NEWSLETTER ANALYTICS Q2, 2015

Edition II NEWSLETTER ANALYTICS Q2, 2015INSIDE 2 3-5 6-10 11 12THISISSUE A Word from A Call to Making the Imarticus Corporate the Managing Analytics in Case for Recommends: Offerings & Director Marketing Online Good Reads Benefits to Education You

A WORD Dear Reader, 2014-15 was a Rubicon moment for Imarticus Learning as we set FROM OUR out to strengthen our product and regional portfolio as well as our corporate relationships. Looking back, we have achievedMANAGING more than we aimed for. Our revenues have doubled, both on the back of a thriving retail business which saw a 120% increase in DIRECTOR our student base, as well as our Corporate Training business which saw us build mutually beneficial relationships with many of you. I thank you for continuing to believe in us, as well as our exceptionally talented team of over 100 professionals who make it possible. The next notch on our goal post is Online Education, and in this issue, Amit Ratanpal tackles the growing space of Online Education and eLearning. Globally, eLearning is a $56.2 billion business and that figure is expected to grow exponentially to $107 billion by 2015. With good reason: eLearning offers cost savings, flexibility and repeatability in training. In this issue, we explore the learning options you can now add to your arsenal to train your employees. In line with our aim to provide targeted and relevant training to our youth to fill the ever increasing shortage of skilled professionals in the Analytics industry, we are very excited about the recent launch of own online training programs on R and SAS—watch this space! Analytics, of course, has countless applications in the business world. Marketing analytics is a hot field and by all estimates demand for professionals will soon be very strong. In this edition, we are pleased to have Sujoy Bhattacharya, Assistant Professor, VGSOM, IIT Kharagpur, explore the many facets of marketing analytics including usage and key trends that are driving demand for marketing analytics. On the thought leadership front, we hosted our very first Analytics conference in Bangalore in February, 2015. This was attended by representatives from leading firms such as Accenture, KPMG, Deutsche Bank, Dell, Target, Cognizant, HP and more. Please visit our Youtube page to view the highlights reel. We look forward to more such industry gatherings with all of you in the future, with our next Analytics conference being planned for September, 2015. We are very excited about what 2015-2016 will entail and, as always, I look forward to hearing from you and hosting you at our offices in Mumbai, Bangalore and Chennai. Please do get in touch with us at [email protected] for any requirements or suggestions to serve you better. Regards Nikhil Barshikar Founder & Managing Director 2

DEMAND FOR MARKETING ANALYTICS Forbes proclaimed 2014 to be the Year of Digital Marketing Analytics and the spotlight continues into 2015 – and rightly so. A CALL TO Marketing analytics is the optimization of marketing efforts throughANALYTICS IN measurement and data analysis to help firms improve their return on marketing spend. MARKETING Marketing efforts and returns are often intangible and it is difficult Sujoy Bhattacharya to quantify the precise impact of a firm’s marketing strategies and spend. In spite of the Big Data explosion, 89% of marketers use their Assistant Professor, intuition rather than data driven models to take key decisions1. Gut- VGSOM, IIT Kharagpur feel is neither scalable nor process-oriented and, if wrong, can be expensive. But there’s a growing demand from both top management and marketers’ value chain to graduate from the murky and intangible decision making to a more precise and quantifiable data-driven approach that would aid and facilitate better decision making. Emphasizing the value of Big Data, McKinsey rates Data just as important a factor of production as capital or labour. NASSCOM and CRISIL Global Research and Analytics predict the global Big Data market to grow exponentially from $5.3 billion in 2011 to $25 billion in 2015 Global Market Indian Market $ 5.3 500% $ 200 Billion Million increase 2011 2011 $ 25 $1 Billion Billion 2015 2015ABOUT THE AUTHOR: McKinsey analyzed over 250 customer engagements spanning a five year period and reported that companies that based their sales andDr Sujoy Bhattacharya is a marketing decisions on Data improved their Marketing Return OnPhD from Indian Institute of Investment (MROI) by 15-20 percent.Information Technologyand Management, Gwalior. The global annual marketing spend amounted to $1 trillion. ThisHe has ten years ofTeaching and Research would mean companies using data for marketing decisions wouldexperience. He has taught create an additional value in the order of $150–$200 billion! 2at Mudra Institute ofCommunications, Of the $6.2 billion in deals that have occurred IncreaseAhmedabad, Goa Institute in the last four months in the marketing MROI byof Management, Goa and S P technology space, more than two-thirds came 15-20%Jain Institute of from funding, acquisitions, or mergers of with AnalyticsManagement, Singapore businesses operating in the intelligence andCampus. He is a \"R\" data domains.3Evangelist and is willing toconduct workshops on Ranywhere, free of charge. 3

CONVERGING TRENDSClients are increasingly turning to technology to help make moreinformed decisions. That is enabled by four converging trends, asoutlined by Forbes:1. The Internet of Things: With sensors embedded in everyday objects, marketers now have unprecedented access into customer behaviors and preferences, and thereby can trigger targeted actions and customized offers.2. Automated Engagement: A push towards “automated engagement” where technology has effectively replaced humans in tasks from information gathering to actual buying.3. Improved“anticipatory”analytics: Technologythat can accurately In 2014, for example, Amazondeliver on customer was granted a patent forneeds even before they “anticipatory shipping”are expressed by the software that, based oncustomer. This is based sophisticated analytics, startsnot just on past behavior packing and shipping productsbut on real timesTohfetwretaianilamtrfeodeerr.myytoahuatiraovcntahtoiihlisacaetabscobiinullilredteyatl oofafnaasbtelyefozrreeaochnrudsudetorgemmedetroahsermhmeav.opeuoenvwetnseroffudl caotam, pfiultteerristandthrough super-sophisticated models to help marketers gaineffi4c.iemTneoccrheineposolwoageinrcfaudll cAmodmvapakunteceerssh:aiTnghdhesloeyfatswtyaararevgaisielaatbbeilleidttyoooaffnfafealysrztseer.haungdeamounts of data by filtering it through super-sophisticatedmodels, to help marketers gain efficiencies and make highly targeted offers. “ A PUSH TOWARDS “AUTOMATEDALGORITHMS TRUMP ANTHROPOLOGY ENGAGEMENT”Marketing has become more analytical and model oriented. Theearliest models in marketing were based on applications ofoptimization methods followed by the use of game theory and WHEREmarkov models to complex contextual marketing problems. TECHNOLOGY HASPredictive Analytics Today, stochastic models, conjoint EFFECTIVELYSW Market REPLACED analysis, expert systems, customer choice$2.2 Billion models, neural nets, customer lifetime HUMANS IN TASKS 2013 value models, CRM models and many FROM more are being used in marketing.$3.4 Billion INFORMATION 2018 The predictive analytics software market is expected to grow from $2.2 Billion in ”GATHERING TO 2013 to $3.4 Billion in 2018. The total spends on Big Data hardware, software ACTUAL BUYING. and service is expected to be $114 Billion by 2018. 4

DATA DRIVEN VS GUT FEEL However, the human element is not redundant just yet – and nor will it ever be! “Big data creates a deluge of numbers, and knowing how to tap into the right big data will define the differences between businesses that excel and businesses that choke,” says Rex Briggs, the bestselling author and founder of Marketing Evolution. “Big data is actually the confluence of three forces: real-time data, big data, and automation. Taken together, the change is the ability to discover, in real-time, which messages are working best with which people, in which context, in which media, and optimize accordingly.” 5“KNOWING HOW USES OF MARKETING ANALYTICS TO TAP INTO THE Data from customer touch points is being used for promotion RIGHT BIG DATA customization, new product development, distribution channel WILL DEFINE optimization, improving customer satisfaction scores and enabling a THE recommender system for changing customer needs. For example, DIFFERENCES sports marketing for IPL franchisees has used Analytics and delivered BETWEEN content via social media to increase their fan base. The Economist BUSINESSES reports that Citigroup Inc. in Singapore uses the customer’s credit THAT EXCEL AND card data to recommend discounts at restaurants. It also reports that BUSINESSES Santander Bank in Spain uses analytics to generate weekly list of ”THAT CHOKE. prospects that are predicted to have a likelihood of buying the bank’s offers. MARKETING ANALYTICS IN INDIA Big Data Analytics is still in its nascent stage in India, according to Amit Khanna, partner, Analytics at KPMG India, with most companies just learning to store data, better known as data warehousing. However things are changing rapidly with companies— especially retail—looking for a competitive edge over their rivals. Telecom services providers such as Bharti Airtel Ltd and Vodafone Business Services, for instance, use predictive analytics to analyze usage and charging patterns of customers. We also see marketing analytics “Every single decision being harnessed by: that we make internally • Banks: ICICI, HDFC, Axis, Yes is based on analytics - Bank, Kotak Mahindra 31% of the company’s • Automotive companies: Tata orders come through our Motors, Mahindra & analytics-driven Mahindra systems.” • ECommerce companies: Flipkart, Snapdeal, and Jabong In conclusion, marketing analytics is here to stay and promises good rewards for those who choose to harness its power.SOURCES:1. hbr.org 2. Forbes.com 3. venturebeat.com 4. Forbes.com 5. Entrepreneur.com 5

GROWTH IN THE ONLINE EDUCATION MARKET$51.5 With technological barriers reducing MAKING THE and priorities shifting away from CASE FORBillion traditional classroom training, online ONLINE education or eLearning has become an EDUCATION (2016) accepted training medium across the world. There seems to be universal Amit Ratanpal Growth Rate: agreement that the worldwide E- Learning market will show fast and Founder and Managing 7.9% significant growth over the next three Director – BlinC years. (2012-2016) Zenobia Sethna Global L&D Manager – ImarticuseLearning Market LearningThe worldwide market for E-Learning is growing exponentiallyfrom $35.6 billion in 2011 to an estimated $51.5 billion in 2016at a five-year CAGR of around 7.9%1.While the US and Europe dominate the eLearning consumptionlandscape currently (at 70%), it is Asia-Pacific which is thefastest growing market with eLearning revenues expected togrow at an annual rate of 20%2.Closer home, the eLearning industry in India was valued at $3.06 “THE WORLDWIDEbillion (Rs. 18.41 trillion) in 2010-20113. Increasing Internet MARKET FOR E-penetration, low-cost existing coverage and rising demand are LEARNING ISexpected to help develop this market in the near future. Estimates GROWINGsuggest that the Indian market is likely to grow at a CAGR of EXPONENTIALLY17.4% for the period 2013-183 as it transforms itself into a FROM $35.6knowledge economy. BILLION IN 2011 TO ANCorporate The Corporate-training market, among the ESTIMATED $51.5Training: most cyclical within the education industry, ”BILLION IN 2016.$ 200 Bln is a $200 billion a year industry, of which $56.2 billion is attributed to eLearning4. a Year Since 1995, the percentage of US corporations using eLearning has grown from 4% to 77% in 20114.We are already seeing a drastic shift in learning delivery in thecorporate training market. While roughly 45%5 of all corporatetraining is still conducted using instructor led classroom training,we can see a drastic increase in the incorporation of eLearning inits various forms into the corporate training calendar. 6

The business case for eLearning gets stronger in direct proportion to the number of employees to be trained. Source: Trainingmag.com“EFFICIENT AND REASONS FOR GROWTH COST-EFFECTIVE General L&D budget constraints appear to be the main drivers of the SOLUTION WHEN shift towards using eLearning. However, eLearning is not merely an GEOGRAPHICALLY attractive proposition during an economic downturn. It is also an efficient and cost-effective solution when employees—especially DISPERSED those in organizations with a geographically dispersed workforce— WORKFORCE need to be brought up-to-speed quickly on relevant knowledge and NEEDS TO BE skills. When used right, eLearning can used to drive competitive BROUGHT UP TO advantage, increase revenues and capitalize on new market opportunities. ”SPEED. Self-paced eLearning allows learners to assimilate content at their own speed — often 20% to 50% faster than in a classroom. ELearning also offers the benefits of flexibility (24/7 learning) and is less disruptive to normal operations of a company than traditional classroom trainings that block many hours of employee’s time at a stretch. ROI Watch ELearning also ensures consistency and repeatability in training delivered, thereby ensuring your learning objectives for your $1 Spent on trainees and the resultant outcomes are more eLearning likely to be met. According to a report released by IBM, companies who utilize e-Learning tools and strategies have the potential to boost $30 worth of productivity by up to 50%. For every $1 that Productivity the company spends, it's estimated that they can receive $30 worth of productivity6. Finally, we have shifts in demographics which impact the way training is delivered. The work force is now seeing the integration of technologically savvy Generation Y or Millennials; who by 2025, will make up 75% of the global workforce4. To cater to this target audience (with Baby Boomers fast catching up – Boomers are the second highest users of the Internet7), we see a rise in demand for interactive eLearning – be it games, simulations, videos etc. Other drivers of growth for e-learning in India include the large base of English language speakers as well as the acute shortage of brick- and-mortar educational institutions for higher education. 7

ONLINE EDUCATION 2.0 “ BY 2025,Online training today has moved beyond traditional, self-pacedeLearning modules known as web based learning (WBTs) that TECHNOLOGICALLYfocused more on learner “seat time” – the time spent by the learner SAVVYto read through the WBT. Today, seat time matters very little andinstead the focus is on proficiency based learning that delivers GENERATION Yperformance on the job. Online education today encompasses not WILL MAKE UPonly the traditional WBT model, but also includes newer learningparadigms such as Flipped Class Model. Due to changing 75% OF THEdemographics, we see a dramatic rise in demand for video-based GLOBALlearning, gamification, simulations, mobile learning, and social orcollaborative learning. ”WORKFORCE.FLIPPED CLASS MODEL:Educators increasingly look to the Flipped Class Model to deliverlearning that is effective and cost-efficient. The Flipped Class Modelessentially reverses the traditional classroom setup and redefinesseat time. Knowledge is imparted as homework while class time isutilized for application of knowledge learnt. Learners view shortvideo lectures or have access to lecture content at home before theyarrive in class; while class time is used for discussions, exercisesand projects. The results, as tested on a batch of high schoolstudents, are quite astonishing!LEARNING NUGGETS: One size does not fitELearning is not “One size fits all”–Adultlearners need to be put in the driver’s seat and all!control what they learn and how they learn.Accordingly, trainings need to have personalizedand flexible competency-based learning paths.Shorter attention spans also mean learning iscompressed into bite-sized nuggets of shorterduration for easier consumption.GAME BASED LEARNING:Game-based training solutions have become popular inorganizations on both a stand-alone basis and as part of a blendedlearning strategy. It is particularly useful to equip staff withknowledge and skills related to functions such as human resourcesmanagement, marketing, customer relationship, etc.8

VIDEO BASED LEARNING: 4500+ Video Lessons on With broadband availability no Khan Academy longer a constraint, videos are an excellent way to impart learning in a more dynamic fashion. Studies have shown that video-based learning can be a more effective medium than text to enhance learner satisfaction and motivation during the learning process6.“THERE IS ALSO BUSINESS SIMULATIONS: Working professionals need learning that is immediate,THE REALIZATION relevant, and contextual. Business simulations fill this gap by THAT ONLINE focusing more on application of knowledge. Simulations are complex training interventions that simulate, or mock up, real LEARNING DOES business scenarios or issues to promote strategic thinking, NOT ALWAYS decision making, and problem solving. For instance, a role-play REPLACE sales encounter with customers is the perfect training ground TRADITIONAL for your sales executives before they pitch to real clients. CLASSROOM VIRTUAL LABS:”TRAINING SETUPS. You can now virtually connect to a PC that has pre-configured software installed, via a remote desktop connection, for product training that requires lab time. This eliminates the need for learners to acquire expensive software licenses or install heavy or expensive software on their personal computers at home. Students use a remote desktop connection to log in to virtual lab. A MIX OF ONLINE AND CLASSROOM TRAINING The Best of There is no doubt that online learning Both does not always replace traditional classroom training setups. But it is an Worlds excellent way to complement your classroom training –this is where blended learning comes in. Blended learning, also called Hybrid learning, mixes emerging technologies with classroom or instructor-led training based on what’s most appropriate for particular content. For example, a WBT can be used as a precursor to classroom training for familiarization with subject matter, and also as a refresher many months after the classroom training. A leadership course might start with a self-paced eLearning module on leadership basics with some instructor-led virtual classroom sessions to discuss concepts, followed by a two-day classroom session to practice leadership skill scenarios and get feedback. 9

The training requirements in the Analytics sector areparticularly gruelling. Organizations must typically deal withgeographically dispersed staff and rapidly changing knowledgerequirements as new technologies and tools are gettinglaunched to make analytics and visualisation thereof moresimpler. The current speed of change means that employeesneed to be trained constantly in order for companies to avoidthe dangers of being out-thought and out-maneuvered bycompetitors. When Online learning, particularly as a stand-alone “ THE CURRENTOnline is learning strategy, works best when the training need is to impart knowledge on processes or SPEED OF CHANGE Best? standards or to disseminate information MEANS THAT widely and quickly. EMPLOYEES NEEDOnline instructor-led trainings are gaining momentum with the TO BE TRAINEDgrowth of Big Data and new tools and technologies getting CONSTANTLY INadapted by various organizations. Participants across the globe ORDER FORare looking to pursue courses online specially over the COMPANIES TOweekends. AVOID BEING OUT-In fact, in our own market research spanning global Analytics THOUGHT ANDtraining firms, we found that roughly 60% of all Analyticstraining programs were purely online courses, followed by OUT-MANEUVEREDanother 24% of courses which were blended courses, employinga mix of classroom and virtual training. ”BY COMPETITORS.These short courses, of 30-40 hours in duration, are mostappropriate for business professionals looking to leverage datato make better decisions and analyst looking to pick incrementalskills.On the other hand, some trainings are not suited for eLearningand will require human intervention–for example, Soft Skillstraining or those requiring live demonstrations or groupinteraction. It is, therefore, vital that we evaluate the trainingneed and the target audience before zeroing in on the medium oftraining delivery. An imperative question one needs to ask is: “Which is the correct mode of training to promote an effective solution for a specific training requirement?”Knowing your available options and analyzing suitable solutionsfor a learning need will help in delivering cost-effective, goal-oriented and skill-enhancing learning solutions.SOURCES:1. Docebo Report, 2014 2. Sh!ft Learning 3. Docebo report, 2014 4. Shift Learning 5. Trainingmag.com6. eLearningindustry.com 7. Deloitte Millennial Survey, 2014 8. Choi and Johnson, 2007; Shyu, 2000 10

Imarticus Recommends: Good Reads Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future Ashlee Vance In this exciting book, Ashlee Vance explores the life of one of the most dynamic and innovative entrepreneurs of our generation– Elon Musk, famously one of the the co-founders of PayPal. Far be it from resting on his laurels, Musk with his unrelenting work ethic (100 hours a week for the past 15 years!) and vision for a cleaner and brighter future, went on to start three other companies – Tesla, SpaceX and SolarCity – Each completely different from the last, unexplored and in their infancy and thereby highly risky ventures. Read the book to trace his journey from his hardships in South Africa to becoming one of the most celebrated entrepreneurs with a net worth of $11 billion!Predictive Analytics: The Power to Predict Who Will Click, Buy,Lie, or DieEric SiegelEverything you’re going to do – the book you’ll buy, the movie you’re going towatch, the clothes you’ll buy - has all been predicted by companies. How? Goodquestion! Welcome to the powerful field of predictive analytics – where everymove you make, or are going to make – has already been predicted before evenyou knew it, through advanced analytical techniques. This book is a must readfor everyone – irrespective of whether you’re an expert in the field or theaverage guy next door who’s never heard of this field before. Keeping Up with the Quants: Your Guide to Understanding and Using Analytics Thomas Davenport and Jinho Kim How to utilize Big Data and its potential? This book serves as a handy primer, going into fascinating detail about how Intel and other successful companies—including Verizon Wireless, TD Bank Group, and Merck—help managers and data scientists understand each other well enough to collaborate effectively. Even if you know nothing about this topic, this book promises to be your guide to quantitative literacy.Data Smart: Using Data Science to Transform Information intoInsightJohn W. ForemanData Smart talks about the all-too-familiar domain of Spreadsheets and adetailed look at the math and the magic behind how data science runs. Datamining, Clustering via k-means, Monte Carlo simulation and R-programminglanguage are just some of the interesting topics you’ll learn as you take thejourney of becoming a master in the field of Data Science.Automate This: How Algorithms Came to Rule Our WorldChristopher SteinerThe rise of machines and algorithms has meant that humans are renderedredundant for the most part. Discussing the Flash Crash of Wall Street in 2010is just the tip of the iceberg, as this book goes on to explore the application ofalgorithms in various domains. But what happens when machines take overand completely eliminate human judgment and instinct? For all we know, thereis a bot learning how to do your job better than you, while you’re reading thisreview! 11

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ABOUT IMARTICUS LEARNINGImarticus Learning is formed to bridge the gap between Academia and the industry. The firmprovides a range of Corporate Solutions designed to assist firms in meeting their skillsetrequirements.Headquartered in Mumbai, Imarticus has delivery capabilities across India with dedicatedcentres at Mumbai, Bangalore, Chennai, and satellite centres at Pune and Jaipur.HIGHLIGHTS Training and content delivery capability, across the areas of Investment Banking, Finance & Treasury, Capital Markets Operations, Business Analytics, Technology and Consulting.Preferred sourcing and corporate training delivery HEAD OFFICEpartner for leading Global Banks, Consulting, KPO,Technology and Analytics firms. Imarticus Learning Pvt. Ltd. 5th floor, Raaj Chambers,Range of customized delivery methods Old Nagardas Road, Andheri (E),such as instructor led training, e- Mumbai - 400 069learning, workshops and seminars foroptimal training effectiveness. Tel: 022-40792314 / 40792315 EMAIL: [email protected] BANGALORE WEBSITE: www.imarticus.org Imarticus Learning Pvt. Ltd. No.143, B 1st Floor, 60 feet road, 5th Block, Koramangala Bangalore - 560 095 Tel: 080-45129914 / 45129924 Mob: +91-9008668548 / 8971729953 CHENNAI Imarticus Learning Pvt. Ltd. 2nd floor, East West Centre, 128, Nelson Manickam Road, Chennai – 600 029 Tel: 044-43558466 / 45642104 Mob: +91-9789879741