WEBINAR The Rise Of Insights Services Jennifer Belissent, Ph.D., Principal Analyst March 10, 2016. Call in at 10:55 a.m. Eastern time

“We’re drowning in data and starving for insight.” — Business manager, large multinational bank

Agenda Devices to data Insights to innovation Mind the gaps. Introducing insights services

We live in a world where everyone . . . . . . and everything is connected.

But it’s not about connectivity; rather, it’s all in what you do with it Smart farming Smart health Customers demand more. Smart transportation

Innovate in the age of the customer Source: “Drive Insights To Innovation” Forrester report

How to innovate? Technology “You said improving your ability to innovate was an important initiative. What actions is your firm currently taking or planning to take to accomplish that?” Source: “Drive Insights To Innovation” Forrester report

Which technology? Data and analytics “Which of the following technology initiatives is your IT organization prioritizing over the next 12 months?” Source: “Drive Insights To Innovation” Forrester report

Data and analytics are all the rage 65% of firms will be using big data analytics to optimize digital experiences. 49% of firms view improving the use of data and analytics as a business priority. 45% of firms have appointed a chief data officer. Base: 3,005 business and technology decision-makers; Source: Forrester’s Global Business Technographics® Data And Analytics Survey, 2015

But most firms don’t consistently turn data into action 73% 29% of firms aspire to be data-driven. of firms are good at turning data into action. Source:  Forrester’s Q3 2015 Global State Of Strategic Planning, Enterprise Architecture, And PMO Online Survey

Tech teams struggle to provide advanced data and analytics services Source: ”Insights Services Disrupt The Data And Analytics Market” Forrester report

Many decision-makers are increasingly dissatisfied with analytics “What is your level of satisfaction with analytics in your company?” 21% decrease Base: 1,200 and *595 global data and analytics business decision-makers; Source: Forrester’s Global Business Technographics® Data And Analytics Survey, 2015 and Forrester’s Business Technographics Global Data And Analytics Survey, 2014

Mind the data maturity gap “What are/were the biggest challenges in executing your vision for big data?” Source: “Top Performers Appoint Chief Data Officers” Forrester report

Data skills are hard to find 74% say that they are hiring or planning to hire in the next 12 months. Only 8% say they are not interested in hiring people with advanced data skills. And, bringing them onboard isn’t easy. 54% report doing a good job attracting, hiring, training, growing, and retaining their data and analytics talent. Source: Forrester’s Global Business Technographics® Data And Analytics Survey, 2015

Insights services provide a new path How to fill the skills gap? Insights services provide a new path

Data and analytics already top services engagements . . .

But in a world that’s moving faster and faster . . .

. . .insights services answer urgent questions. Where should I locate my next franchise or real estate purchase? Whom should I target for my next marketing campaign? How can I best route my shipments to reach my final destination in time? Which price adjustment will result in the greatest lift-to-sales revenues? Which patients will react most positively to a specific medical treatment?

“We are in the business of building fast-moving consumer goods, why would we build this [insights platform] out ourselves?” — chief analytics officer, global CPG

Insight services extend outsourcing across and up the data value chain Insights services Outsource Deployment options Host Build Data management Collect and store Data governance Clean and secure Data analytics Discover and analyze Data insights Act and automate Data value chain Source: “Insights Services Disrupt The Data And Analytics Market” Forrester report

From business problem through data and analytics to action support Source: “Insights Services Disrupt The Data And Analytics Market” Forrester report

Insights services providers offer a holistic approach Source: “Insights Services Disrupt The Data And Analytics Market” Forrester report

Insights services providers offer function-specific expertise Telco Customer journey Network management Pricing and bundling Manufacturing Process optimization Predictive maintenance Supply chain optimization Healthcare Patient journey Employee scheduling Personalized medicine Financial services Customer journey Risk and compliance Inventory optimization Fraud management Retail Inventory management Merchandising Employee scheduling Pricing and mark downs Source: “Vendor Landscape: Insights Services” Forrester report

Pricing models offer flexibility — and build trust Cost-plus pricing Value-based pricing Hourly pricing (time and expense) Fixed pricing — project or retainer Compute-based pricing Data volume pricing Performance- or outcome-based pricing

How to get started Determine objectives, strategies, and priorities. Implement multidisciplinary insights teams . . . across all relevant organizations. Establish a coordinated hub-and-spoke insights organizational structure. Consider the role of a chief data officer to coordinate data and analytics capabilities and competencies and drive cultural awareness. Seek help from an insights services provider.

Jennifer Belissent, Ph.D. jbelissent@forrester.com