BUSINESS

INTELLIGENCE
+ DESIGN A NEW

THINKING
APPROACH

1
 Why did we
write this
material?

The current financial crisis continues to shatter more traditional

business models, since these are influenced by the fast changes
caused by the technological revolution. The scenario calls for
a new mindset towards the future of business: corporations
that want to prosper in times like these need to adopt positions
which are aligned with the current global environment.

MJV’s DNA carries both technology and innovation. We aim to

introduce groundbreaking practices to our clients’ management
techniques. To do so, we need to gather information by truly
experiencing their contexts.

This book presents a collection of methodological trends

gathered throughout a number of innovative Business
Intelligence and Big Data works. These are internationally
accepted techniques that have great impact on corporate
processes and results.

We hope to bring you some of our knowledge, as well as guide

each reader through increasingly assertive paradigms on
decision- making processes. If you are an executive, a manager,
an entrepreneur, an optimist or a dreamer, this material is for you.
summary

04 Data revolution

06 Action generate data

08 Getting to know Business Intelligence

11 Applying B.I. to corporations

13 Design Thinking as a complementary

approach to B.I.

15 B.I. + D.T.: a new approach

19 Final remarks

20 About MJV
 Data
revolution
The mere act of reading the digital version of this material
wouldn’t be possible a few years ago. The evolution of digital
media happened at an impressive pace: from the creation of
the computer to the boom which led to our current scenario of
technologic omnipresence, only 721 years went by.

We grow accustomed to new devices easily and have incorporated

the use of internet on pretty much all aspects of our lives.
Just look at how the smartphones we currently carry with us
have a better data storage capacity than some of the best
computers from the past decades.

BUT WHAT DOES THAT MEAN?

Mainly, this means that the internet stores more and more data
by the second. According to a Cisco report2 conducted earlier this
year, there will be up to 10.4 zettabytes
(1.000.000.000.000.000.000.000 bytes) available online by 2019.

Who’s responsible for creating this data? We are.

Executives, customers, users and collaborators are all
responsible for an ever expanding cloud of potential
information. Take a supermarket, for example: nowadays, it is
possible to check the week’s or month’s highest selling items
within minutes. It’s even possible to go beyond that and check
which products tend to be consumed by fidelity customers, as
well as whether there is a correlation between consumption
habits of two products - although one still needs to go out on the
field to fully understand why. >>
1
Reference to the MARK 1 model, released
on United States, in 1944. Source: www.
ufpa.br/dicas/net1/int-h194.htm, accessed
in 06/01/2016.
2
Source: www.cisco.com/c/en/us/solutions/
collateral/service-provider/global-cloud-
index-gci/Cloud_Index_White_Paper.html,
accessed in 06/01/2016. 4
Picture this: through its sales data, a supermarket chain
discovers that buyers of a particular brand of diapers
are potential beer consumers – something that would be
unimaginable within the traditional sales analysis system used
in the past. Taking this cross-data analysis, the store notices
that diaper buyers also buy beer. Such information creates
strategic sales strategies and the store begins to place both
items side by side on the shelves. The result? A considerable
increase in beer sales!

This is a mere example of how important it can be to maintain

an updated database in corporations. In the age where the
internet is ever so popular, both, individuals and corporations,
inevitably leave a “digital footprint” everywhere they go.
This goes beyond websites and social networks visited
through our computers, tablets and smartphones.

The connection is already in our homes and within our bodies.

The so-called Internet of things is growing at an impressive
rate, causing profound changes in the business world and
individual experiences.

Televisions, refrigerators, watches and even glasses are already

being developed as smart devices, connected to the internet and
capable of storing and transmitting data. On top of that,
they also register habits and market information.

After all, the more knowledge a company has regarding its

customers, the more it knows about its business, which leads
to better strategies. Anticipating consumption trends is a huge
task. This is why this massive amount of data represents
an opportunity for companies to obtain proper conditions
and revaluate its efforts, therefore ensuring the success
of its business through decisions taken based on reliable
information.•

5
 your actions
generate data
A company’s success is directly related to correct
decisions. But how do you make them in an objective
and impartial manner?

As you already know, throughout its daily routine a corporation

generates and collects countless information. With this,
it is possible to gather the necessary data to identify what
needs to be changed and what needs to be maintained
within the company.

This data is the basis of Business Intelligence. The so-called

B.I. is the process that extracts business information through
several techniques in order to improve a company’s decision-
making process.

To do so, it is extremely important for the corporation to keep

a complete and organized database. The database tells the
company’s history, problems and qualities.

All bad periods experienced by the business as well as its

moments of great growth are connected and are of extreme
importance for the future of the business.

The issue is so complex that an entire study sector is devoted

to understanding it: Data Science. It focuses on the study of
the extraction of knowledge through data analysis, absorbing
theories and techniques from different areas of knowledge. >>
6
The methodologies normally applied by a Data Scientist can lead
to the following types of information:

A) Is this area really necessary for the continuity

of my business?
B) Should this product continue to exist in
our production line?
C) Should I expand my sales team?

Thus, Data Science aims to find patterns in large sets

combining math, statistics and programming, and using these
skills to develop business models capable of foreseeing specific
scenarios. Modern complexity, however, demands more than
just objectivity. learn more
Success in the business world today depends on the
about
combination of quantitative and qualitative analysis that take data science
business traits into account – specially those regarding the
users and clients involved.
on our blog
Consequently, Business Intelligence guidelines represent great
relevance and innovation, since they are the ones capable
of identifying problems and solutions that couldn’t be found
otherwise. It should be stated once more that a large mass
of data is just a large mass of data.

In order to fully check what the data shows and search for
hidden causes in human behavior, it is necessary to also analyze
data in a qualitative way. This is where the alliance between
Business Intelligence and Design thinking (D.T.) comes in –
as you will see in this e-book. These processes guide innovation,
which will lead to changes in management, new investments or
even the extinction of current projects.

The innovative aspect of Business Intelligence lies on the

promise of a practical and concrete method to identify the
most appropriate information, as well as each business needs.
The conscious use of data, while taking context, causes and
effects into consideration, will result in an improvement of any
business’ work practices. •

7
 getting to
know Business
Intelligence
In the book “The art of war”, written about 400 years B.C,
the Chinese strategist Sun Tzu mentioned the importance of “KNOW YOU ENEMY
collecting and constantly analyzing data in the decision-making AND KNOW YOURSELF
process. While it is true that we are not currently living a military AND YOU CAN FIGHT
reality, classic concepts such as getting familiarized with the A HUNDRED BATTLES
grounds, the enemy and specially ourselves can be powerful WITHOUT PERIL.”
allies in the constant daily struggles of the business world.
Sun Tzu
The ability to transform even the slightest signs of nature into The art of war
useful information for survival was key for the development of the
human race. In fact, it is hard to point out a field of human evolution
that didn’t undergo the process of transforming informative units
into practical skills. In a way, this is what enables knowledge
to be generated.

However, the equation contains a sensitivity factor: it isn’t enough

to gather a large amount of information and expect knowledge
to be created, since this doesn’t happen spontaneously. In fact,
knowledge is directly connected with the ability to separate,
group and relate information. This is what we usually refer to
as intelligence in a business environment. >>

8
 What is knowledge, then?
Knowledge is the ability to interpret available information
in the smartest way possible at a given time.
If human beings have been following this recipe for
thousands of years, wouldn’t it be logical to apply it to
the business world? Yes, and this is the purpose of
Business Intelligence.

The term illustrates a method that seeks to put an end to

the idea that a corporation’s survival depends on general
efforts or “supernatural factors”. In fact, intelligence is the
most important tool – in this case, Business or Corporate
Intelligence. B.I. is a process that uses data as a source
and delivers crucial information to improve decision-
making.

When properly adapted to the contemporary scenario and enriched

by decades of corporate activity knowledge, B.I. enables executives
to know the conditions of the market, the customers and even the
competitors.

Just think about the immense amount of data made available

by the minute on the web - be it from consumers, prospects,
collaborators or the competition. This is what Big Data is all about,
and it is one of the greatest business challenges of all time.

However, a huge pile of data by itself is nothing but a tangled group

of loose lines. In order to truly see its potential, it is necessary to
connect the dots and, little by little, weave the context that will
reveal the true meaning hidden in this set of information. >>

9
The need for compiling and analyzing this constantly modified
and complex set of data triggered a need for change in the
operations of companies in several sectors, including public and
governmental. Business Intelligence
can be adapted according to each case, in order to obtain the
necessary knowledge for the decision-making process.

For instance, it might be required to collect information about

the consumers’ needs, pressure from the market, as well as
industrial, political, logistics and economic conditions.
Thus, B.I. helps identify factors that affect your business.
ADJUSTING B.I. TO
By widening this task’s scope with the proper guidance THE BIG DATA REALITY
from specialized professionals, one can transform data into IS INEVITABLE TO
information and information into knowledge, in order to ensure BUSINESS INNOVATION.
business success. •

10
 Applying B.I. to
corporations
The need for applying B.I. comes precisely from the moment
when a company has data, but wants to understand what to
do with it. It is important, however, to understand that B.I. goes
beyond the relationship between the company and the customer.

This methodology merges the information gathered from all

company sectors to come up with solutions for internal conflicts
and business management – be it regarding employees, clients
or suppliers. In other words, it embraces the whole business
chain, starting from its core, going through its employees,
and finally, reaching the product and its final consumer.

Companies need to pay close attention to the way this data is

collected, which should be done through specific systems and
only the relevant data should be taken into account, since not
all generated data are suitable for situations where a decision
needs to be made. In this sense, many make the mistake of
investing in the storage of superfluous data. >>

11
 Case Study
A good example of spot-on strategic use of data is that of the world’s largest
paid streaming service. The service’s 30 million users generate a huge
amount of data for the company: data is recorded every time a video is
clicked, paused and fast forwarded.

It is possible to know whether a person watched an entire season of a

particular series in one night, a full episode or only five minutes. The company
also records which movies are watched more than once by a subscriber,
as well as their favorite genres, actors, directors and scenarios.

The study of this data allows for the precise positioning of a business,
as well as coming up with key decisions regarding new actions. With this
user-generated database, the company understood that its audience was
interested in political themed content as well as the fact that some particular
actors where highly popular amongst its users.

Thus, they decided to invest in the remake of an old British series. The main
difference between this and a “traditional” strategic decision is the fact that
this wasn’t a gamble. The company knew that every dollar invested in the
product would generate a financial return.

A good amount of Business Intelligence was needed to transform these

findings into actions. To make sure that the series would be indeed a hit,
all corporate areas were activated, coming up with goals to reach the main
objective. The synergy between different sectors – otherwise known as
teamwork – was needed to fulfill the action plan drawn from Big Data analysis.

Therefore, in the age of knowledge, differentiating relevant

information from frivolous records becomes a management
model. To achieve it, proper training sessions and consultancies
are needed. It is of extreme importance to obtain a critical
and understanding view towards the company’s product
qualification, services and processes. • 12
 Design Thinking as
a complementary
approach to B.I.

As you could see from the example above, quantitative analysis

is essential to determine new goals and objectives. But why
does the audience prefer one actor over another? What feelings
motivate them? This is a piece of data that Business Intelligence
alone can’t process. Therefore, it is necessary to “go out there”
and get to know users in depth, and this is something design
thinkers do really well.

The focus proposed by Design Thinking, which is centered on

the human aspect, as well as user needs, fits B.I. perfectly, given
that it is, in fact, a powerful methodology, which is guided by
qualitative analysis focused on empathy towards the consumers
of a service or product.

While Business Intelligence is able to cross-analyze data that

highlights client behaviors in terms of use, purchase, circulation, IT’S A NEW APPROACH
attention span and many others, design thinkers can quickly FOR THE APPLICATION
discover the reason behind these choices and habits with the use OF DATA SCIENCE.
of immersion, analysis, ideation and prototyping techniques. >>

13
The users’ intrinsic desires emerge almost in full from projects
related to Design Thinking. B.I. demonstrates tendencies,
while D.T. closes the cycle by seeking to consolidate ideas
into precious insights derived from direct contact with clients
or users. This qualitative revelation of data is critical for the
creative resolution of problems, and this includes the
co-creation of more assertive solutions and interactive
testing of alternatives.

In terms of management, D.T. is a great antidote to fight the

comfort zone regarding B.I. might lead you into. When it comes
to generating new ideas, projections will be sought out through
human insights rather than just a numeric collection of data.

read our
e-book
design
thinking -
business
innovation
Here

14
 B.I. + D.T.:
a new
approach

The opportunity for reinventing your management techniques

can be found, primarily, by admitting that old solutions will not
fix new problems. In order to fulfill this need for innovation in
processes, we present a full path that starts by collecting data,
testing ideas and taking action.

The combined approach of Business Intelligence and Design

Thinking reaches a new level of corporate understanding.
It does so in a concrete way by incorporating the subjective
factors of the human equations involved. This results in the
ability to combine numeric data with the social context.

A qualitative characteristic is added to Business Intelligence

through Design thinking’s experimental methodology and
collaborative proposal. This process involves the integration
of users as a core unit, as well as taking multiple perceptions
and actions contained in several different business sectors
into account. >>

15
Case study 1
B.I. AND D.T. IN THE CREATION OF A NEW BANKING
EXPERIENCE FOR A LOW-INCOME AUDIENCE

A major Brazilian financial institution used B.I. to identify patterns in their

users’ banking accounts. The analysis triggered the challenge to come up
with a new banking experience for the low-income audience, aiming to better
understand the different behavior patterns from this specific group of clients.

After an immersive period in underprivileged communities and rural areas

from three different Brazilian states, the institution created different profiles
(known as personas), which summed up the main characteristics of these
clients. The qualitative research data was then cross-analyzed with the
quantitative data from the bank’s CRM database, which granted new layers
to the customers’ profiles and helped identify the products that had the
most adherence to each profile, as well as create new communication and
sales strategies.

From the proposed challenge, a new digital solution was developed to

increase sales and improve the relationships between bank managers and
customers. Between initial testing and the pilot stage, an effective increase in
conversion rates was observed on all branches that used this new solution.

16
The integration between Business Intelligence and Design Thinking
is a permanent process and a true change in management DNA.
Success no longer means reaching short term goals, but rather the
constant overcoming of business limitations.

Hence, isolated solutions need to always be aligned with the

greater context of company goals. Besides, mistakes are seen
as attempts at success and lessons learned, which turns
experimentation into a key aspect in the production of new
ways to consolidate solutions that suit the business scenario.

CASE STUDY 2
ADVANTAGES:
THE EXAMPLE OF A HEALTH INSURANCE COMPANY

After all, how can I see the concrete advantages of applying business
Intelligence and Design thinking to my company? Let’s take a very
contemporary example from the Brazilian economy: the difficulties met by
health insurance companies. Many of these organizations have already gone
bankrupt, others have substantially reduced their scope of action, while some
are having to deal with lawsuits against customers who couldn’t fulfil with
contractually agreed commitments.

There are several different reasons for this crisis. The main one, however, is a
particular one: the Brazilian public health care system crisis. Due to the lack
of resources, the public sector can no longer keep up with the demand for
checkups, exams, surgeries and other services needed by the population. This
responsibility ends up falling upon health insurance companies.
Yet, the corporations need to pay for the difference between the customers’
monthly fees and hospitals, clinics and physician fees, so, the money ends
up with the service providers rather than with the mediators of the process.

It’s a classic equation: a health care plan user sees a doctor once a year,
which means profit. The chronically ill user presents more costs to the
insurance company, while the hospitalization of a single client can bring

17
 serious financial loss to the company. The traditional solution to this is to
secure the maximum amount of monthly fees from “inactive” customers to
make up for those who use the system actively. By following this method,
insurance companies are standing by, watching the death of their own
businesses.

However, a major player of the sector decided to change the rules of the
game. With the help of a specialized Business Intelligence + Design Thinking
consultancy, the company realized it could change the focus of the business.
All the data generated by the user could point out the probabilities of someone
becoming chronically ill or the chances of a patient needing to be hospitalized,
for example. But making a simple prediction doesn’t mean the company will
save any money.

By applying a combined approach, the company took an unprecedented

decision: investing in prevention. Treat health instead of the disease –
this could help the company save a lot of money and generate long term
profits. Now, the company studies the possibility of implementing projects
that will allow for a continuous solution of this particular problem and,
by doing so, the company will incorporate a permanent innovation strategy
to its management. Moreover, it will place the customers’ needs at the core of
its actions, which tends to increase customer fidelity and provide a positive
image to this industry.
.

DESIGN FOR SUCCESS

B.I. D.T.
Quantitative analysis Empathy
Data visualization Qualitative analysis
Data Science Co-Creation tools
Prototyping

18
 final remarks
With this material, we hope to have shown you just how much
a company’s Business Intelligence can gain from a Design
Thinking approach. Just as one side of the brain can’t function
without the other, quantitative analysis need qualitative inputs in
order to be better understood and assimilated as knowledge.

MJV projects clearly prove this idea. Despite the fact that not
all companies value the importance of field work and focus on
users, those that do it with B.I. have huge gains both in tangible
(such as ROI) and intangible factors (such as brand value).

The innovation also lies within the evolution and development

processes, and understanding clients in a systematic way is
nothing more than a way to gain in-depth knowledge. The effects
caused by this change can go from creating more assertive
announcements and marketing actions leading to the launch
of products and services while focusing on the users’
intrinsic desires.

Companies aligned with the complex contemporary

environment will certainly be more successful and
have a better chance to grow.

19
 about mjv

CRAFTING BUSINESS TRANSFORMATIONS

THROUGH DESIGN THINKING AND
DIGITAL STRATEGIES

Since 1997, MJV Technology & Innovation has
been working with some of the world’s largest
companies on their business challenges.
Based out of offices in Europe, the United States
and Latin America, the consultancy now has
a multidisciplinary team of more than 300
members.
MJV is composed of three pillars structured in
complete synergy:
BUSINESS INNOVATION:
development and implementation of innovative
solutions to reduce costs, increase revenue and
generate new business models.
We believe innovation lies in the alliance of
design principles and technology. For us,
empathy, creativity and user centered processes
lead to relevant and impacting solutions that
generate real value for business.
Distinct challenges require diverse approaches.
Therefore, we combine diverse expertise –
Design Thinking, Service Design, Gamification,
User Experience, Big Data, Lean Methodology,
Internet of Things, among others – in order
to transform complex challenges into
innovative solutions.

TECHNOLOGY CONSULTING:
development and implementation of
costumized services on Business Intelligence
(BI), IT and Internet of Things (IoT).
MAURÍCIO VIANNA
Global CEO
DIGITAL STRATEGY:
mvianna@mjvinnovation.com
Development and implementation of corporate
strategy and user experience in a way that YSMAR VIANNA
the digital mindset becomes intrinsic to the Chairman
business model.digital” yvianna@mjvinnovation.com
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