Real Impact Analytics

A start-up in Big Data

Presentation to Solvay students
Apr 2014, Brussels
My life in a few chapters
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Who is Real Impact Analytics?
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helps organizations
capture the value in
their data
Big Data
Emerging
markets
Telecom &
banking
40+ data
scientists
Who is Real Impact Analytics? Our track record
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Clients across 40+ different countries
reaching over 100 million customers
Offices
Working for 5 of the
10 global telcos
Big Data
Implications for management
1
Real Impact Analytics
Lessons from entrepreneurship
2
QTEM
Developing quantitative leaders
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Q&A
Open floor
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Big Data
1
Rather than technical definitions, Ill try to make Big Data real
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Without always knowing it, you
create, collect & use data all the time
Everyday life examples: Facebook
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Did you
really think
these ads
were
random?
Everyday life examples: Amazon
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15%
conversion
rate ad
Everyday life examples: Amazon
10
20%
conversion
rate ad this
version will
be kept
Everyday life examples: Amazon
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Then, they
test
incremental
improvements
Everyday life examples: Amazon
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Option A has a better conversion rate
so it will be kept (winning design)
You can make as many experiments
as you want at the same time
Everyday life examples: Amazon
13
Amazon tracks how you surf their
website. If you click here, the URL will
be: www.amazon.co.uk/digitalcamera-
dslr-camcorders-
lenses/b/ref=sa_menu_p3
However, if you click here, the URL will be:
http://www.amazon.co.uk/dp/B002L3TSKC
/ref=sr_1_2
Everyday life examples: Real Impact Analytics
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Everyday life examples: Google
Applications of Social Network Analysis
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We live in
communities where
social ties
(friendship,
leadership) influence
our decisions
Google uses the same logic
to rank websites: importance
depends on quantity &
quality of references
Everyday life examples: Google
Getting access to every possible data source
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Everyday life examples: Sports
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Everyday life examples: Cows
+12% in productivity
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Everyday life examples: Internet of things in healthcare
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Everyday life examples: Internet of things in cars
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Everyday life examples: mobile & location based marketing
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Everyday life examples: smart cities
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MIT News Wiky city Rome
http://web.mit.edu/newsoffice/2007/wikicity-0830.html
IBM Smarter Cities
http://www.ibm.com/smarterplanet/sg/en/
smarter_cities/overview/
DATA
DECISIONS
Everyday life examples: Data for Good
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Why are companies looking at Big Data differently?
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* Source: Analytics: the new path to value, IBM Institute for Business Value (October 2010),
Top performance is a self-completed attribute in the survey
** McKinsey Big Data report
*** Nucleus research
Top-performing
organizations use
5 times more
Analytics than low-
performing ones*
Each time a
company spends
1$ on analytics,
it gets $10
back***
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5
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Retail
Insurance
Others
Big Data
Big Data leaders
translate their analytics
edge into higher
margin**
EBITDA per industry
10 year CAGR, 1999-2009
Competing on Analytics is the ability to
collect, analyze and act on data
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Collect and store the right
data: internal & external
Mobile data collection
applications
Integrate various sources
and consolidate them into
data warehouses
Transform & enrich data
Ensure data quality
Apply the right type of
analysis at the right time:
- Reporting & Alerts
- Descriptive analytics:
multi-dimensional
analyses
- Predictive action:
data mining
- Real-time optimization
Drive action with a
specific methodology:
- Data-to-action focus
(e.g. catalogue of
initiatives, CRM,
campaigns)
- Provide guided
analytics
Collect Analyze Act
Companies progressively grow into Analytical Champions
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Focus on predictive analytics:
learn from the past with data
mining algorithms
What will happen next?
Focus on reporting:
follow your
Key Performance Indicators
What is happening?
Focus on real-time optimization:
adapt your actions based on live
customer behavior
What should I optimize now?
Focus on descriptive analytics:
cross-dimension analyses (pivot
tables), segmentations & statistics
Why is it happening?
Focus on putting data in order: well-
defined, common, clean, and
integrated data
I dont know
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3
5
2
4
Analytical Champions
generate 10%+ growth year-on-year
For Analytics to work, organizations & mindsets should change
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Data
Bad data quality prevents
fact-based decision-making
Data isnt shared
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3
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Technology & tools
Systems arent adapted for Analytics
Legacy system
Limited use of existing technology
Are you running the right analyses?
People & skills
Analytics skills are concentrated in too few people
Staff cant innovate & explore new solutions
Roll-out across the organization is blocked
Processes
Lack of leadership support
IT & business dont collaborate effectively
Decisions dont translate into action
Great! But whats the implication for me?
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Student
Dont leave your quantitative courses aside
Learn to program and be truly data-driven
Potential data
scientist /
entrepreneur
Potential
CEO
Big Data is a huge field to launch start-ups
If youre not technical, youll have a much harder time
succeeding
If you like playing with data: dont feel shy about it, dont listen
to others who say that you should do management, youll get
better pay & have fun in the sexiest job of the century
Learn how to tell stories with numbers & visually
Ensure your organization is making the Big Data
transformation
Great! But whats the implication for any organization?
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If youre not smart enough to understand your
customer, he will notice it and interact with
someone else
If you dont ensure your decision-making is
quantitative and translates into real action, your
days are counted
We are moving into a world where targeted
apps will automate the decision making
Big Data is applicable to every department
Lessons from
entrepreneurship
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11
6
2
2.500.000
1.250.000
100.000
20.000
01/11 07/10 01/10 07/09 01/14 07/13 01/13 07/12 01/12 07/11
440.000
2013 was another year of amazing growth
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2.600.000
01/15 01/10 01/09 01/13 01/14 01/12 01/11
440.000
1.350.000
11
6
2
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Can we do it again in 2014?
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Key performance target is
revenue growth. Indeed,
RIA aims to double triple
in size
Growth must not
compromise quality of
deliverables or teams
5.000.000
8.500.000 Revenue ()
FTEs
Revenue
target range
If you were in charge, what do you think
would be the most difficult challenge?
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Recruitment
R&D
Culture
Margin %
Cash flows
Competing
with IBM
Talent
management
Selling 3x
more
Delivery
Cash flows are always a start-ups worst nightmare
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Cumulative Operating Cash Flow
(1,000)
(500)
-
500
1,000
1,500
2,000
Dec/13 Jan/14 Feb/14 Mar/14 Apr/14 May/14 Jun/14 Jul/14 Aug/14 Sep/14 Oct/14 Nov/14 Dec/14
Worst Base Best
Negative cash position
+1.5m
-500k
-650k
Additional funding required
With finances, you need to find hell yeah profiles
Try recruiting a Brazilian data miner or a
South Africa software developer: how do you
create skill standards? How do you integrate
cultural differences
Great people attract other great people.
Always keep the highest standards
Put their development & growth at the core
of the organization
When you get the team right, all the rest
becomes easy
As a founder, rest assured you will need to manage crises
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Cultural changes:
New decision-making process: from all
together to Executive Committee
New salary grid: not everyone gets the
same
Aversion to risk changes:
How would you react to no money on the
bank account?
How would you react if you needed to
put your flat as guarantee to bank debt
Firsts:
Lay-offs
Evaluation system
Competing against giants isnt as hard as you might think
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Turn a disadvantage into an advantage
Emerging markets: Afghanistan
Young: avg of 28
Change the rules of the game
Do what they never thought they could
Test, learn, improve
Be extremely agile
Large corporates forgot how to be fast
There is always a committee, an
approval form, a process, a validation
board, a sponsor who leaves on vacation
Resist temptations: be true to your values and
WHY you are an entrepreneur
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Harry van Dorenmalen
Chairman, IBM Europe
Mikael Hagstrm
EVP, EMEA and Asia Pacific, SAS
Ferdinando Nani Beccalli-Falco
SVP, President &CEO of GE Europe
Peter Ryan
SVP HP Enterprise EMEA
Aongus Hegarty
President, EMEA, Dell
Patrick Deconinck,
Senior Vice President, West Europe, 3M
Bart Otten
President Fire & Security EMEA, UTC
AMCHAM EU Gala Our prize: being mentored by
QTEM
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QTEM: Quantitative Techniques for Economics & Management
A potential Master for those who want to pursue a Data Science track
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Great universities Active corporate partners
Created for the
students who
want to dig into
quantitative
techniques
Be smart look up online courses
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Look around for other opportunities
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Jointly with Philippe Emplit
& Catherine Dehon
6 students since 2011
Average of 18/20
1 de Barsy Award
Topics on: poverty reduction, mobile
money, data commercialization,
Master
thesis
Recruitment
Every year, we recruit 2-3
Solvay graduates
QTEM
sponsor
Participate in cases
Q&A
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The floor is yours!
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Belgium Office
7, place Flagey
1050 Brussels
Belgium
www.realimpactanalytics.com
Johannesburg Office
19 Cambridge Road
Bryanston 2195
Johannesburg, South Africa
Dubai Office
Office 701, Sama Tower
Sheikh Zayed Road
PO Box 9867, Dubai, UAE
So Paulo Office
1241, Rua Cristiano Viana,
Pinheiros, So Paulo
CEP: 05411-002, Brazil
Luxembourg Office (HQ)
30 Grand Rue
1660 Luxembourg
Luxembourg
Contact details:
Sbastien Deletaille
+32 493 19 19 14
sebastien.deletaille@realimpactanalytics.com