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Team Analysis Presentation

By: Bochen Lu, Sydney Peterson and Amanda Goldsmith

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Meet the Team!

Meet Our Organization!

Bochen

Sydney

Amanda

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Company Overview

Current State of BI

Data Visualizations

Text/Web Analytics

Emerging Trends

Recommendations

Data Warehousing

Data Mining

Outline

Mission & Structure

Sony’s current usage of BI and data visualizations

Strategic opportunities this could create & operational problems this could solve

Our BI recommendations for Sony

Data Warehousing and Data Mining opportunities in the Sony ecosystem

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Company Overview

01

Sony Group Corporation

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Sony Group Corporation

Kando - “To fill the world with emotion”

Founded in 1946.

International conglomerate and technology company valued at $103.4 billion (Stock Analysis, 2023).

Known for leading the industry in music, gaming, consumer & professional electronics.

Divided in 6 distinct business functions.

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Sony’s 6 Business Functions

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02

Sony’s Current State of BI

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Sony Music Entertainment

Sony Music Entertainment is the largest record label and publishing company in the US by revenue (Zippia, 2023)

Key decisions supported by BI include artist support, artist investments, fan engagement, dynamic marketing.

Proprietary Artist Portal and Grooveforce BI platforms.

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ArtistPortal

Impact:

Evolutionary digital artist payment platform.
Transformed artist payment cycle from ~9 months to real-time.
Instant cash-out & advances.

BI Capabilities & Opportunities:

Real-time trend analysis.
Robust trend forecasting.
Enables higher ROI from automated dynamic artist investmenting through real time advances.

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Grooveforce Analytics

Sony developed analytics platform

Combines data sources including user, streaming, live, media, and partner data.
Visualizations support business improvement for fan engagement, interest trends, targeted marketing, and sales.

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Grooveforce Analytics

User locations, preferences, and trends is used for targeted promotions, live event planning.

Opportunities:

Analytics: Large data pool

SaaS: Centralized data channels

True audience understanding

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Sony Interactive Entertainment

Sony Interactive Entertainment is the 2nd largest video game company in the US by revenue (Newzoo, 2023)

Key decisions supported by BI include pricing, marketing, and sales.

Centralized data sources for automated reporting, and PS Plus subscription service.

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Sony Interactive Digital Marketing

Impact:

Centralized ~500 data channels.
Decreased lead time from 10 days to 24 hours.
Decreased error margin from 5% to 2.3% (Patterson, 2021)

BI Capabilities & Opportunities:

Personalized, cross-platform marketing.
Subscription based product model.

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Sony’s BI Challenges

Sony is a global conglomerate organization with various departments. Defining a common data strategy is difficult under such conditions.

Highly specialized business functions require different BI platforms, presenting synergistic challenges

Lack of cross-functional and predictive BI processes causes frequent supply chain disruptions and customer dissatisfaction.

Due to its conglomerate nature consisting of multiple departments. This is evident in Sony’s slow adoption of predictive and prescriptive analytics, much slower than its competitors, only recently shifted focus towards automation, e-commerce, and AI in 2021 (Yahoo, 2021).
Microsoft Azure is more suitable for AI development, while AWS is better for analytics and currently host the playstation ecosystem. Hence the company has not reached a centralized data pipeline across all functions, preventing true cross-functional business intelligence capabilities.
In essence, Sony’s lack of cross-functional capabilities impact operations, such as supply chain which requires cross-functional BI in multiple functions combining marketing, R&D, operations, sales, procurement, manufacturing. The lack of synergy limits Sony’s ability to maneuver disruptive environmental factors. evident in the recent PlayStation 5 supply shortage and unfulfilled orders due to the pandem, both impacting revenue and sales. Sony only sold 5.7 million PlayStation 5 units as of 2022, drastically short of their projected target at 18 million units (Robinson, 2022). This suggests

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03

Data Warehousing

&

Data Mining

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Data Warehousing

Support

Dynamic Marketing

Supply Chain Analysis

Competitive Analysis

Trend Forecasting

A data warehouse is an enterprise system used for analyzing and reporting structured and semi-structured data from multiple sources.

Data warehousing supports descriptive analytics in helping improve efficiency and add business value through things like cost reduction, customer retention, and customer engagement.

In the case of Sony data warehousing would support any of these four areas:

Dynamic Marketing which can include analyzing data on customer profiles and activities to better target users.

Trend Forecasting on areas like Sony Music business to maintain record label publishing and increase artist investment.

Competitive Analysis to explore and expand on existing franchise networks and develop new content.

Supply Chain Analysis to improve cross-functional resource sharing through supplier networks.

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Data Warehousing

Data Sets
Dashboards

Data Quality
Granularity

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Data Warehousing

Applications

Challenges

Product Analysis
Marketing

Data Consolidation
Scalability
Buy-In

https://www.searchenginejournal.com/blogging-challenges/321109/

https://www.electronicsmedia.info/2022/06/15/top-5-benefits-of-data-warehousing/

Sony goals center around improving their products to increase engagement. The most vital applications to Sony would be:

Product Analysis: Sony’s various departments can utilize a data warehouse to track complete product life cycles from design to delivery across global locations, identifying product performance and trends. Helping improve forecasting capabilities.

Marketing: Sony can leverage the data they’ve collected on customers to tailor products that customers are more interested in and more likely to purchase. A good example of this is Sony Music business, can follow customer trends and recommend artists that fit with their tastes.

Some challenges they may encounter…

Challenges

Data Consolidation: Sony’s conglomerate nature presents challenges when integrating systems from their 6 business into a data warehouse. Each business will have different needs and data types (video/images); accurately and consistently integrating a variety of data formats takes a lot time and money.

Buy-in and scalability: Each of the 6 businesses have their own processes and systems, all led by independent VPs. It may be difficult to align all 6 VPs and obtain buy in from each entity. A data warehouse initiative would face challenges in meeting all 6 business needs in ensuring customizations while maintaining a consistent framework.

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Data Mining

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Data Mining

Marketing
Sales

Data Preparation
Data Freshness
Company Culture

Challenges

Applications

https://www.quora.com/What-course-should-I-do-data-mining-or-digital-marketing

Data mining is the process of using automation to search large sets of data for patterns and turning those findings into business insights and predictions.

In the case of Sony there are three areas that would benefit the most from data mining.

Marketing

Sony’s has a large international customer base across many demographics. Data mining initiatives can improve Sony’s targeted marketing efforts by revealing patterns which can provide better insight into consumer behavior. Logistic regression and decision trees can enable Sony marketing to modify and individualize marketing efforts to increase customer engagement.

Sales

Sony can leverage data mining to discover patterns and relationships between physical products and digital product purchases, and launch bundled promotions of most frequently correlated products to boost product sales. A cluster analysis technique could support Sony in realizing this application.

Entertainment

Sony can leverage data mining on its Sony Music and Sony PlayStation businesses to proactively predict the audience reception based on real time and historic data. Sony can strategically decide their investments in various games and music based on success predictors using techniques such as KNN (K Nearest Neighbor) Algorithm.

Similar to data warehousing there are challenges associated with implementation.

Data preparation: Data mining promises can only be realized when data is complete, consistent, and accurate. The challenges are in consolidating, validating, and cleansing data to be usable for things like ML algorithms across all 6 of Sony’s businesses.

Data freshness Sony has business operations in volatile industries such as gaming. To prevent data mining insight from going stale, Sony needs the most real-time data available, which can be expensive.

Company Culture: It may be difficult to get buy-in and circumvent organizational politics to effectively implement data mining initiatives.

Data Warehousing and Data Mining are two areas that if implemented well in a larger well designed system would be a great asset to Sony. I’ll now hand off to Amanda to discuss Text and Web analysis…

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04

Text & Web Analytics

Strategic opportunities this could create and operational problems this could solve for Sony

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Marketing & Advertising

Supply Chain & Product Quality

Customer Retention

Text Analytics

Knowledge discovery from unstructured text-based data

There are a variety of ways Sony can Use Text Analytics to reduce risk, increase organizational efficiency and gain a competitive advantage. The first one being through using Text mining to assist in marketing and advertising across its variety of products, platforms and locations.

Sony can use text mining to analyze unstructured text data from organizational databases as well as public sources to predict customer perceptions and purchasing behavior. This can enhance the organization's ability to properly market certain products they believe will sell better given the various seasons of purchases or current trends.

This would solve operational problems for Sony by allowing an Increased efficiency and effectiveness in marketing and advertising campaigns which would save them time, money and labor.

This tactic not only assists in improved marketing and could lead to an increase in customers and sales, but can also assist in supply chain management. For example, Sony could use text analytics on their historical data as well as on social media sites, to extract information relative to when a certain product, – such as the playstation console, – could be seen to have an increase in sales – perhaps around christmas or graduation – This would allow them to increase production of certain products at the correct time to ensure they have enough supply to meet this predicted higher demand.

This would solve more operational problems for Sony by allowing them to enhance their supply chain management and ensure they have the perfect ratio of products to customer demand at the correct times to capitalize on all the potential sales and reduce wasted materials.

In addition to improving the supply chain, Text analytics can also enhance product quality as well as increase customer retention rates by garnering a greater understanding of customer sentiment towards a particular product or service that Sony Offers.

For example Sony could see an increase in certain keywords tied to a particular product or service on social media platforms or forums such as twitter or reddit. If sony saw “broken controller PS5 button” trending. They could infer that maybe something is wrong in the mechanisms of their controllers and can do further testing and refinement of their product based on the insights gained from text mining techniques.

Using sentiment analysis in text mining is an important emerging trend in BI analytics that would solve many operational problems for Sony. Tey are able to create better products because of this because they are now able to identify and rectify issues relating to products more quickly compared to if they had not implemented this new practice.

Further, this can be seen to allow for an increase in customer retention. Now that sony is able to identify and fix issues that customers have been having with certain products, this lets the users feel and heard in their concerns about the product, and notice that Sony is adjusting to fix issues for them.

This solves possible operational problems around lack of repurchasing or retaining customers because Sony now has an improved customer perception and customer understanding, leading to more frequent repurchasing and loyal clientele for the organization.

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Websites & Ecommerce Sites

Customer &

User Insights

Competitive Analysis

Web Analytics

Discovering patterns and drawing insights from web-based data

Sony can improve their websites and ecommerce sites – such as their playstation store, music platform or electronic goods e-store – through web analytics. One emerging trend in the web analytics space is visitor profiling. Sony can use visitor profiling to better understand and segment the users who visit a certain site or specific web page.

Having this data and properly categorizing customers can allow for greater insights into what type of customers may want a specific product or game. This can be used in conjunction with another web analytic technique such as clickstream analysis to allow for an even greater depth of discovery into their platforms. Clickstream analysis can show Sony who is clicking on certain products on their websites, what pages are being viewed the most and what times certain sites have high traffic.

Both Visitor profiling and clickstream analysis can allow Sony to have insights into what users are visiting their various websites, how they’re using it and what common issues users might be experiencing on these sites. Many organizational benefits can come from this such as allowing Sony to improve the UX of these sites, reduce time to value for their customers, identify any drop-off points on these sites and fix interface issues and offer customer support for these sites at peak traffic hours.

This can also be seen to allow for Sony to have a greater understanding of not just how users interact on their websites or ecommerce sites, but also a greater insight into their consumer base for their various domains as a whole. Using user demographic data, visitor profiling, user click paths all gathered from web mining tactics can allow for Sony to better understand who wants certain products and can tailor their marketing to these customer segments.

This solves the connectivity-to-customer goal Sony prioritizes in their company values. They want to connect with customers, and the best way to do that is to understand their behavior and content mining and customer usage tracking on their various online sites allows them to do so.

Lastly, web mining and analytics can allow for a greater ability to understand the current competition in the market as well as gain insights into future trends to stay ahead of the competition. Sony can use web mining to gain an understanding of how users view their competitors' products through gathering web data from reading reviews for xbox consoles or Beats Headsets on various online or social media platforms or public databases. Being able to have the ability to draw valuable information from web-based data on the competitors in their sectors allows Sony to understand user sentiment of their competitors and avoid mistakes their competition have made that is being discussed on these forums. It can allow Sony to better tailor their products or services to meet the needs of their users compared to their competitors.

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Centralization

Diversification

Analytics

BI Recommendations

Centralized source to empower data driven decisions

Framework built with diverse tools and resources

Adopt a robust supply chain management system

Centralization - Amanda

Our first BI recommendation for Sony is centralization. Because Sony has so many business sectors: Sony music and pictures sector, Sony Games and NetWorks Services, Sony Entertainment and Technology Sector, Sony Medical and Financial Services and because all of these sectors, products and services have a global reach in what they offer, the data Sony collects has a tremendous amount of volume, with high and constant velocity and lots of variety. Due to this, we believe Sony would benefit from connecting their various domains in a centrally governed BI office to utilize their data from all their sectors in an effective way for the entire organization.

This entails having a centralized source to properly govern the vast amount of data. At this source, Sony ensures that the data is standardized, to mitigate any potential integration issues across their domains. Sony will not only have standardized data but also have standardized cloud computing technologies instead of splitting resources across multiple different infrastructures. We can see now that the various business sectors at SOny are using different software technologies for this. Such as Sony Interactive Entertainment use Azure while Sony financial services mainly use AWS. We believe Sony needs to set up a consistent and centralized data pipeline to allow for easier integration and transportation of data to various sectors and the analysts in these segments.

Through these centralization tactics, Sony will now be able to properly collect their Big Data in an efficient manner. They will now have the ability to store this data in a safe and consistent environment. They will be able to send their data out to their various sectors and empower the data analysis in these domains that the data they are working with is trustworthy, clean and reliable.These analysts can now derive information from this data and produce logical business decisions for Sony based on such. And finally, this centralization will emphasize and enable cross-functional collaboration between Sony’s domains all across the world to enhance their organization as a whole.

Diversification - Sydney

A company with diverse needs, needs a business intelligence framework that can support its various interests. Sony needs to maintain competitive advantage by exploiting their competitors weaknesses. Build a scalable and sustainable system with tools built to handle their needs. Focus on getting buy-in from the organization. And provide the consolidated information in highly specialized visualization dashboard. They can leverage this framework to improve services and increase customer satisfaction and engagement.

Analytics - Bochen

Adopt a robust SCM systems, such as a Virtual Supply Chain enhanced by AI and prescriptive analytics to increase flexibility and proactively navigate environmental disruptions. Sony can learn from supply chain analytics from companies such as Apple, which have leveraged predictive and prescriptive analytics to proactively optimize their supplier network, ordering rations, and production capacity.

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Thank you!

Any Questions?

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