2017 Microsoft Corporation - Licensing Team Project

MODERNIZING CUSTOMER SEGMENTATION STRATEGY

The Challenge:
Microsoft has evolved its core go-to-market strategy and customer segmentation approach to be cloud-centric. To modernize Azure’s segmentation, the Tauber team developed a data-driven framework that segments Azure customers based on metrics including customer life time value (CLV), growth potential, and loyalty.

The Solution:
The Tauber team collaborated with marketing and engineering stakeholders to gather and analyze customer consumption data and developed a segmentation framework by leveraging data science machine learning models to calculate the identified segmentation metrics. The segmentation framework provides a more holistic understanding of customers’ characteristics and needs, enabling better targeting and positioning of Azure services. It will allow Microsoft to align go-to-market strategies and sales motions with specific customer segments to drive up profitability, nurture customer growth, and enrich the overall transaction experience.

Read the 2017 Microsoft - Licensing Team Project Executive Summary in the 2017 SPOTLIGHT! book.

Student Team:
Eric Huang–EGL (BSE Computer Engineering & MSE Industrial and Operations Engineering)
Adam Zhang–MBA & MSE Industrial and Operations Engineering

Project Sponsors:
Tom Bartlett –Senior Director, C+E Marketing Business Planning
Richard Chin–General Manager, C+E Marketing Business Planning
Alex Herz –Group Manager, C+E Marketing Business Planning

Faculty Advisors:
Hyun-soo Ahn–Ross School of Business
Quentin Stout –College of Engineering
 


About Tauber Team Projects:

The 2017 Tauber Team Projects resulted in $575 million in savings according to sponsoring company calculations, an average of $18.5 million per project over 3 years.

Each two to three person Tauber Team consists of graduate engineering, MBA, and/or MSCM students. Along with receiving high-level corporate support from the sponsoring company, each team is advised by a College of Engineering and a Ross School of Business faculty member and overseen by a Tauber Institute Co-Director. The projects begin on-site in May and continue for 14 weeks.  Students present the results of their projects and compete for over $40,000 in scholarships at the U-M Tauber Institute's annual Spotlight! event, held each September in Ann Arbor, Michigan.  Spotlight! provides outstanding opportunities for students and corporate partners to establish relationships while exploring innovations in operations and manufacturing.
 
Access Spotlight! book for project details.
The 2017 Microsoft Corporation - Licensing Team