Using Big Data for Product & Service Innovation
3 likes1,410 views
The document discusses using big data in product design. It provides examples of Danish companies innovating through big data, including LEGO using social media data to inform product design, Vestas using weather data from turbines to choose wind farm locations, and a startup collecting wind speed data through an app. The document also discusses using big data to create new online services like a real estate portal and e-invoicing system. Finally, it outlines how Danish cities like Aarhus are releasing open data to power smart city applications like traffic monitoring and finding available parking. Overall, the document promotes the benefits of data-driven business while also noting barriers that must be overcome.
Using Big Data for Product & Service Innovation
- 1. Using big data in product design Executive Director Jesper N. Pedersen
- 2. The challenge – is Big data a Big thing? Danish Innovation approach 1. Product innovation 2. New online services 3. Smart city Lessons learned Agenda
- 3. Jesper Nørding Pedersen. Executive director & Partner Advice jesper.p@adviceas.dk Wo we are Some of our clients
- 4. Big data is like teenage sex Everybody is talking about it Everyone says that they are doing it Nobody has really tried it The hype
- 5. The reality – we have the powerTransistor count Year
- 6. And we can now understand the world by algorithm
- 7. But to use data we have to understand our perspective. What are we looking at, and what are we trying to solve? © shaunaxton.com
- 8. Inefficient use of ressources (96% of the time, cars stand still)
- 9. © https://www.flickr.com/photos/dfataustralianaid/16815302096/ Provide better health care
- 12. The data points are increasing. Internet of things is changing our understanding of the real world
- 13. 13 Benefits Creating an overview of own data sources Optimization by combining own and external data Data driven innovation Expanded business areas Typical effects Productivity profits Customer segmentation Inventory optimization Better pricing opportunities Additional sales New services Faster product development Intelligent concepts Selling data New businesses Figure 2: Benefits related to big data and data driven business development. Source: IRIS Group
- 14. 14 How is Denmark facing this challenge?
- 15. Denmark 6millionpeople EUmembersince1972 Thehappiestpeopleintheworld Because of our size we are dependent on exports and innovation
- 16. © World Economic Forum Information Technology Index 2015
- 17. © World Economic Forum Information Technology Index 2015
- 21. 20th century product innovation + User Experience
- 22. So, if innovation is based on big data. How do we compeed in 2020?
- 23. 23 Two kinds of business in Denmark • Start-ups (2 types) • Analysis and Consulting Companies • Innovative start-ups who has had success with the use of (public) data. • Larger Corporations • With existing large scale Business Intelligence departments, such as Vestas, Lego, Grundfoss, Mærsk, etc.. Front-runners Source: Danish Business Authority report (2013); Potentials and Barriers of Big Data in Business Development.
- 24. 24 4 Main drivers Data & Technology New business models Accelerating competition Digitization Data driven business development Figure 1: Big Data and datadriven business development – the most important drivers. Source: IRIS Group
- 25. Government as enabler: Free open core data
- 26. 26 Public data is great business Net provenue Free open data Private sector Government sector
- 27. 27 People Business Property Adresses, roads, areas Maps & geolocation Core data v.1
- 28. Three main areas of big data innovation Product design New online services Smart city
- 30. case Product innovation based on structured and non-structured data on online usageLEGO 12.000 Employees 13 % Revenue growth 2014 Source: LEGO Group Annual Report 2014 more than: 130Countries
- 31. case LEGO INTENTION à ATTENTION ABILITY TO CHANGE AWARENESS • Social networks • Lego.com online community • Special LEGO user groups (55.000 members) • Interaction with lead users • Online Sentiment Analysis • LEGO Universe (online gaming)
- 32. case Using big data to choose location of major windmill sites & bringing data and insights to the windmill owners.VESTAS Courtesy of Vestas Wind Systems A/S 47.000 wind turbines 70 countries 90 mio MWh pr year
- 33. 33 Vestas invested in the super computer FIRESTORM, which gather data from: • 35.000 public weather stations world wide • More than 150 different parameters every 6th hour • Individual wind turbine’s performance (SCADA) • Production charts • Event and alarm notifications • Performance and power curve reports • Point of common coupling measurements Case: Vestas Data sources
- 34. From big data to big business
- 35. case An app that enables users to measure wind speed at their location. The app uses a plug-in wind meter, with sensors that makes 40.000 measurements per second.Vaavud – design to collect data
- 36. case An app that enables users to measure wind speed at their location. The app uses a plug-in wind meter, with sensors that makes 40.000 measurements per second.Vaavud
- 37. 37 • The data is produced by the users and every measurement is shared via the app • Data from build in barometers in most newer smartphones • Creates a high-resolution local weather forecast Data sources
- 38. case An app that enables users to measure wind speed at their location. The app uses a plug-in wind meter, with sensors that makes 40.000 measurements per second.Vaavud
- 39. case Novo Nordisk - Indonesia Preventing diabetes Public-private partnership between Ministry of Health, Malaysia, pharma-company Novo Nordisk, University of Witwatersrand in Johannesburg, University of Southampton, Steno Diabetes Centre in Denmark – and Advice JOM Mama Preventing diabetes in young couples by helping them to a healthier llifestyle. After a visit to the nurse the couple downloads an app with daily challenges Nurses are able to monitor use of app between visits and can make necessary motivational calls Scientists get access to data from app and nurses’ journals in order to analyse behavioral patterns
- 41. case commercial web portal using public open data to create new ways of buy/sell real estate.Boliga.dk • Residences demurrage • Price changes • The geographical outline • A number of general trends in the housing market • What is for sale or has been offered / sold in a given area and at what prices • Prices similar homes have been sold for Filtering options: • Districts • Characteristics • Prices Statistics on: • Average prices per m2 • Biggest price changes • Most and least expensive real estates within a certain area
- 42. 42 • Collects data from real estates on the market • Collaboration with regular estate agencies • Automation of data collection • Public Innovation Service (OIS) Case: Boliga.dk How?
- 43. 43 • The open data source “Building and Housing Register” (BBR) which is offered by the Public Innovation Service (OIS). • Covers: Area, Location, Use, Installations, Water and drainage conditions, kitchen facilities, wall- and roof materials, annual rent, etc. • Estate agencies own data about price and price changes, how long the item has been on the market, etc. Case: Boliga.dk Data sources
- 44. case commercial web portal using public open data to create new ways of buy/sell real estate.Boliga.dk
- 45. case commercial web portal using public open data to create new ways of buy/sell real estate.Boliga.dk
- 46. 46 Potential types of public open data in the future • Pollution • School ratings • Crime statistics • Risk analysis’s (eg. water damage reports) Case: Boliga.dk Possibilities
- 47. case NemHandel is an open e-business framework which allows businesses to send standardised electronic invoices directly from their PC via the internet in a secure and reliable fashion.NemHandel (EasyTrade)
- 48. 48 • Replaces less cost-effective solutions, such as paper invoices. • Reduce administrative burdens • Connectivity across Europe • Based on experience with NemHandel Denmark has played an active role in the design, development and implementation of OpenPEPPOL (Pan- European Public Procurement Online) Effective invoice system
- 49. 49 • Legislation & cooperation with business organisations • Reduce administrative burdens • More than 28 % of Danish Businesses uses NemHandel (2013) • Connectivity across Europe • Based on experience with NemHandel Denmark has played an active role in the design, development and implementation of OpenPEPPOL (Pan- European Public Procurement Online) Mandatory e-invoicing
- 50. 50 NHR (NemHandelRegister / EasyTradeRegister) is a data base of all NemHandel registered recipients. Case: Rejseplanen.dk Data source
- 51. case MinBilDinBil is a car renting company, that allows private people to rent their cars to other private people. Uses open data for business development, marketing, etc.MinBilDinBil (MyCarYourCar)
- 52. 52 • Mortorregistret (Danish Vehicle Register) • Statistics Denmark Data set from the municipality of Copenhagen: • The Copenhagen Map • Copenhagen Data Case: Rejseplanen.dk Data sources
- 53. Smart cities
- 54. case Aarhus is the second largest city in Denmark. The municipality has released a lot of different open data sets to improve the city.Open Data Aarhus
- 55. case The map shows how well the traffic is flowing right now. It is based on data from OpenStreetMap and real-time traffic data taken from the www.odaa.dkAarhus
- 56. case Traffic intensity in relation to recreational areas. Made with open data from odaa.dkAarhus
- 57. case Odense is the third largest city in Denmark. The municipality has released a lot of different open data sets to improve the city.Odense DataPlatform
- 58. case Web service that tells how many parking lots there are, and how many of them are vacant.Public parking lots
- 59. case Web service that tells how many parking lots there are, and how many of them are vacant.Public parking lots
- 60. case App that uses open data to help users find the nearest public lavatory facility.Public Lavatory
- 61. case Copenhagen is the capital of Denmark and the municipalities has also released a lot of open data sets.Copenhagen Data
- 62. case Copenhagen has an automatic alarm system when it’s not recommended to swim in the harbours. Water Quality for outdoor swimming
- 63. case Copenhagen has an automatic alarm system when it’s not recommended to swim in the harbours. Water Quality for outdoor swimming
- 65. 65 Research show big economical potentials in strategic data driven business development Companies that uses big data performs 5-6% better by income than companies that do not use big data. McAfee og Brynjolfsson (2012); ”Big Data: The Management Revolution” i Harvard Business Review Big business Source: Danish Business Authority report (2013); Potentials and Barriers of Big Data in Business Development.
- 66. 66 Volume The large and exponentially increasing amounts of data generated and stored every second of businesses, citizens and authorities. Velocity The increasing speed in which data can be stored and analysed - partly because of developments in computing power of large computers. Variety The increasing number of data sources that are available for businesses, which can be easily collected and communicated through services such as broadband and mobile technologies. Data come from computers in production, sensors, social media, customers, traffic on the company's website, text files from the Internet, digital cameras, public data sources, etc. Big Data - The 3 V’s Source: Danish Business Authority report (2013); Potentials and Barriers of Big Data in Business Development.
- 67. 67 Benefits Creating an overview of own data sources Optimization by combining own and external data Data driven innovation Expanded business areas Typical effects Productivity profits Customer segmentation Inventory optimization Better pricing opportunities Additional sales New services Faster product development Intelligent concepts Selling data New businesses Figure 2: Benefits related to big data and data driven business development. Source: IRIS Group
- 68. 68 Just the beginning For a few companies in Denmark the positive effects of using big data is starting to show. But the socio-economic benefits are still relatively small. Data driven business development is an important factor to increase productivity. Source: Danish Business Authority report (2013); Potentials and Barriers of Big Data in Business Development.
- 69. 69 Potentials 0,7 % yearly increase in productivity in the life science sector McKinsey Global Institute (2011) ; ”Big data: The next frontier for innovation, competition and productivity”.
- 70. 70 Potentials up to: 50 % reduction of production cost in product development McKinsey Global Institute (2011) ; ”Big data: The next frontier for innovation, competition and productivity”.
- 71. 71 Barriers Data availability Competences Legislation and security Financial ressources Lack of knowledge Ø Framework for big data in existing companies Ø Terms and conditions for new data-driven start-ups Figure 3: Figure of key barriers to exploitation and dissemination of big data and data-driven development . Source: IRIS Group
- 72. 72 1. Start a big data campaign 2. Strengthen big data throughout the education system. 3. Better access to public data 4. Safe and legal use of personal data 5. Establish big data start-up programs 5 Recommendations Source: Danish Business Authority report (2013); Potentials and Barriers of Big Data in Business Development.
- 73. Jesper Nørding Pedersen. Executive director & Partner Advice jesper.p@adviceas.dk Wo we are Some of our clients