Finding an answer to future data challenges was the aim of the first td dataX in October, on which we have already given you an overview about. Today, we want to dive more deeply into the keynotes from data leaders Coca-Cola and Telefónica, as the goal of the dataX is to share best practices.
Using data points as raw material
Telefónica is the frontrunner in becoming a data-driven business, which helped them to:
- Enable data-based decision making across all business units and levels
- Use data as a service and develop data use cases across industries
- Ensure competitive advantage by reducing information complexity, addressing new revenue streams and target groups through data
As a network operator with a presence in 21 countries and a total of 48.6 million customer lines, Telefónica holds a great treasure at hand: Firstly, the networks that allow for IP connectivity and form the base for our digitalized world and the Internet of Things and secondly, the large customer base that generates a large volume of data, much of which is only available to network operators. The ability to analyze this data and the insights gained, entails great opportunities for the optimization of the service operations themselves as well as the monetization through new revenue streams. For instance, Telefónica has started an urban planning pilot case in Stuttgart together with the Fraunhofer Institute, using anonymous data from movement patterns to optimize traffic planning. This precise and accurate information offers a huge value for traffic management, as it is cheaper, available in real time and 24/7, and in large samples.
“If you digitalize a bad process, you will have a bad digital process”
(Thorsten Dirks, CEO)
Telefonica realized early that in our fast changing, digitalized world, corporate decisions need to be data-based and real-time. Therefore, Telefónica established the central Analytical Insights Center (AIC), where data insights are made accessible to more than 9.000 employees, helping them to become data workers. Information is not more than 20 seconds old, allowing Telefonica to react to market developments within 2 days. The data center works like a digital brain, reducing information complexity by bringing together all relevant knowledge and data streams. In the main navigation, employees have a broad overview on all content of the AIC, including a network overview, user behavior data, marketing performance management, business analytics or social media insights. The second layer gives you interactive dashboards, portals, and maps that visualize the data and facilitate knowledge transfer. The digital data analytics platform is the third layer and gives users the possibility to connect their own data and draw analyses for themselves.
A long-lasting smart data analytics partnership: td & Telefónica
Part of this AIC is the Marketing Performance Management Dashboard (MPM), developed together with td. This provides the most relevant KPIs to track and steer the new customer business. It consists of different profiles (such as Top Level View or Brand View), which are customized for the needs of certain stakeholders. An automated machine learning algorithm is integrated into the MPM, capable of forecasting business success for the upcoming 3 weeks. The development of a Budget Planning tool within the MPM environment based on a Media Mix Modeling is anticipated in the coming months. This allows a calculation of Media ROI per channel and serves as the basis for optimization of the media mix.
All these developments show that Telefónica truly leverages data as the key resource for optimized processes, better decisions, faster reactions, and increased revenue streams.
Data projects are change projects
Also, Coca-Cola belong to the leading companies in establishing truly data driven processes. The company is using a broad spectrum of data insights to manage marketing as a value creating business instead of treating it as a cost center. Their Lighthouse initiative is a holistic approach to:
- Understanding data projects as change projects
- Combining data technologies with a unique educational approach, organizational process, and strategy
- Leveraging the opportunities of new data to evaluate the return of every marketing initiative
At Coca-Cola, the company’s data stream became increasingly complex due to the proliferation of media channels and platforms, while there was little knowledge on how to leverage the existing tools to improve decision-making. To face this challenge Coca-Cola started the Lighthouse project, a holistic approach to maximize the ROI of owned, earned, shared, and paid media.
Holistic data approach is “Building a lighthouse to unleash the power of data”
The key element of Lighthouse is to go beyond platforms and technology. Lighthouse brings together human expertise, organizational process, and strategy as essential components to make data-driven marketing work. Data projects are treated as change projects, which is why training and organizational process go hand in hand with more advanced measurement and analytics capabilities.
“Building a lighthouse to unleash the power of data” was Coke’s vision when starting the initiative in cooperation with td. To increase the marketing impact and work more transparently and efficiently, the 4P’s of marketing were redefined, putting purpose, process, platforms, and people in the middle of all actions.
- Purpose: Defining a clear purpose based on an integrated data strategy
- Process: Streamlining processes to unify metrics, taxonomies, and data quality
- Platforms: Integrating multiple platforms for automation and real-time measurement
- People: Empowering of staffing through access and education
td & Coca-Cola: From an integrated dashboard to data-driven decision-making
Similar to Telefónica, the core of the Lighthouse approach is a centralized digital dashboard that provides real-time access to a vast data set across paid, owned, and earned media. The dashboard integrates standardized KPIs and data collection from +40 agencies in 40 markets for 26 brands. The advanced data visualization makes it possible to compare the metrics that matter and track all campaign, brand, and executional topics. Based on this vast set of data, td and Coca-Cola are able to track and manage all major initiatives in Europe using new data as a key source of insight and decision-making, delivering significant performance uplifts in the process.
Summing up we can say that the approach of both players is the combination of data science and advanced analytics technology with adopted business processes and employee training programs, empowering staff members to react more quickly and accurately to ever-changing business requirements.
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