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#AnalyticsX Copyright © 2016, SAS Institute Inc. All rights reserved. Defining the Business Case for IoT and Machine Learning in Utilities Alyssa Farrell Global Energy Practice SAS

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Page 1: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

AnalyticsXC o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Defining the Business Case for IoTand Machine Learning in Utilities

Alyssa FarrellGlobal Energy PracticeSAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

The promisehellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Todayrsquos realityhellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

The reality of IoT is here and utilities are already benefiting in quantifiable ways There are measurable steps you can take to achieve similar results

My premisehellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoSmart grid infrastructure is the first concrete example of the lsquoInternet of Thingsrsquo on a significant scale

Smart meters with two-way communications and other sensors across the power grid are already providing tangible benefits for utility customersrdquo

Ben Gardner President of Northeast Group

Metering

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

BETTER CUSTOMER SERVICE

ENABLING ENERGY EFFICIENCY PROGRAMS

IMPROVED DATA-DRIVEN DECISION MAKING

INCREASED DER INTEGRATION

BETTER CUSTOMER CHOICE ENGAGEMENT

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 2: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

The promisehellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Todayrsquos realityhellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

The reality of IoT is here and utilities are already benefiting in quantifiable ways There are measurable steps you can take to achieve similar results

My premisehellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoSmart grid infrastructure is the first concrete example of the lsquoInternet of Thingsrsquo on a significant scale

Smart meters with two-way communications and other sensors across the power grid are already providing tangible benefits for utility customersrdquo

Ben Gardner President of Northeast Group

Metering

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

BETTER CUSTOMER SERVICE

ENABLING ENERGY EFFICIENCY PROGRAMS

IMPROVED DATA-DRIVEN DECISION MAKING

INCREASED DER INTEGRATION

BETTER CUSTOMER CHOICE ENGAGEMENT

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 3: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Todayrsquos realityhellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

The reality of IoT is here and utilities are already benefiting in quantifiable ways There are measurable steps you can take to achieve similar results

My premisehellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoSmart grid infrastructure is the first concrete example of the lsquoInternet of Thingsrsquo on a significant scale

Smart meters with two-way communications and other sensors across the power grid are already providing tangible benefits for utility customersrdquo

Ben Gardner President of Northeast Group

Metering

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

BETTER CUSTOMER SERVICE

ENABLING ENERGY EFFICIENCY PROGRAMS

IMPROVED DATA-DRIVEN DECISION MAKING

INCREASED DER INTEGRATION

BETTER CUSTOMER CHOICE ENGAGEMENT

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 4: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

The reality of IoT is here and utilities are already benefiting in quantifiable ways There are measurable steps you can take to achieve similar results

My premisehellip

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoSmart grid infrastructure is the first concrete example of the lsquoInternet of Thingsrsquo on a significant scale

Smart meters with two-way communications and other sensors across the power grid are already providing tangible benefits for utility customersrdquo

Ben Gardner President of Northeast Group

Metering

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

BETTER CUSTOMER SERVICE

ENABLING ENERGY EFFICIENCY PROGRAMS

IMPROVED DATA-DRIVEN DECISION MAKING

INCREASED DER INTEGRATION

BETTER CUSTOMER CHOICE ENGAGEMENT

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 5: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoSmart grid infrastructure is the first concrete example of the lsquoInternet of Thingsrsquo on a significant scale

Smart meters with two-way communications and other sensors across the power grid are already providing tangible benefits for utility customersrdquo

Ben Gardner President of Northeast Group

Metering

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

BETTER CUSTOMER SERVICE

ENABLING ENERGY EFFICIENCY PROGRAMS

IMPROVED DATA-DRIVEN DECISION MAKING

INCREASED DER INTEGRATION

BETTER CUSTOMER CHOICE ENGAGEMENT

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 6: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoSmart grid infrastructure is the first concrete example of the lsquoInternet of Thingsrsquo on a significant scale

Smart meters with two-way communications and other sensors across the power grid are already providing tangible benefits for utility customersrdquo

Ben Gardner President of Northeast Group

Metering

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

BETTER CUSTOMER SERVICE

ENABLING ENERGY EFFICIENCY PROGRAMS

IMPROVED DATA-DRIVEN DECISION MAKING

INCREASED DER INTEGRATION

BETTER CUSTOMER CHOICE ENGAGEMENT

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 7: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

IoT investments today (amp tomorrow)

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

BETTER CUSTOMER SERVICE

ENABLING ENERGY EFFICIENCY PROGRAMS

IMPROVED DATA-DRIVEN DECISION MAKING

INCREASED DER INTEGRATION

BETTER CUSTOMER CHOICE ENGAGEMENT

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 8: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

BETTER CUSTOMER SERVICE

ENABLING ENERGY EFFICIENCY PROGRAMS

IMPROVED DATA-DRIVEN DECISION MAKING

INCREASED DER INTEGRATION

BETTER CUSTOMER CHOICE ENGAGEMENT

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 9: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Customer interactions are online mobile social

Source Accenture The New Energy Consumer 2015

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 10: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquo[D]igital transformation is often not fully realized until a companyrsquos digital marketing strategy begins to inform and ultimately drive the larger business strategyrdquo

Digital Transformation Requires a Mindset Beyond MarketingDon Bulmer Gartner July 28 2016

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 11: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

Crossing the divide

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 12: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics Capabilities to cross the divide

Data

DeploymentDiscoveryTo get VALUE out of any analytics endeavor 3 key components have to be considered

bull DATA

bull DISCOVERY and

bull DEPLOYMENT

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 13: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Data is the foundation

Structured Data

Onl ine Digital Data

Machine Data

Social Media Data

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 14: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

What we do with Data DISCOVERY

Visualization

Prediction

Machine Learning

Optimization

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 15: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

How we Operationalize the results DEPLOYMENT

Data Warehouse

CRM Cal l Center

Mobile Channel

Devices

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 16: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Big data analytics maturitybull Ad hoc mdash experimental siloed proof-of-concept or pilot projects undefined

processes lack of resources and individual efforts

bull Opportunistic mdash accepted recurring projects budgeted and funded program management and documented strategy and processes with stakeholder buy-in

bull Repeatable mdash intentional defined requirements and processes unbudgeted funding and project management and resource allocation inefficiency

bull Managed mdash measured project process and program performance measurement influences investment decisions and standards emerge

bull Optimized mdash operationalized continuous and coordinated BDA process improvement value realization

IDC MaturityScape Benchmark Big Data and Analytics in European Utilities

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 17: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Value of Analytics

5x

Year-over-year

increase in

positive

social media

sentiment

22x

Annual

improvement in

net promoter

scores

More likely to

optimize

productservice

bundles for

consumers

384x

Year-over-year

increase in

customer program

enrollments

(all industries)

Source How Analytics Reveals New Util ity Customer Value Aberdeen Research amp SAS

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 18: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ldquoRetaining satisfied customers in deregulated energy markets requires a combination of the best energy services the right customer communication channels and optimal marketing campaignsrdquo

Yetik Mert

CEO Enerjisa

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 19: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 20: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine Learning Internet of Things

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 21: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 22: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

History As early as 1950s Alan Turing and Arthur Samuel define the

concept of machine learning as the ability of computers to learn to function in ways that they were not specifically programmed to do

1950s 1980s 2000s

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 23: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Machine learning ndash fact or fiction10 Ways Machine Learning Is Revolutionizing Manufacturing

Forbescom Jun 26 2016

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 24: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

ML Algorithms Neural networks

Decision trees

Random forests

Associations and sequence discovery

Gradient boosting and bagging

Support vector machines

Nearest-neighbor mapping

k-means clustering

Self-organizing maps

Regression

Expectation maximization

Multivariate adaptive regression splines

Bayesian networks

Kernel density estimation

Principal components analysis

Singular value decomposition

Model ensembles

Local search optimization techniques such as genetic algorithms

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 25: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 26: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 27: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 28: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 29: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Cybersecurity by the numbers

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 30: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

THE SMART GRID ANALYTICS OPPORTUNITIES ABOUND

Optimize

Products and Services

Predict

Transformer Failure

Forecast

Future Power

Demands

Bring Big

Data to the Desktop

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 31: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 32: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Smart grid analytics

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 33: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Conclusion

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 34: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Deploy

IoT Analytics Lifecycle

ETL

Data Data Storage

Alerts Reports Decisioning

De

plo

y

f

Data Streams Intelligent Filter Transform

Streaming Model Execution

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 35: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

analyticsx

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

Tips for embracing IoT and ML1 Develop a strategy

2 Pick a project

3 Donrsquot overlook change management

4 Learn from other industries

5 Plug into other utilities

6 Invest wisely

6 Steps to Becoming a Utilities loT Ninja

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX

Page 36: Defining the Business Case for IoT and Machine Learning in ... · •Managed —measured; project, process, and program performance measurement influences investment decisions and

C o p y r ig ht copy 201 6 SAS In st i tute In c A l l r ig hts r ese rve d

AnalyticsX