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The 3 data trends that are setting leaders apart from the rest
K. R. Sanjiv, Senior Vice President and Global Head
Analytics and Information management, Wipro Technologies

Table of Contents
1. Introduction ...............................................................................................................03

2. Three emerging data trends: broader, deeper, faster ........................................04

3. Refreshing yesterday's management perceptions .............................................04

4. Taking the next steps ................................................................................................05

Moving towards long-term value

Throughout history, information has consistently helped to give certain
individuals or groups an edge over their peers or rivals. In 1872,
businessman Aaron Montgomery Ward launched the first-ever mail-order
catalogue business with little more than several address lists for rural
American households and a crucial insight into the steep price
disadvantage that these communities faced. This quickly translated into
rapid growth, as he carved out a competitive niche and launched a new
global industry. Just over a century later, in the late 1980s, a start-up retail
bank named Capital One used its appetite for data-driven analysis to find
profitable gaps in the credit card market. By segmenting and analysing the
sector through extensive test and learn experiments, it spotted a gap for
a new type of balance-transfer credit card service. The rest, as they say, is
history: Capital One's earnings soared during the 1990s from less than
$2bn to well over $50bn, en route to it becoming one of the major US
credit card providers today.

Throughout history, information has consistently helped to give certain

individuals or groups an edge over their peers or rivals. In 1872,
businessman Aaron Montgomery Ward launched the first-ever mail-order
catalogue business with little more than several address lists for rural
American households and a crucial insight into the steep price
disadvantage that these communities faced. This quickly translated into
rapid growth, as he carved out a competitive niche and launched a new
global industry. Just over a century later, in the late 1980s, a start-up retail
bank named Capital One used its appetite for data-driven analysis to find
profitable gaps in the credit card market. By segmenting and analysing the
sector through extensive test and learn experiments, it spotted a gap for
a new type of balance-transfer credit card service. The rest, as they say, is
history: Capital One's earnings soared during the 1990s from less than
$2bn to well over $50bn,en route to it becoming one of the major US
credit card providers today.
These two examples hint towards a truth that is now becoming increasingly
backed-up by empirical research. This is that there is a correlation between
the superior use of data and a concomitant impact on overall earnings

and business performance. A new study - dubbed The Data Directive commissioned by Wipro and conducted by the Economist Intelligence Unit,
and which draws on a survey of 318 C-suite executives, backs this up. It shows
a strong link between earnings growth and the strategic use of data, with a
small sample of high growth firms outperforming their low or no growth
peers. This is not simply due to the latter group failing to embrace data: all
companies in the sample recognise the importance of data, and duly collect
lots of it. However, nearly twice as many no growth firms admit to not
consistently maximising this information, as compared to high growth
respondents (38% versus 20%). In short, the leaders are the ones able to
actually tease insights from this.
Other research has found related links between data use and
performance. A 2011 study from MIT's Sloan School of Management and
the University of Pennsylvania found that firms emphasizing data-driven
decision-making have output and productivity that is 5-6% higher than
what would be expected given the overall IT investment and usage. This is
significant. As Erik Brynjolfsson, a co-author of that study and renown
technology and economics professor, explains it: a 5% increase in
productivity and output is enough to separate winners from losers in most
industries.
Of course, while these insights are illuminating, they also reflect common
sense. Any party trying to make more informed and data-driven decisions
would be expected to perform better than another who didn't. Given this,
what is truly surprising here is just how few companies today understand how
to create a more data-driven business to bolster their competitiveness. For
example, uncharacteristically high proportions of executives consider
themselves below average in their usage of data, as many as 20% of COOs
think so, as do 16% of CFOs. Furthermore, while many companies are now
using data to make impressive gainsfinancial companies optimising fraud
detection, or legal firms finding new ways to mine documents these are
typically found within specific vertical areas, rather than being widespread
across the business. Quite simply, as The Data Directive study reveals, for
many companies, the real data revolution still lies ahead.

03

Three emerging data trends: broader, deeper, faster

Why is this? There are many reasons for this, from battles over internal organisational siloes through to technology difficulties and the usual disconnects
between IT and the rest of the business. All of these are pain points emphasised by the executives polled in our study. But what is also clear to see is that there
is now widespread momentum towards embracing data within the enterprise. Hype aside, many executives now hold a genuine appetite either proactively,
to steal a march on rivals, or defensively, to keep up with market leaders to get to grips with a new era of data-driven business.
There is a wealth of speculation about what this new era means for businesses, but much uncertainty too. Through our wide-ranging work with numerous
Fortune 500 companies around the globe, though, we have seen three broad trends gathering pace, which we've loosely characterised as broader, deeper,
and faster.

DEEPER

BROADER
A shift towards a more
broad-based use of data
within enterprises.

A deeper engagement
on using data to
optimise operational
efficiency and the
bottom line.

BROADER: This is about making data applicable across a much wider

set of use cases than before. Historically, corporate data analysis focussed
on very specific questions. A product manager at a consumer goods
company might consider the focussed question of how a certain product
was selling each week, in order to manage the supply of that item or tinker
with a related promotional campaign. But as leading companies seek to
integrate their information, while also pulling in a richer set of external data,
they're finding a much broader set of uses. At Universal Music, for example,
the same data that was previously gathered to help manage digital piracy is
now helping to bolster the company's ability to understand how a given
artist is performing. The point here, which is interrelated with the next
trend, is that data that often used to be considered in isolation is now being
freed up to support a wider set of uses across the business.
DEEPER: Until recently, much of the high-level focus within
companies has centred on bolstering revenues: using analytics to discern
when to recommend a product for possible upselling, say. The Data
Directive outlines wide-ranging examples of this, from Anheuser-Buschto
Royal Bank of Scotland. But while there is significant value to be gained
here, executives from a range of back-office functions are also uncovering
new opportunities to optimise operational performance. One global
retailer is now fine-tuning its understanding of how many staff are needed
across its thousands of stores at any given time, based on its analysis of a
range of new variables, such as specific promotions on the goand the level
of automation within the business. This data-driven approach to its

FASTER
An ongoing shift
towards more
real-time businesses.

workforce planning has not only bolstered both sales and customer
experience, but has also cut over $50m in costs. Elsewhere, a leading Asian
transport authority found that conducting analytics on its 12m daily usage
records has delivered diverse benefits, from a 20% reduction in distance
covered and consequent 15% energy cost saving, through to less
congestion and shorter waiting times.

FASTER: The final trend is about an ongoing shift towards more realtime businesses. This matters: it is one thing gaining insights from data, but
it's also crucial to be able to apply those at the best possible moment. To
use the example of Amazon, its recommendation engine doesn't work
well by highlighting a relevant book a week later; it works by telling you at
the very instant you choose to buy. For most companies, this is a huge
change. It requiresthem to move from typically batch-driven analysis
towards something far closer to real-time. Driven by ongoing technology
advances, this is now permitting near instantaneous analysis of vast data
sets. While this sounds like something of interest to CIOs alone, the
implications can be profound. For example, one global consumer goods
company has moved from a weekly, batch-driven view of which products
are out of stock to one that refreshes every few minutes. In turn, this
completely reshapes how it thinks about its supply chain and refresh cycles.
These trends are not all happening in isolation, but are often interrelated.
They are also forcing business leaders to rethink how they manage and
make decisions. But at the same time, it is also clear that few fully
understand how to prepare themselves for this transition.

04

Refreshing yesterday's
management perceptions
Many simply assume that this is yet another task for the CIO, but as our
research uncovers, those companies doing best at extracting insight from
information - the so-called data outliers - are not necessarily the ones
asking their CIOs to lead on this. Rather, there is a clear preference for the
CEO or other C-suite leadersto lead on this.
This is not to suggest that CIOs don't have a role to play. It is simply the
case that other C-suite executives, whether the CFO, chief marketing
officer, or other executives, are often driving the conversation when it
comes to assessing the value and use of data within the business today. The
reasons for this vary. At one extreme, the consumerisation of IT is making a
broader swathe of executives more comfortable with such topics. At the
other end, getting the most out of data requires a deep grasp of the
business issue at hand, an issue that CIOs often lag on.
All this is changing the way leading firms think about how to deal with data.
For example, 62% of high growth companies we surveyed see a need
to radically transform their management techniques to keep pace with
what technology is making possible, compared with just 33% of low or no
growth respondents. Many companies are now creating a new executive
role the chief data officer to provide direct leadership on this. In our
work within this field, it is also clear that those leading the charge are doing
far more to find innovative ways to visualise their data, not least as the
number and variety of data inputs soar.

Taking the next steps

For those companies only just starting to make this transition, all of this is
understandably daunting. But it needn't be. Technology costs continue to
fall, while data-related innovation is emerging rapidly. This is providing
considerable opportunity for those willing to embrace this. Equally, it is also
creating risk for those who fail to adapt.
So where to start? In our experience, leading companies first seek to
identify which data or key performance indicators could make a
difference - if only they could somehow be captured, analysed and acted
upon. Such opportunities will vary widely. Consumer goods companies
might rightly focus on price optimisation, whereas a regulated energy utility
might look at maintenance optimisation. One software company is seeking
to find ways to capture and analyse customer service calls on the fly, in
order to identify proactive ways to deliver news sales leads for the
business, as just one live example.
Once these specific opportunities, or pain points, are identified, CIOs then
need to start figuring out the gap between the potential prize and the
reality of their existing IT systems. This in turn prompts experimentation:
running pilot applications or proof of concepts on new approaches, all with
an underlyingaim of getting the rest of organisation thinking more explicitly
about how and where data can directly benefit. As realisation of the
possibilities grows, and managers adapt, these pilots will provide a
useful platform to expand upon and open the door to a more
data-driven future.

What is also clear is that today's big data era is not being built on
yesterday's data architectures, but requires new structures and
approaches. It also demands fresh perspectives from the CIO and
executive leadership team. Much of this skewers yesterday's data beliefs
from the cost of storage through to the relative quality of data required for
insights in light of what new technologies and approaches are now
permitting. Indeed, not only are leading organisations building wholly new
ways to store and manage data, but they're also recognising that this is a
major business transformation project and allocating necessary resources
accordingly.

05

About the Author

K. R. Sanjiv is the Senior Vice President and Global Head of Analytics & Information Management, Wipro Technologies. He carries P&L responsibility, strategy
and operations of this unit globally reporting to CEO.
Analytics & Information Management helps customers derive valuable insights out of integrated information by bringing together the combined expertise of
Analytics, Business Intelligence, Performance Management and Information Management.
The group provides consulting, business centric and technology specific analytical solutions and data management frameworks developed through a complete
ecosystem of partners, focusing on industry specific analytics, optimization and operations analytics, Enterprise Data Warehouse, MDM, Data quality and data
life cycle management.
Sanjiv has over 25 years of enterprise IT experience, including consulting, application and technology development spanning multiple industry segments and
diverse technology areas.
Since joining Wipro in 1989, Sanjiv has been involved in defining enterprise architectures for organizations that included technical models, transformation
program definitions and governance models. He has designed OLTP mission critical systems such as screen-based trading systems for stock exchanges,
surveillance systems and order routing systems for brokerage houses. He has spearheaded due diligence exercises in M&A situations for customers and also
managed large project implementations in a global delivery model.
Sanjiv has spoken at leading CXO summits, industry and academic conferences on varied topics related to Business Technology. He holds a bachelor's degree
from Birla Institute of Technology and Science, Pilani.

About Wipro Council for Industry Research

The Wipro Council for Industry Research, comprised of domain and technology experts from the organization, aims to address the needs of customers
by specifically looking at innovative strategies that will help them gain competitive advantage in the market. The Council, in collaboration with leading
academic institutions and industry bodies, studies market trends to equip organizations with insights that facilitate their IT and business strategies.
For more information, please visit www.wipro.com/insights/business-research/

About Analytics and Information Management Services

Wipro is a leading provider of analytics and information management solutions - enabling customers to derive actionable business insights from data to drive
growth, enhance cost management and strengthen risk management. Wipro works with customers to develop end-to-end analytics and information strategy
leveraging process assets and solutions based on analytics, business intelligence, enterprise performance management, and information management. For
more information, please visit www.wipro.com/aim

About Wipro Technologies

Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that
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Technologies has over 140,000 employees and clients across 54 countries.
For more information, please visit www.wipro.com or contact us at info@wipro.com

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