Presentation to Solvay students Apr 2014, Brussels My life in a few chapters 2 Who is Real Impact Analytics? 3 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 4 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 3 Q&A Open floor 4 Big Data 1 Rather than technical definitions, Ill try to make Big Data real 7 Without always knowing it, you create, collect & use data all the time Everyday life examples: Facebook 8 Did you really think these ads were random? Everyday life examples: Amazon 9 15% conversion rate ad Everyday life examples: Amazon 10 20% conversion rate ad this version will be kept Everyday life examples: Amazon 11 Then, they test incremental improvements Everyday life examples: Amazon 12 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 14 Everyday life examples: Google Applications of Social Network Analysis 15 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 16 Everyday life examples: Sports 17 Everyday life examples: Cows +12% in productivity 18 Everyday life examples: Internet of things in healthcare 19 Everyday life examples: Internet of things in cars 20 Everyday life examples: mobile & location based marketing 21 Everyday life examples: smart cities 22 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 23 Why are companies looking at Big Data differently? 24 * 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*** 14 22 5 7 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 25 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 26 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 1 3 5 2 4 Analytical Champions generate 10%+ growth year-on-year For Analytics to work, organizations & mindsets should change 27 1 Data Bad data quality prevents fact-based decision-making Data isnt shared 2 3 4 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? 28 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? 29 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 2 32 19 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 31 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 34 19 Can we do it again in 2014? 32 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? 33 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 34 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 36 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 37 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 38 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 3 QTEM: Quantitative Techniques for Economics & Management A potential Master for those who want to pursue a Data Science track 40 Great universities Active corporate partners Created for the students who want to dig into quantitative techniques Be smart look up online courses 41 Look around for other opportunities 42 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 4 The floor is yours! 44 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