Alexei Chernobrovov

Development of a digital transformation strategy.

GFC (Global Foodservice Company) is a Russian dynamically developing food service company. For 15 years it has been a reliable supplier of products and solutions in the HoReCa market.

As part of working with this company, a strategy was laid for the digital transformation of business processes, as well as the beginning of its further implementation and implementation.

Digital transformation is a rethinking and redesigning of business processes using promising digitalization and automation tools to achieve the maximum effect of production, economic and financial and economic activities.

For such a large company like GFC, it is extremely important to constantly develop and follow market trends, as well as transform its business processes.

What was done in the framework of this work:

• Audit of all customer systems, business processes, regulations
• Digital transformation strategy developed
• Hiring an IT team (more than 10 people)
• Integration of all customer IT systems into a single loop
• CRM creation and integration into the circuit (website and 1s)
• Restarting a website with an online store and personalization (segmentation)
• Launching mobile applications (Android and iOS)
• Demand forecasting system
• Investor Presentations
• Conducting trainings, creating materials for distance learning, regulations, instructions, etc.

Digital transformation trainings to improve qualifications for Mars employees.

For over 100 years, Mars has been making delicious and nutritious foods that millions of people love.

For such a large food manufacturer, it is always extremely important to be in the trend of the market in order to introduce and develop new operating strategies and remain competitive at the same time. In order to improve the qualifications of Mars employees in digital transformation, trainings are conducted on various topics related to Data Science, its application and active use in the field of digitalization.

The course outline offers the following set of topics:

• Introduction to digital transformation
• Databases and data manipulation
• Metrics and business intelligence
• Data-driven approach
• AB tests
• Machine learning and data science
• How a data scientist works
• Technologies in data science
• Digital business transformation
• Other technologies

During the training, students also complete practical tasks and learn to apply the knowledge gained in order to successfully implement digital transformation technologies in their work in the future.

Training on working with data and their application in the field of telecommunications.

PJSC Rostelecom (www.company.rt.ru) is the largest integrated provider of digital services and solutions in Russia, which is present in all market segments and covers millions of households, public and private organizations.

The following webinar topics were specially prepared for the company's managers:

• Data-driven management
• Data culture
• Analytics for executives
• Working with hypotheses, AB testing
• How to form and count business cases
• Cross-functional interaction with analysts

In terms of the training, special practical tasks were also offered to perform, so that students could try to apply the methods of the Data-driven approach and AB tests in their field, as well as try to analyze the proposed tasks.

More than 50 students attended the webinars.

Conducting training for the management of the Pyaterochka grocery store company.

Pyaterochka is a Russian convenience store chain operated by X5 Retail Group.

The training provided an overview of the fundamentals of machine learning and how to adopt it in the grocery store.

The following topics were covered:

• Basic Data Science Concepts
• Data Culture and Data-Driven Approach
• AB tests
• Data science mathematics
• Machine learning problem statement and metrics for assessing the quality of machine learning models
• Validation and interpretation of models

In practice, actual cases and examples of business solutions were also analyzed.

As a result, the company's management increased its competence in the field of machine learning. The management has learned to communicate with specialists in datascience in "the same language".

Training on Digital Transformation

PJSC Severstal is a Russian vertically integrated steel and mining company that owns the Cherepovets Steel Works, the second largest steel mill in Russia.

Within the framework of the training specially prepared for Severstal in conjunction with Netology, concepts such as the Information Age, Industry 4.0, Data-driven approach and also the culture of working with data in the Information Age were analyzed.

Examples of various industrial companies were considered. Their results were working with data, as it increased the productivity and success of these companies. How this experience can be applied to Severstal.

 Training of Demand Forecasting

Lenta is a Russian hypermarket chain. Managed by Lenta Ltd.

Especially for the company's management, a training was held on the Data Driven approach to data analysis with an application to forecasting demand for planning the supply of goods.

Forecasting demand in a trading enterprise is a forecast of future sales, determining the need for goods and the required volumes of purchases, drawing up orders for the supply of goods.

If you correctly combine the methods and approaches to forecasting demand, you can significantly improve the logistics of your enterprise, which in the long term can give quite large positive results.

Conducting training on the basics of analytics.

VTB Bank is a Soviet and Russian universal commercial bank with state participation. The second largest bank in the country by assets and the first in terms of authorized capital.

Within the framework of the consultation, the topic "Basics of Analytics and Data Management" was discussed in the form of a training. Analytics is an essential element in a company's success today. It helps you make informed decisions and monitor the activities of your department or the entire company.

The training included the following sections:

• How to make data-driven decisions
• A systematic approach to working with data
• Bringing analytics to business
• Data-driven decision making tools
• Successful examples of data-driven approach implementation.

Improving the Work of Recommendation System

M.Video is the leader among retail chains selling electronics and household appliances in Russia and one of the largest European companies in this segment.

In the modern world, a well-developed recommendation system is very important for such stores. After all, it has many useful tasks, for example:

• offer a discount on a complex purchase (cross-selling)
• inform the client about a new product (up-selling)
• segment the client base
• evaluate the client's attitude to the product or service.

For M.Video, an audit of the recommendation system was carried out, the work of the current recommendation system was considered, productive hypotheses were proposed for solving such problems as:

• Sample balancing
• Accounting for the hierarchy and categorization of goods
• Using proxy metrics
• Hypotheses are tested on data, possible implementation options are given.

The work carried out and testing helped to identify the main problems, and the proposed solutions for their elimination were able to improve the recommendation system.

Training on digital transformation in the field of logistics and supply.

Decathlon occupies a major position in the global market. It is a French company specializing in the design, manufacture and retail of sporting goods for over seventy sports.

In the industrial age, it is important to develop a company's business processes and carry out digital transformation.

Digital transformation implies direct changes in the business processes of an enterprise. It leads to a change in almost every mechanism within the company - production, delivery, product service, customer interaction, and so on.

Therefore, directly for Decathlon, the importance and necessity of digital transformation was considered, what benefits it brings and how to implement it in the field of logistics and supply.

For this, successful examples of the implementation of digital transformation were also analyzed.

The effective pricing has been set, increasing the percentage of sales and total profits.

Akvalink is a stable, reliable and constantly growing company specializing in the sale of plumbing wholesale and retail in St. Petersburg and Leningrad region.

Choosing a right algorithm of setting prices and developing the project helped Akvalink to establish an effective pricing taking into account all strategies and aims of business.

Sales management has become easier, the firm has been able to directly manage the proportion between value and price for the end buyer, as well as the use of flexible customer exposure, by using such tools as discounts and coupons, has become more efficient and profitable.

Educational trainings on Data Science on themes: “Machine learning and implementation of Data Science” and “Data driven managing business”.

Х5 Retail Group leading multi-format modern retailer, creates, develops and actively manages portfolio of retail brands each of which with a distinct value proposition and brand, and which together target all categories of Russian customers. X5 is Russia’s largest food retailer - one of the most exciting consumer markets in the world. 

Educational trainings were carried out for managers and for them were special materials and presentations prepared: “Machine Learning and implementation of Data Science” and “Data driven managing business”. 

The basic Data Science terms were pinned down and a special attention was paid to a Data-driven approach in making decisions. How to work with data and what is the culture of working with data? What is the hierarchy of metrics? How to make decisions correctly and how to analyze them? 

For that purpose there was also a practice of decision-making held and the most succesful cases of implementation data science shown. 

The project is under NDA. 

There was a task to analyze the project for the Data Products Accelerator.

Data Products Accelerator is a program that develops the culture of using data by employees, and also it improves the implementation of modern technologies in the framework of the company transformation.

What was necessary to do:

A scientific assessment of data analytics cases in the context of the development and implementation prospects in the company.

Cases were taken in order to improve the effectiveness in such business fields as: management of risk, service, expansion, staff, bulk purchasing, internet-commerce, logistics.

The analysis of cases in the framework of the project was consisted of the following steps:

- A detection and estimation of the objective metrics for scoring: complexity of the task, quality of data, team personnel, projected implementation time, expected income;

- A detection of necessary resources for the execution of each project: offering of solving instruments, necessary data for dataset, recommendation on objective team personnel;

- A description of the main KPI for each project;;

- Preparation of the same cases with its description of tasks and results of implementation;

What did the business get:

The understanding of the effectiveness of Data Science projects, the working screening model, the improvement of the quality of work in virtue of the implementation of Data Science and Big Data projects.

Training on working with Big Data, data analysis, understanding of business and its structure.  

National Settlement Depository (NSD) is a Russian non-bank financial institution, central securities depository, and professional securities market participant engaged in depository business.

Within the framework of developing the company culture and improving the process of storing data, a module for Data Science has been made for the NSD in cooperation with Netology. The course was attended by more than 100 employees, they have known about Data Science, how and where it is used, what is the culture of data gathering, how to gather data correctly and how to store data. Also there were shown different examples of using Data Science in our life.

In virtue of the course the employees could increase their knowledge in the sphere of Data Science, they have been taught how to use the knowledge in practice.

Project under NDA.

One of the biggest banks in Russia required web-analytics.

The main aims of the project were to identify the problems with the website and offer the best structure based on the analysis of customer’s behaviour, also to improve the work on the site settings.

For this purpose the following steps were done:

- Analysis of traffic distribution: leaders in refusals, attendance, involvement;

- Analysis of customers’ behaviour;

- Search analytics;

- Creating a site map based on analytics; 

- Improving the site structure and increasing traffic;

- Identification of anomalies;

- Analysis of the site menu.

With that project Bank re-designed the menu, significantly reworked the site and improved the site structure. Exact numbers and results are under NDA. 

Reducing of operating costs of over 2 million per month.

SkyEng.ru is one of the biggest online-schools in Europe for learning English. The company required an automatization of the Customer Journey Map.

Customer Journey Map (CJM) is a visual representation of every experience your customers have with you. It helps to tell the story of a customer's experience with your brand from original engagement and into hopefully a long-term relationship.

The system of CJM was built specifically for that company taking all special aspects of company and work in this sphere in order to improve interaction with clients, also the necessary steps for that improving were worked out. 

What did the business get: scoring model for customers, in other words, predicting the probability of becoming a client after the application. 

Implementation of effective marketing strategies and the growth of revenue more than on 50%.

Internet-shop Pult.ru was established in 2003. Throughout its history the company was developing and improving the style of work, improving skills and professionalism of the employees. Today Pult.ru - is one of the biggest internet-shops in HI-FI/ HI-END technology. 

The company required a Customer Journey Map and a system of analytics based on  PIWIK.

Customer Journey Map (CJM) is a visual representation of every experience your customers have with you. It helps to tell the story of a customer's experience with your brand from original engagement and into hopefully a long-term relationship.

In the process, a marketing team was formed, a marketing strategy was developed and implemented, also a system of analytics was built that increased the effectiveness of the company. Moreover, the case was nominated for the Oborot.ru prize.

CJM system was created. Effectiveness of marketing channels increased up to 10%.

Mazda.ru -  japanese auto manufacturing firm, that is producing autos «Mazda». In the 2015 Mazda became the world’s fifteenth company for the production of autos.

There was developed personalization on the website and in advertising channels, so was made a forecast of a model that a user potentially wants to acquire. As a result, a personalized pop-up and a system of Customer Journey Map were made.

Customer Journey Map (CJM) is a visual representation of every experience your customers have with you. It helps to tell the story of a customer's experience with your brand from original engagement and into hopefully a long-term relationship.

The main aim of business is to increase its conversion. For this purpose you need to send a user at such customer journey map and for the branch of graph that will bring revenue and increase the target metric.

What did the business get:

The company effectively distributed financial and management resources, increased the effectiveness of marketing channels.

The implementation of the system of procurement forecasting, reducing the burden on the purchasing department and improving the quality of purchasing.

Babadu.ru — online-hypermarket for happy parents. It is one of the leading children’s online-shops in Russia.

The shop sells a huge variety of goods for children and their parents: clothes, toys, technics, furniture, etc. So, all these things the company has on its warehouses - and the longer the wares are there, the more expensive it costs.

In order to choose an effective method of purchasing, there was a system of procurement forecasting developed.

The system is building a forecast for the optimal purchase of goods, considering current balances, traffic forecast, conversion forecast on the website and other factors.

What did the business get:

The implementation of this system has significantly reduced the burden on the purchasing department (up to 400 man-hour per month), as well as improving the quality of purchasing and improving working capital indicators.

These analytical systems based on data allow to manage the business and target the necessary goals (revenue, earnings for order, etc.)

Babadu.ru — online-hypermarket for happy parents. It is one of the leading children’s online-shops in Russia.

The shop sells a huge variety of goods for children and their parents: clothes, toys, technics, furniture, etc. So, all these things the company has on its warehouses - and the longer the wares are there, the more expensive it costs.

The main task in this work was to create its own system of analytics (Bl).

For this purpose there were developed a Data Warehouse, where were visits of users, data from CRM, marketing data, etc. gathered.

Moreover, there were realized:

a) Calculation of the exact marketing costs for each transaction;

b) Managing marketing channels for achieving business-aims based on unit-economy, LTV and other metrics;

c) Building product recommendations for website;

d) Automated review of shipping costs for different regions based on conversions;

e) Creating a convenient visualization of data for different departments: marketing, purchasing, top-management;

f) Comparison of prices with major competitors, purchase funnels (by revenue, margin) in various selections (by RFM-segments, gender, age, etc.), fraud control and so on and so forth.

What did the business get: The well-structured system of analytics, that helped company to increase its productivity, its turnover and reach the TOP-100 largest online-shops.

The implementation of these system and strategies of dynamic pricing have increased the gross margin on 3%.

Babadu.ru — online-hypermarket for happy parents. It is one of the leading children’s online-shops in Russia.

The shop sells a huge variety of goods for children and their parents: clothes, toys, technics, furniture, etc. So, all these things the company has on its warehouses - and the longer the wares are there, the more expensive they cost.

The main task in this work: creating the system of dynamic pricing.

One of the bedrock concepts in pricing strategy is to quantify your customer personas and then align your packaging and pricing to those personas. Typically, you’ll find your personas aren’t all created equal, and if you do, then you probably aren’t thinking about your personas properly. You can then offer lower and higher prices on different versions of your product to bring in dynamic revenue from customers of different sizes.

The system allows to set prices on different product offers and fit into various business-aims: the increase of gross revenue, margin, profit, etc.

In work of creating the dynamic pricing for BABADU were taken into account: analysis of supply, region, prices of competitors and other factors.