kim escherich - how big data transforms our world
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Kim Escherich Executive Innovation Architect, IBM Global Business Services
HOW
BIG DATA TRANSFORMS OUR WORLD DDC, Data Visualization Academy Kick-Off, March 12, 2013
© 2011 IBM
IBM Global Business Services The purpose of this session is to discuss trends shaping the journey towards the smarter planet – driven by big data
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What is data? Trends and technologies, by example.
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© 2011 IBM
IBM Global Business Services
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INSTRUMENTED
Billions of RFID-‐tags embedded into our world and across ecosystems
Ze-abyte Internet
Petaflop Super computers
+2 billion Internet-‐subscribers
+20 billion Connected devices
INTERCONNECTED INTELLIGENT
Billions of Smartphones, and GPS-‐devices
5
0
10
20
30
40
50
2003 2010 2015 2020
Billion
Source: Cisco IoT 2011 infographic
340.282.366.920.938.463.463.374.607.431.768.211.456
People
Connected things
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2009 800,000 petabytes
as much Data and Content Over Coming Decade
44x
Of world’s data is unstructured
80%
Explosion of Data Means a Lot of Information … But we are lacking Insight
2020 35 zettabytes
Business leaders frequently make decisions based on information they don’t trust, or don’t have
1 in 3
83% of CIOs cited “Business intelligence and analytics” as part of their visionary plans to enhance competitiveness
Business leaders say they don’t have access to the information they need to do their jobs 1 in 2
of CEOs need to do a better job capturing and understanding information rapidly in order to make swift business decisions
60%
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Neurowear Necomimi hPp://en.necomimi.com/
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!tbit ”Let's make !tness a fun, achievable part of everyday life” http://www.!tbit.com
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Big data, de!ned
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Variety
Volume Velocity
Veracity
of Tweets created daily
12 terabytes
trade events per second
5 million
Of video feeds from surveillance cameras
100’s
“We have for the first time an economy based on a key resource [Information] that is not only renewable, but self-generating. Running out of it is not a problem, but drowning in it is.”
– John Naisbitt
Decision makers trust their information
Only 1 in 3
We’ve Moved into a New Era of Computing
What can you do with big data?
Innovate new Products Speed and Scale
Know Everything About your Customers
• Social Media - Product/brand Sentiment analysis
• Brand strategy • Market analysis • RFID tracking & analysis • Transaction analysis to create insight-
based product/service offerings
• Social media customer sentiment analysis • Promotion optimization • Segmentation • Customer profitability • Click-stream analysis • CDR processing • Multi-channel interaction analysis • Loyalty program analytics • Churn prediction
Run Zero Latency Operations • Smart Grid/meter management • Distribution load forecasting • Sales reporting • Inventory & merchandising optimization • Options trading • ICU patient monitoring • Disease surveillance • Transportation network optimization • Store performance • Environmental analysis • Experimental research
Instant Awareness of Risk and Fraud
• Multimodal surveillance • Cyber security • Fraud modeling & detection • Risk modeling & management • Regulatory reporting
Exploit Instrumented Assets • Network analytics • Asset management and predictive issue resolution • Website analytics • IT log analysis
PURPOSEFUL
Behavior pattern analysis delivering insights for effective marketing decisions
EXPLORATORY REAL-TIME & ACTIONABLE
PREDICTIVE
Customer Buying Behavior
Explore patterns that to uncover customer acquisition and retention behavior patterns across all data sources
Score customer behavior analysis and create models around newly discovered buying patterns. Accurately predict likely next best action for the customer.
Actionable insight supporting applications & processes –campaign execution, CRM, ecommerce, call center, etc. Next best action offer can be modeled and predicted in real-time based on customer interaction and transactions.
Product Offers, Enhancement & Development
Identify, analyze and visualize feedback about your product
Score product sentiment and create models that would predict cross-sell and up-sell opportunities and insight into product enhancement and development of future portfolio
Ad effectiveness
Actionable insight for localized product promotions that can be executed for maximum impact. Insight is fed into product enhancement and portfolio decisions
Collect and analyze social data to assess awareness, reach and reaction to on and offline ads
Create predictive models to test and fine tune ad campaign to maximize effectiveness
Real-time ad analysis drives fast reaction to optimize campaign strategy and maximize ROI
© 2012 IBM Corporation
IBM Mobile Solutions
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Vestas optimizes capital investments based on 2.5 Petabytes of information.
• Model the weather to optimize placement of turbines, maximizing power generation and longevity.
• Reduce time required to identify placement of turbine from weeks to hours.
• Incorporate 2.5 PB of structured and semi-structured information flows. Data volume expected to grow to 6 PB.
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© 2012 IBM Corporation
IBM Mobile Solutions
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Dublin City Centre Increases Bus Transportation
Performance
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• Public transportation awareness solution improves on-time performance and provides real-time bus arrival info to riders
• Continuously analyzes bus location data to infer traffic conditions and predict arrivals
• Collects, processes, and visualizes location data of all bus vehicles
• Automatically generates transportation routes and stop locations
Results: • Monitoring 600 buses across 150 routes • Analyzing 50 bus locations per second • Anticipated to Increase bus ridership
© 2012 IBM Corporation
IBM Mobile Solutions
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Barnes & Noble helps suppliers track sales and inventory in real time
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Need • Publishers absorb the losses on returns when
they print too many books, and have stock-outs when they print too few
• To provide publishers with the ability to get real-time insight into sales and view inventory trends over time
Benefits • Decreased time to run queries from weeks to
seconds and enabled an 80% reduction in time to run compared to its previous system
• Reduced inventory levels and inventory carrying costs
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Watson: From Jeopardy winner to healthcare provider
The challenge for the chief marketing officer
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Information Channels Across Time Note the drop-off for traditional broadcast channels (including websites)!
http://www.baekdal.com/articles/Management/market-of-information
© 2011 IBM Corporation 21
50% 71%
68%
65%
63%
59%
57%
56%
56%
56%
55%
54%
50%
The vast majority of CMOs are underprepared to manage the impact of key changes in the marketing arena
Underpreparedness Percent of CMOs reporting underpreparedness
IBM Institute for Business Value
Data explosion
Social media
Growth of channel and device choices
Shifting consumer demographics
Financial constraints
Decreasing brand loyalty
Growth market opportunities
ROI accountability
Customer collaboration and influence
Privacy considerations
Regulatory considerations
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141 (n = number of respondents who selected the factor as important)
Global outsourcing
Corporate transparency 47%
© 2011 IBM Corporation 22
Most CMOs are still focusing on understanding markets versus understanding individuals to shape their strategy
IBM Institute for Business Value
Source: Q15 What sources of information influence your marketing strategy decisions? n=1733
Sources used to influence strategy decisions Percent of CMOs selecting all sources that apply
50% Market research Corporate strategy
Competitive benchmarking Customer analytics
Marketing team analysis Customer service feedback
Financial metrics Campaign analysis
Brand performance analysis Sales/sell-through numbers
Test panels/focus groups R&D insights
Consumer-generated reviews Third-party reviews & rankings
Retail and shopper analysis Online communications
Professional journals Blogs
Supply-chain performance
82% 81%
80%
69%
68% 65%
61% 54%
52%
41%
74%
48%
40%
42%
68% 68%
37%
25% 26% Key sources to
understand individuals
© 2011 IBM Corporation 23
CMOs are overwhelmingly underprepared for the data explosion and recognize need to invest in and integrate technology and analytics
IBM Institute for Business Value
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673
Underpreparedness Percent of CMOs selecting as “Top 5 Factors”
Data explosion 71%
Social media 68%
Channel & device choices 65%
Shifting demographics 63%
Financial constraints 59%
Decreasing brand loyalty 57%
Growth markets 56%
ROI accountability 56%
Customer collaboration 56%
Privacy considerations 55%
Global outsourcing 54%
Regulatory considerations 50%
Corporate transparency 47%
Need for change to deal with data explosion Percent of CMOs indicating high/significant need
Invest in technology
Understand analytics
Collaborate with peers
Validate ROI
Address privacy
Integrate insights
Rethink skill mix
73%
69%
65%
64%
52%
49%
28%
© 2011 IBM Corporation 24
What’s inhibiting them? Building the business case, IT-marketing alignment/integration issues and marketing technology skills
IBM Institute for Business Value
Lack of ROI certainty
Cost
Tool implementation issues
Lack of IT integration with organization
Lack of marketing and IT alignment
Lack of IT skills
Lack of skills of (potential) users
Lack of technological ownership in marketing
Ease of use
Reliability
Barriers to using technology in marketing Top 5 selected by CMOs
Source: Q23 What are the top 5 barriers to using technology? n=1733
61%
72%
47%
43%
45%
25%
46%
34%
37%
18%
Business case
IT related
Marketing related
IT and marketing related
Usability
The innovation aspect
1770 1875 1920 1830 2010 1970
Inno
vaHo
n
1st Wave
2nd Wave
3rd Wave
4th Wave
5th Wave
6th Wave
Smarter Products § Instrumented, interconnected, and intelligent
§ Building blocks for a smarter planet
§ Sustainability
The Industrial RevoluTon
Age of Steam
and Railways
Age of Steel, Electricity and Heavy Engineering
Age of Oil, Cars and Mass ProducTon
Age of IT & Telecom
Source: “Next GeneraTon Green: Tomorrow’s InnovaTon Green Business Leaders”, Business Week, Feb 4, 2008 and Nicolai KontraTev: “The Major Economic Cycles” (1925)
We are ushering in a new wave of innovaHon
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Sixth Wave Thinking
1. Waste = Opportunity 2. Sell the Service, not the Product 3. Digital and Natural Converge 4. Bits are Global, Atoms are Local 5. If in Doubt, Look to Nature
6th Wave
James Bradfield Moody & Bianca Nogrady: The Sixth Wave – How to succeed in a ressource-limted world
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Price
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Price
Organic
Production method
Biodynamic
Conventional
Pesticides
Production environment
Chemicals
Herpacides
Child labor
Sustainability
GMO
Environmental footprint
Climate change Geosphere
Biosphere
Sociosphere Health impact
Health consequences
Positive
Negative
Profiled
Packaging
History/Origin
Transport
Track
Sustainability
Thank you Kim Escherich IBM Global Business Services escherich@dk.ibm.com +45 2880 4733 internetoghings.dk escherich.biz
@kescherich
/escherich
/in/escherich
kescherich@gmail.com
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