How Analytics can be Strategy to gain competitive advantage

1. 1
Achieving Analytics excellence for
gaining competitive advantage
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Sharad Gupta
T: +65-98626347
E: sharad_gupta90@yahoo.com
April, 2015

2. 2
Efficiency focus
Effectiveness focus
Corporate and BU
strategy focus
Innovation focus
ANALYTICS CAN HELP ORGANIZATIONS IN GAINING SUSTAINBALE
COMPETETIVE ADVANTAGE
Analytics
Impact
Time
Actions
Build best in
class models
Wide spread use
of analytics in
business
Wide spread use of
analytics for
supporting
corporate and BU
strategy
Adopt
proprietary and
Innovative
analytics tools,
systems to
gain
competitive
advantage
Current
focus
• Build best analytics
team with good
technical skills
• Build best in class
analytical models for
solving high impact
problems
• Identify analytics
initiatives across
channel, products,
countries
• Align and prioritize
analytics project inline
with BU strategies
and goals
• Drive annual analytics
strategy driven by
corporate and BU
strategy , goals
• Continue to evolve in
analytics
sophistication
• Instill analytics culture
in frontline
• Drive analytics
strategy by BU and
corporate strategy
• Build innovative and
proprietary analytics
solutions to gain
competitive
advantage
• Frontline and
analytics drives
innovation

3. 3
Analytics
Impact
Efficiency Effectiveness
=
EFFECIENCY & IMPACT ARE TWO KEY DIMENSIONS FOR CREATING SHORT
TO MEDIUM TERM IMPACT
• Sustainable top
line or bottom line
impact
• Simplified and or
faster decision
making
• Competitive
advantage
• Better customer
experience
• Cost savings
• Higher revenue
• Higher
productivity
• Ability to sustain
the gains
• Ease of
implementation
• Ability to control
the outcome
• Competitive edge
provided by a
solution
• Usage by frontline
teams
• Communication of
success
Typical focus

4. Efficiency of
analytics
solutions
Model & data
improvements
Geographic
expansion
Product
expansion
Segment
expansion
Use advanced
techniques
Improve
current
models
Collect newer
data
• Using Machine learning
instead of statistical model
• Improve current model
GINI by using better
modeling technique
• Find new data sources
and use it in building better
models
Typical focus Description
• Apply existing analytics
solution in other regional
entities
• Apply existing analytics
solution across other
products e.g. expand
model to saving accounts
• Built segment specific
solutions. Build segment
specific models
TYPICALLY, 80% OF ANALYTICS FOCUS IS IN ACHIEVING EFFICIENCY GAINS
THROUGH MODEL AND DATA IMPROVEMENT
Wider
analytics
usage and
applications

5. Effectiveness
of analytics
solution
Usage by
business
%
Improvement
& innovation
Execution gaps
$ revenue
saved or
earned
Advertising &
sharing the
success story
Strategic
alignment
Goal
alignment
Needs
alignment
• Ensuring analytics
solutions facilitate BU
strategy
• Build analytics solutions
which help business in
achieving strategic goals
• Analytics solutions that
ease current pain points of
business, customers
Typical focus Description
• Analytics solutions
implemented, people
trained properly
• Revenue of cost impact of
a solution
• Communication of success
stories across the
organization
EFFECTIVENSS OF ANALYTICS SOLUTIONS IS OFTEN NEGLECTED

6. 6
Analytics
Impact
Skills needed
Efficiency
• Hard skills driven with deep quant skills
• Deep technical ( IT, modeling, data mining,
econometrics, machine learning etc.) skills
required to build efficient and state-of-the-art
solutions
• Specialist technical problem solving & research
• Advanced science degrees(MS, PhDs etc.)
Effectiveness
• Soft skills driven with light quant skills
• Understanding of BU and corporate strategy
• General problem solving and passion for
driving impact
• Influencing skills across the level
• Innovative problem solving
• Strong communication and presentation
skills
• Thought partnership skills with senior and
mid level business leaders
Skills gaps in
analytics
organization
High
ANALYTICS EFFECTIVENESS IS IGNORED DUE TO SKILLS, FOCUS AND
MISALIGNED PRIORITIES OF BUSINESS AND ANALYTICS TEAMS

7. 7
Significantly better
risk measurement
Credit policy and
process redesign
Risk reporting and IT
implementation
FOUR KEY STEPS REQUIRED FOR CREATING IMPACT THROUGH ANALYTICS
IN SHORT TO MEDIUM TERM
Details
2
3
1
• Hire people with mix of strategy and analytics backgrounds to
play an interface between business and Analytics
• Hire people with business experience across multiple
functions e.g. Strategy, Marketing, Collections, Risk,
operations and Analytics
• Identify products, process, countries, channels for wider
usage of analytics
• Prioritize identified analytics initiatives based on likely impact
and BU strategy
• Hire people with Consulting and problem solving skills
• Understand the BU strategy by product, channel, country
after discussion with business , country, channel, product
heads
• Share the priority list of initiatives and get buy in. Develop co-
ownerships and champions of analytics engagements
• Hire people who can be thought partner for business units
and influence business owners
Significantly better
risk measurement
2
1
Credit policy and
process redesign
Significantly better
risk measurement
2
1
Align analytics and
BU strategy
3
Drive wider analytics
usage
Hiring light quants
with strategy
consulting skills in
Analytics teams
2
1
3
• Share success stories, challenges with senior leaders
• Share analytics priorities and its likely impact
• Hire people who can actively shape strategic agenda of
business from Analytics point of view
Engage senior
leadership on
analytics priorities
4
Relative importance
High

8. 8
Name
Qualification
Experience
Previous experience
Designation and
role
Sharad Gupta
VP E-Commerce and Analytics- APAC at VFS Global-Singapore
Bachelor of Engineering (IIT, Rorkee, India), MS (State University of New York, USA)
Sharad has over fifteen years of experience in the area of analytics and consulting across Risk,
Digital marketing, &Strategy in Banking and e-commerce industries
During this period, he has lead teams and consulted various financial institutions and industry
organizations. Some of his recent engagements include:
• Implementing an IRB program for one of the largest bank in UAE. The bank also merged with another big
bank of UAE during the project. The project involved:
– Conducting gap analysis on credit risk, market risk and operational risk preparedness for meeting
criteria laid out by Basel II. Gap analysis focused on governance, conducting data audit, process audit,
risk measurement approach and presence of back testing / stress testing skills, reporting systems for
the measured risk
• Customer life cycle management for large US bank and building all supportive predictive models
• Consulted a Major Brazilian Bank on
– Credit portfolio risk management and selection of correct portfolio management model
• Growth strategy for a large Indian retail bank
• SME business transformation for large Indian Bank
• Setting up Marketing Analytics and Digital Marketing function for Rocket ventures( $1 billion + revenue
covering foodpanda.com, Lazada.com and Zalora.com)
• Building $10 million revenue retail and ecommerce businesses across APAC (India, China SEA)
• Digital marketing strategy for a large UAE Bank
• Private label credit card business acquisition strategy and predictive acquisition score cIards for Walmart
• Retention strategy and analytics or large credit card issuer in US
• Pricing strategy and analytics for large quick service US restaurant chain in Middle east with 300+ outlets
• Store segmentation and sales strategy for Walmart US
• Marketing budget ROI optimization for Rocket Internet ventures
• Leading the organization of Indian Banker’s summit
McKinsey & Company – Delhi as JEM, Rocket internet as CMO and Head of Analytics,
I3 Consulting as CEO ,GE Capital – Bangalore, New York as Analytics Manager
ABOUT SHARAD GUPTA