Question

Spenser bank Inc. is a retail bank that wants to improve its NPV and its customer retention rate. The bank wants to deploy business analytics or big data analytics solutions to support marketing and other business operations to improve its competitiveness and the decision-making process.

The bank is planning to initiate a business analytics project to achieve these and other business objectives. The tasks for your group are to put together a project plan and team structure to implement business analytics application. You are tasked to complete the following activities:

1. Provide detail tasks with the estimated number of hours to complete
2. Develop project budget
3. Determine and quantify the business benefits/values

Answer 1

We will use S.M.A.R.T. approach for the purpose of solving this problem:

Detailed tasks with the estimated number of hours to complete:

• Specific: To increase customer retention, we need to increase customer satisfaction. And the goal of increased customer retention is increased in NPV. So the first task will be to know why customers are choosing other banking partners? To do this, the rating system for customer satisfaction at every touchpoint at the bank needed to be implemented. Once, enough sample size of data is gathered then it needed to be analyzed. But gathering data requires time and the correctness and integrity of data also needed to be considered. Since this data gathering involves Customers, so encouraging customers to rate the services is important.

• Measurable: The second step is to decide the parameters on which the services are to be measured. Also asking too many questions does annoy customers. So, deciding a specific question is necessary. This questionnaire can be made by outsourcing the task. Once all the questionnaire is set, then those can be put in place at various touchpoints on tabs to make the rating process easy.

• Achievable: To achieve the analytics part, experts from the same field needs to be hired. Hiring someone who is having experience in data and machine learning can help to achieve the measurement of data. They then can provide input for what more needs to be in place to measure and analyze the data.

• Realistic: Since it has already been decided that it is imperative to implement analytics, so, there is no need o reassess its viability.

• Time-bound: Any project implemented needs to be in a time-bound manner otherwise it tends to increase in costs by many folds. So, the project should be able to start within 2 months and would take a maximum of 2 years to implement.

So the tasks are: Implementing a measuring system at touchpoints, Collection of data, preparing the questionnaire, Hiring or outsourcing personnel for analytics, Completion of analysis, Set goal for each touchpoint to increase customer satisfaction score, finding out which touchpoint is having the most problem, Once the behavior of customer are known, then those particular segment of customer can be targeted more to increase profits, if not then decision can be taken based on the output.

Project budget:

Server hardware: $50,000
Software licensing (SQL Server & SharePoint): $100,000
External resource labor: $100,000
Internal resource reassigned labor: $100,000
Training & other misc costs: $50,000

______________________________
Rough guestimate total: $400,000

Business benefits/values:

Increased customer retention, Increase in NPV, Increased customer satisfaction, increase in brand value. increase in shares at stock markets, etc.