Strategic Case Study:
Investment Optimization for Executives
using Big Data
Big Data Innovation
April 2013
Natalie Kortum
...
Global Marketing
*Numbers for illustrative purposes; not actual Dell figures
Natalie Kortum
Global Marketing
*Numbers for illustrative purposes; not actual Dell figures
Natalie Kortum
Global MarketingNatalie Kortum
What impact is marketing having on
Revenue in comparison to other factors?
Global Marketing
Big Data Collection
Over 1100 variables used by
other groups to run the business
Over 100 distinct data o...
Global Marketing9 Confidential 9/18/2013
Questions?
Natalie Kortum
Global MarketingNatalie Kortum
Product
Innovation
Ship Commit
Accuracy
Marketing
Spend
Sales
Investments
Support
Satisfact...
Global MarketingNatalie Kortum
Global Marketing12 Confidential 9/18/2013
Questions?
Natalie Kortum
Global Marketing
Starting Revenue
*Numbers for illustrative purposes; not actual Dell figures
Ending Revenue
Explaining th...
Global Marketing
Starting Revenue
*Numbers for illustrative purposes; not actual Dell figures
Ending Revenue
Explaining th...
Global Marketing15 Confidential 9/18/2013
Questions?
Natalie Kortum
How investment levers compare
Sales
Marketing
Demand Gen
Pricing
Marketing
Brand
Marginal Return
on Investment
0.9 X 1.3 X...
Global Marketing
Short-term and Long-term ROIs and Cross BUs of B2B
Sales Marketing
Transactional
Pricing
Brand
Campaign
B...
Global Marketing
Inception
Sales Investments
Revenue Plateau
Current
Level
Range of Sales Spends
over the last 3 years
Sal...
Global Marketing
What’s in the future?
Natalie Kortum
Global Marketing20 Confidential 9/18/2013
Questions?
Natalie Kortum
Global Marketing
Tips for explaining to non-Technical folks
• Walk a mile in their shoes.
• Run your presentation past a n...
Global Marketing22
Direct Attribution has a big downfall
• Direct = All or Nothing
Traditionally Understated Traditionally...
Global MarketingNatalie Kortum
Global Marketing
Human Brain Network
24Natalie Kortum
Thank You
Natalie Kortum @NatalieKortum
marketingmathgirl.com
Strategic Case Study: Investment Optimisation for Executives using Big Data, Dell
Strategic Case Study: Investment Optimisation for Executives using Big Data, Dell
Strategic Case Study: Investment Optimisation for Executives using Big Data, Dell
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Strategic Case Study: Investment Optimisation for Executives using Big Data, Dell

BD HADOOP SF 2013
Published on: Mar 3, 2016
Published in: Business      Technology      
Source: www.slideshare.net


Transcripts - Strategic Case Study: Investment Optimisation for Executives using Big Data, Dell

  • 1. Strategic Case Study: Investment Optimization for Executives using Big Data Big Data Innovation April 2013 Natalie Kortum Natalie Kortum @NatalieKortum marketingmathgirl.com
  • 2. Global Marketing *Numbers for illustrative purposes; not actual Dell figures Natalie Kortum
  • 3. Global Marketing *Numbers for illustrative purposes; not actual Dell figures Natalie Kortum
  • 4. Global MarketingNatalie Kortum What impact is marketing having on Revenue in comparison to other factors?
  • 5. Global Marketing Big Data Collection Over 1100 variables used by other groups to run the business Over 100 distinct data owners (people) Over 10 different data systems Over 25 different vendors Natalie Kortum
  • 6. Global Marketing9 Confidential 9/18/2013 Questions? Natalie Kortum
  • 7. Global MarketingNatalie Kortum Product Innovation Ship Commit Accuracy Marketing Spend Sales Investments Support Satisfaction Pricing Product Quality
  • 8. Global MarketingNatalie Kortum
  • 9. Global Marketing12 Confidential 9/18/2013 Questions? Natalie Kortum
  • 10. Global Marketing Starting Revenue *Numbers for illustrative purposes; not actual Dell figures Ending Revenue Explaining the Changes in Revenue Natalie Kortum
  • 11. Global Marketing Starting Revenue *Numbers for illustrative purposes; not actual Dell figures Ending Revenue Explaining the Changes in Revenue Natalie Kortum
  • 12. Global Marketing15 Confidential 9/18/2013 Questions? Natalie Kortum
  • 13. How investment levers compare Sales Marketing Demand Gen Pricing Marketing Brand Marginal Return on Investment 0.9 X 1.3 X 0.4 X 2.2 X Social Media 4.1 X If $1 M additional were available to invest, what’s the marginal ROI? *Numbers for illustrative purposes; not actual Dell figures Product 2.5 X Natalie Kortum
  • 14. Global Marketing Short-term and Long-term ROIs and Cross BUs of B2B Sales Marketing Transactional Pricing Brand Campaign B2B Revenue in period 0.7 X 1.2 X 5.7 X 0.2 X Additional long term benefits on B2B (12-18 months) + 0.1 X + 0.06 X - 5.4 X + 1.9 X Cross BU Impact + 0.1 X + 0.04 X + 0.1 X + 0.1 X Total Return of $1M investment in lever = 0.9 X = 1.3 X =0.4 X =2.2 X + 0.3 X + 2.2 X 0 X =2.5 X Product *Numbers for illustrative purposes; not actual Dell figuresNatalie Kortum
  • 15. Global Marketing Inception Sales Investments Revenue Plateau Current Level Range of Sales Spends over the last 3 years Sales Investments Revenue A saturated curve shows that we are in the plateau stage of the S curve Natalie Kortum *Numbers for illustrative purposes; not actual Dell figures
  • 16. Global Marketing What’s in the future? Natalie Kortum
  • 17. Global Marketing20 Confidential 9/18/2013 Questions? Natalie Kortum
  • 18. Global Marketing Tips for explaining to non-Technical folks • Walk a mile in their shoes. • Run your presentation past a nontechnical supporter. – Pretend your audience is your 10 year old nephew or mother. • Only two minutes (and no more!) to explain your methodology. • Create proof points for your techniques – Execs who have used this approach. – Companies/markets using this approach. – Respected PhD or Tech person they trust to back the approach. • Watch the assumptions. – Choose only two or three if you must that might be highly suspect. • Use Analogies! Natalie Kortum
  • 19. Global Marketing22 Direct Attribution has a big downfall • Direct = All or Nothing Traditionally Understated Traditionally Overstated Social Media Coupons Brand Campaigns Online Promotion/Referral Events Sales Corporate Social Responsibility Transactional Actions 22Natalie Kortum
  • 20. Global MarketingNatalie Kortum
  • 21. Global Marketing Human Brain Network 24Natalie Kortum
  • 22. Thank You Natalie Kortum @NatalieKortum marketingmathgirl.com

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