Are You Awash in Data?
As Photizo has been developing its Advanced Analytics practice we hear from clients that the problem is not having enough data, the question becomes “What to do with the data we have acquired?” In essence, the key challenge is getting the most value from your data in a manner that creates better business outcomes and competitive advantage.
Samsung reported that Internet traffic will pass 1 zettabyte in 2016 (1 trillion gigabytes). Forbes stated for a typical Fortune 1000 company, just a 10 percent increase in data accessibility will result in more than $65 million in additional net income. Additionally, Forbes also said that less than 0.5 percent of all data is analyzed and used.
Photizo has been working on a supplies optimization service model that will help reduce ‘lost toner’ and decrease shipping costs. Companies can take current machine data and utilize predictive analytics to eliminate toner waste. The table below displays the old model and new model using advanced analytics. Efficiency becomes the key to profitability and predictive analytics holds the key.
|The Old Model||The New Model|
|Design cartridge alerts to avoid toner out.||On a CPP or MPS model, lost toner and extra shipping is your cost since you are charging per page (not per cartridge).|
|Ship cartridges based on 'linear' assumptions about users print behavior.||Using advanced analytics, accurately predict when each cartridge will be empty.|
|Recognize users are not linear...so ship cartridges when printer says low.||Send cartridge based upon predicted empty date + shipping time + safety buffer while taking into consideration how that specific device is used and its environment.|
|Try to manage replacement at the printer through behavior modification or let users replace cartridges early since it doesn't create additional cost if you're selling toner.||Cartridge arrives just before existing cartridge is empty.|
|Users replace cartridges when they receive them, typically with up to 20+ percent of their capacity remaining.||Reduce lost toner by 50 percent or more!|
|Note, this is not really your cost since the customer is buying the cartridges.|