Leveraging device data analytics

for business growth

www.wipro.com

Jayant Prabhu
General Manager & Global Practice Head
Information Management
Wipro Technologies

Table of Contents
03

Leveraging device data analytics for business growth

04

Creating new business models and customer delight

05

Device data can add value to a business

06

The Future: next steps

Leveraging device data analytics for business growth

The world has already woken up to data. Now it is being nudged by
analytics. While business has recognized data as an asset, it is now
unlocking the secrets to higher efficiencies, ways to lower costs, improve
customer service and define new products through analytics. There is a
sizable excitement around data. However as new sources of data are
tapped every day, the excitement around analytics is turning feverish.

seemingly mundane things like the washing machine and the microwave
in your home. In an age of shortages and severe constraints, it is ironic to
note that there is no dearth of device generated data.
This invisible flood of numbers generated by machines holds a treasure
trove of information. Now, there is mounting evidence that correlates
high-growth firms with data usage. A 2013 Economist Intelligence
Report called `The Data Directive' commissioned by Wipro suggests
that 40% of CXOs feel insights from machine generated data will be
beneficial for their companies for taking strategic decisions. Already 51%
of companies in the study showed they collect machine generated data

Conventional enterprise data sources (SCM, CRM, HCM and so on) are
now being supplemented by machine data. Everything it seems is
producing ferocious volumes of alerts, signals, behavior characteristics,
records and numbers. This includes sensors on oil rigs, aircraft
components, medical equipment, mobile devices, network logs,
elevators in buildings, traffic monitoring systems, video cameras in retail
stores, computer logs, GPS systems, online clickstreams and even

From
Data to insights

(Figure 1). What remains to happen is using analytics to transform this

data into business intelligence and usable insight.

Collects

Plans to collect

Does not collect

Dont know

72.2

11.7

Non-traditional data collection trends (% respondents)

Syndicated data from third-party data providers

(e.g. market data, weather, etc.)

Open data (e.g. data released by governments)

Staff data (e.g. Emails, calendars, instant messaging, etc.)

Contact center data (e.g. audio conversations

text chats, customer emails, etc.)

Machine generated data (e.g. sensors, smart

grid, RFID, network logs, telematics, etc.)

Social media (e.g. Facebook, Twitter, YouTube,

blogs, etc.)

42

17.7

36

4.4

Location-based information (e.g. GPS, mobile

logins, etc.)

41

22.5

31.4

5.1

12

70.3

65.5

62

51.1

12.7

9.5

4.1

15.5

10.8

4.7

18

11.1

5.7

23.4

3.5

29.2

Source: Economist Intelligence Unit survey

Figure 1
03

require at the time of service, effectively taking the `probability' of a

component being required out of the equation. This spells the
equivalent of a revolution in servicing as the automobile company can
accurately manage its supply chain for the exact requirement. Some
automobile manufacturers are going a step further and setting new
standards in maintenance, quality and customer service by analyzing vast
amounts of vehicle performance, diagnostic, billing and warranty data.
The data is collated from enterprise systems, on-board vehicle
telematics equipment and during scheduled vehicle service.

Historically, machine or device data has not been viewed as a strategic

source of information. But with a softening of the economy, businesses
are asking themselves,Does this stack of data contain something I don't
know? How do I get to that nugget of information that can change my
business? Now that everyone owns an ERP system and knows there
are limits to addressing inventory optimization, understanding the
customer, managing cost and covering risk, there is a clamor for device
data as a differentiator. Organizations are realizing that device data
should not be ignored.

Creating new business

models and customer delight

The power of machine data is apparent in related instances. A vehicle

fitted with telematics devices can shorten insurance claims cycles.
Insurance companies report that receiving the first notice of loss within
30 minutes of an accident reduces settlement time and loss adjustment
costs (sometimes by as much as US$ 800). A vehicle insurance
company could even ask itself, Can I offer lowered insurance premiums
to drivers who demonstrate safe and cautious driving patterns? And
make those who live life on the edge pay more? The questions make
business sense. Until a few years ago, they would have evoked mirth and
possibly a wistful look at the future of insurance.That future is now here.
To the utter delight of customers, device data from vehicles can produce
accurate answers to questions on adjusting insurance premiums.

A Boeing 737 engine creates 10 terabytes of data every 30 minutes in

flight. A six hour flight from New York to LA on a twin-engine aircraft
produces 240-terabytes of data. To put this in perspective, a single
terabyte could hold about 300 hours of good quality video or 1,000
copies of the Encyclopedia Britannica. Oil rigs generate about 30,000
data points per second. Less than 5 % of that information is used. The
waste of this data which is an asset -- is indefensible. The engine data
holds information on performance that can create new and transparent
business models to lease the engine. The data from oil rigs can create
better maintenance schedules, reducing down time.

We are fond of an example that often comes to mind when discussing

device data. Imagine a lady in her 80s who lives by herself. The data
from her coffee machine shows that every day she switches it on at
9 a.m. The day it doesn't go on at 9 a.m. could mean one of several
things: she is faced with a medical emergency, the device has failed, the
power has failed, and who knows, maybe she is switching over to tea!
Each one of these possibilities points to a business opportunity. Of
course, the dear lady could just have decided to stay curled up in bed
longer, sending everyone into a tizzy. But the point is this: device data,
even at its most simple level, can throw up useful information. When
combined with other data, it can deliver actionable intelligence (see
Figure 2: examples of Device Data and Business Impact).

A recent example of breakthrough research indicates the wealth of

information that can be uncovered from machine data. The European
Organization for Nuclear Research (CERN) discovered the God
Particle (the much discussed Higgs boson) by analyzing data produced
by smashing particles in a 17-mile tunnel. CERN handled 15 to 20
PetaBytes of data annually and now claims to be on track to produce 30
PB of data for analysis.
That, of course, is a scientific experiment. But machine data is becoming
equally invaluable to business. As an example, a manufacturer of
automobiles can venture into after sales and open a long-term,
sustainable revenue stream using data from telematics devices in
vehicles. The data can help identify the components a vehicle will

Examples of Device Data and Business Impact

Insurance: Pay as you drive insurance schemes
Automobile: Service discovery, better inventory management
Aero: Reduced equipment downtime, accurate equipment state assessment for improved
performance

Use of
Telematics Data

l
l

Computing device companies: Improved customer satisfaction, innovation

Medical devices: Reduction in field failure rates, enhanced product quality and compliance
All industries: Improved reliability of IT systems, automation of IT infrastructure
management

Use of Remote
Sensing Data

Use of Device
Logs

l
l

Oil & Gas Utilities: Reduction in field failures, predictive asset

City Planning: Public transport planning, route optimization

l
l

Figure 2
04

There are three areas where device data can add immediate
value to a business:
Growth through new revenue models, understanding
customers, service discovery and increasing consumer
spends to deliver better business results. An interesting way to
look at vehicle telematics is from an advertising agency's point of view.
The data from several hundred vehicles can be collated and mined to
understand driving patterns and the areas where vehicles tend to slow
down. The information can be used to drive outdoor advertising
campaigns or increase/decrease billboard rentals, there by driving
business growth. Similarly, data coming in from vehicle toll collection can
record the make and model of the vehicle, combine it with the traffic
pattern, and optimize digital signage around the toll point.
Device data can enable new revenue streams for businesses that have
very little understanding of the customer because of restricted
customer interaction. For example a washing machine manufacturer
who does not interact frequently with the customer can offer remote
preventive diagnostic services based on machine data. The same
manufacturer can use the data for up-selling and cross-selling to
customers.
Enhanced customer experience to improve loyalty and
reduce customer attrition. The quest for data on customer
behavior is intense. However, there are categories of products that have
limited interfaces with the customer. The cable and satellite (C&S)
service provider serves as a good example. C&S providers are often
unable to determine the exact reasons for customer attrition. One such
provider engaged us (Wipro) to stem the tide of customers moving
over to competition. We looked at the problem and discovered that the
solution was in monitoring the rich data being thrown up by the set top
box. The data was critical in understanding the customer through the
health and state of the device, every click of the remote, signal quality,
picture quality, time-of-day for viewing, etc. Using this data, we could
diagnose when the set-top-box would go down and proactively ensure
that a call was made to the user before service disruption. Using the

data, the C&S provider could increase ARPU through better upsell. An
understanding of viewing habits also ensured that relevant advertising
could be aimed at the customer for pay-per-view offerings as well as
upgrades to more appropriate channel bundles. The customer saw
attrition rates drop from 2% to 0.2% ___ this, in addition to improved
ARPU.
Drive down costs. Device data is changing the very concept of
product, systems, equipment, machinery and plant maintenance. One of
the reasons for ineffective maintenance is the lack of timely and factual
data that defines the required maintenance. Periodic preventive
maintenance schedules are based on specious average-life statistics or
mean-time-to-failure data. This is also a dominant reason why
managements tends to think of maintenance as a cost. In extreme cases,
this may drive management to adopt the run-to-failure mode of
maintenance leading to expenses associated with high spare parts
inventory levels, overtime costs, machine downtime and production
disruptions. Instead, using the continuous stream of device data,
organizations can adopt event-driven preventive maintenance that
lowers the cost of maintenance and create a win-win situation for
customers and manufacturers. As an example, air filters in a vehicle are
replaced during servicing after a fixed number of miles. There may be no
real reason to replace the filters until the quality of air passing through
the filters degrades a metric that can be accurately picked by sensors,
ensuring that filters are replaced only when necessary.
Manufacturers have for long invested in service crews that provide onsite maintenance. When medical equipment, for example, fails, users
request for immediate servicing. Valuable time and money is lost when
the maintenance crew turns up, diagnoses the problem and often needs
more time to acquire the right spares to service the request. Device
data could help ensure better problem diagnosis and enable spares
requisitioning even before the crew reaches the faulty equipment. In
our experience, such systems of proactive maintenance have shown a
reduction in field visits by 30% and improvement in field service engineer
productivity by up to 25%. Similarly, accurate preventive maintenance
using device data can help contain product warranty costs.

Organizations are tantalizingly close

to finding the answers to tough
business problems. They know the
answers are cocooned in data.

05

The Future: Next Steps

Our suggestion is to use a simple framework to begin the journey.

This is what we call the 3B Framework for Adoption:

Systems can be smarter. Businesses can be smarter. It is possible to do

this by creating the infrastructure required to handle vast amounts of
device data. Information systems, algorithms and discovery technologies
can then sift through the data, explore it and present the proverbial
needle in the haystack.

Build a business case:

If you don't have a business case, you don't need to invest in device
data capture, management and analysis
?
Evaluate revenue generation models and cost optimization

models
To do this, organizations must invest in people, processes and
technology. However, this is only part of what makes a successful data
management strategy. Most organizations fail because they lack the
commitment required from management to create a holistic datacentric organization. Managements appreciate the need to mine
traditional customer and transaction data. But when its machine and
device data, there is a lag. The lag is understandable. The change being
forced on organizations by this new breed of data and shifting
technology is admittedly difficult to manage.

?
Identify business processes that will benefit from the device data
?
Develop models for ROI and pay-back period

Base-lined data processes:

?
Ensure the foundation is strong before undertaking the data

journey
?
Identify and leverage internal data sources
?
There is a lot of information all over the place figure out what

is relevant to your business

These modern data systems call for considerable expertise. They need
data scientists who understand the complexities of managing real-time
data; they require industry and domain experts for hypothesis creation
and to write the result sets. Without these, data can often be of no
practical value. Worse, it can prove to be misleading.

?
Identify external and new device data sources to plug gaps
?
Baseline data quality and institutionalize data governance
?
Ensure strict adherence to data privacy rules and regulations

Best-of-breed technology:
Organizations must have the focus and energy to adopt the new
processes and methodologies. It is necessary for them to integrate
information management frameworks and models with technologies
such as distributed computing, in-memory computing, Big Data and BI
platforms in order to extract value from device data. These
technologies allow data to be indexed on the fly. They extract real-time
insights using sophisticated analytical engines.
Organizations are tantalizingly close to finding the answers to tough
business problems. They know the answers are cocooned in data. For
many it is the first steps to be taken that are confusing. Where do we
begin? is the question we hear most often from those that have woken
up to the possibilities presented by device data.

?
Without the right tools, you will flounder. Ensure investments in

the best of breed technology

?
Identify gaps in your current technology landscape
?
Identify technologies for data processing and storage, ETL/ELT,

visualization and predictive analytics

?
Carry POTs and select technologies

Leveraging device data to enhance business is inevitable. No business

can hope to remain competitive and survive without seriously building
on its capability to acquire and mine data. The challenge is to ensure that
the journey begins early enough.

06

About the Author

Jayant Prabhu is Wipro Technologies General Manager and Global Practice Head responsible for practice management, business & competency
development and thought leadership in the areas of big data, data appliances, MDM, enterprise information architecture, data governance, data quality,
information lifecycle management, etc. Jayant spearheads solution development in the IM area and provides thought leadership to all IM initiatives. He is
also responsible for developing the practice strategy and forward looking initiatives. Jayant leads a team of high performance individuals who are focussed
on the leading edge of technology, patent creation, and evangelization. He has over 15 years of IT experience including information management
consultancy, data architecture and implementation road map, process modelling, and design and implementation of BI & IM solutions around leading
product suites for organizations likeTarget, Nike, PepsiCo, National Grid , GE, etc.
Jayant also is one of the founders of the Wipro MDM leadership & advisory council, a thought leadership platform that brings together organizations that
are or looking at implementing MDM to drive business transformation.
Jayant has also spoken at leading industry forums organized by Gartner, MDM Institute, SAP, IBM and SAS on leading edge topics in the Information, Business
Intelligence and Analytics area. He has also co-authored whitepapers in the Information, Business Intelligence and Analytics area.

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
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