"Institutionalizing Analytics into Decision Making - A Case Study"

1. Institutionalizing
Analytics into
Decision Making
Cincinnati Business Intelligence Group Presenters:
November 15, 2012
Scott DeAngelo, Senior Vice President of
Strategic Pricing & Portfolio Management,
Vantiv
Sarah Barber, Director of Strategic Pricing
& Portfolio Analytics, Vantiv
Shankar Ranganathan, Vice President of
Analytics & Strategy, Kalvin

2. A Leading Integrated Payment Processor in the U.S.
Merchant Network Card Issuer
Acquiring Services Processing
Merchant Services Financial Institution Services
#3 Ranked U.S. Merchant Acquirer
in Total Transactions
9% Market Share in the U.S. based
on number of FI customers
#1 Ranked U.S. Merchant Acquirer
in PIN Debit Transactions
1,300 Financial Institution
relationships across the U.S.
#2 Ranked U.S. Merchant Acquirer
in Transaction Growth
Vantiv is Well Positioned as a Market Leader

3. 12b+ Transactions at 400k+ Merchant Locations
Processed Annually through a Single Platform
Single, Integrated
Technology Platform
Leading Merchant Leading Financial
Services Provider Institution Services Provider
Proprietary Technology Platform
Integrated Business
Comprehensive Suite of Services
Diverse Distribution Channels
Strong Execution Capabilities

4. Hot Trends
• Enhanced
Exposure
• Expanded
Opportunity
• “Major” Area
of Study

5. Hot Mess
• Up-front vs.
Back-end
• Speed vs.
Accuracy
• Form vs.
Functionality

6. 5 things we’re doing to accelerate
the Institutionalization of Analytics
into Decision Making at .

7. 1. Defining & Scoping
What Analytics Is

8. Macro Level
Analytics!?!? Analytics!?!?
Descriptive Predictive
Analytics!?!? Analytics!?!?
Micro Level

9. Macro Level
“Top of House” Monthly Business
Financials Forecasts
Descriptive Predictive
Segment Specific Customer Level
Reporting Predictions
Micro Level

10. 2. Location, Location,
Location

13. 3. Managing the “All or
Nothing” Mentality

14. Where We Will Be
Where We Are
Where We Were

15. 4. Balancing Accuracy
& Understandability

16. “The test of a first rate intelligence is the ability to hold two
opposing ideas in mind at the same time and still retain the
ability to function.”
-F. Scott Fitzgerald
Key lessons learned from data
visualization at

17. Data tells the narrative…
Opposing ideas by default work against each other.
But if we think of opposing ideas like a magnetic force-- the very force that
causes like magnets to push against each other also causes attraction.
To get them to work together all relies on how they are positioned.
…if that data is well-positioned

18. Visualizations deliver
organizational buy-in.
Total Signature Revenue by Month – Vantiv Merchant Direct
Feb. ’12 Spring ’11 Fall ’11 Pricing January ’12
Action 1
Pricing Actions Action 2
Actions+Durbin Action 3
Pricing Actions
$20,000,000
$18,000,000 Incremental
Pricing Ef f ect
Baseline
Volume Ef f ect
$16,000,000
$14,000,000 29% 42% 50%
of of of
total total total
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
02/01/10
03/01/10
04/01/10
05/01/10
06/01/10
07/01/10
08/01/10
09/01/10
10/01/10
11/01/10
12/01/10
01/01/11
02/01/11
03/01/11
04/01/11
05/01/11
06/01/11
07/01/11
08/01/11
09/01/11
10/01/11
11/01/11
12/01/11
01/01/12
02/01/12

19. Visualizations deliver
organizational buy-in.
Revenue by Industry Revenue Margin by Industry
100% = $_B $_B $_B
24%
29% 32% Z%
Industries 5-7
48% Y%
48% Industries 2-4
49%
Industry 1
X%
27%
23%
19%
2010 2011 2012

20. Keep it Simple, Statistician.
Simplicity elevates insight to value.

21. Get in the weeds…
… But don’t get lost.

22. 5. Pushing Intelligence
to the “Front Line”

23. From Push to Pull
Presenting intelligence through data
visualization pulls executive strategies to the
front-line

24. Discover the “Unknown Unknowns”
- Donald Rumsfeld

25. Real Time and Proactive – What is it?

26. Real Time and Proactive – What does it take?
Information Action Distance Decision Set
Set
Predict
and
Analytics Act
Process
Source: Richard Hackathorn at TDAN.com

27. So, what is Analytical Process?
Business Analytics Information
Problem • Health Check
• Shifts in Margin Dashboard
• Attrition issue
• Customer
• Lower Margin Customer
Migration Report
Acquisition
• Price/Attrition
• Volume Mix Shift
Alerts
Measure Activate
Operationalize •KPIs • Cross Sell
and update •Dashboards • Up Sell
strategy •ROI • Reduce Price
• Add-On

28. Speed of Analytics – Why business reaction is slow?
business
event
data
stored
Lost Business Value
information
delivered
action
Capture taken
Latency
Analysis
Latency
Captured
Decision Business
Latency
Value
Source: Richard Hackathorn at TDAN.com
Time

29. Speed of Analytics – How can we increase speed?
business
event
data
stored
Lost Business Value
information
delivered
action
taken
Captured
Business
Value
Source: Richard Hackathorn at TDAN.com
Time

30. Speed of Analytics – Getting Real Time …….
business
event
data
Lost Business Value
stored
information
delivered
action
taken
Captured
Business
Value
Source: Richard Hackathorn at TDAN.com
Time

31. Data to Insights - How Traditional Process works?
Decision Makers
Integrated Data Warehouse and BI
Data Integration Data Marts
Presentation Tool
Data Analytics
Data sources Report
Consumers
Business
Analysts
6-8 months 6-8 months 6-8 months
End to End Data Analytics Solution

32. We are building data and delivering insights at the same
time
Integrated Data Warehouse and BI
Data Integration Data Marts
Data sources Analysts
and
Business Users
Presentation Tool
Decision Makers
KalvinTellTM
– An
Integrated Enriched and
Solution Analytical Intelligent Data
Engine
Analytical Data Synchronization
Analysts
Business Users
Decision Makers
Feedback Process ( Update Analytical Models)

33. KalvinTell – An Integrated Analytical Engine for faster
TM
turnaround
Data
Data Probabilistic
Security
KalvinTell – an automated
TM Integration Model
Logic
Logic
end-to-end solution with Survival
up-to-date predictive
Report
analytics embedded within Calculations
data layer & Business
Rules
Data
Quality
Logic
Data sources Segmentation
Multiple
Regression
Targeted
Pricing audience
Strategy
Growth Attrition
KalvinTell Rate
™ WebI
(Kalvin’s
Analytical Mobility Upside
Engine) potential Explorer
Dashboards

34. Merchant Centric Analytics Roadmap
Health Merchant
Predictive
Diagnostics Check to to Engagement
Analytics
enables... Reporting drive... grow... & Growth
– Analysis – Customer Migration – Retention Modeling – Relevant
– Trends Reporting – Attrition Modeling Communications
– Segmentations – Key Drivers & Metrics – Revenue and Margin – Merchant
– Customer Loyalty Forecasting Product
– Capture Enhancements
relevant – Customer attrition – Pricing Strategy
attributes – Merchant
Behavioural
Selection
(targeting)

35. Real Time in
Days
Cross Sell or
Up Sell
Pricing and
Attrition Alerts
What? What Next?
Merchant
Centric
Segmentation
Real Time in
Months

36. Key Takeaways
36

37. Thank You!