Business Applications of Data

Analytics & Big Data

BY:
DR. AMIT KUMAR BHARDWAJ
LM THAPAR SCHOOL MANAGEMENT
 Case#1
Amarcord Incorporated:
Combating Money- laundering
Using Data Analytics
 Money laundering

• Money laundering is the illegal process of

concealing the origin of the money obtained
illegally, bypassing it through a complex
sequence of banking transfers or commercial
transactions.
• The process of converting black money or
corrupted money in to legal money
 Sources of illegal money
• Drug trafficking
• Illegal gambling
• Arms trafficking
• Bribery
Prevention of Money laundering
• The bank secrecy act (Anti-Money
Laundering Law AML) 1970
• US PATRIOT act 2001
• Suspicious Activity Report (SAR)
• Financial Crimes Enforcement Network
(FINCEN)
 Amarcord
• Amarcord is a $40 billion asset regional
bank started in the year 1951 by Amarcord
trust company on the outskirts of Baton
rouge, Louisiana.
• Amarcord bank initially provided
commercial banking services in Louisiana
 Banking services offered
• Consumer banking services
• Mortgage banking services
• Equipment leasing
• Wealth and investment management
services
• Trust services
• Brokerage services
• Other financial Services
PAST MONEY LAUNDERING CASES
DEFAULTER BANK CASE FINE

Violated US sanctions as conceal billions of dollars $8.9 billion

in transactions for Sudan, Iran and Cuba clients

Allowed itself to be used launder drug money out of $1.92 billion

Mexico and other banking lapses.

Violated US sanctions by knowingly aided banks with $298 million

$500 million in Cuba, Sudan, Libya, Iran, Burma for
more that a decade. (1995 to 2006)
 Steps taken by Amarcord to prevent money
laundering
• Amarcord does not transact with entities blacklisted by the
Financial Action Task Force (FATF).
• Amarcord does not do transaction with terrorist
organization and countries that are not cooperative in the
global fight against money laundering and terrorist
financing.
• Banks proprietary software that meticulously monitors cash
coming from Cash Intensive Business CIB like casinos and
restaurants and Money Service Business MSB like currency
exchange and money transmitters
 Problem statement
• Mr. Peterson wants to create a system to monitor
activity and material enhancement in the area of
predictive analytics. He is keen in tracking Banks
customer spending behavior over time and
building profiles. He wants to uncover those
transacting patterns by diligently and accurately
mining the data, that should be automatically
collected and stored in banks repository. Typical
transaction behavior like sudden injection of huge
amount of cash to be flagged and treated
separately.
 Solution
• Predictive data analytics
Steps involved in Predictive Data analytics
Data
collectio
n

Data
cleansing

Data
analysis

Insights
 Data collection
• Data collection is carried out from
the repository of Amarcord bank
• The tools like SQL are used to to
extract data from the Amarcord
bank repository
 Data cleansing
• The basic cleansing of Data can be carried out
by Excel
• Data cleansing techniques are used to get rid
of extra spaces, select and treat all the blank
cells, convert the number stored as text in to
numbers and to remove duplicates etc.,
• Advanced data cleansing can be carried out
by R and python using knn algorithm etc.,
 Data analysis

• Regression techniques
(*)Linear regression model
(*)Multinomial logistic regression
(*)Time series models
• Machine learning techniques
(*)Decision tree analysis
(*)Neural Networks
 CASE#2

•NetGuardians: Beating Fraud

From the Inside
 CASE DESCRIPTION
After developing powerful software, young entrepreneurs Raffael Maio and Joel
Winteregg, founded NetGuardians In 2007. Their initial idea was to help companies
improve security.

(i) Over time, the two entrepreneurs improved their technology and decided to focus
on defeating and preventing fraud in banking, where there was a gap in the market. In
2014 around $67 billion was lost due to banking fraud, 70% of it committed by
employees inside the company. In 2015 the company was named a Gartner Cool
Vendor, a worldwide industry recognition for companies that offer technologies or
solutions that are innovative, impactful and intriguing.
(ii) In the nine years since they had founded their company, Joël and
Raffael had raised $6 billion in two rounds of funding. The company
employed around 30 people in R&D offices in Kenya, Singapore and
Poland. It had customers in Africa, the Middle East and Europe, and
was breaking ground in Asia

(iii) Now it was time for Net Guardians to tackle some important
strategic decisions: Should the company expand to other markets?
Should it expand its product offering? Or should it focus on growing
its customer base

(iv) Whatever the decision, it would lead to a change in business

model that would have a significant impact on the company.
What Is Financial Fraud
Fraud is a permanent threat in the finance industry fraudulent activity takes place
every day. Criminals take advantage of any possible security breach to steal money
or data. Sometimes by the expert hackers or sometimes by the internal employees.

Types of frauds
1. Occupational fraud| Mike
2. Data theft | Herve Falciani
3. Cyber fraud | attack on Bangladesh Bank by hackers
4. Credit card fraud. |Albert Gonzalez |45.6 millions credit & debit cars
Profiling the Fraudster
• Pressure
• Opportunity
• Rationalization
Stages TO INTERPRET THE FRAUD
WITHIN THE ORGANIZATION
1. CASE STAGE :- When the fraudster was devising the plot
2. COMMIT STAGE :- The fraudster was caught red-handed committing the crime.
3. CONCEAL STAGE :- Spotting the fraud as the criminal tried to conceal her actions.
4. CONVERT STAGE :- Finding out about the fraud when the fraudster took steps to
use the stolen money.
5. CATCH STAGE :- Opening an investigation to track the crime and find the criminal.
6. CONTROL STAGE :- Implementing internal control measures to prevent future
events led to the identification of irregular situations that allowed a fraud to take
place.
Finding a Niche
HOW TO DETECT THE ABNORMAL
BEHAVIORS

•Analyzing different human

behaviours.
•Cross checking information collected
from many different channels.
•Detection of any unusual activity and
analysing through different fraudulent
cases.
Obtaining Deep Knowledge
• Extracted the Behavioral patterns.
• They offered Smart control objectives
Two Market Two Solution
• FruadGuardian enabled banks in emerging markets to fight fraud
• RiskGuardian helped banks in mature and more regulated market
address regulatory requirements
 COMBATTING OCCUPATIONAL FRAUD
Elastic
• With open source projects such as Elasticsearch as part of its portfolio, Elastic
aimed to help clients make sense of their data. Elasticsearch was a real-time
distributed search and analytics engine that facilitated full-text search,
structured search and analytics, and all three in combination.
•NetGuardians used Elasticsearch as a search engine and to store the data that
resulted from the data unification process. It was the backbone of the analysis
application.
Hadoop
Hadoop allowed them to analyze so-called unstructured data – immense
amounts of information in all sorts of formats.
At NetGuardians, Hadoop was the core distributed processing engine. The
company used Hadoop to analyze immense amounts of unstructured data
obtained from many different sources and channels in all sorts of formats.
Behavioral analysis
NetGuardians developed its own behavioral analysis software to identify
atypical activities. Joël designed the first prototype, which became one of the
company’s key tools for internal audit and risk monitoring, as well as for
identifying vulnerable areas inside companies.
 PESTEL Analysis

• Political
Role of Non-Government Organization, Civil Society & Protest Groups – The country has a vibrant civil society community and
Netguardians build bridges with them and seek out areas of co-operations. Civil society groups are influential not only in policy making
but also in building a society wide narrative.

•Economical
Size of Government Budgets – both Local Governments and National Government –
The government at both national level and local levels are running deficit budgets which
is boosting growth in the short term but may lead to increase in inflation over medium
term. The bond rating of national government is investment grade.
•Social Factors
Level of Social Concerns & Awareness in Society – Higher level of social concerns in the society often result higher
consumer activism and pressure from non-governmental organizations, & pressure groups.
Power Structure in Society – Netguardians should carefully analyze both - What is the power structure in the society?
How it impacts the demand in the economy. For example the power structure in US economy is slowly moving
towards the older generation as that generation has higher disposable income compare to the younger generation.
• Technological Factors
 

Transparency & Digital Drive – Netguardians can use digitalization of various processes to overcome
corruption in the local economy.
Empowerment of Supply Chain Partners – Netguardians should analyze areas where technology can empower
supply chain partners. This can help Netguardians to bring in more transparency and make supply chain more
flexible.

• Legal Factors 

Adherence to Common Law – Is the country following common law which is uniform for all parties – whether
domestic or international. If there is arbitrariness in the judicial process then Netguardians can’t be sure of the
judgments.
- Employment Laws – What are the employment laws in the country and are they consistent with the business
model of Netguardians. For example Uber employment system is not consistent with French laws and it is
facing challenges in the country.
 SWOT ANALYSIS

STRENGTHS
• First Mover Advantage.
• Diverse Product Portfolio.
• Superior product and services
quality.
• Robust Domestic Market.
WEAKNESSES
• Organization Culture
• Lack of Work force diversity
• Lack of critical talent
 OPPORTUNITIES THREATS

• Changing Technology • Threats of New Entrants

Landscape  because of Reducing Costs and
• Opportunities in Adjacent Increasing Efficiencies 
Markets •  Government Regulations and
• Access to International Talent in Bureaucracy
Global Market
 FUTURE DECISIONS

Whatever decision the company takes would turn NetGuardians into a different company:-

1. NetGuardians could focus on continuing with its current strategy, encouraging more
customers to use its two products – Fraud Guardian and Risk Guardian – which it had
built on its NG Screener software platform.
2. By offering a subscription service, the company would secure a more constant revenue
stream, rather than having to constantly sign up new customers and rely on one-off
sales.
3. The company could offer business process outsourcing and improve its current
consulting services.
4. Collecting more use cases and developing new capsules to be plugged into the software
platform could also turn into new product offerings.
 Case# 3
Have text, will Travel: can Airbnb use Review
text data to optimize profits
 Case#
Carolinas healthcare system : consumer
analytics
Carolinas healthcare system Background

• One of the oldest healthcare system in the United States.

• Serve over 2.2 million patients per year across three states
(North Carolina, South Carolina and Georgia ).

• CHS operates more than 900 care locations and 7,494 licensed
beds in three states, including 39 hospitals.
CHANGES IN THE U.S. HEALTHCARE SYSTEM

• Fee –for-value instead of fee-for-service: Hospitals faced penalties for

high readmission rates and hospital-acquired conditions.
• Physician Shortages: There were roughly 2.5 physicians per 1000 people.
• Digitization of healthcare: Hospitals that served Medicare patient could
receive up to a $2 million incentive for adopting EMRs.
• Shift to outpatient: Providers encouraged patients to seek care via
outpatients facilities ,or even via virtual checkups, rather than at high-
cost treatment locations like emergency departments.
• New entrants: By 2014,there were 1600 walk-in clinics in the U.S.,and
the number was expected to reach nearly 3000by 2015.
CHS invested in DA?

• There was an entry of consumer tech companies into the healthcare space and therefore
CHS needed analytics capabilities from an industry player that the consumer would trust to
integrate their healthcare data in the future. Therefore, they went for DA.
• Most of DA’s capacity was used to provide tools in order to support CHS-affiliated hospitals
in delivering best-in-class healthcare to patients.
• DA developed analytical tools for evidence based population health management,
personalized patient care and predictive modelling.
Dickson ADVANCED ANALYTICS

• Launched in 2011 with an annual budget of $14 million.

• 70 staff sourced from the disparate internal analytical groups.
• High ability to analyze the vast amount of data in the CHS network.
• CHS partnered with four healthcare system and IBM to form Data
Alliance Collaboration which focused on improving population health by
creating scalable data models.
• The spending data, along with other inputs ,were used to create a risk
score for admitted patients, which then distributed to doctors and other
healthcare providers to reprioritize care delivery.
KEY DA PILOTS

• Mapping Underserved Communities: It is to notify at risk communities and increase

primarily health care facilities in certain areas. Predict the demographic of patients and
likelihood of certain emergencies. Cost effective and easily to applies to other models.
• Reduce Readmissions: High demand, High bargaining power, easy to analyze and draw
conclusion. This model had an accuracy rate of 79% in predicting a patient’s risk of
readmission within 30 days of discharge.
• Advance Illness Management: It help patients with complex medical conditions avoid
hospital stays. Each patient assigned a team for appointments. Patient feel empowered
and reduced unnecessary ED visits.
• Patient Segment Model: It help patient receive care and access effective
communications to specific need. It collect data through segments for better
communication which help them to find high risk patients quickly.
Success of da
• DA received twice as many requests as its capacity. DA served not only
external customers (like CHS-affiliated hospitals, Payers, Patients and
Government), but also internal customers whose demand for analytics
quickly outstripped the team’s capacity.
• 1/3rd of clinical work was non-standard, though DA operated as a cost-
centre, it undertook all the strategic initiatives.
• The key to success of DA was continuing commitment to build strong
relationships with the physicians and nurses.
• The data collected through CHS network, collected at many points of care,
was used and any further recommendations and tools were implemented by
physicians.
 Case#

Have text, will Travel: can Airbnb use

Review text data to optimize profits
WHAT IS AIRBNB?
Airbnb is an online marketplace connecting
travelers with local hosts.
Platform that enables people to list their
available space and earn extra income in the
form of rent.
It also enables travelers to book unique home
stays from local hosts, saving them money and
giving them a chance to interact with locals.
Catering to the on demand travel industry,
Airbnb is present in over 190 countries across
the world.
 INTERESTING
FACTS
• Founders: Nathan Blecharczyk, Joe Gebbia and Brian
Chesky.
• Funding received: $4.4B (Till December 2017)
• Company valuation: $31 Billion
• Present in 34,000+ cities across 190+ countries.
• Having 1.2 Million listings, the company has served
over 35 Million guests.
• Headquarters: San Francisco, California, USA.
• 140,000+ people stay at an Airbnb listed place
everyday.
VALUE PROPOSITIONS
• Enables owners to list their space on the
platform and earn rental money.
• Airbnb provides insurance to listed properties.
• Gives cheap options to travelers to stay with
local hosts.
• Facilitates the process of booking living space
for travelers.
• Rating and review system for hosts and guests.
• User-friendly app and web based structure.
CUSTOMER SEGMENTS DEFINING
AIRBNB’S BUSINESS MODEL
 HOW AIRBNB WORKS?

1 2 3 4 5

1. Hosts list out Airbnb sends Travellers search Booking is made Host approves
their property a professional for a property in through Airbnb the booking.
details on Airbnb photographer (if the city where where traveller Traveller stays
along with other available) to the they wish to stay pays the amount there and finally
factors like property location and browse mentioned by Airbnb pays the
pricing, amenities in order to take available options host and some amount to the
provided etc. high quality according to additional money host after
photographs. price, amenities as transaction deducting their
etc charges. commission.
Revenue model: How Airbnb
makes money?
• Airbnb offers free listings to property owners and let’s
travellers browse the listed spaces and select the one
which best suits their needs on the platform. The business
model of Airbnb is such that the booking and monetary
transactions are done on Airbnb’s platform. This is from
where the company earns its share of revenue from 2
different sources which have been explained below:
• Commission from Property Owners (Hosts): Airbnb
charges flat 10% commission from hosts upon every
booking done through the platform.
• Transaction fee from Travellers (Guests): Airbnb charges
3% of the booking amount as transaction charges from
travellers upon every confirmed booking.
How Airbnb finds customers?

The major sources to accumulate hosts and

travelers include:
• Social Media
• Word of Mouth
• Digital Marketing including Internet ads.
• Promotional offers
• Affiliate Model / Refer and earn offers
 Key problems and Solutions
Trust Problem:
• The biggest problem faced by travelers
or hosts using Airbnb is the trust factor.
After all giving your space to a stranger
as a host and living with strangers at
their place as a traveller might not be
easy. But the verification process is in
place for every host and traveler on its
platform. Apart from the verification
badge, Airbnb also motivates people to
sign up with their Facebook account or
at least link it with their account for
better transparency.
• This is not all. In case something goes
wrong, an insurance policy is available
too.
Traveler Retention:
• Another problem being faced is the
retention problem. In order to grow,
the company needs to retain its
travellers so that they do not choose
a hotel on their next vacations. In
order to retain them, it gives offers,
promotional codes and credits to
frequent travelers. As a solution to
this problem, it also sends such
promotions to hosts as to motivate
them to take a vacation and stay in an
Airbnb at their favourite destination.
Gathering Data
• Airbnb was unique, however, in that all its listings were located in one place, its
website. This made it an ideal candidate for collecting large amounts of text data
using a web-scraping tool and represented a way for the company’s marketing
team to gain an advantage on its fast-growing competition.
• Using This Data it made text mining Possible for better analysis for the better
business modela and growth opportunity.
• Although text mining tools still had their limitations as of 2015, they were
becoming smarter day by day,and the latest packages were capable of
sophisticated sentiment analysis that could turn written words into quantifiable
consumer preferences.
 Analysing Sentiments and Development of
Revenue Model
• In this Regression needs to be done for the producing a revenue model based on all the data available but it was
not in usable form.
• Hence qdap in R was used for conversion of customer sentiments into numerical values. Using qdap in R, the
Airbnb marketing team had two options when determining how to represent sentiment in its model: granular
(e.g., at the level of each review) and high level (e.g., using multiple reviews).The team in this case selected the
high-level analysis and elected to create a polarity metric to represent sentiment.
• The qdap in R polarity algorithm used a pre-specified dictionary of positive and negative words, as well as
context shifters—words around the positive and negative words.
• The polarity score computed the weighted average of positive and negative words in a sentence, and the weights
were dependent on the combination of the words and the context shifters. For example, if a reviewer stated,
“Nicolas is a great host everything was perfect and the flat is amazing and the location is great in a quiet area
close to the subway I would definitely come back here,” the polarity algorithm, after preprocessing, recognized
“great,” “perfect,” “amazing,” “great” again, and “quiet” as positive words. It identified no negative words and
produced a polarity score of 1.22
• Once a numerical value was assigned to the sentiment present in each review, Airbnb’s marketing managers
could use it as a variable in a regression analysis designed to optimize revenues just as it would any other
variable.
 Optimizing Price and Beyond

• Using this Airbnb’s marketing team was able to improve its users’ performance so
it could reap the benefits of ongoing host and renter fees.
• Unhappy host would lead to not listing the properties with Airbnb in a
competitive and burgeoning marketplace, such attrition could be devastating.
• Based on the analysis the Airbnb marketing team could offer to improve its users’
experience.
• Based on sentimental reviews of the visitors it can rank the host.
• This can give the region specific strategy like in this case for Paris and Miami.
• This Could suggest optimal pricing for hosts, or suggest other ways hosts could
improve overall earnings and cater services.
Alibaba’s Growth Frenzy:
Expanding by acquiring

Group No. – 3
Akshita Mahindra (501804008)
Ashima (501804022)
Medhavi Upadhyaya (501804041)
Introduction
• The company was established in 1999 by Jack Ma.
• Alibaba is leading China’s internet business.
• Operating 25 business units and employing 34000 people.
• After 15 years it had the largest initial public offering (IPO) with an offering price at US$25
billion.
• In 2012 Alibaba shifted gears and moved from organic growth and partnerships to high-speed
growth by acquiring firms in complementary technology fields such as finance, healthcare, travel
and entertainment.
E-commerce Boom
• In 2012 the Boston Consulting Group states that China’s Internet economy was
becoming one of the top industries in China, larger than traditional industries such
as real estate, education and logistics.
• The country’s online trading size reached 20.8 trillion RMB in 2015 with a year-on-
year increase of 27%.
• The online retail market amounted to 3.88 trillion RMB with a year-on-year increase
of 33.3% and occupied 10.8% of national consumer goods retail sales in 2015.
• Online shopping was an integral part in people’s daily life. In 2015 around half of
Chinese population were Internet users
• Among many online shopping platforms, Taobao created by Alibaba in 2003 was
the largest in the country. In the end of 2013, it had 370 million registered users and
2.62 million registered vendors.
Venture Capital (VC) Environment
• In 2015, China’s VC environment was thriving and promising with over 3000
investors injecting over US$17 million capitals in the market.
• Although there was a downturn in 2012 and 2013, the momentum picked up
drastically in 2014 because of booming of the Internet industry.
• In 2015, the Internet industry absorbed 31% of all VC investments.
• Alibaba, Baidu and Tencent (BAT) – the three dominant Internet companies in
China – played a role as local VC.
• Comparing with the advance market like the US, China’s VC environment was still
immature and unprofessional. The scale of private equity (PE) – VC included – in
the US was ten times that of China at the end of 2014.
• Pension was the largest player in US PE market accounting for 25.3% of the
capital, while private capital accounted for 13.9% in 2014.
• In China’s PE market, however, the main player was private capital, and not until
2008 the social insurance fund was allowed into the PE market with certain
constraints. Moreover, there were only limited ways for PE to withdraw capital in
China and IPO was the main method .
 Alibaba's Expansion Strategy
• The group company founded several sister companies alongside Alibaba.com and Taobao.com to
cross-sell and cross-market each other’s services and offer packaged deals.
• The first 12 years of Alibaba's growth was characterized as an organic growth aiming to build a
strong interdependent ecosystem.
• Alibaba's growth approach started to shift and by 2013 the mergers and acquisitions (M&A)
expansion mode was without doubt the dominant growth mechanism.
Early Acquisitions
Before 2013 Alibaba also invested in other companies, particularly in related and complementary
services and platforms. Its investment in this stage concentrated on two parts:
• Acquisitions and strategic investment focusing on e-commerce, including e-commerce support,
corporate solutions for e-commerce vendors and logistics.
• Acquisitions of e-commerce competitors such as Yipai.cc, whose market share Alibaba fully
took over.
• Alibaba also broadly collaborated with commercial banks to provide SMEs loans
and to allow its customers to pay with Alipay – Alibaba’s fully owned payment
solution.
• Alibaba partnered with China Merchants Bank to connect Alipay with the bank’s
system, made strategic partnership with Citic Bank to offer quick pay function
with unlimited amount, and collaborated with Bank of Communications to offer e-
lending products to SMEs.
• All in all, these early acquisitions and partnerships expanded Alibaba’s existing
ecosystem and provided more comprehensive services to its clients.
Mergers and Acquisitions

• The number of Alibaba’s investments had increased since 2005, except in

2012 that Alibaba was preparing to go public.
• Since 2013, both the number of investments and the amount per investment
showed an unprecedented increase.
• Alibaba’s total investment amount in 2013 was about US$1.37 billion and in
2014, the number rose to as high as US$17 billion.
• Most of the investments targeted domestic entrepreneurial internet-related
enterprises and were either VC-series (venture round) A or acquisitions.
Overseas Investment
• In March and April 2014 Alibaba invested US$200 million and US$215 million in SNS
App Snapchat and Tango, and US$250 million in ride-sharing App Lyft.
• Investments in Tango and Lyft was believed to have strengthened Alibaba’s presence in the
US mobile sector as well as to have expanded its reach out of China.
• Apart from these companies, Alibaba also invested in US health and game design sector.
• In other countries, Alibaba invested in India third-party payment supplier Paytm and start-
up e- commerce platform Snapdeal. After the second round of financing by Alibaba, Paytm
was valued at US$2.5 billion, becoming one of the most valuable startups in India.
• Alibaba built SMILE platform in India 2015 to provide lending, logistic and technique
services for Indian SMEs.
• Alibaba also invested in logistic service company Singapore Post to provide Chinese
consumers with more convenient and faster overseas services.
Investment Sectors
2013 marked Alibaba’s investment strategy entering a new staging – investing with larger amount
in less mature companies and more diverse fields.
• Internet-related Business: The on-demand economy, also known as online-to-offline (O2O) e-
commerce, is geared to deliver greater convenience to consumers and more sales opportunities
for retailers and service providers by marrying mobile Internet technology with traditional
brick-and-mortar stores.
• Mobile apps like Alipay and Mobile Taobao let users pay electronically in physical shops, order
movie tickets, book transportation, and buy merchandise online.
• Alibaba almost invested in every module of the Internet field, including social networking
system (SNS) Momo App – Weibo (also known as the twitter in China), location-based services
like GPS navigation AMAP – Kuaidi Taxi, online traveling agency qyer.com, online music
supplier TTPOD and Xiami music, the Internet security service supplier LBE Security, data
analysis service company umeng.com, voice advertisement service company quqiaoqiao.com,
and overseas mobile application development company Quixey.
• Logistics: Alibaba invested heavily in both domestic and overseas logistic
companies, including the US$360 million investment in Haire to smooth the large
goods delivery and the US$249 million investment in Singapore Post to establish
an international e-commerce logistic platform. Alibaba set up its own logistic
platform Cainiao logistic, and united other domestic logistic companies to build
China Smart Logistic Network, operated by Cainiao. Apart from the logistics,
Alibaba invested in oversea e-commerce technique server SAAS, American sports
e-commerce supplier Shop Runner, price comparison and product searching
platform 360Shop and so on.
• Offline-retail: Alibaba invested US$4301 million in Suning, a household
electrical appliances vendor, and US$736 million in Intime retail, one of the largest
shopping mall operators in China.
• Culture and Entertainment: In film production, Alibaba acquired China Vision Media
Group with US$802.3 million and integrated it into its own business module named Ali
Picture. Then Alibaba made strategic investment in Huayi Bros. Media Group. Alibaba
acquired Hong Kong South Morning Post with US$266 million, and made strategic
investment in the financial news media Yicai.com and digital media WASU Media
Group. Alibaba acquired Youku-Tudou online video (China’s YouTube) with US$56,000
million, which broke the record of acquisition amount in the Internet field. Alibaba also
acquired two online music platforms to integrate into its own music platform named Ali
Music.
• Health: Alibaba invested in CITIC 21 CN with US$170 million in 2014, acquired 54.3%
of its stock, and integrated it into its own business named Ali Health. The acquisition of
CITIC 21 CN allowed Alibaba to have a license to sell medicine online and track
medical data of consumers. Alibaba together with CITIC 21 CN were planning to
establish a standard information system for China’s health sector. After the acquisition of
CITIC 21 CN, Alibaba invested in Guangzhou Baiyunshan Pharmaceutical Holdings in
order to broaden its e-commerce business into the health sector by acquiring hospital,
doctor, and licensed pharmacist resources.
• Finance: Alibaba started its investment in the financial sector in 2013. In order to
release the money market fund product served with Alipay, Alibaba invested
US$180 million in TianHong Fund Management. Then Alibaba invested in P2P
(peer to peer lending) company ppdai.com, which was one of the most popular
business modules in the Internet finance sector in China. After Alibaba established
its affiliate Ant Financial Group, Ant Financial invested in DB Fund, qufenqi.com
(internet consumer lending and installment), Tianjin Financial Asset Exchange, and
Postal Saving Bank of China.
Alibaba and Tencent
• In April 2013, Alibaba invested millions Yuan in taxi booking smart-phone App Kuaidi
Taxi (similar to Uber), founded in May 2012 in Hangzhou. Then Kuaidi had already
acquired over 300,000 users, 30,000 drivers and nearly 20,000 daily transactions; more
than 70% taxi drivers in Hangzhou were using the App.
• At the end of 2013, the number of daily transactions increased to 500,000, and in
February 2014, the number increased to 6 million, which forced Kuaidi to move its
backstage system to Aiyun (Alibaba Cloud service) to deal with drastic transaction
volume.
• In the meantime, another taxi booking smart-phone App Didi Taxi founded in June 2012
in Beijing was also booming. In 2013, Tencent invested US$15 million in Didi Taxi
competing against Kuaidi Taxi to be the market leader.
• Tencent with Didi Taxi and Alibaba with Kuaidi Taxi in total “burned” about US$364.8
million in half a year from February 2014 to August 2014.
• Kuaidi Taxi and Didi Taxi were competing to attract more adhesive App users, but
essentially it was the competition between the two third-party payment platforms: Alibaba’s
Alipay and Tencent’s Wechat-pay.
• Through changing user’s habit to get a taxi (from waiting for a taxi on the street to book a
taxi using an App), Alibaba and Tencent aimed to alter consumers’ “pay by cash” habit and
create the user-friendly “pay by mobile” experience.
• Using this convenient “pay by mobile” consuming experience, these Internet giants wanted
to create customer loyalty to their e-payment service.
• Another reason for “burning” so much cash was that Alipay and Wechat-pay gained much
public exposure without any advertisement, which saved the companies lots of money for
the promotion.
• In Feb 2014, Uber announced to enter the Chinese market. Uber’s presence in China made
the competition between taxi Apps even more fierce. In order to save resources and compete
against Uber, Kuaidi Taxi and Didi Taxi merged in February 2015 adopting a co-CEO
management system.
• The estimated value of Didi-kuaidi Taxi App was US$6 billion, and it took up about 80%
market share among all taxi booking Apps in June 2015.
Conclusion
• Alibaba had grown from an apartment startup to one of the world’s largest Internet companies
within just 15 years. In a fast-growing economy with policy support, Alibaba expanded
quickly through M&As in particular from 2013 to 2015. During this period, Alibaba’s
competitors in China began to follow a similar growth strategy, which further intensified the
competition and sped up expansion. Nevertheless, the example of Kuaidi - Didi merger
suggested not only aggressive competitive actions but friendly mergers where both Alibaba
and its competitor Tencent enjoyed a stronger market position.
• In its relentless expansion and ceaseless competition against other dominant players, Alibaba
was questioned as being overly aggressive and reckless. The seeming relentless acquisition
behavior of Alibaba did actually follow the logic of complementarity of technology and
synergy in using their customer base. All in all, Alibaba’s growth strategy was multi-faceted
but its success was yet to be seen.
 Jaguar Land Rover:
Towards a Customer-Centric
Organisation
Leveraging Customer Intelligence
and Data Analytics for Sustainable
Growth
Industry Background
• 20 major companies produce over 100 million cars per year.
• The industry is the home to employment of around 20 million+
employees.
• After the recession only Chinese market grew around 300%.
Problems to the automotive makers
• Jaguar Land Rover thought of making China as the core of their
growth strategy.
• Buyers in Norway were incentivized to purchase Ev’s/Hybrid- 35%.
• According to the CAFE standards, car makers had to reduce the CO2
emissions resulting in more production costs.
Background of Jaguar Land Rover
Jaguar –
• Reputation of solid performance and road handling (sports heritage)
• Won major sports endurance races - France’s 24 Heures du Mans
• Created Formula E, a new class of auto racing for Electric powered cars –
featuring I-PACE

Land Rover –
• Build to last, though simple but rugged design
• Their range rover was a combination of luxury with ruggedness – leader of SUV
segment.

• Ford created premier Automotive Group and crumbled starting 2007.

Problems faced by Jaguar

• Jaguar needed to deliver the culture change and getting

through to people.
• Jaguar needed to establish a coherent Brand personality
and a long term customer centric vision.
Introduced technologies.. (1)

• Under Tata motors, Jaguar Land Rover approached with a customer centric vision.
• They invested heavily in CRM.
• He integrated analytics & organization processes to enhance customer
experience.
• Optimising touchpoints-
(1) “Customer coming to the end of a leasing contract”;
(2) “Customer who just bought & waiting for the delivery”.
• Using customer suggestions,
(1) he changed & repositioned the prices helping in forecasting volumes &
price—demand.
(2) to create a better successor model.
Contd..
• Quantities analytics provided the age & incomes of the buyers in
different location.
• Further, Qualitative research provided insights on desires & attitudes
by region.
• Ethnographic research, helped in bringing right customers closer to
the brand- based on their lifestyle & social status.
• Social media aided in forecasting by seeing consumer behaviour –
cloud service provider (CloudCar).
• Using VR, Cost cutting was introduced as the new cars could be
viewed without the hassle of production & shipping.
Enhancing user experience
• Collected data in “connected” cars helped in suggesting relevant
enhancements – comfort design.
• Using GPS data, he marketed for potential new cars for different
driving behaviours.
• Choice - based conjoint analysis to figure out preferences of particular
model at different price point.
• Using online means, customers could own a service online.
Road Ahead
• Hiring of 5000+ employees for development of self driving cars and
EV’s.

~ “putting the customer at the core of the business was a sure way
of turning their vision into reality”
 MONEY CASH FLOW INC. HR
ANALYTICS APPLIED TO EMPLOYEE RETENTION AND
WELL BEING ISSUES-

Michel Cossette and Gabrielle Reyburn

INTRODUCTION
• Case illustrates the situation of Money Cash Flow Inc., a fast-growing
Canadian insurance company, where the human resources management at
its Montreal call Centre has gradually become a major concern.

• In view of the many customer complaints and the growing number of

employee departures, senior management wants to correct the situation.

• Management recognizes that human capital is the main source of its value
added and a strategic advantage in its industry.
CASE OBJECTIVES
• Understand the complexity of HR analytics study and develop a
systemic understanding of HR issues in employee retention and well-
being.

• Become familiar with different statistical tools used in documenting

human resources management issues.

• Become aware of the importance of measuring HRM results to

contribute to thinking and action plans by managers responsible for
managing human capital.
INTERNAL AND EXTERNAL
TURNOVER RATES AT CCC-MCF
2015 2014
INTERNAL EXTERNAL INTERNAL EXTERNAL
1st quarter 4.2% 7.1% 4.1% 6.8%
2nd quarter 4.5% 8.3% 5.1% 5.9%
3rd quarter 5.3% 9.2% 5.5% 8.2%
4th quarter 6.5% 10.3% 4.4% 7.1%
20.5% 34.9% 19.0% 28.0%
COMPANY DESCRIPTION
• Money cash flow is a leading Canadian financial services company
offering services and products in the field of life, health, home and
retirement saving insurance in major canadian cities.
• Operating since early 1900's
• Culture is built on service quality
• Company has broad distribution network
• Solid relationships with some of the largest employers and
associations in Canada.
• Market leader with millions of clients accross the country.
COMPANY DESCRIPTION
• Top priority is maintaining service quality.

• Ensuring lasting relationships with clients.

• Company wants their clients to know that their financial security is

protected throughout their lives.
MISSION, VISION AND VALUES
• Protect its clients financial security at any stage in their lives.
• MCF wants to help create a world where people enjoy excellent
physical and mental health.
• Ethical Conduct- Set high standards for ethical behaviour.
• Engagemenr- Encourage employees to reach their full potential.
• Excellence- Excel in everything it does
• Value Creation- Create value for clients, shareholders and for
communities.
BUSINESS
• 4075 professional advisors.

• 7065 representatives and brokers.

• MCF is highly respected in the financial service sector.

• Company recieves excellent grades from rating agencies.

ACHIEVEMENTS
• Ranked among top 20 employers in Canada since 2000.

• Leading company in terms of human resources and financial

management.

• In 2013 company was chosen best life insurance company in a survey.

Business Strategy
• To generate growth and higher returns, while ensuring
financial stability.
• Grow the business in the United States so that it
contributes more to the company’s bottom line.
Human Resource Strategy
Staffing
The agents are recruited using 3 main means
• Newspaper advertisements
• posts on the company website
• Internal Referrals
Employees are then selected through a structured interview and
an integrity test.
Human Resource Strategy
Training
Every new employee must undergo 20 hour of training on client
relations.
They receive training according to their specific positions.
The training program includes :
• Two modules(35 hours each) on the company’s product and services
• One module on client registration(21 hours)
• One module on managing difficult calls(7 hours)
• One module devoted to observing experienced agents
Human Resource Strategy
Ergonomics and work organisation
MCF also offers a comfortable, ergonomic work environment
The company invested close to $2,000,000 in furniture and
equipments
Optimized workplace design
Break room facility were also provided to relax and decompress
Flexible work hours
Human Resource Strategy
Compensation
Company offerings :
• Pensions
• Saving plans
• annual bonus plan
• flexible work schedule
Problem
• Seeing changes in employee attitude and behavior
Specially the new recruits were not interested in their job or client but
only in getting promoted quickly
• Impact
The impact that the above problem had on company was that about 50%
of clients quit last year as they were dissatisfied
• Employees dealing with stress related issues
About 36% of the employees were dealing with stress related issues in
the company.
• Impact
Customers complained that the employees were impatient and irritable
on phone calls and as a result customer satisfaction rate declined.
Reason for the Problem
• The employee profile i.e. requirements and skills for the call center position
were way too much. For example the requirements for this position were
1.At least two years experience in customer service position with varied duties.
2.Post secondary diploma in fields related to business and course in field related to
financial service
3.Familiarity with computers , particularly in excel.
4.Good aptitude for research and decision making .
• Lack of time and co-operation of operational manager which made it difficult for
agent to fit in training.
• Lack of reward for employees such as pension and saving plans, annual bonus
plan and flexible work schedule for many positions.
Solutions for the problem

• Reduce employee turnover and improve employee satisfaction and well-being.

• Maximizing organizational performance.
• Recruit skilled employees for the area or the call center.
• Pay them attractive salaries.
• Proper training and employing more staff so that client satisfaction is not
deteriorated.
• Operational management needs to pay attention to provide time for the well
training of the employee so that the they can fit for the test for function.
• Retrench the employees who are not beneficial for the company
• Deploy employees to the area of their interest so that they can work
comfortably with more dedication
• Work culture should be more flexible and provide remuneration for their skills.
 Case#

Building the digital manufacturing

enterprise of the future at Siemens
 Introduction
• This case study focuses on the importance of
data mining in running machine simulation.
• The aim of running such simulation is provide a
comprehensive simulation of the machine’s
running.
• These simulations also showcase the machine’s
automation functioning.
• The case study details the roadmap charted by
Siemens to achieve the needed capabilities.
 PLM Strategy

• Using CAD, Prototyping

Long- and testing digital models • Faster deployment times.
To• Transition into Resulting
TermWorkflow Integration • Customized system
Designmanufacturing with in designs
Vision consistent handling of
data
 Steps taken towards strategy implementation

• Acquisition of UGS and it’s integration with Siemens.

1

• Development and deployment of Teamcenter and Tecnomatix

2 as foundation towards digital enterprise foundation suite.

• Installation of collaborative data management (cPDM) so that

3 site engineers could manage and share all their data.
 Product
Data
Managemen
t
Teamcente Computer
r data aided
integration Design
Facility (CAD)

PLM
Manufacturin
g operations
Suite Computer
Aided
Management Manufacturin
(MOM) g (CAM)

Engg.
Digital analysis
Manufacturin and
g Simulatio
n
 Role Of Big Data
• Development of simulation
capabilities made possible.
• Rapid sharing of work critical data.
• Customized solutions made possible
due to enhanced data modeling.
CDK Digital Marketing
addressing channel
conflicts with Data
Analytics
CDKs Digital solution clearly
delivered on this promise,
but dealers felt the solution
was inflexible and less
responsive to its needs. CDK
Digital was caught squarely
in the channel conflict
between GM and its leaders. Introduction
CDK has to renew the contract to manage the
websites and online advertising of over 4,000
General Motors dealers and losing the contract
would be a serious issue. 112
The Problem
Dealers Automobile retailing in
the united States
GM hired CDK digital but Selling and servicing cars
their dealers could fire is a capital intensive, low
them. margin business. There
is a tight competition
between dealers and
manufactures, impacting
dealers profit.
GM rules Consumer Behavior
GM mandated rules The local and regional
restricted dealer control dealership advertising
of their online presence. and website content
Their personal branding was rarely aligned with
message was not OEM messages due to
adequately reflected in conflicting goals and lack
CDKs websites of coordination.
113
Marketing and Advertising

Auto industry
advertising fell into
three distinct tiers.
Tier 1: Manufacturer
Tier 2: Regional Dealer
Groups
Tier 3: Individual dealers

114
 Prioritize GM efforts 2007-2011

Solution
GM selected CDK as In 2007, GM paid CDK Half the dealers using
its sole provider of digital to provide each non-GM websites
dealer a quality experience
digital marketing to online shoppers. reached to 70%.
services.

115
 • GM paid CDK Digital to provide each dealer with a basic
website, SEO,10 and, crucially, a relatively high level of
telephone-based digital marketing agency services (web
design, content updates, promotional execution, etc.), to
ensure that all its dealers, regardless of their internal
marketing capabilities, would deliver a quality experience to
online shoppers.
• CDK Digital’s analysis showed that 30 to 50 percent of visits
to dealer websites were made by “brand intenders,” or
consumers who visited in response to GM-paid brand
advertising. The remaining traffic had many sources but was
frequently generated by the dealer’s own marketing spend.

CDK Digital’s 2007

Offering to GM Dealers

116
A new technology strategy
that was “trying to drive
informed choice with our
dealers.”
Dealer Technology Assistance
Program (DTAP)
CRM, dealer management
systems, and so on.
Re-contracting
CDK has to renew the contract to manage the
websites and online advertising of over 4,000
General Motors dealers and losing the contract
would be a serious issue. 117