Big Data Strategy

Manufacturing and Sales metrics:

Structured Metrics:

ROMI=Increase in sales - Marketing campaign investment) / (Marketing campaign investment)

Cost per lead=Total cost of marketing campaign/Number of leads generated
Engagement score=Number of leads generated/Number of contacts made.
Market share = (Total sales made by Nestle/Total sales made by competitors
Existing customer retention ratio=(Sales made to existing customers/Total sales)
Brand awareness = (Number of people who know brand Nestle/Number of people surveyed)
Brand Fame Index =Perceived Popularity / Actual Popularity.

Unstructured Metrics:

Social media likes on Facebook and other social networking websites.

Review and feedback of CSR initiatives through Sustainable Development Society of Nestle

Production Metrics:
Structured Metrics:

Number of new products offered

Percentage increase in the sale of adapted products
Percentage of products adapted/targeted to the low-income consumer segment
order-to-delivery lead time
supply chain response time
delivery performance (On Time / Delivery Date)
Percentage reduction in energy/water usage/waste generated per unit produced/ carbon footprint
Percentage products in compliance with consumer product safety and labelling regulation
Stock out rate, time-to-market.

Big Data capability

WorkFlow- Capability Maturity Model.

Level
0
1
Level
2
3
Level 45

Nestle is now in level 2 of Capability Maturity Model. With increasing

number of smart phones and last mile telecom connectivity it becomes
imperative for Nestle to collect customer data from remote areas. Data
services need to be defined, built, managed and published to provide
consistent data based management capabilities.

Roles, Time, How , What?

Big Data Champions- Serve as business enabler for new market
strategies.
Information Architects and Enterprise Architects- Design and
support ecosystem consisting of diversified information assets and
related schools. Enterprise architects can assist Information Architects
in developing a cross-platform design that implements the expanded
information architecture capabilities and ensures interaction between
applications.

Data Scientists- Data Scientists mine data, apply statistical modelling

and analysis, interpret the results, and transform data results to
application and to prediction.
Business Analysts- They help data scientists to understand the
business context.
Hadoop Administrators- They maintain Hadoop distribution and
platforms.
Training and Skills requirement
A cross-functional team of analytic and domain specialists who plan and
prioritise analytics initiatives, manage and support actions to be taken,
and promote large scale use of information and analytics best practices
throughout the enterprise is called as Centre of Excellence. The key
benefits experienced by Nestle on implementing a COE will be:
1)Cross-training of professionals from diverse data science disciplines
2) Allocate resources for the benefit of the organization and has the
scalability and flexibility to serve enterprise centric initiatives as well
as specific business units
3)Modify the culture of the organization to appreciate the value of
analytics-driven decisions and promote continuous learning.

Application Strategy
Big data strategy of Nestle mainly comes under non
transactional data type and measurement of business
objectives. The following methodologies can be used:
Crowd sourcing:

A process for collecting data from a large community or distributed

group of people

Idea submission is a common crowdsourcing activity

Textual Analysis:

Computer algorithms that analyze natural language

Topics can be extracted from text along with their linkages

Sentiment Analysis:

A form of textual analysis that determines a positive, negative, or

neutral reaction

Often used in marketing brand campaigns

Network analysis:

A methodology to analyze the relationship among nodes (e.g.,

people)

On social media platforms, it can be used to create the social graph

of follower and friends connections among users

Tools Used: Radian6 Attensity Visible Technologies Converseon HootSuite NodeXL network
graphs HP Autonomy

Direct Customer relationship- creates direct relationships with consumers.

Engaging directly with consumers increase loyalty and provide insights on individual
consumer needs, which results in more accurate targeting of products and
promotions. Big data helps in maintaining social brand presence, monitoring
consumer responses and responding in real time requires a complex set of
technology solutions.
Mobile and Location Based services It ensures connection to retailers and
customers whenever required. Emerging technology capabilities turn mobile device
to primary personal shopping tool, with which consumers explore, try, buy, and
share their experiences with new products. This will lead to reduction in product
launching cost. By scanning codes on the product with smartphones, consumers can
get further information on the product.
Predictive Analysis Massive historical point of sales and promotions data is
blended with real time data from social media to predict daily demand and optimise
promotions to maximize sales and profit.
Demand driven Supply and change ManagementNestle can leverage big
data by mapping demand based supply chain system to minimize inventory levels,
improve service quality and reduce stock outs. Real time demand can be blended
with traditional forecast to develop new IT systems which will enable data sharing
with customers and retailers.

Idea to product accelerationVirtual simulation techniques help to study

consumption of products sitting on shelves which in turn leads to faster go to
market and at lower cost.
Safety and traceability-- Increasing consumer and regulatory focus on safety and
greater likelihood of product recalls, has made it essential to trace product through
the supply chain from the raw-goods supplier into the store.
SustainabilityBig data can help gather information on sustainability by tracking,
managing and analysing huge amount of data in supply chain.
Hadoop, CRM, Webapps are some examples.

Storage Space
Customer purchase related data and ordering data from retailers can be
backed up to establish vital pattern.
Disaster Recovery Plan needs to be in place to ensure business
continuity.