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© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS Software Business Leader Forum
Building up a Big Data SaaS businessDr. Manuel Bähr
Where are we? How we got there? Next frontier
https://www.pexels.com/photo/lighthouse-shore-coast-coastline-9576/
Leading SaaS provider of predictive applications in retail.
3
Decisions beat insights, any time.
Prof. Dr. Michael Feindt - Founder of Blue Yonder
How many items should we offer?
At what price? Whom should we tell about it?
Replenishment Optimization
Pricing Optimization
TargetingOptimization
Our customers
Blue Yonder serves the hyper-competitive retail market
Data based on Deloitte, Global Powers of Retailing 2013-2016
Germany
%
-3,00
-0,63
1,75
4,13
6,50
2011 2012 2013 2014
0,30,7
-0,1
0,4
3,13,53,8
3,2
Revenue Profit
UK
2011 2012 2013 2014
-2,2
0,91,4
3,6
-0,6
0
1,7
3,3
US
2011 2012 2013 2014
3,03,5
3,1
4,3 4,5
3,0
4,3
6,3
Automation leads to better results
0%
2%
4%
5%
7%
Human decisions Automated decisions, same stock levels
5% average out-of-stock rate
1% average out-of-stock rate
Our journey
2014
Warburg Pincus commits $75m Investment
first go-live: Customer Targeting
German Innovation Award
2008
company founded in Karlsruhe
2011
first go-live: Replenishment
name change to “Blue Yonder”
2013
first go-live: Online Pricing
office in London, UK opened
2015
first go-live: Brick&Mortar Pricing
Technology Review: 50 most innovative companies
Gartner: Cool Vendor in Data Science
2012
Retail Technology Award for best enterprise solution
Where are we? How we got there? Next frontier
https://www.pexels.com/photo/lighthouse-shore-coast-coastline-9576/
Succeeding with Big Data initiatives
Focus on the feedback loop between Data Science insights and business results.
https://www.pexels.com/photo/landscape-mountains-nature-mountain-4164/
Magic happens if you do that
Amplify fusion of domain expertise and machine learning knowledge
Improve time to value
Enable effective hypothesis validation
https://www.pexels.com/photo/field-summer-sun-meadow-625/
Implementation
Decision automation to close the loop
SaaS to shorten it by frequent software updates
Internal platform approach to enable data scientists to ship into production
https://www.pexels.com/photo/landscape-sunshine-bridge-sunrise-21786/
SaaSCustomer Benefits
Time to value
Be faster than your competitors
Value refinances investments even in PoC
Real-life timeline with very large customer:3 month to live A/B test, 12 month to full roll-out
https://www.pexels.com/photo/city-sky-sunset-clouds-96414/
Become data-driven
Acquire scarce skills on-demand
Catalyze your organizational changes
Scale as you move forward
https://www.pexels.com/photo/road-car-blurred-morning-sun-46277/
SaaSChallenges
Handing out data requires trust
Local data centers for german data protection laws
Reference customers & discretion
Add security layers via platform while still keeping high frequency of model updates
https://www.pexels.com/photo/city-sky-sunset-clouds-96414/
Relying on SaaS for core processes requires trust
PoC and A/B tests demonstrate reliability with a small blast radius
Platform adds reliability features without overburdening data scientists
https://www.pexels.com/photo/light-sea-dawn-landscape-33545/
Learnings
German retail is a hard market for SaaS
Many of our customers didn’t believe in SaaS at contract signature. Now they do.
In retrospect never starting on-premise delivery was hard but essential to keep focus
https://www.pexels.com/photo/sea-dawn-sky-sunset-6498/
Where are we? How we got there? Next frontier
https://www.pexels.com/photo/lighthouse-shore-coast-coastline-9576/
Global expansion
Keep data close to the place of jurisdiction
Jump to the next level of speed and scale
Do this with moderate staff growth to stay effective and agile
https://www.pexels.com/photo/space-earth-satelite-clouds-24978/
Blue Yonder GmbH @byanalytics_en
Dr. Manuel Bähr @manuelbahr
Get ready for the future of retail!
© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Dr. Manuel Bähr
Thank you!Use the opportunity to discuss openly with me during the break!
Head of Platform | Blue Yonder GmbH