Analysis of Dutch BI market : market opportunities for avanade’s Microsoft BI solution.

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Analysis of Dutch BI market

Market opportunities for Avanade’s Microsoft BI Solution

By: Lalit Mishra Student Number: 10403914 Thesis Supervisor: Prof. Dr. John B Cullen

Course: MBA Fulltime Amsterdam Business School University of Amsterdam

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_{Executive Summary}

1.1 Characteristic of study

This paper deals with the analysis of the problems faced by Avanade in Dutch market. The challenge at hand in the Avanade was to identify opportunities and create recommendations that would drive the business of the BI service line. There were some key components to frame the recommendations requirement: decrease dependency on Accenture, decrease dependency on few key accounts for majority of business, exploit the large scope of growth in market share for Microsoft BI products, and strengthen Avanade’s position as a provider of Microsoft BI products. With these components in mind, the focus was to develop recommendations that would be suitable for Avanade to seek out opportunities to grow the business on these criteria.

This paper also gives a general overview of the Dutch Business Intelligence market, Business Intelligence Industry penetration etc. The trends, problems and new opportunities were identified through academic research, market research, survey questionnaires and interviews. The project study involved interviews with many Avanade employees who has broad experience and good understanding of Microsoft BI solution and its respective market and who were responsible for representing Avanade Group to the outer world in terms of capabilities.

This project study tries to look at the Microsoft BI management by providing framework through various strategy formulation principles, strategy theories, and strategy frameworks. The project also analyze how the Microsoft BI solution will help clients to solve various problems such as Fraud management, location analytics etc.

In the end of this study I try to look at how Avanade can get sustainable competitive advantage in managing Microsoft BI product and how the capabilities arising from it can be leveraged to gain market share through Potter generic strategy and Market segmentation.

1.2 Project Statement

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Avanade is Microsoft preferential partner for all the service line except the Business Intelligence service line. Also most of the Avanade’s client came through Accenture channel that creates big dependency on Accenture. Avanade wants to reduce this dependency on Accenture and to increase the percentage of direct customers. The current Avanade’s business model is working effectively for other service line except Business Intelligence service line. The direct sale for other Avanade service line is 35 % and rest 65 % of Business comes from Accenture. But it is even less for Business Intelligence service line which is only 5 % and rest of 95 % Business Intelligence customer comes through Accenture.

Statement: Investigating how to increase the sales of Avanade Business Intelligence solution and to reduce dependency on Accenture by recommending new market opportunities to have more direct business in Dutch market.

1.3 Description of the work

The solution can be recommended by following two different perspectives i.e. Inside–Out perspective and Outside-In perspective. Inside–Out perspective focuses more on strategy process which depends on organization core competency, capability and strength. By having valuable and rare resources, an organization can have sustainable competitive advantage. Outside-In strategy focuses more on external environment and use market andcustomer value as framework to formulate short term and long competitive strategy. The focus of organization using this approach are focused on targeting segments to meet customer demands better than competitors which in turn gives then sustainable competitive advantage. Keeping overall strategy in mind, Initial brainstorms revolved around an overall research structure for the project including:

 BI market analysis of Netherlands

 Competitor identification on product and service level in Netherlands

 Industry specific research- Determine which have characteristics that could be attractive (i.e. high growth, stage in the BI market, customer demand, competitor penetration, etc.)  Based on industry specific information, seek capabilities that would be suitable within

and/or across those industries

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This general process outlined is the result of an approach that evolved over time as the understanding of findings increased. This blossomed from a very basic need for understanding the nature of BI and its role in markets to identifying industries. After the identification of industries, the focus was on how Avanade could deliver a solution to these industries full of opportunity and drive the BI business greatly across industries. Building on this concept, recommendations were developed that could capitalize on attractive markets via scale-able solutions, thus minimizing the blow of initial investment.

2. Literature Review

2.1 The positioning school by Michael Porter

2.1 Early developments of the Positioning School and Potter generic strategy – Outside-In.

Michael Porter is associated with the positioning school. Porter has identified five forces that identified the structure of Industry and recommended companies to position themselves where they can defend against the forces. The strongest competitive force or forces determine the profitability of an industry and so are of greatest importance in strategy formulation. He sees the selection of a competitive strategy as a game of positioning the company to achieve a favorable market position through generic strategies and sustained barriers to competition ("How Competitive Forces Shape Strategy", Harvard Business Review, March/April 1979. p. 143). Potter five forces are the bargaining power of suppliers and buyers, new entrants into the market, product substitutes and current rivalry (Porter 1979, pp. 137). The weaker these forces, the higher the potential to earn profit. By using the strength of the company and weakness of the market, a company can achieve a favorable position enjoying less pressure on profit margins (Porter 1979, p. 143). By following generic strategies, such as cost leadership, differentiation or focus on a niche, companies can influence these forces and build barriers to competition (Porter 1979, p. 141 and 142).

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This project used Porter’s generic strategic plan to gain market share. Michael Porter has described a category scheme consisting of three general types of strategies that are commonly used by businesses to achieve and maintain competitive advantage. These three generic strategies are defined along two dimensions: strategic scope and strategic strength. Strategic scope is a demand-side and looks at the size and composition of the market you intend to target. Strategic strength is a supply-side dimension and looks at the strength or core competency of the firm. In particular, he identified two competencies that he felt were most important: product differentiation and product cost2.

Source: http://en.wikipedia.org

Porter discussed that companies can have sustained competitive advantage by following three main strategies: cost leadership, differentiation, and market segmentation. Market segmentation is narrow in scope while both cost leadership and differentiation are relatively broad in market scope2.

A general finding suggested by Porter is that firms with a high market share are highly profitable and have higher profitability with low operation cost through efficiency in production. The firms with low market share focusing on niche market can also have high profit margin on their investment. The least profitable firms were those with moderate market share. Firms in the average market share were less profitable because they did not have a viable generic strategy and less profitability with high marketing and operations cost.

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According to Potter (Competitive Advantage, 1985), the organizations that does not follow the three options in generic strategy i.e. cost leadership, differentiation and focus, the organization will stuck in middle and will suffer below average performance. Potter was strong supporter of Outside-In perspective and advised organization to look for external environments and position the organization in a way to defend itself against five forces.

2.2 RBV Theory – VRIO by Barney- Inside out strategy

To conduct a resource-based analysis of a business, Barney (1991) proposes a structured approach based on analyzing whether a resource is valuable, rare and imitable and whether the organization is taking advantage of the resource.

• Valuable. According to Barney, a firm can have competitive advantages by having valuable resources. Barney defined valuable resources when they add value to the organization and enables the organization to implement strategies effectively. Barney suggests that this question has to be answered ﬁrst because a resource that is not valuable or is irrelevant cannot be a source of competitive advantage.

• Rare. If a valuable resource possess by large number of companies, it can’t be source of competitive advantages.

• Imitable. According to Barney, the resource must be difﬁcult for competitors to imitate or acquire to have sustained competitive advantage.

• Organization. If a resource is available, rare and difﬁcult to imitate, a business must be able to exploit it, otherwise it is of little use

In 1990, the resource based view of the firm has become increasingly popular in field of competitive strategy. Consequently support for Inside-Out has increased significantly and organizations framed their strategies around core competencies and valuable, rare resources to achieve sustained competitive advantages.

2.3 Core Competency by Prahlad and Hamel - Inside out strategy

The core competency model of Prahlad and Hamel is an inside out corporate strategy model looks at the organization core competencies to for competitive advantage. In an article from 1990

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titled "The Core Competence of the Corporation", Prahalad and Hamel illustrate that core competencies lead to the development of core products which further can be used to build many products for end users. (The core competence of a corporation, C.K Prahlad and Gary Hamel, Harvard Business Review, May-June 1990 ). Core competencies help in designing and development of core products which can translate into different products. So these enable an organization to access a wide variety of markets.

Where the outside in approach analyses the industries and market for competitive advantage, the core competency model looks inside the firm to gain competitive advantage. In their article “The core competence of the corporation” (1990) Prahlad and Hamel dismisses the portfolio perspective as a viable approach to corporate strategy. In their view the primacy of the strategic business unit is now clearly an anachronism. Prahlad and Hamel carry on arguing that a corporation should be built around a core of shared competences.

2.4 Opportunity recognition and product innovation (John S. Park)

The entrepreneurial process is an interactive combination of three components which ultimately result in market innovation (John S. Park, 2005). The three main components of the innovation are outlined in below fig.

Enterprenuer

Technology

Knowledge

and

Expereince

of firm

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The first component is the founding entrepreneur who decides to create a firm to pursue the entrepreneurial technology venture. The second component studied is the organization they build around themselves and how this collective organizational knowledge and experience impact the success of the venture. The final component of the process is the technology on which the venture is based, how this technology develops and evolves due to interaction with the founding entrepreneur and the knowledge of the firm (John S. Park, 2005). To create an innovative process or product, a firm needs some mix of above three constituent.

Entrepreneurs are often conceived of as unique and innovative in their approach (Schumpeter, 1934). This literature talks about the behavioral reasons or aspects behind entrepreneurship. This research model will be used to identify opportunities internally and externally. It will also help to build the framework which facilitates the interaction of above identified factors to build innovative product or process.

3. Company information Methodology/Case description

Avanade is a joint venture established by Microsoft and Accenture to be an exclusive provider of Microsoft solutions. The premise of this venture was to create an organization that would focus solely on delivering Microsoft consulting services, a service not yet provided by a single company. Now Accenture owns the majority piece of Avanade, aligning more closely with the consultancy business. With offices stretching across the globe, Avanade has grown its workforce enhancing its delivery and providing clients with a flexible yet reliable delivery network to suit their needs.

The service delivered by Avanade is simple: “enhance business agility while lowering client cost, reduce time-to-market increasing sales and improving customer loyalty, and improving efficiency and productivity of employees.” Avanade is comprised of various service lines including application development, customer relationship management, enterprise resource planning, technology infrastructure, business intelligence, collaboration, and outsourcing. While each service line serves some importance to the organization.

BI Solution

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“BI is a holistic approach to managing information across people, processes, and tools addressing these challenges and creating value from all data-including big data. Avanade BI’s global approach helps client to: become an agile business, empower the workforce, enhance business performance, improve return on investment, accelerate speed-to-value.”

3.1 Method adopted

At the onset, the task seemed quite daunting. However, through the establishment of a methodology through which to tackle the requirements needed, the process quickly took shape allowing for more fluidity in the process as arrived at conclusions on which to base recommendations.

The next step in the process was to identify various stakeholders. Each stakeholder had different expectations of the project and deliverables needed to be completed which need to be identify to manage the expectations of all parties involved.

Project Scope

In order to deliver the expected deliverable at the end of the internship period, many tasks had to be accomplished and a variety of analysis was required. Starting from the very beginning with little to no data to work from and being tasked with approaching the issue from a new viewpoint meant having no clear framework or previous example from which to work on. Thus, the project scope required pulling the initial data to conduct market analysis as the very first step. The key tasks needed, as further examined in project plan, were gathering and analyzing overall BI market analysis for the Netherlands, identifying attractive industries to deliver a service, then developing recommendations that would deliver solutions to those key markets.

Each task was linked to an element that contributed to the analysis and or creation of a conclusion. The project scope encompassed a strategic plan for developing the service line along with accompanying marketing strategy and financial projections to support recommendations.

Product Scope

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As a result of industry analysis, the identified attractive industry opportunities in healthcare, insurance, banking, and retail and there is sufficient room for Avanade to enter with multiple products and be successful in the industry.

The essence of final recommendations is capabilities that based on the premise of being scale-able across targeted attractive industries in order to maximize efficiency and optimize revenue opportunities.

Overall Strategy

The overall strategy to solve the case based on below framework starting with objectives which were already given in the case.

Objective

Business objectives are a vital part of any business owner's business plan. Business objectives help to set realistic goals which can be easily measurable in term of cost, effort and time. They build the framework on which actual strategy takes shape and can be visualized for design purposes. By stating the company's goals in specific, measurable ways, objectives give direction

Define Objective Market Analysis Strategy Formulation Strategy Implementation Monotor and Control Corrections 11

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to the company's efforts and allow every person in the organization the chance to work toward those goals.

Strategy Implementation

Strategy implementation includes the allocation and management of resources such as financial, personnel, operational, support, etc. Strategy designs the structure of the organization and various functional units for optimal implementation of the strategy. Also, it defines the accountability and responsibility for each specified task and process.

Monitoring and Control

This includes monitoring results, measuring benchmarks, analyzing market, following best practices, evaluating the efficacy and efficiency of the process, controlling for variances, and making adjustments to the process and strategy as required

4. Discussion, Findings and analysis 4.1 Discussion

In this project, both outside-in and in-side out perspective were used to provide recommendations for Avanade problem. To use outside-in, Potters five forces and generic strategy were used as framework where market was analyzed industry wise and research was made to see the penetration of BI product in different industries. After analyzing and selecting the industries, focus was to find the opportunities for which solutions can be scalable to various industries and can be differentiated from existing solutions in the market.

Inside-out perspective was also used as framework to understand the current competency of Avanade. Various interviews and discussion were scheduled to understand the value chain, current business process and competency of Avanade. These interviews and discussions have helped to outline any new knowledge and skills required by Avanade to implement the recommendations.

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4.2 Main findings Market Research

The market research was at first very broad in scope. The motivation behind having a somewhat large scope was to have a sound understanding of the BI market as a whole in the Netherlands before generating any type of conclusions.

State of the BI Market in Netherlands

The BI market in Netherlands is still in growing phase with only 30 % of companies in Netherlands are using BI products. 3 According to “Gartner All Enterprise Software Market Share, Worldwide 2011-2012” report, the total Business Intelligence market in Netherlands was estimated to be $243.9 million in 2012, which experienced a growth of 6% from 2011. 2 Gartner also predicts that the Dutch BI market will achieve a compound annual growth rate (CAGR) of 3.21% through 2014. 3Also during market research; it was found that Government, Healthcare and Insurance are the main industries which have high usage of BI solutions.

Source: http://www.computable.nl/

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In the market research, focus was also to find out the Key Drivers in Dutch Market which will drive the usage of BI technologies and products. The summaries of key trends are explained below:

• Tools needed 4

- Set the business goals, understand the data from a variety of sources- external sources used to augment internal data, prepare the data, create the predictive model, evaluate the model, deploy the model, and monitor the effectiveness of the model • Key Trends- According to Forrester, “Big Data Handling, Modeling Tools, and

Algorithms are Key Differentiators” 4

Product level competition

In this broad market research it was first deciphered which competitors Avanade has on a product level basis. These big players are in terms of market share in Netherlands: SAP with 19.7%, IBM with 23.56%, Oracle with 11.76%, QLIKTECH with 4.4%. 5

Service level competition

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The competitive situation had been assessed in terms of service-oriented companies. For that, Microsoft Gold partners in Netherlands were good source for information. Those companies could be divided into two groups: those that offer only Microsoft BI services and those who work also with SAP, IBM, Oracle and other, smaller software companies. The former group is Avanade’s direct competitors. It was not always possible to find enough information about those competitors.

Attractive Market Identification

After conducting industry analysis it was found that there are a number of different attractive industries in which Avanade could seek to enter. The following information is based on growth of BI products usage in the Netherlands among various sectors. 5

2009 2012

Government 41.7% 55%

Healthcare 34.1% 40%

Finance and Business 18.5% 27.7%

ITC 26% 33%

Wholesale and Retail 29.2% 34.4%

Manufacturing 21.7% 27.7%

Using this information, the attractive industries were identified and then sought to provide recommendations that would not only reach these sectors of healthcare, finance, and retail, but that could potentially be scalable across the industries. Scalability is a key point because Avanade can reach many industries on the basis of a smaller investment with the opportunity to reap larger revenues in the long run. The recommendations were based on the premise of

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building a location intelligence competence internally and then implementing that as part of fraud management and personalization offerings initially with the option to also explore opportunities in location optimization.

4.3 Interviews

To understand the Avanade’s current BI strategy, I have interviewed various Avanade personals who are performing Avanade’s daily business in Business Intelligence service line. To understand the whole value chain, I have interviewed BI technical developer, consultant, BI managers, head of BI service line, Head of Human resource department and various managers. To understand the whole value chain, I had categorized the interview questions based on different segments of value chain as outlined below:

 Customer Segments: Avanade serves one or several Customer Segments.

 Value Propositions: It seeks to solve customer problems and satisfy customer needs with value propositions.

 Channels: Value propositions are delivered to customers through communication, distribution, and sales Channels.

 Customer Relationships: Customer relationships are established and maintained with each Customer Segment.

 Key Activities: Key Activities that our Value Propositions require

 Key Resources: Key Resources (Physical, Intellectual, Financial and Human) that Value Propositions require in our Distribution Channels, supply product and service, contacting and establishing customer Relationships.

 Cost Structure: Most important costs inherent in business.  Competitor: Current competitive advantages over competitors.

Based on the above interview questions, I am putting below the conclusion of interview with Business Intelligence service line head and Marketing and Sales head.

Business Intelligence Service Line Head

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The purpose of this interview was to understand the current strategy of Avanade to increase the direct sales of Microsoft BI solution and reduce the dependency on Accenture. Avanade has all dependency on Accenture for BI solution clients. Also Avanade does not want to focus on industries or clients specific where Accenture has strong presence so that their relationship with Accenture does not restrain.

Also Avanade does not any special preference of Industries. They can go in all industries wherever the opportunity is present. But to go in different industries such as Banking, Insurance, Retail etc., Avanade needs different Industry specific expertise for which it has huge dependency on Accenture. Therefore to increase direct sales for Business Intelligence solution, Avanade needs to reduce its dependency on Accenture for business expertise and develops its own business expertise.

Another problem with Avanade is that it has the valuable and rare certified technical consultant who can solve the technical problems very well. But these resources lack the business knowledge and found it hard to establish long term relationship with client which impacted the customer retention, after all if I consider the 80\20 rule, 80 % of business comes from 20 % of business. Therefore if Avanade wants to establish long term relationship with clients, it has to focus on nurturing the technical consultant to hone the business skills to enhance customer retention that will help in bringing more direct business process.

Avanade Marketing and sales Head

The purpose of this interview was to understand the marketing strategy of Avanade. It also helped us in understanding the impact of Avanade current and future strategy on recommendations.

After the interview, it was very clear that Avanade does not want to compromise their quality to provide low cost solutions. They have good brand name and gain premium because of their high quality solutions. So it was very clear that if I want to follow low cost strategy for my recommendations, I have to find the alternate way of reducing cost such as BI solution as service for clients etc.

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Second strong message was that Avanade wants to have maximum business from their existing clients, so they do not want to invest much for searching new clients.

Recommendations

Location Intelligence

What is “Location Intelligence?”

Location intelligence combines spatial analysis and map visualization with proven BI tools in order to better support the corporate data analysis process and to help companies make more informed decisions.*

Source: http://timreview.ca/article/289

Location intelligence has great potential market in future

According to McKinsey global institute research in 2011, location intelligence offers value of $700 billion globally to business with a potential of $20 billion for IT service providers in next

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ten years, which means in Netherlands, there will be around 270 million euro potential market in location intelligence based on assumption7.

Geospatial information is critical factor for better business intelligence solution. First of all, it is usually a critical factor in business research and calculations about customers, suppliers, distributors, natural resources, transportation hubs, energy and most other things. Secondly, about 80 % of all data stored has a spatial component taking the shape of email addresses, postal and zip codes, coordinates, IP addresses, and phone numbers 8. Besides that, time and space is important dimension that should be taken into consideration in analyzing data.

Location intelligence solution is scalable across various industries

Location intelligence can help reduce operation costs in government organizations. For instance, in the agriculture & weather sector, by implementing location intelligence BI solution, Avanade could have better risk management and forecasting abilities. As a result Avanade could analyze various parameters like crop yield, fertilizer consumption, agriculture-water intensity, average rainfall, crop-production and help in risk management. In addition to that, location intelligence also helps to predict weather’s impact on air travel, crop yields and energy costs and finally reduce government cost accordingly9.

In the public safety sector, in 2008, prevention was the largest group of activities, accounting for 44 percent of spending, and the police accounted for 40 percent of spending on security governance. In total, government, companies and households spent 11 billion euro on security10. Location intelligence could help reduce the crime by seeing trends and patterns of crime over an administrative, municipal, state or country level.

In the defense and transportation sector, with better visualization of navigation data, the operation cost can be reduced in transportation department and defense. The solution will help reduce cost and increase efficiency.

Location intelligence will reduce spending in insurance and healthcare. In Netherlands, total government spending on healthcare as a percentage of GDP in 2013 is 12% equivalent to $85 billion and annual growth of total health expenditure is projected to be 16.4% ($13.94 billion).11

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Parameters like disease incidents, reported cases, available doctors, hospitals, beds, medicine consumption, etc. can be analyzed geographically which will help in efficient management. Besides that, the diffusion of an illness can be tracked much more effectively when geospatial data are displayed on a screen. For insurers, they can better understand the location and temporal distribution of policyholders and their assets, therefore can improve their estimation of policy risk in hazard-prone areas 12.

In the retail sector, location intelligence will increase sales and reduce operation cost. For example, location intelligence will help retailers have better expansion strategies; increase sales by adding geographic information for delivering better personalize customers’ experiences (e.g., geo-targeted advertisement, localize marketing promotion.)

Fraud Management

Industry Analysis

Fraud is a hot topic at this moment in the Netherlands. Awareness of this issue is present across sectors such as healthcare, social security, online banking and retail, etc. In order to fight and prevent those frauds, the Dutch government will start to amend certain acts to improve data exchange between different organizations. According to a survey from 2011, the total amount of social security fraud was 153 million euro13. The cost of fraud within the European Union for healthcare is generally around €50 billion to €60 billion annually14. In addition to that, the number of Dutch victims of identity fraud is also increasing quickly, going from around 75,000 cases in 2007 to 612,000 in 2012 15. The estimated damages from the fraud was around EUR 350 million in 2012, not including possible costs to businesses and government 15. Furthermore, Dutch banks are also struggling with a recent increase in Internet banking fraud, according to figures by the Dutch Banking Association total losses to the banks for 2010 internet banking fraud reached 9.8 million euros. With more than 11.2 million Euros in Internet banking fraud losses in the first half year alone, 2011 already ranks as the most expensive year according to the Dutch Banking Association (NVB) 15.

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Competitors

Currently, IBM, SAP and SAS are key competitors providing solution for fraud issue. IBM delivers a common platform to address fraud threats across an organization, removing the need to identify different solutions and platforms to tackle credit card, debit card check and money-laundering fraud. Organizations can integrate IBM’s best-of-breed capabilities and paradigms together with adaptive case management to improve detection rates, productivity and customer satisfaction. 16

Real-time transaction analysis is a very welcome addition to the functionality available from SAP GRC solutions and significantly enhances the possibilities for continuous transaction monitoring as well as the obvious fraud management applications. SAP is looking forward to the prospect of exploring these possibilities further with customers. 17

SAS provides software components designed to detect and prevent fraud and improper payments, as well as manage efforts against them, for organizations in banking, health care, insurance and government. The framework includes components for 18:

• Detection and alert generation – Enables systematic detection of suspicious activity. • Alert management – Provides capabilities for scoring, de-duping, prioritizing and routing

of pertinent alerts to appropriate resources.

• Social network analysis – Uncovers previously hidden linkages and makes them visible. • Case management – Facilitates the investigation, capture and display of all information

pertinent to a case.

• Real-time authorizations – Looks at all card transactions, including purchases, payments and nonmonetary transactions.

How can business intelligence solve the fraud issue?

BI can help in verify identity data and ensure that the right customers are accessing their accounts in order to reduce risk exposure and potential losses. In terms of identity verification products, BI could verify identity by matching past transaction behavior such as system IP or 21

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location, total purchasing amount, etc. Using this information they can automatically verify and populate an address, verify the applicant's phone number, validate through government identity such as resident permit, and check government files for a match. Furthermore, business intelligence could verify applicant information by incorporating identity verification and knowledge-based authentication into applications.

Location intelligence will help in reducing frauds in government, healthcare and insurance frauds. For example, it could help better understanding of the location and temporal distribution of people and their assets, improving the estimation of risk and better risk management and helping to visualize the whole group of individuals that are associated with one another through data such as address, phone, vehicle, among other things.

Avanade’s value proposition in Fraud Management

Leveraging Avanade’s shared industry experience, Microsoft exclusive expertise, and integrated capability with location intelligence, Avanade can provide BI as a service to tackle identity and claim fraud issues in the financial and healthcare sectors respectively to allow for real time monitoring to better predict and prevent fraud.

Capability Required

Predictive analytics is a blend of tools and techniques that enable organizations to identify patterns in data that can be used to make predictions of future outcomes. Utilizing predictive analytics and business intelligence solutions to improve fraud detection and risk management is an area of great opportunity. Predictive analytics will help to identify risks and opportunities using transactional, demographic, web-based, historical, text, sensor, economic, and unstructured data. Fraud management requires advanced BI models that can apply new predictive analytics solutions. 19

In order to build up this capability, following steps need to be taken into account19:

• Build capability in fraud management: how to tackle fraud problems across various sectors

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• Build capability in predictive analysis and better algorithms such as matching algorithms to detect anomalies?

• Capability in integrating predictive analysis with BI solutions and big data

• Requires different domains of knowledge like financial, economics, business practices and law.

• Techniques are also needed to eliminate false alarms, estimate risks, and predict future of current transactions or users.

• Techniques used for fraud detection fall into two primary classes: statistical techniques and artificial intelligence.

The capability required for different sectors can vary. For example, in healthcare and insurance: capability to detect fraud and improper payments before claims are paid and capability to identify profiles and patterns from known fraudulent case needs to be built up. In banking and retail sectors, Avanade needs to develop solution for fraud in online payment and credit in banking and retail. Furthermore, online retailers can use big data analytics to process their sales transaction against known patterns of fraud, to detect fraud in real time or it could be too late to catch the criminals.

How to Deliver

Data mining and ad hoc testing are key elements in the delivery model of the fraud management capability. Data mining to classify, cluster, and segment the data and automatically find

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associations and rules in the data that may signify interesting patterns, including those related to fraud is the first piece of the puzzle. Ad hoc testing could further be applied to identify transactions, rule based algorithms could help flag suspicious correlations and well-tuned algorithms (e.g., neural networks) could recognize pattern and optimize it. By utilizing stream processing, Avanade could realize real time detection 20.

Personalization

Industry Analysis

Continued uncertain economics put new pressures on retailers. Brick and mortar retail are increasingly dependent on IT as their profitability is under intense pressure due to the emergence of online retail. Retailers already know how to use customer data to run their brick-and-motor operations and they have been digging through reams of website analytics for at least a decade now. However, data did not really get “big” until an explosion in smartphone use and social media addiction, resulting in the need for more agile, relevant marketing1. According to an online report, 68% of marketers say personalization based on behavioral data has a high impact on ROI and 74% of markers say personalization has a high impact on loyalty of customers.21 However, only 19% actually do it.21 Such a big gap highlights opportunities for BI service providers. Nevertheless, challenges also exist. For instance, there are 45% of retailers not using data effectively to personalize marketing communications, 42% of marketers not able to link data together at the individual customer level, and 39% said data collected too infrequently or not quickly enough 22.

Competitors

PriceStrat@Analyzer: Dashboards and report, optimization Tracker Dashboard measure

performance against forecast so as to assess effectiveness of pricing decisions, discover trends. Promotions Summary Dashboard illustrates the effectiveness of advertising and promotional scenarios and their potential cannibalization effects. Competitive analysis dashboard presents competitive data at multiple levels – including category, department, zone and store – so key 24

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decision makers can monitor competitive position in the market and quickly make appropriate changes to improve their edge. 23

SAS Revenue Optimization Suite based on SAS 9: addresses pricing issues, allows modeling

pricing, managing pricing, set prices through the lifecycle, forecasting revenue with taking seasonality into account, etc. SAS adaptive customer experience, SAS customer intelligence builds customer experience (example – analyze demographic, geographic and other metrics of customer, provide them offers; analyze in real-time, provide offers in real time) by combining online behavior of the customer and his in-store behavior. 24

SAP solutions: Sales Price Calculation in Retail Creation of site price lists: calculating sales

prices using competitors’ prices, market-basket, price points and price family. Besides, SAP also has sales price calculation in wholesale. 25

IBM RBIS solutions: for marketing and merchandising (demand forecasting,

allocation/assortment analysis, category management, promotion performance, price optimization, etc.), product and service management (core business reporting, vendor performance, etc.), store operations (sales performance, location analysis, employee management, loss prevention, etc.), customer management (purchase, repurchase and cross-purchase profiles, demographic analysis, acquisition and defection reports, campaign response analysis), and multichannel execution (e-commerce analysis, catalog analysis). 26

How business intelligence can potentially create value for retailers?

First of all, business intelligence could enhance business decisions by helping retailer decision makers to understand shopping patterns, aggregate information, and speed to generate detailed insights as well as improve a range of business decisions from in-store layout to merchandising.

Secondly, business intelligence could enhance the personalization experience. It could combine customer preferences with location information and a daily updating data point such as weather 25

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can open up new opportunities for personalization therefore, provides better personalization experience for users on smartphones and online.

Lastly, business intelligence could reward loyal customers. Retailers could launch smart discount programs based on customer’s purchasing history or reward members with incentive deals and promotional packages.

Avanade’s value proposition for personalization

Leveraging Avanade’s shared industry experience, Microsoft exclusive expertise, and integrated capability with location intelligence, Avanade provides personalization BI as a service in the retail sector to enhance the loyalty of customers hence increases the clients’ profitability.

How to Deliver

In general, Avanade would like to provide business intelligence service to retailers based on mobile devices by integrating location intelligence and dynamic pricing. For business clients, retailers can use Avanade’s solution to understand shopping patterns, aggregating information on foot-traffic density and speed to generate detailed insights about where shoppers slow down and speed up in response to promotions and advertising, and then linking these patterns with data on product purchases, customer demographics, and historical buying patterns.

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Such granular intelligence can help to improve a range of business decisions from in-store layout to merchandising. Also, such a solution could also help retailers to launch geo-targeted advertising, such as coupon, smart discount program. For example, consumers who choose to receive geo-targeted ads might have a personalized advertisement for a favorite store pop up on their smartphone when they are close to that store. Another similar example is if a smartphone user meeting with friends at a bar or restaurant might receive a coupon offer for drinks or food from that establishment, incentivizing the smartphone user to further patronize that establishment.

Long-term Opportunity: Location Optimization

In addition to the previous two proposals, in the long term Avanade could also apply location intelligence into the location optimization area. Currently, commercial banking and retailers are suffering on resource allocation and how to optimize their sub-offices or stores. Location intelligence could help retailers relocating the franchises to the suitable locations according to the traffic density, for instance. It could also help retailers to better arrange product range, customized for location and therefore increase sales in different geographic areas. For commercial banking, by implementing location intelligence, the bank branches and the ATM machines can be relocated to more high traffic areas. The risk and losses connected with closure of certain branches can be assessed and reduced and also resource allocation can be optimized. This is an opportunity for Avanade to explore at a later date that appears promising and meeting key needs of the market.

Marketing Strategy

With any recommendation to expand sales, there must be a marketing plan to support this and help the organization to effectively reach the target audience. In the case of my recommendation, I will seek to reach a customer group that stretches from healthcare to retail to the financial sector.

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Need to Raise Awareness

There is a clear need to develop the BI service line at Avanade. Awareness of Avanade is now in the market, coming in at a mere 9%. 27 There is significant room for improvement in this respect and ample opportunity for Avanade to capture further brand awareness. According to the brand awareness internal report from 2013, Accenture and Avanade both possess the same amount of top of mind awareness as Logica with Atos, Centric, and Capgemini surpassing by significant percentage points. This recognition did not change by much, approximately one percentage point when the surveyed group was presented with a list27. This data points to an overall brand recognition issue that calls for changes in the marketing strategy to bring more knowledge about Avanade and its competencies to the market.

Furthermore, there is a capacity for growth within the Microsoft BI solution capability awareness as well. Gartner puts the Microsoft BI market share in the Netherlands in 2012 at 7.48%. 28 “Three of Microsoft’s biggest competitors: SAS Institute, SAP, and IBM comprise more than 50% of the market share in the Netherlands.” 28 The lack of market share points to a potential issue with the Microsoft BI solution capability awareness within the Netherlands. This has negative effects on Avanade’s awareness as well because Avanade services are centered on the Microsoft product.

With new recommendations comes a requirement to raise awareness around the new capabilities suggested. Like any new product or service, the market must be educated on the benefits and capabilities of the new competence. If a new offering is not marketed appropriately to the market, then there is a risk that the launch falls flat and does not really “take off.” It is of utmost importance to spread the word in the beginning stages so potential customers can see this new capability of Avanade to meet their business needs.

Increased internal awareness of BI capabilities could increase sales via cross-selling. At this moment, there is a lack of awareness internally of what the BI solution can offer3, and I believe this would hold true for the new capabilities suggested unless addressed. It is as simple as this, Avanade’s employees are the most powerful source to spread the word from the inception of the 28

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project, able to leverage current customer contacts and bring these new capabilities to an already loyal customer base. It is in this channel that Avanade has a very large opportunity to cross-sell BI solutions alongside other service line offerings.

Cost and Benefit Analysis of Proposed Plan

The above cost/benefit analysis was created based off of projected cost information received from internal sources. I gauged what the prospected benefit of the various elements would be and also the level of speed of impact. These three elements brought me to conclusions that in terms of which elements require the most attention are social media, boot camp, and sales pitches because these strategies were the lowest cost, high perceived benefit, and high speed of impact. Other attractive options are Google Ad Words, Incentive Programs, LinkedIn PPC, and Pilot Projects as all of these also maintain a high speed of impact, high perceived benefits, but however, come at a higher cost.

Based on this analysis it was easier to see where the priorities should lie as far as implementation of the plan. The action plan that follows strikes a balance between speed of impact, cost, and amount of benefit.

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Action Plan

From a marketing standpoint, there is much to be done in order to grow the awareness for these suggested capabilities both internally and externally. The best way to carry out this type of comprehensive strategy is through a staged approach, first building awareness within the company to form a strong knowledge base in Avanade and then secondly to build the brand awareness externally to attract and capitalize on the customer base. The vision powering the marketing strategy is to increase brand awareness of Avanade’s integrated BI offering. The business goals associated with this plan are to: increase brand awareness externally, Increase Microsoft BI product capability knowledge internally and externally, and to make Avanade the preferred BI service provider for Fraud Management & Personalization, and Location Optimization solutions.

Internal

The internal plan has several steps with each being an important element to launch the new capabilities internally.

First of all, education of the business developers and other customer-facing staff is essential. Avanade must educate this group of people on the functionality and benefits of the proposed capabilities to be developed. This involves a boot camp which would take from two to three days with a target enrollment of fifty people. It has been shown in the past that these types of trainings can be effective in instilling knowledge, albeit at a high level, in a quick amount of time. To supplement this, Avanade would also want to provide additional materials online so that employees can train on the new offerings on their own time. Included in this set of materials would be deliverables such as webinars, white papers, and demonstrations with further plans to share customer success stories via email blasts. It is this combined approach with online and offline education strategies that will provide employees with a comprehensive knowledge base of the new capabilities.

The next step in my internal plan is to encourage cross-selling. The proposal is to do this via an attractive incentive plan. There is currently an incentive plan of sorts in place, but it is more or 30

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less to meet various sales targets. My proposal would be to add an element of cross-selling incentives, an extra bit of encouragement to position other service line offerings, and name the BI service line per recommendations, is needed. With 95% of customers returning to Avanade after a successful experience previously29, Avanade can use the incentive program to encourage customer-facing staff to leverage this loyal customer base to expand other service lines as well. The incentive program would be simple in nature and a mix of monetary, branded gifts, and recognition efforts. Another interesting topic to consider would be to incentivize customers to participate in piloting new capabilities, which will be further covered shortly.

To launch the introduction of the new BI capabilities, Avanade can start with a kick-off event. The intent of this event is to reinforce the information given in the online and offline channels internally, introduce the incentive program, and generate enthusiasm for Fraud Management, Personalization, and Location Optimization capabilities. The kick-off event would be a platform from which to launch the offerings and reach any additional employees that were not previously educated on the new functionality. The program would consist of a high level overview via a quick presentation, question and answer period, possibly a quiz, and naturally light snacks and beverages. Through this event Avanade would aim to get the employees excited and ready to bring these new capabilities to their customer contacts.

The last step to internal plan would be to utilize the loyal customer base that Avanade possesses to participate in pilot projects. The use of pilot projects would help to establish knowledge and experience in deploying Fraud Management, Personalization, and Location Optimization to attract further business via external channels at some point in the future. This initiative is covered further in the financial section as it is a revenue generator. While this is a costly venture, pilot projects can lead to great benefits for Avanade in the way of enhanced credibility in fraud management, personalization, and location optimization.

External

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The external approach to reaching the market is a two stage approach, first focusing on implementing a digital strategy and then leveraging those customers to build brand awareness.

Digital Strategy

Digital strategy is a key component to many marketing strategies at this time. With more and more of the population interacting via social media and obtaining information on the web, this aspect of the strategy is an effective way to reach Avanade’s target customers. Digital strategy is founded on campaigns in Google Ad Words, LinkedIn pay per click, and Twitter. In addition to those campaigns, webinars would also be a source of valuable information to customers both current and potential.

Google Ad Words is an attractive communications channel to explore, reaching users on an efficient basis via target marketing. Research has shown that “consumers exposed to display ads are on average 155% more likely to search for brand and segment specific terms” 30, thus proving that it is a considerable way to grow brand awareness specifically. Furthermore, by using Google Ad Words, opens the possibility to reach the 18,100 searchers for “Business Intelligence” monthly in the Netherlands 31 alone. An important aspect of our target audience is the level of the targeted person, with our aim being to reach C-level executives and other senior managers as those are likely the main decision-makers in the organization. Avanade can likely reach these decision-makers via Google Ad Words given that “51% of executives click on mobile paid searches.” 32

Due to its facilitation of ultra-targeted marketing, LinkedIn PPC (pay per click) is another avenue for exploring a digital strategy. Currently there are four million Dutch LinkedIn members, with a whopping one million of those being decision-makers. 33 This one million represents a very active, captive audience of LinkedIn users that are likely more receptive of being marketed to and are in a position to act on their interests. Currently, Avanade corporate is the lead on LinkedIn activities, but that will change soon as LinkedIn changes its structure regarding how organizations are organized to allow for regional offices underneath a corporate umbrella. Once this change has been made, Avanade Netherlands can deploy its own marketing 32

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initiatives in PPC services, but until then an arrangement would have to be made with corporate headquarters. The specific targeting abilities are what set LinkedIn PPC apart from any other marketing source with the ability to target based on job title, job function, industry, age, gender, company name, company size, and LinkedIn group. 34

Twitter has also been shown to be a piece of the puzzle when creating a digital strategy. Through a mix of product specific promotion and relevant articles, Avanade can reach audiences in a fun and interactive way. Research has shown that consumers do not like to merely be marketed to, but seek more of a conversation in social media. Twitter is the perfect venue to do this in. Through a schedule of tweets of roughly 3 per week, Avanade can raise awareness of the new BI offering without bombarding followers of Avanade. The current tweeting schedule is approximately ten per week, so three per week is a reasonable amount to dedicate to the BI service line. Sample tweets could range from “Did you know healthcare fraud accounts for 1.2 billion euros annually in the Netherlands? Click here to see what Avanade can do to reduce the risk to your organization” to “20% of the most loyal customers generates 80% of the revenues. Avanade’s new integrated solution can help retailers retain these customers.”

Long-term Strategy

Once the digital strategy has been launched, the customer base will presumably grow as knowledge of the fraud management, personalization, and location optimization capabilities is spread throughout the market. The next step is to leverage this new customer base of users and integrate them with current customers that choose to utilize the new offerings.

Developing user groups is one method to engage and involve customers in a product or functionality. User groups provide a healthy environment through which customers can gather and interact to share experiences with the capabilities, establish best practices, and also help Avanade to improve in the development of the capability for future use. This method is efficient in bringing customers together and even influencing customers to become more involved in the process, thus feeling like they have a stake in the relationship as well. This could be used to

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Avanade’s advantage in the long term to not only retain a loyal customer base, but also gain experience and learn from customer suggestions.

Furthermore, one-on-one workshops are another important step in the long-term strategy. Previously, Avanade has attempted to develop round-tables and discussions of this nature, but this is a relatively low commitment scenario where attendees can potentially drop out, raising the costs to Avanade. One-on-one workshops would solve this problem in that it creates a more high commitment scenario. Workshops would be organized first with the current customer base, demonstrating the capabilities first hand and explaining the benefits to the organization. The next step after that is to expand to the potential client market, bringing the functionality and putting it in the customer’s hands to see how it can be done and what it can bring.

The most effective aspect of the long-term strategy is the customer case study plan. Customer case studies are vital because it demonstrates to potential customers the value and benefits of a capability by showing how it has successfully been used by previous customers. This serves as a great reference point for Avanade to further penetrate the market and build its reputation.

Marketing Plan by Year

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The above plan was created in order to generate a timeline through which to implement proposed marketing strategy. In Year 1, there is a “mobilization” phase which is comprised of the internal aspects of the strategy plan: education of business developers, kick-off event, and webinars. Other initiatives from the expansion stage also begin in the timespan of year one, causing some overlap. In the “expansion” stage is where Avanade will implement social media, Google Ad Words, LinkedIn PPC, sales pitches, and packaged solution incentive. Year 5 marks the “sustaining” period consisting of customer case studies, user groups, and one-on-one workshops.

The three stages of this plan mark a move from internal strategies to external then transitioning into a different stage of the external period where customers are leveraged to gain further awareness in the market. The costs along the bottom line represent conservative estimates of the marketing plan expenditure based on internal estimations. These estimates were made with caution and conservativeness as it is unrealistic to propose a strategy that would cost a large percentage of anticipated revenues. Especially in the case of the BI service line which has a very minimal, if any budget at all at the moment, to propose a large marketing budget would be unreasonable. The strategy proposed could be scaled up, i.e. targeting a larger number of clicks 35

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in Google Ads or increasing the social media budget, if the demands on marketing change. This would be a realistic proposal at this moment of time, which of course can be adjusted in the future if the market needs change.

4.4 Solution Implementation and Challenges

Avanade needs various technology, knowledge and resources to develop and implement the solutions. The recommend solutions: Fraud management solution, Personalization solution and location analytics are scalable to various industries. It means the technologies used behind these solutions will be common and can be used for various Industries.

To develop and implement these solutions, Avanade needs following resources and knowledge.

1. Technology: These solutions require Microsoft BI tool, knowledge of advance algorithms such as matching algorithm etc. and knowledge of Microsoft Bing platform. But Avanade has unique and valuable resources such as developers, consultant etc. which are required to develop the solutions. Also Avanade gives consultation revolving around Microsoft BI products so they have sound experience and technical knowledge required to develop these solutions. One of the main advantages to develop this solution is, Avanade has partnership with Microsoft, and so if Avanade lacks some technical skill or experience to develop these solutions, it can take help from Microsoft.

2. Business and Domain knowledge: Avanade needs some personal that has business and

domain knowledge. To understand the business requirement and business processes, Avanade should have understanding of Industries. For instance, to understand the frauds in banking sector, Avanade should have clear understanding of banking transactions. After interviewing BI head and HR head, it was clear that Avanade does not possess industry and domain knowledge. But Avanade has one advantage in terms of partnership with Accenture. Then can take help from Accenture to understand the domain specific knowledge and develop slowly this capability.

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5. Conclusion

5.1 Conclusion

A lot of research and analysis has gone into creating the recommendations. Potter five forces helped to identify the industries in which Avanade should target, especially in the industries where the Accenture is weak. After identifying the industries, Potter generic strategy has provided the framework to look for the new opportunities and helps to identify the opportunities where Avanade can provide the solutions differently and earn premium that exceeds the cost. After identifying the opportunities and to determine the cost incurred on development of the recommended solutions, I have based RBV theory to identify the kind of resources Avanade have or needs to develop to gain competitive advantage and match the core competencies of Avanade and new competencies required to develop and implement the solutions.

As mentioned above, Potter differentiation strategy has helped to identify the gap and opportunities that will create gap between the solutions provided by Avanade and competitors. The market analysis for Netherlands has provided various new market opportunities such as fraud management in government sectors, personalization solutions in Dutch market and big opportunity for location intelligence services. But the key step in recommending the solutions and devising a differentiation strategy was to determine how the Avanade can provide the solutions for these new opportunities differently from a competitor’s. Another key step in recommending solution was to determine how much premium Avanade will get in providing the recommended solutions. Avanade consulting services comes into higher bracket of cost they charge on providing the services and get high premium on their services. Also the economics inherent in generic strategy require that the premium exceeds the extra cost incurred in being. So premium incurred in providing the recommended services shall exceeds the cost incurred on development and implementation of recommended solutions. To differentiate the recommended solutions from the existing solutions provided by the competitors, new technologies such as location intelligence can be integrated into recommended solution. For e.g. Avanade can provide fraud management solutions or personalization solutions integrated with location intelligence or location analytics will create sophisticated, effective and unique solutions which are not provided 37

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by competitors in Dutch market. Since the solutions are unique, rare and effective, Avanade can ask for more premiums from clients to implement the solutions.

Another important thing that needs to take care of was to determine weather the recommended solution’s cost do not exceed the cost of developing the recommended solutions. For that, both market opportunities and internal resources were used to determine the cost incurred to recommend the solutions. From market side, the focus was to find the solutions that can be scalable to various industries. For e.g. Fraud management BI solution can be scaled to various industries such as Public sector, health care, Insurance etc. and Location intelligence BI solutions can be scaled to various industries. I also looked inside the firm to determine whether Avanade has rare and unique resources to develop and implement the solutions. For these solutions, I identify three kinds of resources required by Avanade to develop and implement the solutions. First Avanade need BI developers to analyses the technologies and develop the solutions, second Avanade needs consultant to understand the problem faced by customers and can recommends the new solutions to solve the problem and third, business people who has expertise in different industries such as Insurance, Banking, Public sector etc. to understand the business process related to specific industries. Avanade can build competitive advantage with recommended solutions by acquiring or developing bundle of above resources which are unique, valuable and rare in market. The various interviews with BI head and Human Resource head has helped to identify the gap between kind of resources Avanade has and kind of resource Avanade need to develop and implement the recommended solutions. . The resource-based view (RBV) is that a basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm's disposal. To transform a short-run competitive advantage into a sustained competitive advantage requires that these resources are heterogeneous in nature and not perfectly mobile. Effectively, this translates into valuable resources that are neither perfectly imitable nor substitutable without great effort. If these conditions hold, the firm’s bundle of resources can help it sustain above average returns.

To succeed in current market, Avanade should predict the future challenges and opportunities in Dutch market. To meet the new future demands, Avanade should develop the core competency through continuous improvement. Also to understand and develop the core competency, Avanade should first needs to identify that how the new opportunities can be cashed by providing unique solutions to gain extra premium. In 1990 paper "The Core Competence of the

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Corporation," C.K.Prahalad and Gary Hamel argue that "Core Competences" can be the most important sources of uniqueness. Through core competency, Avanade can find new markets for its services or provide the current services in unique way. A core competency of a company evolves from specific skill set of knowledge and technologies that provide unique value to customers. Avanade’s core competency is in providing consulting and solving customer’s problem through Microsoft BI product. So Avanade can use the current core competencies to estimate the future challenges and opportunities of the business to stay ahead from competitors.

To develop the above competencies and recommended solutions, Avanade’s top management should become proactive and start embedding the entrepreneurship spirit in the company. The entrepreneurial process is an interactive combination of three components which ultimately result in market innovation (John S. Park, 2005). The three components are Entrepreneur, Knowledge and experience of company and Technology. Entrepreneurs are often conceived of as unique and innovative in their approach (Schumpeter, 1934). Avanade has good knowledge, experience and expertise in Microsoft technologies along with collaboration with Microsoft. Avanade should create a location intelligence capability internally and deliver this to the customer in the form of Fraud Management and Personalization solutions, meeting the current and foreseeable market needs. In the long term Avanade explores a Location Optimization solution further building on the location intelligence capability, providing further benefit to customers. Instead of reaching to new customer, Avanade should create new market and focus on innovative solutions to attract old and new customers for new solutions.

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References

1. http://www.avanade.com/en-us/services/pages/business-intelligence.aspx

2. Porter, Michael E. “Competitive Strategy: Techniques for Analysing Industries and Competitors.” 1980 3. Gartner All Enterprise Software Market Share, Worldwide 2011-2012

4. Forrestor Wave: Big Data Predictive Analytics Solutions, Q1, 2013 5. Graph source: Gartner but in internal BI Market Intelligence Report 2012

6. http://www.computable.nl/artikel/achtergrond/business_intelligence/4551994/1277145/sap-blijft-grootste-in-versnipperde-bimarkt.html

7. McKinsey global institute research in 2011

8. http://www.sensysmag.com/spatialsustain/reference-for-80-of-data-contains-geography-quote.html 9. http://www.nytimes.com/2012/11/15/world/europe/netherlands-sets-model-of-flood-prevention.html?pagewanted=all&_r=0. 10. http://www.cbs.nl/en-GB/menu/themas/veiligheid-recht/publicaties/artikelen/archief/2010/2010-3024-wm.htm 11 http://www.huffingtonpost.com/2012/03/29/healthcare-spending countries_n_1388306.html 12 http://www.microsoft.com/en-in/bi/LearningCenter/resources.aspx 13 http://futureofenforcement.com/?p=966 14 http://www.insuranceinsight.com/insurance-insight/feature/2242017/time-to-address-international-pmi-fraud 15 http://www.dutchdailynews.com/internet-banking-fraud-increase/ 16 http://www-01.ibm.com/software/websphere/industry/banking/risk-fraud-management/ 17 http://www.redbooks.ibm.com/abstracts/redp4545.html 18 http://www.turnkeyconsulting.com/blog-entry/_/fraud-management-the-latest-addition-to-the-sap-grc-family/268/ 19 http://www.slideshare.net/jamet123/predictive-analytics-in-decision-management-systems 20 http://en.wikipedia.org/wiki/Data_analysis_techniques_for_fraud_detection 21 http://upstreamcommerce.com/blog/2013/06/08/10-major-benefits-retail-analytics-personalized-marketing-content 22 http://visual.ly/retailers-guide-big-data 23 http://kssretail.com/solutions/pricestrat-analyzer/ 24 http://www.sas.com/industry/hospitality/revenue-management/ 25 http://www54.sap.com/solution/industry/retail.html 26 http://www.ibm.com/smarterplanet/us/en/retail_analytics/ideas/

27 Internal Brand Awareness Report, 2013 28 Internal BI Market Intelligence Report 2012 29 Internal Sources 30 http://www.wordstream.com/blog/ws/2012/08/13/google-adwords-facts 31 https://adwords.google.com/o/Targeting/Explorer?__c=1000000000&__u=1000000000&ideaRequestType=KEY WORD_IDEAS&defaultView=3 32 http://socialproofinteractive.com/online-marketing/6-ways-to-generate-more-b2b-leads 33 http://hosting.ber-art.nl/linkedin-4-million-netherlands/ 34 http://www.clickz.com/clickz/column/2230952/guide-to-linkedin-ppc-ads-how-to-succeed-in-2013

35 Achmea annual report, 2012 36 HBD

37 Source: 41st parameter, case studies 38 Source: 41st parameter, case studies 39 Forbes

40 Qubit, case study

41 Esri: Using location optimization to Maximize Value of BI 42 Gartner

43 Assumption based on internal sources

44 Opportunity recognition and product innovation in entrepreneurial hi-tech start-ups: a new perspective and supporting case study, John S. Park, 2005

Analysis of Dutch BI market : market opportunities for avanade’s Microsoft BI solution.