research there are still many barriers
to overcome
No obvious business value
Data Landscape ineffective
Scarcity of expertise
Cultural boundaries
The Big Data Payoff:
Turning Big Data into Business Value
A joint report by Informatica and Capgemini on the keys to
operationalizing Big Data projects

15. 15Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Business
Analytics
Traditional
BI
And we also learned that neither a pure traditional BI nor an pure business analytics
approach were the right approach

16. 16Copyright © Capgemini 2016. All Rights Reserved
The journey to an insight-driven business in consumer goods and retail | September 2016
Our lessons learned have been translated into a global approach to help
clients to become an Insights Driven Business
Typical ‘Business Value NOW!’ Journey
Animate
Data & Technology
Operate
the Organization
12 weeks +9 months+6 months
Grow
Insight - driven Business
Enhanced competitive
advantage by continuously
embedding analytics
capabilities into business
decisions
Demonstrate
Business Value
Agile Analytics hothouse
to prove value in real
life on concrete business
challenges
Scale
the Capability
Bring enterprise
scalability to analytical
capabilities and solutions
in business
Ignite
the
Journey
Ignited stake-
holders for way
forward
0,5-1 day
Activate business
decisions with analysed
facts
Manage the data and
technology
foundation
Organise for enduring
capabilities and
benefits
Factivate
the Business

17. THANK YOU!