6 06, 2018

Data Transforms Predictive Maintenance

By | June 6th, 2018|Advanced Analytics, Blog|0 Comments

By Christophe Guille and Stephan Zech Utilities rely on data analytics to help determine the best time to replace power transformers along the grid. Ideally, they want to extend the useful life of a transformer and replace it before it fails, to prevent an unplanned power outage. Traditional formulas consider factors like the transformer’s age and the weather, but these models are not very accurate. One North American utility sharpened its ability to predict failure rates by considering a wider set of data that includes a transformer’s load profile—that is, how the load fluctuates throughout the day—and the history of outages in the circuit where the transformer sits. Combined with more sophisticated analysis techniques, the new model was three to four times as accurate in [...]

31 05, 2018

Reinventing Your Business Model for Digital

By | May 31st, 2018|Blog, Customer Strategy & Marketing, Digital Transformation|0 Comments

By Ryan Morrissey and Ouriel Lancry Everyone thinks about Netflix as a digital native. The company delivers content via any device, produces TV shows and films using reams of customer data, and is even headquartered in Silicon Valley. In reality, Netflix used to be the media industry equivalent of Sears―shipping DVDs by mail from large warehouses located across the country. Netflix’s business today is just the latest chapter in the short history of a company that has reinvented itself at least three times in 20 years. From its humble origins shipping DVDs by mail, it became the dominant platform for streaming movies, only to evolve further to challenge the most successful studios in the entertainment business with its original content. While each chapter seems to [...]

5 03, 2018

Which Customers Are Hurting Your Bottom Line?

By | March 5th, 2018|Advanced Analytics, Blog, Customer Strategy & Marketing|0 Comments

By Daniel Hong and Gregory Callahan In the quest for profitability, many business-to-business companies overlook one critical factor: the cost of customer support. Consider the media sales firm in the accompanying chart that linked its sales and postsales databases, allowing it to view accounts by price achieved and intensity of support required. It discovered that its two largest customers by revenue were unprofitable, while customers 10 through 20 were among the most profitable. The company responded by raising prices for low-price/low-support accounts and negotiated to make high-price/high-support relationships more efficient. It also gave its best existing accounts preferential treatment and cut loose many small, unprofitable accounts. As a result, the company expanded overall profits by 10%. Daniel Hong is a partner and Gregory Callahan is [...]

13 02, 2018

How to Build a Digital Strategy

By | February 13th, 2018|Blog, Digital Transformation|0 Comments

By Jamie Ferguson and Nate Anderson This article originally appeared on the World Economic Forum Global Agenda. "Digital will be like air." This statement came from one executive at a recent workshop on digital strategy organized by the World Economic Forum, but it could have been said by almost anyone there that day. In November, approximately 20 global executives from across industries met in London to discuss how to become a digital enterprise, as well as the challenges faced and lessons learned along the way. The group agreed that Step 1 on that journey is establishing a digital strategy. This requires understanding your point of departure, the direction your industry is headed in and the role your company should play in that digital future, and [...]

6 02, 2018

A Step-by-Step Guide to Digital Transformation

By | February 6th, 2018|Blog, Digital Transformation|0 Comments

By Åshild Hanne Larsen, Ouriel Lancry and Mehran Gul This article originally appeared on the World Economic Forum Global Agenda. Transforming a company into a digital enterprise is tough. Many companies have had some success, but few have completed this metamorphosis. No comprehensive playbook, or even checklist, exists for executives to follow. A prudent first step is to learn from others—both inside and outside our industries. This brought us in late November to a meeting of more than 20 executives from a range of industries from across the world, hosted by the World Economic Forum. Our ambition: to explore the challenges raised by digital transformation, design answers, and create practical tools on how to transform a company with digital. We began to develop a list [...]

20 12, 2017

Predictive Analytics Can Widen the Aperture for Potential Sales

By | December 20th, 2017|Advanced Analytics, Blog, Customer Strategy & Marketing|0 Comments

By Jonathan Hanson, Jonny Holliday and Jeff Taylor Many business-to-business companies spread sales targets like jam evenly across accounts, with few taking the trouble to zero-base their opportunities, account by account. Doing a thorough opportunity analysis proved to be a revelation for one IT services provider. It surveyed decision makers about their priorities and spending in the various service categories, as well as resellers. It combined the survey results with third-party data on spending, the location of customers' operations, the size and composition of their IT staff, patent filings, and the technology environment in each customer—all of which informed a segmentation of 160,000 companies. Then the company used predictive analytics software to define the revenue opportunity for each account and prospect, as shown in the chart. For example, [...]

13 12, 2017

For Brokerages, Better Digital Experiences Earn Greater Loyalty

By | December 13th, 2017|Advanced Analytics, Blog, Financial Services|0 Comments

By Andrew Edwards Providing sound advice is a big part of earning customer loyalty in the brokerage business—but it's not enough. Bain & Company analysis of a new survey by J.D. Power of 6,500 investors in the US suggests that brokerage firms can capture more of the benefits from customer loyalty by offering an excellent digital experience around planning, reviewing and adjusting investments. The chart shows that digital intensity in a customer's interactions correlates with a higher Net Promoter Score® (a key metric of loyalty) for the firm, as opposed to the individual adviser. Firms with the highest loyalty score—USAA, Fidelity and Charles Schwab—also lead their peers in the degree of their digital, self-serve model. Net Promoter®, Net Promoter System®, Net Promoter Score® and NPS® [...]

5 12, 2017

Blue Screens Are Not an Option in the Industrial Internet of Things

By | December 5th, 2017|Blog, Internet of Things|0 Comments

By Peter Bowen, Asit Goel, Michael Schallehn and Michael Schertler Connected consumer devices have captured the attention of the media, but the market for the Internet of Things (IoT) in enterprise and industrial sectors is poised be much larger—around $300 billion annually by 2020 compared to half that for consumer technology, according to research by Bain & Company. Industrial applications for the Internet of Things may not be as visible in most people’s daily lives, but they are typically more complex than those in the consumer realm. Many industrial applications operate large physical devices, and failure carries greater risk. Consider robotic arms in an automotive factory or valves in an oil refinery. The technology operates in real-time and it cannot simply stop operating without serious [...]

29 11, 2017

Flex or Fail: Why Adaptive Companies Hold the Advantage in Digital

By | November 29th, 2017|Agile & Innovative Organization, Blog|0 Comments

By Elizabeth Spaulding and Greg Caimi Google is widely hailed as one of the most nimble and innovative companies in the world. But that doesn’t mean it hasn’t confronted its share of big company organizational issues. Its creation of Alphabet is a case in point. The company set out to compete more effectively amid constant disruption when it placed its well-established businesses (Google, Gmail, YouTube, Android, Maps) with Google and its more speculative businesses (Calico, Waymo, Nest, Google Fiber, GV, CapitalG) with Alphabet. The objective was to separate the more mature money generators from the company’s growth initiatives. The new structure would give each business the leeway to make decisions based on the contours of its specific market while discouraging the resource battles that slow [...]

22 11, 2017

You Know Where the Future Is Headed, So Why Aren’t You There Already?

By | November 22nd, 2017|Agile & Innovative Organization, Blog|0 Comments

By Ouriel Lancry “Quick, hire some data scientists!” “Let’s fix our mobile app!” “Let’s accumulate data—we will use it later.” When facing the threat of disruption, companies usually respond with a cacophony of digital initiatives—a mixture of big bets for the future and little bets that might yield a win to report on the next quarterly earnings call. These efforts won’t be enough to buffer the company from the next Silicon Valley upstart, but the company will “feel” more digital, at least. Half measures are the telltale signs of a company that lacks a digital strategy to steer it toward its long-term vision. In the first blog post of our series, we discussed the importance of developing a strong inner game—the culture, data analytics and [...]