Welcome!

@DXWorldExpo Authors: William Schmarzo, Rostyslav Demush, Jason Bloomberg, Greg Pierce, Stackify Blog

Related Topics: @DXWorldExpo, @CloudExpo, @ThingsExpo

@DXWorldExpo: Blog Feed Post

The Danger of Pursuing Customer 360 View | @CloudExpo #IoT #M2M #BigData

The Customer 360 View is a relic of the old-school Business Intelligence and data warehousing days

One of the best parts of my job is talking to a wide variety of customers across a wide variety of industries at a wide variety of different points on their big data journey.  I’ve recently had several customer engagements where the client’s top business initiative is creating a Customer 360 View.  Danger, Will Robinson!!  I think the Customer 360 View business initiative is both dangerous and distracting; it is dangerous because it gives organizations a false goal to pursue, and it is distracting because it diverts the organization’s resources from more actionable and financially rewarding business initiatives.

The Customer 360 View is a relic of the old-school Business Intelligence and data warehousing days.  Hate to be so harsh, but for many organizations, Customer 360 View was created as an artificial goal for organizations that could not move beyond the Business Monitoring stage with their data and analytic investments (see Figure 1).

Figure 1:  Big Data Business Model Maturity Index

The Customer 360 View business initiative was created as a substitute for the hard data analytics or data science work necessary to understand and quantify your customers’ behaviors, propensities, tendencies, inclinations, preferences, patterns, interests, passions, affiliations and associations. The Customer 360 View business initiative lulls organizations into a false sense of accomplishment that seduces organizations to invest scarce data and analytic resources on pulling together any and all customer data.  Unfortunately, there are two significant issues with the Customer 360 View:

  • The Customer 360 View data is not actionable. While leverage data visualization techniques can help to flag potential problems in the data, the data in of itself is not actionable until you apply analytics, and you don’t know what analytics to apply until you know what customer-centric business problem or opportunity the organization is trying to address.
  • Not all customer data is off equal value. One does not know which data is most important until you know what customer-centric business problem or opportunity the organization is trying to address.

Yea, I hate the Customer 360 View as a business initiative.

Identifying and Prioritizing Customer Use Cases
Let’s expand on the efforts that organizations have invested in their Customer 360 View by identifying, qualifying and prioritizing the decisions that the organization is trying to make about its customers (and pre-customers or prospects).  In order to determine what data (and ultimately) analytics are most important, the organization must first determine which customer-related decisions – either decisions being made by the organization about the customer or decisions being made by the customer – are most important.

We recommend that organizations start with an envisioning exercise to identify, validate, justify and prioritize those decisions. The envisioning process focuses on identifying and brainstorming the decisions that are being made about customers across all the different business functions (e.g., Sales, Marketing, Services, Customer Support, Product Development, Finance, Operations).  The process will yield a set of decisions that we then group into use cases or common subject areas (see Figure 2).

Figure 2:  Grouping Decisions Into Use Cases

For example, the following customer-centric use cases might come out of the envisioning exercise:

  • Improve customer profiling
  • Improve customer behavioral segmentation
  • Improve prospect targeting effectiveness
  • Improve customer acquisition effectiveness
  • Increase customer activation (after acquisition)
  • Improve customer likelihood to recommend (LTR)
  • Increase customer social advocacy
  • Improve customer cross-sell / up-sell effectiveness
  • Increase customer shopping cart margins
  • Monetize customer events (e.g., vacations, anniversaries, ski trips)
  • Monetize customer life stages (e.g., births, graduations, weddings, death)
  • Increase customer satisfaction
  • Reduce customer attrition

After we have identified, validated and vetted the use cases with the different business stakeholders, we then leverage the Prioritization Matrix process to prioritize the customer use cases based upon business value and implementation feasibility over next 9 to 12 months (see Figure 3).

Figure 3:  Prioritization Matrix Process

Building Actionable Customer Analytic Profiles
Once we know upon what use cases to focus (after prioritization), we can begin to:

  • Identify and collect the data in the data lake necessary to support the prioritized customer use cases, and
  • Identify and collect the analytics necessary to support the customer use cases using Customer Analytic Profiles.

Analytic Profiles are structures (models) that standardize the collection, application and re-use of the analytic insights for the key business entities at the level of the individual human (e.g., customer, patient, doctor, student, teacher parolee, mechanic) or individual physical object (e.g., cars, buildings, jet engines, airplanes, locomotives).  See Figure 4.

Figure 4:  Customer Analytic Profile

We will build out the Customer Analytic Profiles one customer use case at a time, ensuring that 1) we are focusing the organization’s scarce data and analytic resources on those use cases offering the optimal business potential, and 2) that we have a big data architecture in place (data lake and analytics tools with Analytic Profiles) to capture, refine and share the data and customer analytics across multiple customer use cases.

Creating “Customer Actionable View”
Instead of a feel good Customer 360 View, we have created actionable customer analytics that are focused on supporting the organization’s key customer initiatives and leveraging the data lake and Analytic Profiles to ensure that the resulting data and analytics can be captured so that they can be leveraged across multiple use cases (see Figure 5).

Figure 5:  Foundational Customer Data & Analytics

Now, isn’t that better – and more actionable – than just collecting any and all customer data?

By the way, I am going to be teaching this process at Strata + Hadoop World in San Jose on Tuesday, March 14th.  I running a three and a half hour workshop titled “Determining the economic value of your data.” If you sign up, show up ready to work (bring your work gloves and work boots!).  I think you’ll find the simplicity of the process illuminating!

The post The Danger of Pursuing Customer 360 View appeared first on InFocus Blog | Dell EMC Services.

More Stories By William Schmarzo

Bill Schmarzo, author of “Big Data: Understanding How Data Powers Big Business” and “Big Data MBA: Driving Business Strategies with Data Science”, is responsible for setting strategy and defining the Big Data service offerings for Dell EMC’s Big Data Practice. As a CTO within Dell EMC’s 2,000+ person consulting organization, he works with organizations to identify where and how to start their big data journeys. He’s written white papers, is an avid blogger and is a frequent speaker on the use of Big Data and data science to power an organization’s key business initiatives. He is a University of San Francisco School of Management (SOM) Executive Fellow where he teaches the “Big Data MBA” course. Bill also just completed a research paper on “Determining The Economic Value of Data”. Onalytica recently ranked Bill as #4 Big Data Influencer worldwide. Bill has over three decades of experience in data warehousing, BI and analytics. Bill authored the Vision Workshop methodology that links an organization’s strategic business initiatives with their supporting data and analytic requirements. Bill serves on the City of San Jose’s Technology Innovation Board, and on the faculties of The Data Warehouse Institute and Strata. Previously, Bill was vice president of Analytics at Yahoo where he was responsible for the development of Yahoo’s Advertiser and Website analytics products, including the delivery of “actionable insights” through a holistic user experience. Before that, Bill oversaw the Analytic Applications business unit at Business Objects, including the development, marketing and sales of their industry-defining analytic applications. Bill holds a Masters Business Administration from University of Iowa and a Bachelor of Science degree in Mathematics, Computer Science and Business Administration from Coe College.

@BigDataExpo Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, addressed this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of the ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...