To boardrooms and sustainability: the changing nature of segmentation

Market segmentation is the process by which customers in markets with some heterogeneity are grouped into smaller homogeneous segments of more ‘similar’ customers. A market segment is a group of individuals, groups or organisations sharing similar characteristics and buying behaviour that cause them to have relatively similar needs and purchasing behaviour. Segmentation is not a new concept: for six decades marketers have, in various guises, sought to break-down a market into sub-groups of users, each sharing common needs, buying behavior and marketing requirements. However, this approach to target market strategy development has been rejuvenated in the past few years. Various reasons account for this upsurge in the usage of segmentation, examination of which forms the focus of this white paper. Ready access to data enables faster creation of a segmentation and the testing of propositions to take to market. ‘Big data’ has made the re-thinking of target market segments and value propositions inevitable, desirable, faster and more flexible. The resulting information has presented companies with more topical and consumer-generated insights than ever before. However, many marketers, analytics directors and leadership teams feel over-whelmed by the sheer quantity and immediacy of such data. Analytical prowess in consultants and inside client organisations has benefited from a stepchange, using new heuristics and faster computing power, more topical data and stronger market insights. The approach to segmentation today is much smarter and has stretched well away from the days of limited data explored only with cluster analysis. The coverage and wealth of the solutions are unimaginable when compared to the practices of a few years ago. Then, typically between only six to ten segments were forced into segmentation solutions, so that an organisation could cater for these macro segments operationally as well as understand them intellectually. Now there is the advent of what is commonly recognised as micro segmentation, where the complexity of business operations and customer management requires highly granular thinking. In support of this development, traditional agency/consultancy roles have transitioned into in-house business teams led by data, campaign and business change planners. The challenge has shifted from developing a granular segmentation solution that describes all customers and prospects, into one of enabling an organisation to react to the granularity of the solution, deploying its resources to permit controlled and consistent one-to-one interaction within segments. So whilst the cost of delivering and maintaining the solution has reduced with technology advances, a new set of systems, costs and skills in channel and execution management is required to deliver on this promise. These new capabilities range from rich feature creative and content management solutions, tailored copy design and deployment tools, through to instant messaging middleware solutions that initiate multi-streams of activity in a variety of analytical engines and operational systems. Companies have recruited analytics and insight teams, often headed by senior personnel, such as an Insight Manager or Analytics Director. Indeed, the situations-vacant adverts for such personnel out-weigh posts for brand and marketing managers. Far more companies possess the in-house expertise necessary to help with segmentation analysis. Some organisations are also seeking to monetise one of the most regularly under-used latent business assets… data. Developing the capability and culture to bring data together from all corners of a business, the open market, commercial sources and business partners, is a step-change, often requiring a Chief Data Officer. This emerging role has also driven the professionalism of data exploration, using more varied and sophisticated statistical techniques. CEOs, CFOs and COOs increasingly are the sponsor of segmentation projects as well as the users of the resulting outputs, rather than CMOs. CEOs because recession has forced re-engineering of value propositions and the need to look after core customers; CFOs because segmentation leads to better and more prudent allocation of resources – especially NPD and marketing – around the most important sub-sets of a market; COOs because they need to better look after key customers and improve their satisfaction in service delivery. More and more it is recognised that with a new segmentation comes organisational realignment and change, so most business functions now have an interest in a segmentation project, not only the marketers. Largely as a result of the digital era and the growth of analytics, directors and company leadership teams are becoming used to receiving more extensive market intelligence and quickly updated customer insight, so leading to faster responses to market changes, customer issues, competitor moves and their own performance. This refreshing of insight and a leadership team’s reaction to this intelligence often result in there being more frequent modification of a target market strategy and segmentation decisions. So many projects set up to consider multi-channel strategy and offerings; digital marketing; customer relationship management; brand strategies; new product and service development; the re-thinking of value propositions, and so forth, now routinely commence with a segmentation piece in order to frame the ongoing work. Most organisations have deployed CRM systems and harnessed associated customer data. CRM first requires clarity in segment priorities. The insights from a CRM system help inform the segmentation agenda and steer how they engage with their important customers or prospects. The growth of CRM and its ensuing data have assisted the ongoing deployment of segmentation. One of the biggest changes for segmentation is the extent to which it is now deployed by practitioners in the public and not-for-profit sectors, who are harnessing what is termed social marketing, in order to develop and to execute more shrewdly their targeting, campaigns and messaging. For Marketing per se, the interest in the marketing toolkit from non-profit organisations, has been big news in recent years. At the very heart of the concept of social marketing is the market segmentation process. The extreme rise in the threat to security from global unrest, terrorism and crime has focused the minds of governments, security chiefs and their advisors. As a result, significant resources, intellectual capability, computing and data management have been brought to bear on the problem. The core of this work is the importance of identifying and profiling threats and so mitigating risk. In practice, much of this security and surveillance work harnesses the tools developed for market segmentation and the profiling of different consumer behaviours. This white paper presents the findings from interviews with leading exponents of segmentation and also the insights from a recent study of marketing practitioners relating to their current imperatives and foci. More extensive views of some of these ‘leading lights’ have been sought and are included here in order to showcase the latest developments and to help explain both the ongoing surge of segmentation and the issues under-pinning its practice. The principal trends and developments are thereby presented and discussed in this paper

Orchestrating Service Migration for Low Power MEC-Enabled IoT Devices

Multi-Access Edge Computing (MEC) is a key enabling technology for Fifth Generation (5G) mobile networks. MEC facilitates distributed cloud computing capabilities and information technology service environment for applications and services at the edges of mobile networks. This architectural modification serves to reduce congestion, latency, and improve the performance of such edge colocated applications and devices. In this paper, we demonstrate how reactive service migration can be orchestrated for low-power MEC-enabled Internet of Things (IoT) devices. Here, we use open-source Kubernetes as container orchestration system. Our demo is based on traditional client-server system from user equipment (UE) over Long Term Evolution (LTE) to the MEC server. As the use case scenario, we post-process live video received over web real-time communication (WebRTC). Next, we integrate orchestration by Kubernetes with S1 handovers, demonstrating MEC-based software defined network (SDN). Now, edge applications may reactively follow the UE within the radio access network (RAN), expediting low-latency. The collected data is used to analyze the benefits of the low-power MEC-enabled IoT device scheme, in which end-to-end (E2E) latency and power requirements of the UE are improved. We further discuss the challenges of implementing such schemes and future research directions therein

Code, space and everyday life

In this paper we examine the role of code (software) in the spatial formation of collective life. Taking the view that human life and coded technology are folded into one another, we theorise space as ontogenesis. Space, we posit, is constantly being bought into being through a process of transduction – the constant making anew of a domain in reiterative and transformative practices - as an incomplete solution to a relational problem. The relational problem we examine is the ongoing encounter between individuals and environment where the solution, to a greater or lesser extent, is code. Code, we posit, is diversely embedded in collectives as coded objects, coded infrastructure, coded processes and coded assemblages. These objects, infrastructure, processes and assemblages possess technicity, that is, unfolding or evolutive power to make things happen; the ability to mediate, supplement, augment, monitor, regulate, operate, facilitate, produce collective life. We contend that when the technicity of code is operationalised it transduces one of three forms of hybrid spatial formations: code/space, coded space and backgrounded coded space. These formations are contingent, relational, extensible and scaleless, often stretched out across networks of greater or shorter length. We demonstrate the coded transduction of space through three vignettes – each a day in the life of three people living in London, UK, tracing the technical mediation of their interactions, transactions and mobilities. We then discuss how code becomes the relational solution to five different classes of problems – domestic living, travelling, working, communicating, and consuming

Realising context-sensitive mobile messaging

Mobile technologies aim to assist people as they move from place to place going about their daily work and social routines. Established and very popular mobile technologies include short-text messages and multimedia messages with newer growing technologies including Bluetooth mobile data transfer protocols and mobile web access.Here we present new work which combines all of the above technologies to fulfil some of the predictions for future context aware messaging. We present a context sensitive mobile messaging system which derives context in the form of physical locations through location sensing and the co-location of people through Bluetooth familiarity

From Sensor to Observation Web with Environmental Enablers in the Future Internet

This paper outlines the grand challenges in global sustainability research and the objectives of the FP7 Future Internet PPP program within the Digital Agenda for Europe. Large user communities are generating significant amounts of valuable environmental observations at local and regional scales using the devices and services of the Future Internet. These communities’ environmental observations represent a wealth of information which is currently hardly used or used only in isolation and therefore in need of integration with other information sources. Indeed, this very integration will lead to a paradigm shift from a mere Sensor Web to an Observation Web with semantically enriched content emanating from sensors, environmental simulations and citizens. The paper also describes the research challenges to realize the Observation Web and the associated environmental enablers for the Future Internet. Such an environmental enabler could for instance be an electronic sensing device, a web-service application, or even a social networking group affording or facilitating the capability of the Future Internet applications to consume, produce, and use environmental observations in cross-domain applications. The term ?envirofied? Future Internet is coined to describe this overall target that forms a cornerstone of work in the Environmental Usage Area within the Future Internet PPP program. Relevant trends described in the paper are the usage of ubiquitous sensors (anywhere), the provision and generation of information by citizens, and the convergence of real and virtual realities to convey understanding of environmental observations. The paper addresses the technical challenges in the Environmental Usage Area and the need for designing multi-style service oriented architecture. Key topics are the mapping of requirements to capabilities, providing scalability and robustness with implementing context aware information retrieval. Another essential research topic is handling data fusion and model based computation, and the related propagation of information uncertainty. Approaches to security, standardization and harmonization, all essential for sustainable solutions, are summarized from the perspective of the Environmental Usage Area. The paper concludes with an overview of emerging, high impact applications in the environmental areas concerning land ecosystems (biodiversity), air quality (atmospheric conditions) and water ecosystems (marine asset management)

Kiosks 21: a new role for information kiosks?

Discusses and analyses the latest generation of information kiosks, Kiosks 21, which features information provision/promotion, interaction, transaction and relationships. In contrast to their task based predecessors, these kiosks focus on customer service delivery to ‘customers in context’. Five case studies of such kiosks located respectively in an airport, railway station, car rental base, hotel lobby, and shopping mall are analysed to demonstrate the way in which the kiosks are implemented to meet the differing requirements of customers in different contexts. Case studies are analysed in terms of kiosk design and location, user profile, information architecture, interface design, communication, and commerce. A range of areas for research and development are proposed.</p

Mobile operators as banks or vice-versa? and: the challenges of Mobile channels for banks

This short paper addresses the strategic challenges of deposit banks, and payment clearinghouses, posed by the growing role of mobile operators as collectors and payment agents of flow of cash for themselves and third parties. Through analysis and data analysis from selected operators , it is shown that mobile operators achieve as money flow handlers levels of efficiency , profitability ,and risk control comparable with deposit banks – Furthermore , the payment infrastructures deployed by both are found to be quite similar , and are analyzed in relation to strategic challenges and opportunities This paves the way to either mobile operators taking a bigger role ,or for banks to tie up such operators to them even more tightly ,or for alliances/mergers to take place ,all these options being subject to regulatory evolution as analyzed as well . The reader should acknowledge that there is no emphasis on specific Mobile banking (M-Banking) technologies (security, terminals, application software) , nor on related market forces from the user demand point of view.banking;industry structure;mobile networks;operational cash flow;regulations;transaction systems

A novel Big Data analytics and intelligent technique to predict driver's intent

Modern age offers a great potential for automatically predicting the driver's intent through the increasing miniaturization of computing technologies, rapid advancements in communication technologies and continuous connectivity of heterogeneous smart objects. Inside the cabin and engine of modern cars, dedicated computer systems need to possess the ability to exploit the wealth of information generated by heterogeneous data sources with different contextual and conceptual representations. Processing and utilizing this diverse and voluminous data, involves many challenges concerning the design of the computational technique used to perform this task. In this paper, we investigate the various data sources available in the car and the surrounding environment, which can be utilized as inputs in order to predict driver's intent and behavior. As part of investigating these potential data sources, we conducted experiments on e-calendars for a large number of employees, and have reviewed a number of available geo referencing systems. Through the results of a statistical analysis and by computing location recognition accuracy results, we explored in detail the potential utilization of calendar location data to detect the driver's intentions. In order to exploit the numerous diverse data inputs available in modern vehicles, we investigate the suitability of different Computational Intelligence (CI) techniques, and propose a novel fuzzy computational modelling methodology. Finally, we outline the impact of applying advanced CI and Big Data analytics techniques in modern vehicles on the driver and society in general, and discuss ethical and legal issues arising from the deployment of intelligent self-learning cars

Artificial intelligence: opportunities and implications for the future of decision making

Artificial intelligence has arrived. In the online world it is already a part of everyday life, sitting invisibly behind a wide range of search engines and online commerce sites. It offers huge potential to enable more efficient and effective business and government but the use of artificial intelligence brings with it important questions about governance, accountability and ethics. Realising the full potential of artificial intelligence and avoiding possible adverse consequences requires societies to find satisfactory answers to these questions. This report sets out some possible approaches, and describes some of the ways government is already engaging with these issues