The Power of AnalyticsThe Power of AnalyticsYou don’t have to be correct, but you do have to You don’t have to be correct, but you do have to

have an opinion?have an opinion?

The Lifecycle of an The Lifecycle of an Analytics DepartmentAnalytics Department

Presented byPresented by

Row RobinsonRow RobinsonManager and Analytics Architect Mercury EnergyManager and Analytics Architect Mercury Energy

Chairman AUT B.Sc Advisory Board – Maths, Computer Science and Chairman AUT B.Sc Advisory Board – Maths, Computer Science and StatisticsStatistics

Convenor of the Analytics Peer ForumConvenor of the Analytics Peer Forum

What SAS do I use?What SAS do I use?• EG 4.1 with Stat and Graph (cutting prototype time down to 2 days instead of 20 with Base SAS)• Base SAS 9.0

Started in F

eb 2006 and finished 30/06/07 w

ith the results being sent to SA

P

Started in F

eb 2006 and finished 30/06/07 with

the results being sent to SA

P

Customer Value ModelCustomer Value Model

CLV – Customer Lifetime ValueCLV – Customer Lifetime Value(5 Years) to Oct 2012(5 Years) to Oct 2012

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

-$26

0

-$20

8

-$15

6

-$10

4

-$52 $0 $52

$104

$156

$208

$260

$312

$364

$416

$468

$520

$572

$624

$676

$728

$780

$832

Nu

mb

er o

f C

ust

om

ers

Oct 2008: Mean $603.07, Median $579.52, 25th Percentile $461.62, 75th Percentile $718.2, BP Count 682632

What Next?What Next?• To review our last 3 years

– CPM Model challenged monthly– CVM Model Developed and

utilised daily– Executive adopted our

valuation method– CLV Model developed and

included in the FOCUS Model– FOCUS forward looking for 5

years– FOCUS has Price & OPEX

increases included

- Our journey was made difficult due to IT having an ideal that was different to my customers needs

- Monthly Analytics Commentary circulated to all Executive and Managers

Fishing and Holidays Testing the FOCUS Model by

using; – Data Mining – Statistics– Common sense– Kiwi ingenuity

We are going to build a “Nucleus Model”

I am currently designing it… Clairvoyant Has 3 more types of Risk Is Spatial Interfaces with Mosaic tables Finds prospects ????