2. Dice - Frénot & Grumbach 2http://www.csc.com/insights/flxwd/78931-big_data_universe_beginning_to_explode 1
DATA
An exponential growth
Eric Schmidt:
Every 2 Days We Create As Much Information As We Did Up To 2003
Wednesday 9 April 14
4. Dice - Frénot & Grumbach 4
Big Data, Big Promises?
Google Flu trends
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5. Dice - Frénot & Grumbach 5
Big Data, Big Promises?
Open Data
Government transparency
Increased democracy
Business potential
European Directive PSI
2013/37
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6. Dice - Frénot & Grumbach 6
Data a resource?
http://www.ibmbigdatahub.com/infographic/big-data-new-natural-resource 1
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7. Dice - Frénot & Grumbach 7
Data vs crude oil
Institut des sciences de la communication, CNRS 1
Largest market
capitalization
2008 2013
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8. Dice - Frénot & Grumbach 8
Towards a complete digitalization
Large variety of data
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9. Dice - Frénot & Grumbach 9
Harvesting of personal data
Mostly performed through
Intermediation platforms
Intermediation
• between users with common interests
• between users and services
• between services
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10. Dice - Frénot & Grumbach 10
Facebook? a new world!
A social gatekeeper
1 billion users
130 billions friend links
2.45 billion piece of content shared daily
350 millions pictures uploaded daily
An ecosystem for the industry
storage, authentication, communication
millions of Apps developers on the API
9 million Apps active
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11. Dice - Frénot & Grumbach 11
Intermediation Platforms
Efficient association
between producers/consumers
of data and services
Activity monetization
Knowledge extraction
from users activity
All 30
top sites
worldwide
#1 site
traffic
10 times #15
Wednesday 9 April 14
12. Dice - Frénot & Grumbach 12
Intermediation Platforms
Virtual Empires
International Challenges
Efficient association
between producers/consumers
of data and services
Activity monetization
Knowledge extraction
from users activity
All 30
top sites
worldwide
#1 site
traffic
10 times #15
#64
Top European site:
BBC
ID
Identity management
TERMS OF USE
money law
virtual territories fiscal employment
defense
12 3
USA, absolute world leader
China, Emerging global power
Europe, Periphery of the network
Biface
Systems
FREE ACCESS
BUSINESS
Organic behavior
Profiled behavior
Web
ranking
Users'
profile
New
Economic Models
professionals algorithms users
Wednesday 9 April 14
13. Dice - Frénot & Grumbach 13
Biface
Organic Systems
FREE ACCESS
BUSINESS
Organic behavior
Profiled behavior
Web
ranking
Users'
profile
Wednesday 9 April 14
14. Dice - Frénot & Grumbach 14
Biface Systems
Two types of users with different pricing policies
• Credit card (merchants, clients)
• Mobile telecom (callers, receivers)
Online systems
• Free rider users
• Customers (advertising, ...)
Multi-face systems: various types of users
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15. Dice - Frénot & Grumbach 15
Secondary data: user activity
Secondary activity: User profiling
Primary data: Web pages
Primary activity: Web ranking
FREE ACCESS
BUSINESS
The case of the Search Engine
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16. Dice - Frénot & Grumbach 15
Secondary data: user activity
Secondary activity: User profiling
Primary data: Web pages
Primary activity: Web ranking
FREE ACCESS
BUSINESS
The case of the Search Engine
Wednesday 9 April 14
17. Dice - Frénot & Grumbach 15
Secondary data: user activity
Secondary activity: User profiling
Primary data: Web pages
Primary activity: Web ranking
FREE ACCESS
BUSINESS
The case of the Search Engine
Wednesday 9 April 14
18. Dice - Frénot & Grumbach 16
Secondary data: user activity
Secondary activity: User profiling
Primary data: Web pages
Primary activity: Web ranking
FREE ACCESS
BUSINESS
Tertiary data: system monitoring
Tertiary activity: test, influence
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19. Dice - Frénot & Grumbach 17
From primary to derived data
Primary data:
Produced by users and their services
Open with tunable restrictions
Secondary data:
Derived from traces, activity
Exclusivity of the platform (current business model)
Tertiary data:
Activity of the system
Organic behavior of the system
Wednesday 9 April 14
20. Dice - Frénot & Grumbach
The challenges of the industry
18
First challenge:
capture users and data
scale up as much as possible
Second challenge:
capture developers and Apps
stay as open and adaptive as possible
Third challenge:
generate (undisclosed) secondary data
capture added value (business model)
Wednesday 9 April 14
21. Dice - Frénot & Grumbach
Size matters
exponentially
19Thanks to François Bourdoncle
number of users of a search engine
=> traffic ➚
=> interest of advertisers ➚
=> word auction prices ➚
=> relevance (because of price) ➚
=> probability of successful click ➚
=> word covering ➚
=> monetization covering ➚
http://www.wordstream.com/blog/ws/2011/07/18/most-expensive-google-adwords-keywords
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22. Dice - Frénot & Grumbach 20
Relying on a few mobile operating systems
iOS,
Android
Library of Apps
very knowledgeable
personal assistant
location based
banking, ...
Mobile services
http://techcubeconsulting.com/5-great-free-mobile-apps-for-businesses/
Wednesday 9 April 14
23. Dice - Frénot & Grumbach 21
A world of agility
Built to adapt permanently vs. built to last for ever
4
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24. Dice - Frénot & Grumbach 22
A world of agility
Based on Japanese concepts from toyotism
4
• Kaizen (改善): Continuous improvement
• Genchi Genbustu (現地現物): Go and See
• Nemawashi (根回し): Keep all options
• Hansei (反省): Learning organization
• heijunka (平準化): Create continuous process
flow to bring problems to the surface
• Kanban (看板) Use visual control so no
problems are hidden
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25. Dice - Frénot & Grumbach 23
Intermediation Platforms
Virtual Empires
International Challenges
Efficient association
between producers/consumers
of data and services
Activity monetization
Knowledge extraction
from users activity
All 30
top sites
worldwide
#1 site
traffic
10 times #15
#64
Top European site:
BBC
ID
Identity management
TERMS OF USE
money law
virtual territories fiscal employment
defense
12 3
USA, absolute world leader
China, Emerging global power
Europe, Periphery of the network
Biface
Systems
FREE ACCESS
BUSINESS
Organic behavior
Profiled behavior
Web
ranking
Users'
profile
New
Economic Models
professionals algorithms users
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26. Dice - Frénot & Grumbach 24
New
Economic Models
professionals algorithms users
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27. Dice - Frénot & Grumbach 25
Professionals
offering
places to stay
Users
seeking
places to stay
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28. Dice - Frénot & Grumbach 26
Professionals
offering
places to stay
Users
seeking
places to stay
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29. Dice - Frénot & Grumbach 27
Users
offering
places to stay
Users
seeking
places to stay
Wednesday 9 April 14
30. Dice - Frénot & Grumbach 2845
1) between users and services
2) between users/services
Intermediation platforms are new utilities
“Facebook is not cool”
Mark Zuckerberg
A utility much like electricity, ...
Intermediation
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31. Dice - Frénot & Grumbach 29
Uninterruptible systems
Amazon / eBay / Walmart
• 1 click
• 1 hour delivery
28
Twitter Firehose:
• 300 k QPS
• 22 MB/s tweets that generates 57 TB / month
• Users get tweets in less than 5s (10s in 2011)
• Continuity, Immutability, Incoherency
Wednesday 9 April 14
32. Dice - Frénot & Grumbach 3029
Uninterruptible systems
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33. Dice - Frénot & Grumbach 31
Instantaneous Interactions
• 1/10th sec for Amazon leads to 1% drop in sales
• Google 0,5s latency brings down the traffic1/5th
• 10 links per page is the best size for google
responses to queries
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36. Dice - Frénot & Grumbach 34
http://androidcommunity.com/google-posts-10-6-billion-in-revenue-for-q1-2012-20120412/
http://video.cnbc.com/gallery/?video=3000118210
$50 billion in 2012
“Google is
aVacuum cleaner for revenue”
Barry Diller
Wednesday 9 April 14
38. Dice - Frénot & Grumbach 36
Intermediation Platforms
Virtual Empires
International Challenges
Efficient association
between producers/consumers
of data and services
Activity monetization
Knowledge extraction
from users activity
All 30
top sites
worldwide
#1 site
traffic
10 times #15
#64
Top European site:
BBC
ID
Identity management
TERMS OF USE
money law
virtual territories fiscal employment
defense
12 3
USA, absolute world leader
China, Emerging global power
Europe, Periphery of the network
Biface
Systems
FREE ACCESS
BUSINESS
Organic behavior
Profiled behavior
Web
ranking
Users'
profile
New
Economic Models
professionals algorithms users
Wednesday 9 April 14
39. Dice - Frénot & Grumbach 37
International Challenges
#64
Top European
site: BBC
12 3
USA, absolute world leader
China, Emerging global power
Europe, Periphery of the network
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42. Dice - Frénot & Grumbach 40
Online Population
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43. Dice - Frénot & Grumbach 41
Web content language
http://en.wikipedia.org/wiki/Languages_used_on_the_Internet
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44. Dice - Frénot & Grumbach 42
The Top 50 websites worldwide
• USA: 72 %
• China: 22 %
Baidu: 5; QQ: 7;
Taobao: 9; Sina:13;
hao123:16; weibo:17;
tmall:23; Sohu:27;
360.cn:28; 163.com: 34;
Soso:37;
• Russia: 6 %
Yandex: 20; kontakte:21;
Mail: 39;
6 %
22 %
72 %
USA China Russia
Wednesday 9 April 14
45. Dice - Frénot & Grumbach 43
Top 10 websites in the USA
Global traffic combination of average daily visitors and page views over the past month in million
www.alexa.com & www.trafficestimate.com
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46. Dice - Frénot & Grumbach 44
Global tracking
Proportion of trackers in different countries
Joint work with Claude Castellucia & Lukasz Olejnik
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47. Dice - Frénot & Grumbach 45
Percentage of national web corporations
among Top 25 by country
Data produced by users everywhere in the world
but accumulated by corporations most often abroad
• USA: 100%
• China: 92% (only Google makes it in the top 25)
• France: 36% (but mostly marginal sites, not data intensive)
leboncoin, Orange, Free, commentcamarche, lemonde, lequipe, lefigaro, pagesjaunes, sfr
Alexa.com
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48. Dice - Frénot & Grumbach 46
Top 20 websites in France
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49. Dice - Frénot & Grumbach 47
Data balance for selected countries
for Top 10 sites
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50. Dice - Frénot & Grumbach 48
Traffic Top 10 sites in selected countries
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51. Dice - Frénot & Grumbach 49
Diversity of search engines
• USA: Google: 65 % ; Bing: 15% ;Yahoo: 15%
• China: Baidu 63% ; Qihoo 22%; Sogou: 11%
• Russia: Yandex: 60% ; Google: 25%
• UK: Google: 91 % ; Bing: 5%
• France: Google: 92 % ; Bing: 3%
In France,
• Google has a de facto monopoly
• Google knows more about France than INSEE
Wednesday 9 April 14
52. Dice - Frénot & Grumbach 50http://www.techinasia.com/how-baidu-qihoo-google-performed-in-china-in-2013/
The dynamism of China
Wednesday 9 April 14
53. Dice - Frénot & Grumbach 51http://www.techinasia.com/how-baidu-qihoo-google-performed-in-china-in-2013/
Rapid evolution of the landscape
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54. Dice - Frénot & Grumbach 52
Data as an economic indicator?
OECD Key economic indicators
• International Trade
• Balance of Payments
• Monetary Aggregates
• Interest Rates
• International Finance
• National Accounts
Data exchange ???
Wednesday 9 April 14
55. Dice - Frénot & Grumbach 53
Intermediation Platforms
Virtual Empires
International Challenges
Efficient association
between producers/consumers
of data and services
Activity monetization
Knowledge extraction
from users activity
All 30
top sites
worldwide
#1 site
traffic
10 times #15
#64
Top European site:
BBC
ID
Identity management
TERMS OF USE
money law
virtual territories fiscal employment
defense
12 3
USA, absolute world leader
China, Emerging global power
Europe, Periphery of the network
Biface
Systems
FREE ACCESS
BUSINESS
Organic behavior
Profiled behavior
Web
ranking
Users'
profile
New
Economic Models
professionals algorithms users
Wednesday 9 April 14
56. Dice - Frénot & Grumbach 54
Virtual Empires
ID
Identity management
TERMS OF USE
money law
virtual territories fiscal employment
defense
Wednesday 9 April 14
60. Dice - Frénot & Grumbach 58
Identity management
Id given to any person
Real name systems
Authentication to services
private & public
Unique Id for all services
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61. Dice - Frénot & Grumbach 59
Legal system
The same principles everywhere in the world
contracts users/corporations
Local adaptation to specific regulation
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62. Dice - Frénot & Grumbach 60
Virtual monetary system
56
Money independent of Central Banks
Taxation at stake with non monetized transactions
Bitcoin:
virtual currency with no centralized control
http://www.nytimes.com/2013/04/08/business/media/bubble-or-no-virtual-
bitcoins-show-real-worth.html?nl=technology&emc=edit_tu_20130408
Wednesday 9 April 14
63. Dice - Frénot & Grumbach 61
Global governance
Public Open Data
Made accessible by public administration
Open by default (G8)
Managed on large platforms (Github?)
Wednesday 9 April 14
64. Dice - Frénot & Grumbach 62
Global governance
Public Open Data
Made accessible by public administration
Open by default (G8)
Managed on large platforms (Github?)
Wednesday 9 April 14
65. Dice - Frénot & Grumbach 63
Intermediation Platforms
Virtual Empires
International Challenges
Efficient association
between producers/consumers
of data and services
Activity monetization
Knowledge extraction
from users activity
All 30
top sites
worldwide
#1 site
traffic
10 times #15
#64
Top European site:
BBC
ID
Identity management
TERMS OF USE
money law
virtual territories fiscal employment
defense
12 3
USA, absolute world leader
China, Emerging global power
Europe, Periphery of the network
Biface
Systems
FREE ACCESS
BUSINESS
Organic behavior
Profiled behavior
Web
ranking
Users'
profile
New
Economic Models
professionals algorithms users
Thanks to Sophie Barbier for graphical design
Wednesday 9 April 14