How Big Data Changes Our World
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The document discusses the significant impact of big data on creating a smarter planet, emphasizing the rapid increase in global data volume and the interconnectedness of devices. It outlines various applications of big data across different industries, showcasing the transformative potential for decision-making, risk management, and operational efficiency. Additionally, the document highlights the challenges faced by business leaders in leveraging this data effectively due to trust issues and lack of access to necessary information.
![Variety
Volume Velocity
Veracity
of Tweets
created daily
12 terabytes
trade events
per second
5million
Of video feeds from
surveillance cameras
100’s
“We have for the first time an
economy based on a key
resource [Information] that is
not only renewable, but self-
generating.
Running out of it is not a
problem, but drowning in it
is.”
– John Naisbitt
Decision
makers trust
their information
Only 1 in 3
We’ve Moved into a New Era of Computing](https://image.slidesharecdn.com/mkddagentrackkbigdataescherich001-130611141023-phpapp02/85/How-Big-Data-Changes-Our-World-12-320.jpg)
How Big Data Changes Our World
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- 2. The purpose of this session is to discuss trends shaping the journey towards the smarter planet – driven by big data 2
- 3. © 2011 IBM IBM Global Business Services 3 INSTRUMENTED Billions of RFID-‐tags embedded into our world and across ecosystems Ze-abyte Internet Petaflop Super computers +2 billion Internet-‐subscribers +20 billion Connected devices INTERCONNECTED INTELLIGENT Billions of Smartphones, and GPS-‐devices
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- 5. 55 5 GlobalDataVolumeinExabytes Multiple sources: IDC,Cisco 100 90 80 70 60 50 40 30 20 10 AggregateUncertainty% 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2005 2010 2015 Enterprise Data Data quality solutions exist for enterprise data like customer, product, and address data, but this is only a fraction of the total enterprise data. By 2015 the number of networked devices will be double the entire global population. All sensor data has uncertainty. The total number of social media accounts exceeds the entire global population. This data is highly uncertain in both its expression and content.
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- 7. 7 fitbit”Let's make fitness a fun, achievable part of everyday life” http://www.fitbit.com
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- 10. 2009 800,000 petabytes as much Data and Content Over Coming Decade 44x Of world’s data is unstructured 80% Explosion of Data Means a Lot of Information … But we are lacking Insight 2020 35 zettabytes Business leaders frequently make decisions based on information they don’t trust, or don’t have 1in3 83% of CIOs cited “Business intelligence and analytics” as part of their visionary plans to enhance competitiveness Business leaders say they don’t have access to the information they need to do their jobs 1in2 of CEOs need to do a better job capturing and understanding information rapidly in order to make swift business decisions 60% 90%of the world’s data was created in the last two years
- 12. Variety Volume Velocity Veracity of Tweets created daily 12 terabytes trade events per second 5million Of video feeds from surveillance cameras 100’s “We have for the first time an economy based on a key resource [Information] that is not only renewable, but self- generating. Running out of it is not a problem, but drowning in it is.” – John Naisbitt Decision makers trust their information Only 1 in 3 We’ve Moved into a New Era of Computing
- 13. What can you do with big data? Innovate new Products Speed and Scale Know Everything About your Customers • Social Media - Product/brand Sentiment analysis • Brand strategy • Market analysis • RFID tracking & analysis • Transaction analysis to create insight- based product/service offerings • Social media customer sentiment analysis • Promotion optimization • Segmentation • Customer profitability • Click-stream analysis • CDR processing • Multi-channel interaction analysis • Loyalty program analytics • Churn prediction Run Zero Latency Operations • Smart Grid/meter management • Distribution load forecasting • Sales reporting • Inventory & merchandising optimization • Options trading • ICU patient monitoring • Disease surveillance • Transportation network optimization • Store performance • Environmental analysis • Experimental research Instant Awareness of Risk and Fraud • Multimodal surveillance • Cyber security • Fraud modeling & detection • Risk modeling & management • Regulatory reporting Exploit Instrumented Assets • Network analytics • Asset management and predictive issue resolution • Website analytics • IT log analysis
- 14. PURPOSEFUL Behavior pattern analysis delivering insights for effective marketing decisions EXPLORATORY REAL-TIME & ACTIONABLE PREDICTIVE Customer Buying Behavior Explore patterns that to uncover customer acquisition and retention behavior patterns across all data sources Score customer behavior analysis and create models around newly discovered buying patterns. Accurately predict likely next best action for the customer. Actionable insight supporting applications & processes –campaign execution, CRM, ecommerce, call center, etc. Next best action offer can be modeled and predicted in real-time based on customer interaction and transactions. Product Offers, Enhancement & Development Identify, analyze and visualize feedback about your product Score product sentiment and create models that would predict cross-sell and up-sell opportunities and insight into product enhancement and development of future portfolio Ad effectiveness Actionable insight for localized product promotions that can be executed for maximum impact. Insight is fed into product enhancement and portfolio decisions Collect and analyze social data to assess awareness, reach and reaction to on and offline ads Create predictive models to test and fine tune ad campaign to maximize effectiveness Real-time ad analysis drives fast reaction to optimize campaign strategy and maximize ROI
- 15. © 2013 IBM Corporation IBM Global Business Services 15 Vestas optimizes capital investments based on 2.5 Petabytes of information. • Model the weather to optimize placement of turbines, maximizing power generation and longevity. • Reduce time required to identify placement of turbine from weeks to hours. • Incorporate 2.5 PB of structured and semi-structured information flows. Data volume expected to grow to 6 PB. 15
- 16. © 2013 IBM Corporation IBM Global Business Services 16 Dublin City Centre Increases Bus Transportation Performance 16 • Public transportation awareness solution improves on-time performance and provides real-time bus arrival info to riders • Continuously analyzes bus location data to infer traffic conditions and predict arrivals • Collects, processes, and visualizes location data of all bus vehicles • Automatically generates transportation routes and stop locations Results: • Monitoring 600 buses across 150 routes • Analyzing 50 bus locations per second • Anticipated to Increase bus ridership
- 17. © 2013 IBM Corporation IBM Global Business Services 17 Barnes & Noble helps suppliers track sales and inventory in real time 17 Need • Publishers absorb the losses on returns when they print too many books, and have stock- outs when they print too few • To provide publishers with the ability to get real-time insight into sales and view inventory trends over time Benefits • Decreased time to run queries from weeks to seconds and enabled an 80% reduction in time to run compared to its previous system • Reduced inventory levels and inventory carrying costs
- 18. © 2013 IBM Corporation IBM Global Business Services A Major Government Medical & Social Benefits Agency Identifies Improper Payments Need • To prevent and detect criminal activity, waste, abuse and mismanagement of payments Benefits • When weeks of analysis failed to uncover improper payments, the Big Data analytics engine did it in 4 hours – and led to a $140 million payoff • 360O view of member benefits history and entitlement resulted in savings from identification of improper payments worth over $140M. • Contributed to a 35-fold improvement in savings and cost-avoidance 18 Fraud, Waste and Error
- 19. 19 Watson: From Jeopardy winner to healthcare provider
- 20. The challenge for the chief marketing officer
- 21. © 2013 IBM Corporation IBM Global Business Services 21 9 13 12 2 4 3 1 7 Changing Business ImperaIves The Vast Majority of CMOs are Underprepared 50 60 70 40 20 40 600 8 6 Financial constraints Decreasing brand loyalty Growth market opportunities ROI accountability Customer collaboration and influence Privacy considerations Global outsourcing Regulatory considerations Corporate transparency 5 6 7 8 9 10 11 12 13 Data explosion1 Social media2 Growth of channel and device choices3 Shifting consumer demographics4 Mean Marketing Priority Matrix Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=1733; Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7) Factors impacting marketing Percent of CMOs selecting as “Top five factors” Underpreparedness Percent of CMOs reporting underprepared 5 10 11
- 22. © 2011 IBM Corporation22 Most CMOs are still focusing on understanding markets versus understanding individuals to shape their strategy IBM Institute for Business Value Source: Q15 What sources of information influence your marketing strategy decisions? n=1733 Sources used to influence strategy decisions Percent of CMOs selecting all sources that apply 50%Market research Corporate strategy Competitive benchmarking Customer analytics Marketing team analysis Customer service feedback Financial metrics Campaign analysis Brand performance analysis Sales/sell-through numbers Test panels/focus groups R&D insights Consumer-generated reviews Third-party reviews & rankings Retail and shopper analysis Online communications Professional journals Blogs Supply-chain performance 82% 81% 80% 69% 68% 65% 61% 54% 52% 41% 74% 48% 40% 42% 68% 68% 37% 25% 26% Key sources to understand individuals
- 23. © 2011 IBM Corporation23 CMOs are overwhelmingly underprepared for the data explosion and recognize need to invest in and integrate technology and analytics IBM Institute for Business Value Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673 Underpreparedness Percent of CMOs selecting as “Top 5 Factors” Data explosion 71% Social media 68% Channel & device choices 65% Shifting demographics 63% Financial constraints 59% Decreasing brand loyalty 57% Growth markets 56% ROI accountability 56% Customer collaboration 56% Privacy considerations 55% Global outsourcing 54% Regulatory considerations 50% Corporate transparency 47% Need for change to deal with data explosion Percent of CMOs indicating high/significant need Invest in technology Understand analytics Collaborate with peers Validate ROI Address privacy Integrate insights Rethink skill mix 73% 69% 65% 64% 52% 49% 28%
- 24. © 2011 IBM Corporation24 What’s inhibiting them? Building the business case, IT-marketing alignment/integration issues and marketing technology skills IBM Institute for Business Value Lack of ROI certainty Cost Tool implementation issues Lack of IT integration with organization Lack of marketing and IT alignment Lack of IT skills Lack of skills of (potential) users Lack of technological ownership in marketing Ease of use Reliability Barriers to using technology in marketing Top 5 selected by CMOs Source: Q23 What are the top 5 barriers to using technology? n=1733 61% 72% 47% 43% 45% 25% 46% 34% 37% 18% Business case IT related Marketing related IT and marketing related Usability
- 26. 1770 1875 1920 1830 2010 1970 InnovaHon 1st Wave 2nd Wave 3rd Wave 4th Wave 5th Wave 6th Wave Smarter Products § Instrumented, interconnected, and intelligent § Building blocks for a smarter planet § Sustainability The Industrial RevoluIon Age of Steam and Railways Age of Steel, Electricity and Heavy Engineering Age of Oil, Cars and Mass ProducIon Age of IT & Telecom Source: “Next GeneraIon Green: Tomorrow’s InnovaIon Green Business Leaders”, Business Week, Feb 4, 2008 and Nicolai KontraIev: “The Major Economic Cycles” (1925) We are ushering in a new wave of innovaHon
- 27. 27 Sixth Wave Thinking 1. Waste = Opportunity 2. Sell the Service, not the Product 3. Digital and Natural Converge 4. Bits are Global, Atoms are Local 5. If in Doubt, Look to Nature 6th Wave James Bradfield Moody & Bianca Nogrady: The Sixth Wave – How to succeed in a ressource-limted world
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- 30. Thank you Kim Escherich IBM Global Business Services escherich@dk.ibm.com +45 2880 4733 internetohhings.dk escherich.biz @kescherich /escherich /in/escherich kescherich@gmail.com 30