In-Memory Analytics

Perspective Olaf Acker Dr. Florian Gröne Adrian Blockus Dr. Carsten Bange 3 columns width 2 columns width In-Memory Analytics Strategies for Real-Time CRM Contact Information Atlanta Canberra Frankfurt New York Ralph Alewine David Batrouney Olaf Acker Jeffrey Tucker Partner Principal Partner Partner +1-404-519-0184 +61-2-6279-1235 +49-69-97167-453 +1-212-551-6653 ralph.alewine@booz.com david.batrouney@booz.com olaf.acker@booz.com jeffrey.tucker@booz.com Beirut Chicago London São Paulo Ramez Shehadi Eduardo Alvarez Greg Baxter Jorge Lionel Partner Partner Partner Principal +961-1-336433 +1-312-578-4774 +44-20-7393-3795 +55-11-5501-6200 ramez.shehadi@booz.com eduardo.alvarez@booz.com greg.baxter@booz.com jorge.lionel@booz.com Berlin Delhi Milan Shanghai Florian Gröne Suvojoy Sengupta Enrico Strada Andrew Cainey Senior Associate Partner Partner Partner +49-30-88705-844 +91-124-499-8700 +39-02-72-50-93-00 +86-21-2327-9800 florian.groene@booz.com suvojoy.sengupta@booz.com enrico.strada@booz.com andrew.cainey@booz.com Adrian Blockus Düsseldorf Munich Sydney Associate Dietmar Ahlemann Bernhard Rieder Peter Burns +49-30-88705-896 Partner Partner Partner adrian.blockus@booz.com +49-211-3890-287 +49-89-54525-670 +61-2-9321-1974 dietmar.ahlemann@booz.com bernhard.rieder@booz.com peter.burns@booz.com Booz & Company EXECUTIVE For years, the process of devising customer data queries and creating business intelligence reports has been a lengthy one. SUMMARY That’s because the information needed must be pulled from operational systems and then structured in separate analyti- cal data warehouse systems that can accept the queries. Now, however, we are on the brink of true “in-memory analytics,” a technology that will allow operational data to be held in a single database that can handle all the day-to-day customer transactions and updates as well as analytical requests—in virtually real time. The advantages of in-memory analyt- and software, companies can cut the ics are many: Performance gains will total cost of ownership of their cus- allow business users to retrieve better tomer data efforts significantly. queries and create more complex models, allowing them to experiment To drive the shift to this new tech- more fully with the data in creating nology, CIOs must make sure the sales and marketing campaigns, and business understands its advantages to retrieve current customer informa- in terms of better customer intel- tion, even while on the road, through ligence and lower overall cost. To do mobile applications. The result- so, they must make a strong business ing boost in customer insights will case for the transformation—always give those who move first to these a challenge with business intel- systems a real competitive advantage. ligence systems—including ease of Companies whose operations depend use, better analytical reports, and on frequent data updates will be able better decision making. And they to run more efficiently. And by merg- must devise a governance strategy to ing operational and analytical sys- manage the technology’s rollout and tems, with their attendant hardware monitor its use. Booz & Company 1 ANALYTICS Consider the plight of an insurance sales rep sitting down with a customer other products that might suit the customer’s current needs. As a result, ON THE FLY to discuss changes to his life insurance the rep has a much better chance of policy. The only information he has up-selling the customer on his current about the customer may be months policy and cross-selling him on other old, so pricing a new policy given the products. customer’s changing circumstances will have to wait until the rep can add Until recently, large customer relation- the new information to the system ship management (CRM) systems back in the office. And because he depended on two separate databases: can’t analyze the new data immedi- The operational database maintained ately, there’s no opportunity to offer the day-to-day, high-volume trans- the customer specific details on new actional data, while the analytical products he might be interested in. database took the data needed to per- form specific customer analyses and Now, however, a new technology stored it separately. As a result, it was called “in-memory analytics” lets that impossible to run real-time queries sales rep enter new data into his com- against the most up-to-date customer pany’s database from a tablet com- data. Thanks to major advances in puter sitting on his lap as the meeting the speed, cost, and sophistication of is taking place. In real time, he can storage and memory technology and analyze the customer’s new situation in the power of processors, however, and generate current pricing informa- the promise of real-time analytics— tion, as well as information about through which business users can “In-memory analytics” lets a sales rep enter new data into his company’s database from a tablet computer on his lap as he is meeting with a customer. 2 Booz & Company access the full set of operational data formance is dramatically improved. growth through more powerful up- when creating their reports—is finally This increase in performance allows selling and cross-selling. becoming a reality (see Exhibit 1). end-users to run more complex que- ries and gives them better modeling • Lower costs: Total cost of owner- By giving business users access to truly capabilities, adding up to greater ship is significantly lower compared live customer data, in-memory tech- business value (see “Inside the to traditional data warehouses, in nology will transform how companies Technology,” page 4). part because all the data is now analyze and use that data. As such, it stored in one place. And while in- offers three significant benefits over • Customer value creation: In- memory technology allows for the traditional data warehouses: memory analytics gives business analysis of very large data sets, it is users instant self-service access to much simpler to set up and main- • Performance improvements: the information they need, pro- tain. Rapid departmental deploy- Because users can now interact viding an entirely new level of ments can free up IT resources with and query data in memory, customer insight that has the very previously devoted to responding to response time and calculation per- real potential to maximize revenue requests for reports.