The percent of base subscribers accounted for 42

The purpose of a proof of concept (POC) is
to verify certain theories of concepts that have the real world application
potential. It is a prototype that is designed to evaluate the feasibility except
deliverables.  When it comes to the business
development and sales, a vendor may allow potential customer for the trial of
the product. This use of proof of concept helps in establish viability, technical
issues and overall direction.


Most of Business BI vendors focus on
pre-defining the requirements for the utmost success of project or POC. It makes
it difficult to to know future requirements in advance. BI requirements are
highly dynamic with consistently changing business dynamics and business users always
need to refine and adjust requirements.  

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Data collection requires enormous efforts
that take considerable time and specialists from many groups including database
administrators, developers, business analysts and data warehouse experts. Unfortunately,
business units responsible for driving business performance and lines of
business in most cases, fails to realize the value of this important and
critical data. The technology and software that make business intelligence
possible have existed for decades, enterprise wide adoption of business intelligence
has yet to materialize. The problem is then compounded when different
departments make conflicting financial or marketing decisions that may be
confusing to customers.


The initial phases have identified the
needed resources, key stakeholders and spent almost 5 weeks gathering and
analyzing marketing campaign data and purchase logs.


Overall Findings of proof of concept


The top 1 percent of base subscribers
accounted for 42 percent of all revenue. By implementing a segmentation business
intelligence solution for their marketing organization, the company possible achieve
a return on its marketing investment of 110 percent.

Distribution curve of customer
revenue is not a normal one but rather very tilted towards very few selected

Purchasing pattern of top-line customers
differs from regular customers. Where they bought products and services at
different times during the day and were influential to overall products’
success among regular users.

Without the revenue champions, company
would have certainly a low ROI.


The different standard data mining techniques
were used and ran hundreds of Monte Carlo and simulation optimizations and
produced a set of actionable marketing activities to target the right customer at
the right time using most effective channel.  


A quick implementation of a BI solution
idea on s small scale, well bounded pilot or proof of concept enables
organizations to show results in a tangible business value that could easily explained
and demonstrated, particularly where excel spreadsheets or PowerPoint
presentations were exported from an OLAP cube and presented to executives for
buy-in and approval. An additional benefit is that to have a sustentative baseline
system from which once can scale out and build the production version of ones’
BI vision.