advance analytic game changer in fsi industry · advance analytic game changer in fsi industry. ......
TRANSCRIPT
Greg Wong, Director AnalyticsCentre of Excellence BI & PA
Advance AnalyticGame Changer in FSI Industry
How mBank used SAP Advance Analytics to drive their business?
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Internal
mBank: Delivering a Personalized Banking Experience for4.5 Million Customers with SAP® Predictive Analytics
CompanymBank S.A.
HeadquartersWarsaw, Poland
IndustryBanking
Products and ServicesRetail and corporate bankingproducts and services, wealthmanagement
Employees6,318
Web Sitewww.mbank.pl
Objectives� Respond to customer needs as quickly as possible� Gain insights into customer preferences to support a customer-centric banking experience across all
channels� Optimize the company’s discount program (mDeals) by providing better service to partners and more
targeted offers to customers� Improve the performance of marketing campaigns by better understanding customer behavior and
anticipating future demand
Why SAP� Ability of SAP® Predictive Analytics software to drive a close, personal connection to clients by
providing a data and analytical modeling tool� Pragmatic, user-friendly software, allowing quick user adoption and rollout� Easy integration with the existing IT infrastructure
Resolution� Predictive modeling based on transactional and demographic data� Precise segmentation, advanced reporting, and execution of real-time, multichannel marketing
campaigns� Context-specific offers across all channels based on customer profiles
Benefits� Reduce churn and grow revenue by automating campaigns and offer activation� Increase sales efficiency and reduce the cost of sales� Minimize the effort to train employees and identify targeted customers� Empower mBank’s discount program by personalizing discounts for each customer based on predictive
analytic
RapidIncrease in response ratesto marketing campaigns
400%Higher hit rate fornonmortgage loans
200%Increased hit rate for insuranceproducts
250%Higher hit rate for savingsproducts
“SAP Predictive Analytics has allowed mBank to discover individual customer preferences and identifythe next best activity for our marketing efforts. Now we are able to initiate more direct conversations,resulting in a better understanding of our clients on a personal level.”Bartosz Witorzenc, Strategic Initiatives Manager, Retail Banking Department, mBank S.A.
41826 (15/12) This content is approved by the customer and may not be altered under any circumstances.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Internal
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Internal
Aviva: Building Predictive Models with EaseUsing SAP® Predictive Analytic®
CompanyAviva plc
HeadquartersLondon
IndustryInsurance
Products and ServicesLife and generalinsurance
Customer Base31.4 million customers inover 15 countries
Employees27,700 worldwide
Operating Profit£2.05 billion (€2.5 billion)
Web Sitewww.aviva.co.uk
Objectives¡ Leverage predictive analytics to build propensity models for individual
customer groups rather than build generic models for all customers¡ Avoid contacting customers too frequently, while also improving
campaign response rates¡ Increase return on marketing and campaign response rates by
identifying customers most likely to respond
Why the SAP® Predictive Analytic® solution¡ Charts that help marketing experts visualize the anticipated business
impact of models¡ Significantly better modeling automation that allows many models to be
built with ease¡ Automatic analysis of the individual contributions of hundreds of
variables to a model, rather than manual inspection of a limited numberof variables
Future plans¡ Further improve return on marketing with uplift modeling that predicts the
impact of marketing activities on specific target groups¡ Build predictive models to analyze customer acquisition and win-back
"Modeling made easy – thanks to SAP Predictive Analytic.”Dr. Margaret Robins, Statistical Analyst, Data Analytics and Insight, Aviva plc
PersonalizedFurther improve return onmarketing with uplift modeling thatpredicts the impact of marketingactivities on specific target groups
EfficientSignificant increase in the numberof propensity models used withinthe company, with more than 30models in production
CurrentAbility to use the freshest data tokeep models up-to-date and capturethe latest trends
30599 (14/05) This content is approved by the customer and may not be altered under any circumstances.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Internal
Business Value of an Integrated and Fully Evolved BI Solution
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Internal
Business Value of an Integrated and Fully Evolved BI Solution
Lower BI expenditures
Companies that consolidate multiple BItools into a standardized andenterprise-wide portfolio, have 36%lower BI expenditures
36%More timely information
Companies that have enhancedbusiness user access to information,have 10% more timely information tocreate actionable insights
10%
Companies with flexible informationsystems have 24% higher usage ofbusiness intelligence to manage in theirbusiness processes
24%Higher usage More ROI
10x 1
13.01Greater than
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Internal
Optimal model selectedautomatically
Automated and simplified by SAP Predictive Analytics
3 Months3 Months
1 Week1 Week
DataConnections
DataManipulation
VariableReduction &
Sampling
Predictivemodel
creationScoring &Validation
ModelInterpreta
-tion
Applicationto business
Simple GUI Automated Automated Simplified Applicationto business
Greatly Improve your Time to Value
https://www.youtube.com/watch?v=sIbUAvrO70A&list=PL4B_3KgKZMUI7hU74LDkJCULP6fF3orR9
What is SAP Predictive Analytics?
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Internal
Types of Business Problems Solved with Predictive
¡ PredictiveMaintenance
¡ Load Forecasting¡ Inventory/demand
Optimization¡ Product
Recommendation¡ Price Optimization¡ Manufacturing
Process Opt.¡ Quality Management¡ Yield Management
Operations
¡ Fraud and AbuseDetection
¡ Claim Analysis¡ Collection and
Delinquency¡ Credit Scoring¡ Operational Risk
Modeling¡ Crime Threat¡ Revenue and Loss
Analysis
Fraudand Risk
¡ Cash Flow andForecasting
¡ BudgetingSimulation
¡ Profitability andMargin Analysis
¡ Financial RiskModeling
¡ Employee RetentionModeling
¡ Succession Planning
Financeand HR
¡ Life Sciences¡ Health Care¡ Media¡ High Education¡ Public Sector/
Social Sciences¡ Construction and
Mining¡ Travel and
Hospitality¡ Big Data and IoT
Others
¡ Churn Reduction¡ Customer
Acquisition¡ Lead Scoring¡ Product
Recommendation¡ Campaign
Optimization¡ Customer
Segmentation¡ Next Best Offer/
Action
Sales andMarketing
Applying Predictive to Real Business Problems
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Internal
Compared with the control group,7times increase in response rate
Each year because of fraudcaused lost has decreased USD $
1B
Response Rateincreased 5 times
Customer Churn & Cross-SellModels over 700
Campaign response rateincreased 260%
Monthly Churn Ratedecreased 3%
Campaign Response Rateincreased 220%
Sales PredictabilityIncreased 10%
Retail
Bank
Telco
Sales increased by 8.5%,ROI increased 14%
Integration of more than 5billion raw data from diff.
State agencies
OthersCovering 20,000 different
social communitiesEvery year over 400
incidents, fuel and tiresCosts reduction 3%
Predictive Analytic help corporation bring in high ROI
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Internal
Financial
Telcom
Retails
e-Comm
CreditInvestigation
Media
PublicSector
Energy &Manufacturing
Success With Over 500 Leaders Around the World
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Internal
Predictive Future
¡ It will embed into any application to make the application become moreintelligence
¡ Predictive will become more generic and easy to use by anyone
¡ BI + Predictive + Business Domain is the key of success (analytic cycle)
¡ Predictive will make people getting smarter
¡ Whoever can leverage Predictive into their business whoever can graduallyout perform in the market! Just like automation.
¡ No matter what, technology will become useful if it can be manage bybusiness people.
Thank you