Building a Business on Data: Challenges and RewardsNaras Eechambadi and Kurt NewmanMarch 27, 2019

Today’s Presentation

• Business Opportunity• The Data

• Challenges

• Markets & Use Cases

• Solution

• Results

Business Opportunity

Rich Data Large Market New Revenue

A business is born

Today’s Presentation

• Business Opportunity

• The Data

• Challenges

• Markets & Use Cases

• Solution

• Results

ADP is one of the leaders in Payroll and HCM solutions

Paychecks are the source of ADP data

EMPLOYEEADDRESS

EMPLOYERADDRESS

Paycheck: Data Anonymized & Aggregated

Reported by Geographic Location Layers

Nation1

Regions4

Divisions9

States50

Counties~3200

Census Tracts~74K

Block Groups~211K

Census Blocks~11.2M

Zip Codes & MSAs

Today’s Presentation

• Business Opportunity

• The Data

• Challenges

• Markets & Use Cases

• Solution

• Results

Market Problem & Opportunities

Verticals

Macro Economic Strategy: Macro view of the US in context of net migration, employment income, demographics, industries and job types.

Micro Economic Strategy:Validates site selections. Identifies emerging and distressed areas. Provides ability to identify, segment and target populations at a local level.

Retail Banking: Competitive EnvironmentAbility to view “direct deposits” via share of wallet, determined by pay check deposits.

Use CasesCapital Markets Research

Real Estate Multiple Verticals

Banking

Today’s Presentation

• Business Opportunity

• The Data

• Challenges

• Markets & Use Cases

• Solution

• Results

Problem Statement

We needed an automated process for data set creation, validation and delivery to clients.

The process was required to to support:• Rapid iterative file preparation for clients that need to evaluate multiple data

formats.• Scheduled delivery of files clients need each month/week.

Today’s Presentation

• Business Opportunity

• The Data

• Challenges

• Markets & Use Cases

• Solution• Results

Automated and Scalable Data Environment

Implementation of a highly automated and scalable environment for quality control, automation and scalability launched Q2-FY19

Launched infrastructure that scales to ensure efficient sales fulfillment

New Ventures Environment

• Dedicated Ventures Reporting & Analytics environment

• Secure ADP instance of AWS-hosted environment (with Quaero CDP Platform)

Data Cloud Production

Current Ventures Data State• Increased data security (limited access)

• Automation increases efficiency for data set preparation and delivery

• Scalability to support growth

• Incorporation of 3rd Party data

• Predictable, rapid responses to client needs

• Automation reduced process time and the probability of errors

• Many data files can be created, fully validated and delivered to most clients in about 90 minutes

Built a highly automated and scalable Ventures Data Environment to ensure efficient high quality data delivery

Quaero CDP Architecture• CDP automates data

processing and creates data assets

• Data assets are used in client extracts, analytics and Explorer

• CDP auto scales compute and storage based on data volume and processing need

• Role based permission is enabled within applications and database layer

Data Monetization is a multi-step process

Data Cloud team models

and publishes

Sources provide data

Ventures team Collects, Analyzes,

and Validates

Commonly requested aggregations created for

“Standard Files”

Data Received, Discovered, Analyzed by

Client

Client uses Data, Revenue

Booked

Adjustment, analysis etc

Iteration and refined data requests

Client Specific Data Set Requirements Include:

Filters Aggregation Fixed Panel Frequency Distribution

Data Processing and Client Extract Process

TransformationAutomated

Data Delivery via MFT

Automated Validation of

Incoming Data

Data passed the

defined thresholds

Process Stops

No

Data Assets

Yes Aggregate Tables for “standard

files” extract

1 2 3

4

5 6

Configure Extracts

7

Automated Extract File Validation

8

Data passed the

defined thresholds

9

No

Yes Automated File delivery to Clients

via MFT

10

Automated notification to Client

and ADP team

11

Process Stops

Today’s Presentation

• Business Opportunity

• The Data

• Challenges

• Markets & Use Cases

• Solution

• Results

Identify Work & Residence Populations

Where Employees Go To Work Where Employees Come From

Change

Age

Profession

Tenure

Commute

8%

5% 11%

21% 27%

18%

8%

14%

9%

23%

32%Income

Industry

Share of Wallet

$HARE OF WALLET

View competitive deposit landscape across the US using reliable ADP pay check deposit and payroll data

Data extract visualization using Tableau

Application tool for data analysis

Deposits tracked monthly:• Financial Institutions: Banks, Credit Unions• Total deposits (dollars & paychecks)

Demographics tracked monthly:• Income, age, gender & generation type

Data Aggregated:• State, County, City & Zip Code

Share of Wallet Measurement & Trends:• Total dollar deposits• Total paycheck deposits• Top Five Banks

Data Grain

1 NationUnited States

Available at the level of depth required and on a monthly basis

New York New York Metropolitan Area/Tri-State Area

New York County(Manhattan)

10036(New York, NY)

1008(Times Square)

Census Blocks (11.2M)

ZIP Codes(32K)

Counties(3,200)

MSAs(380)

States(50)

bctcb2010: 10125001008boro_code: 1boro_name: Manhattancb2010: 1008ct2010: 012500share_area: 31542.5183224share_leng: 769.081961398

*

* For statistical purposes and graphical representation, the Census Bureau’s ZIP Code Tabulation Areas are used.** ADP requires a minimum number of employees and employers to populate data for the next geo-layer.*** Census blocks hierarchy includes census blocks, block groups, and census tracts.

Predict Case Shiller Change Over the Next 12 Months• An initial model using ADP data to predict Case Shiller Index changes over the next 12 months. • The observed values (blue dots) and predicted values (orange dots) are shown for Case Shiller MSAs.

Summary/Conclusion Slide

Data collected for operational purposes can have potential value outside the initial domain

The rewards are lower costs, faster and higher value realization

Realizing this potential requires significant transformation

Having the right tools can accelerate this process

Thank YouNaras Eechambadi naras@quaero.comKurt Newman kurt.newman@adp.com