1. whitepaper August 2016
Customer Cockpit©
during and after M&A:
Analytics paving way for customer retention
www.hcltech.com

2. Customer Cockpit©
during and after M&A: Analytics paving way for customer retention | August 2016
© 2016, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 2
TABLE OF CONTENTS
Overview & Background 3
Challenges and Interdependencies 3
Reference Architecture 5
Technology at Play: Churn Analysis 5
Solution 6
Data Governance 7
Business Benefits 8
References 9
About HCL 10

3. Customer Cockpit©
during and after M&A: Analytics paving way for customer retention | August 2016
© 2016, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 3
Overview & Background
M&A’s were runaway successes in 2015 because of the nature of returns investors
have realized from the stocks in the last few years. In 2015 alone there were
M&A’s worth $3.8 Trillion across industries, which makes it a record by itself
beating the previous M&A deal value record of 2007. It’s evident that one of the
biggest reasons that these M&A’s are happening is because companies need
to add scale to the deal where there is either heavy competition or the growth is
slowing.
As companies drive a lot of these M&A’s, their intent is to always come out of them
strong and profitable. And for doing this they undergo synergies across spectrum
in various areas of SG&A, Production, Purchasing, IT, etc. While companies work
on driving these synergies – one of the biggest areas that haunt them is how
successful will they really be as they bring in all these efficiencies – because
at the center of all of these is an entity named ‘PEOPLE’. People can be in the
form of retained employees, sales employees that have been let go, demotivated
suppliers, etc. And one of the most important stakeholders getting impacted by
this is the customer who has very high expectations:
Challenges and Interdependencies
So while M&A’s are said to be successful at the onset, the biggest question
is historically how successful are they in the long run? While that question is
answered – it’s important to know what companies do that make M&A’s an
investor’s panacea for short term returns. Companies drive immense synergies
which can bring in a good 10-15% cost benefit to the overall deal structure.
Obviously these are deals that are well planned and laid out on whiteboards
and spreadsheets so synergies that are planned will certainly be achieved.
What companies don’t anticipate though is the impact of these synergies on the
customers. Careful analysis reveal various reasons that lead to a negative impact
on customers which eventually causes them to defect.
Information
Technology
Innovation &
Development
Customer
Service
Purchasing
Production
Logistics
Sales

4. Customer Cockpit©
during and after M&A: Analytics paving way for customer retention | August 2016
© 2016, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 4
It’s evident that synergies are going to offer customers very positive impacts
like better price, better quality of products, stronger partner network, etc. It’s
even more important to know that this is the time when competition is constantly
knocking on the doors of the same customer with better propositions and more
commitment. After all it’s not always that situations like these happen.
Clearly over the years several customers will be benefitted but the objective of
building the Customer Cockpit©
was to focus on those customers that have a
tendency to leave because of the post M&A activities and its impact on their
business. Below is a snapshot of what all companies drive towards synergies and
how customers feel at an overall business level as a result of that.
Here the reasons behind the development of the Customer Cockpit©
and how
analytics can play a major role in this situation. There are many examples of
companies realizing up to 40% of synergy savings through IT enablement of various
functions. Many companies today thus involve IT right from the Due Diligence
step to ensure that the deal will deliver the expected benefits. Also, companies
doing M&A’s today make special investments upfront to build an IT platform -
68% of the customer defection is because of
Sales & Customer Service Indifference
80% of the failed M&A’s are accredited to
Synergy Management
33% of M&A’s fail
Outcome/impact to their business, Loss of trust
on the supplier, Ongoing relevance by supplier
5 – 20% customers
defect during any M&A and
while companies rely
heavily on communication
and take provisions, the
importance of identifying
proactive levers is the key
to a successful M&A
CUSTOMERDRIVING EFFICIENCIES TO GAIN SYNERGIES
Purchasing Category consolidation
Production Optimize global production network
Outbound Logistics Optimize Career network & transportation costs
Inbound Logistics Optimize inventory & storage costs
Sales & Marketing Improve Sales & Marketing efficiency
Customer Service Optimize back-office services
Innovation & Development Streamline the product portfolio
Information Technology Integration and common platforms
85 – 95%
We have a one stop shop supplier
Great partner
Happy
No worries
5 – 15%
No delivery or delayed delivery
Frustrated
Uncertain
Disappointed

5. Customer Cockpit©
during and after M&A: Analytics paving way for customer retention | August 2016
© 2016, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 5
agile and robust enough to support future M&A operations. The best practice that
can be presented after observation of industry wide M&A’s is to integrate IT pre
& post acquisitions in a 6 to 18 month timeframe. This truly depends on the size,
nature of business, number of entities & geographies involved. Companies that
have not done this and have let IT systems remain unchanged for several years
have slowed down synergies at an overall business level.
So looking at role of IT and knowing that companies have to integrate IT – an
entire framework was devised that is driven by a robust data strategy. Needless
to say that for any analytics to be fruitful a well laid out integration & data strategy
is a foundational block.
Reference Architecture
The solution provides separate secure workspaces for each party involved in the
M&A to load data from their enterprise applications, data stores, spreadsheets,
etc. The built-in Data Quality (DQ) and Master Data Management (MDM) cleanse,
standardize, de-duplicate, and establish relationships within and between the
data sets.
Enriched data from both parties’ source systems ingested to a common information
model helps discover relationships between customers, products and vendors of
the two parties’. The common information model and data set enables contextual
analysis and visualization of the KPIs driving customer experience.
Technology at Play: Churn Analysis
Objective of the analysis is to identify customers who will discontinue service or
cancel orders during a specific time period based on historical data.
Future
System
Azure
HDInsight (Hadoop)
Azure Stream
Analytics
Model Development
Azure
Machine Leading
Power BI
Published Models
Data Model
Azure Data
Catalog
Azure Data
Factory
HEC
(Sys of Innovation)
SaaS
CRM & Others)
Customer
Cockpit©
Dashboards &
KPIs for Status
and Continuous
improvement
Priority reports
and watch lists
(Sys of Innovation )
SQL`
(Sys of Innovation )
ERP
BI, BW
Azure
Azure SQL Server/
Data Warehouse

6. Customer Cockpit©
during and after M&A: Analytics paving way for customer retention | August 2016
© 2016, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 6
After comparing the results from various models, the one having higher accuracy,
precision and AUC is chosen. In the illustration below the ‘Two Class Logistic
Regression model’ has higher Accuracy, Precision and AUC, so the Regression
model is more accurate compared to the ‘Two Class Boosted Decision Tree’.
yy Accuracy is the ratio of correctly predicted observations
yy Precision looks at the ratio of correct positive observations
yy A model with an AUC (Area Under Curve) Score near 1, has a very good
performance
Solution
This is a next generation solution that makes any organization future ready in
terms of understanding customers and the customer’s customer. The proposal
is for a 2-speed architecture framework by building this as a digital layer so that
it has data about customers and all necessary metrics can be identified through
that data by using the proposed architecture.
TWO CLASS LOGISTIC REGRESSION
Accuracy Precision AUC
0.821 0.813 0.837
TWO CLASS BOOSTED DECISION TREE
Accuracy Precision AUC
0.795 0.714 0.807
Data Profiling
- Coverage
Apply Churn
Model
Train Model Score Model
Evaluate
Model
%Records having
non-null values
Apply model
to identify churn
population
The machine
learning
model uses the
data
to extract
statistical
patterns and build
a model
Score model to
generate
predictions
using a trained
classification or
regression model
Evaluation model
to measure the
accuracy of a
Trained model

7. Customer Cockpit©
during and after M&A: Analytics paving way for customer retention | August 2016
© 2016, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 7
Data Governance
Pre-merger analysis being a one-time activity most of the time the laboriously
prepared data, for due diligence, is discarded as they represent only a snapshot
and are not up-to-date. This is not the case anymore, using ETL and Change Data
Capture (CDC) technologies the Customer Cockpit©
database can be updated for
post-merger analysis and Customer Cockpit©
for the merged entity.
One of the keys to any successful merger is the speed of integration. The
cleansed integrated dataset prepared for the Customer Cockpit©
can be used as
an afterburner to boost up integration and drive operational efficiency.
In the event the companies decide not to merge, the outlay for each party is
minimized and they can continue to use the Customer Cockpit©
on their own data
set.
CREATING CUSTOMER COCKPIT©
Customers
Retention
Dashboard
Customer’s
Customer
Customer
Experience
Monitor
Act on the metrics
that make customers
defect
Listen to what
customer’s customer
are saying of products
of the products
Watch customers
experience overall
health
Analyze the various metrics
through the pre-configured
KPI’s identified for ensuring
maximum customer
retention
Understand how to make
products better and go
back to customers with
insights on how to better
their products
Put the information
together which impacts
customer experience by
means of tools
Customers with the risk of leaving
CUSTOMER SEGMENTATION WITH KEY KPI’S TO BE DEFINED
Customers that need to be retained
 Identify their potential to grow or assess their
potential
 Defined must meet criterias to track these
customers
 Exclusive top[ 100 customers dashboard for
driving a relationship
 Automated customer messages
 Pre-recorded campaigns for customers falling
below metrics
 Segregate them in a common customer
category across 3/2 business’
 Identify them in an existing prolonged issues
category
 Define metrics that will sway these customers
to the other side of the fence
 Monitor, alert and act for different
stakeholders through dashboards and
Customer Cockpit©
We are proposing to build a Customer Cockpit© platform to impact these and larger set of customers

8. Customer Cockpit©
during and after M&A: Analytics paving way for customer retention | August 2016
© 2016, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 8
HCL has built the KPI’s and data models for Customer Cockpit©
and is offering
this service as an on premise solution as well as an Analytics serv ice. Below is a
snapshot of what the solution looks like
Business Benefits
This model is aimed at delivering several metrics and impacts various parts of the
organization by means of :
1. Predicting which customer has a potential to churn
2. Providing a line of thought on the end to end Customer experience
3. Providing a snapshot of various performance viz. Sales, Marketing, Product,
etc
Stakeholders that will get impacted are as follows:
Role Configuration What he can measure
C-level Dashboard
 Organizational performance against Top Customers
 Focus on customers that have a high probability to churn
Business Unit Heads
 Business view for each Unit and customers representation
 Performance for al customers against the defined metrics
Customer Experience/
Service Head
 Focus on impact of various metrics and take corrective
measures
 Understand the impact of incidents/cancellations
Chief Digital Officer/
Chief Marketing Officer
 Corrective measures to be taken on communication
 Define right marketing campaigns based on the impact
Product Managers  Product performance
 Product reach and cross selling opportunities
Sales Managers  Sales performance
 Geographical impact of restructuring
 CRM Alignment/feedback

9. Customer Cockpit©
during and after M&A: Analytics paving way for customer retention | August 2016
© 2016, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 9
References
http://www.bloomberg.com/news/articles/2016-01-05/2015-was-best-ever-
year-for-m-a-this-year-looks-pretty-good-too
RB study “Successful PMI synergy management”, October 2011
https://www.capgemini-consulting.com/resource-file-access/resource/pdf/IT_
in_M_A.pdf
Contacts
Anubhav Srivastava
Sr. Director, Manufacturing
HCL Technologies
Anubhav.Sri@hcl.com
Susanta Mohanty
Group Technical Manager
HCL Technologies
Susanta.Mohanty@hcl.com
Ashar Pasha
Solutions Director
HCL Technologies
Ashar.Pasha@hcl.com
Steve Thompson
VP, CRM
HCL Technologies
Steve.Thompson@hcl.com

10. Hello there! I am an Ideapreneur. I believe that sustainable business outcomes are driven by relationships nurtured through
values like trust, transparency and flexibility. I respect the contract, but believe in going beyond through collaboration,
applied innovation and new generation partnership models that put your interest above everything else. Right now 110,000
Ideapreneurs are in a Relationship Beyond the Contract™ with 500 customers in 31 countries. How can I help you?
About HCL
About HCL Technologies
HCLTechnologiesisaleadingglobalITservicescompanyworkingwithclientsinthe
areas that impact and redefine the core of their businesses. Since its emergence on
thegloballandscape,andafteritsIPOin1999,HCLhasfocusedon‘transformational
outsourcing’, underlined by innovation and value creation, offering an integrated
portfolio of services including software-led IT solutions, remote infrastructure
management, engineering and R&D services and business services. HCL leverages
its extensive global offshore infrastructure and network of offices in 31 countries to
provide holistic, multi-service delivery in key industry verticals including Financial
Services, Manufacturing, Consumer Services, Public Services and Healthcare &
Life sciences. HCL takes pride in its philosophy of ‘Employees First,
Customers Second’ which empowers its 104,000 transformers to create real value
for customers. HCL Technologies, along with its subsidiaries, had consolidated
revenues of US$ 6.2 billion, for the Financial Year ended as on 31st
March 2016
(on LTM basis). For more information, please visit www.hcltech.com
About HCL Enterprise
HCL is a $7 billion leading global technology and IT enterprise comprising two
companies listed in India – HCL Technologies and HCL Infosystems. Founded
in 1976, HCL is one of India’s original IT garage start-ups. A pioneer of modern
computing, HCL is a global transformational enterprise today. Its range of
offerings includes product engineering, custom & package applications, BPO,
IT infrastructure services, IT hardware, systems integration, and distribution of
information and communications technology (ICT) products across a wide range
of focused industry verticals. The HCL team consists of over 110,000 professionals
of diverse nationalities, who operate from 31 countries including over 505 points
of presence in India. HCL has partnerships with several leading global 1000 firms,
including leading IT and technology firms. For more information, please visit
www.hcl.com