BIG DATA...The killer app for motor dealers?

How BIG DATA is quietly transforming the

dynamics of the motor retail industryIan TomlinSponsored by:

What is ‘Big Data’ all about?

BIG DATA describes data sets with sizes beyond the ability of commonly used software tools to manage or make sense of. It’s the result of a proliferation in digital media, social networking, sensor networks, auto-ID and

databases used to gather customer likes and behaviors.

People know that knowledge is power. So do businesses. So do governments.

According to IBM, 90% of the data in the world today was created in the last 2 years alone (wow).

The BIG DATA explosion of has led to innovations in technology to capture, hoard, assimilate, analyze and act on lots of data from different

places for the purpose of accelerating business innovation

CAPTURE

HOARD

ASSIMILATE

ANALYZE

ACT

For example: Sensor networks and telematics mean that vehicles can travel around road networks and drivers are automatically charged for their road usage. And: Today, online customers enter their own orders. At one time sales administrators would do this for them.

Hadoop is a new kind of data hoarding repository; a rapidly scalable filing system capable of managing vast amounts of structured and unstructured data. Just getting data into a relational database is time consuming and technically challenging - Hadoop make hoarding data easier!

Operational Analytics take over from where Business Intelligence (BI) left off. BI platforms organize data into structures that make it easier to source dashboards and reports people need. But they are expensive, difficult to change and normally harvest ‘known’ internal company structured data. The operational analytics world is more like exploring for oil: There’s no point spending money on infrastructure until you know you’ve struck oil! These new tools give people the ability to assimilate data and make sense of it – without buying BI platforms.

Generally called middleware, new technology platforms enable people to connect to data painlessly and mash it up. Companies like Encanvas, Tibco and others make it possible for data to be harvested from practically any data source (including sensors and telematics) without having to do any of the clever coding stuff. These platforms extract, transform, normalize and generally organize data so you don’t have to do it manually on a spreadsheet ;-) Assimilation technologies are SO powerful these days, often you don’t need to hoard data at all – you can just use the data you need, when you need it, and leave it where it is.

Once individuals realize they have an opportunity to improve their customer experience, sales approach, operational or financial systems this creates a demand for new software applications to turn BIG IDEAS into ways to accelerate business innovation. Systems like Encanvas remove 90% of the work needed to turn a big idea into better IT systems and processes. This places more resource focus on innovation and less cost and risk towards ‘putting good ideas into practice’.

What it looks like

Private Cloud

Customers Manufacturers Dealer Workforce Partners

DMSWebsite eVHC Showroom Contact Centre

Service Plans

MarketingAgency

Lead Mgmnt.

BIG DATA has transformed the nature of competition

In its report of the same name, McKinsey&Co

suggest that big data is - “The next frontier for

innovation, competition, and productivity.”

Business leaders today know their competitive advantage

depends on how quickly (and how well) they act on insights.

They need to support an end-to-end process of accelerated

innovation and answer three key questions (see right):

How do we

trial quickly?

How do we

learnquickly?

How do we

adapt quickly?

PeteThe Finishing Line

Blue Ocean Strategies

How accelerated

business

innovation manifests

change

Customer Insights

Sales Engagement

Operating Behaviors

According to research conducted by the University of Texas,

Median ROIs from big data analytics are in the region of:

Customer Analytics 55%

Operational Analysis 277%

Financial Analysis 139%

Companies capture and assimilate all of the data they can glean about their customers to understand them better…

Realizing what customers like and how they prefer to be engaged, companies find better ways to sell their products and services…

Knowing what customers care about and how best to serve them enables businesses to adapt their internal processes to work better…

Business leaders enjoy a richer appreciation of markets, opportunities and threats that encourages entrepreneurial endeavor!

What BIG DATA means to Motor Dealers

Super-driven Marketing

BIG DATA systems gather data from all disparate systems to build a joined-up

view of data. Dealers use it to better understand their customers. They

integrate deferred works, service reminders and ad-hoc DMS campaigns into

an integrated campaign pipeline. Then they automate multi-channel

marketing campaigns via SMS, web, email, letter-post and call centre.

MOTOR DEALERS have suffered from separate online (web-site) and back-office

(DMS) systems. Usually a dealers’ data environment is further complicated by

separate showroom, eVHC, lead management and call centre systemsCH

ALL

ENG

EB

IG D

ATA

VA

LUE

Super-driven Marketing

Service Manager

Managing Director

Marketing Manager

Sales Manager

Customer Service Manager

“BIG data lets me coordinate

campaigns and measure campaign

ROI. We don’t over-market to

some customers at the expense of

others.”

“Big data means my teams spend time on calls that

matter. We only see outstanding calls and spend less time on organizing and

closing calls.”

“Big data means I get to see a single view of customer

activity and interactions.”

“Big data means I see all key pipelines of

activity and can measure performance across the business in real-time – on mobile,

laptop or tablet.”

“Big data means I spend less time

on marketing and sorting out data,

more time managing our efficiency and

improving processes.”

BIG DATA systems mine key data from existing systems using either database

or web service integration or ‘flat’ reports like .CSVs. Then they cleanse and

normalize data. Then they build relationships between the data resources to

create the integrated views of data User Groups need.

MOTOR DEALERS have many ‘reasons to engage their customers’ that are held

in data on systems (such as vehicle birth-dates, expiries, renewals etc.). It’s not

easy to get access to this data, manage data quality – or manage the flow of data to sales teams so they’re not overwhelmed.C

HA

LLEN

GE

BIG

DAT

A V

ALU

E

Lead Generation

Lead Generation

Service Manager

Managing Director

Marketing Manager

Sales Manager

Customer Service Manager

“Big data brings us more reasons to

speak to customers when they want us to –

and it gives me the tools to optimize use of our data!”

“Big data means I can boost the productivity of

my team by concentrating on the best opportunities. It brings a single version of customer interaction data so we don’t end up calling

people we’ve already spoken to.”

“Big data means I can prioritize

reasons to speak to customers and not miss out on good opportunities to

engage customers.”

“Big data means I can profile our customers and

better understand how to better serve

their needs.”

“Big data means I can work with

marketing colleagues to make optimal use of our

capacity.”

Operational Analytics

BIG DATA cloud systems can be updated every minute, hour, day (you get

the picture). You can even update data by creating a watch folder and

popping your reports into it. This makes it really easy to create DOC and

other reports on the powerful operational analytics tools in the cloud.

MOTOR DEALERS struggle to gain real-time operational analytics across their

business to keep pace with activities happening in all disciplines and in all

dealer locations.CH

ALL

ENG

EB

IG D

ATA

VA

LUE

Operational Analytics

Service Manager

Managing Director

Marketing Manager

Sales Manager

Customer Service Manager

“I use big data analytics to pinpoint

which marketing tools and

campaigns work best for us.”

“I use big data analytics to balance our

resource pool and prioritize.”

“I use big data analytics to view our customers on maps and focus my

micro-campaigns on people that are near-by. I have so many good

reasons to call customers I only need to call customers when they

get a clear reward.”

“I use big data analytics to gain a single page view of performanceand to prioritize

our process improvements.”

“I use big data analytics to keep

our ramps full and optimize our deferred works

pipeline.”

Blue Ocean Strategy

BIG DATA systems gather market data from different places to build

‘opportunity profiles’ for new BLUE OCEAN strategies. The data gathered can

compared regional variances on buyer profile, engineer early stage

marketing plans and build compelling business cases.

MOTOR DEALERS are entrepreneurial. Some have diversified into parts

distribution while others service motor speed boats! Like all entrepreneurs,

owners and leaders need to gather facts about their local opportunities in

order to surface new opportunities for businesses, products and services.CH

ALL

ENG

EB

IG D

ATA

VA

LUE

Blue Ocean Strategy

Managing Director

Marketing Manager

Sales Manager

Customer Service Manager

“Big data helps me to understand

regional market opportunities to

develop more targeted,

personalized marketing plans for

new products.”

“Big data helps me to work with marketing

colleagues to optimize marketing spend and

choose the best medium for our

communications.”

“Big data helps me to develop sales strategies to get the best performance from my sales teams by

concentrating on the most important opportunities.”

“When I’m considering strategic decisions I have access to facts

that reduce influence of opinions and emotions from the

decision making process.”

In Summary…

Hoards, assimilates, analyzes and acts on data from lots of places for lots of reasons WITHOUT big up-front IT spend

Uncovers SLEEPY DATA to source more reasons to engage with customers when they’re ‘interested’

Presents landscape views of activity pipelines

Creates a unified campaign management capability across all functions and channels

Brings richer customer profiling that leads to improved customer experience, better marketing outcomes

Installs real-time operational analytics to drive process improvements across dealerships

Exposes BLUE OCEAN entrepreneurial opportunities to grow business through up-sell, cross-sell, new ventures

..and that’s why everyone is talking about it.

Thank You.

Article Sponsors:

Data Innovation Management software www.encanvas.com

Customer Science and Big Data Consultants www.ndmc,uk.com

Ian Tomlin is a management consultant and

author. He's written several books and

hundreds of white papers and articles on

the subject of customer science,

organizational growth, technology and the

evolution of the workplace.

Books by Ian Tomlin:

Agilization – The regeneration of

competitiveness

Cloud Coffee House – The birth of cloud

social networking and death of the old

world corporation

SOS - Social Operation Systems – What

happens when BIG DATA and SOCIAL

NETWORKING transforms computing