This presentation discuss the impact of Big Data and IoT in organizations, and how they might change the world as we know it.

1. How IOT & Big Data
will shape up Future
Economies
Srinath Perera, Ph.D
VP Research, WSO2
Member, Apache Foundation
@srinath_perera

2. Art of War
“If you know the enemy and
know yourself, you need not fear
the result of a hundred battles.
If you know yourself but not the
enemy, for every victory gained
you will also suffer a defeat.
If you know neither the enemy
nor yourself, you will succumb in
every battle.”
Sun Tzu, The Art of War

3. Information is the Ultimate
Competitive Advantage
• Better Operations
• New Product or better Products
• Go to market at the right time
with right product, and right
message, and right differentiation
• Better Experience for the user

4. Premise of Big Data
If you collect data about your business, and feed it to a Big Data
system, you will find useful insights that will provide competitive
advantage
– (e.g. Analysis of data sets can find new correlations to "spot business
trends, prevent diseases, combat crime and so on”. [Wikipedia])
Underline assumption is that way we
operate, and organizations are
inefficient.

5. Premise of Big Data
If you collect data about your business, and feed it to a Big Data
system, you will find useful insights that will provide competitive
advantage
– (e.g. Analysis of data sets can find new correlations to "spot business
trends, prevent diseases, combat crime and so on”. [Wikipedia])

6. Success Stories
• Money Ball ( Baseball drafting)
• Nate Silver predicted outcomes in 49 of
the 50 states in the 2008 U.S. Presidential
election
• Cancer detection from Biopsy cells ( Big
Data find 12 patterns while we only knew
9), http://go.ted.com/CseS
• Bristol-Myers Squibb (biopharmaceutical
company) reduced the time it takes to
run clinical trial simulations by 98%
• Xerox used big data to reduce the
attrition rate in its call centers by 20%.
• Kroger (Retail good chain) Loyalty
program ( growth in 45 consecutive
quarters)

7. Premise of IoT
Ubiquitous Devices
connected to internet
• Connecting real world and digital
world for better data and control
• Augment the Big Data story, but
make it 100x powerful
"Internet of Things, Mapping the value Beyond Hype" by McKinsey 2015

8. IoT can be Big
• 5B devices already,
25B by 2020 ( that is 4
devices for each of us)
• $4 - $11 trillion per
year by
2025/Mckinsey
– all enterprise SW is about
600B in 2015 (Gartner)
– 1000-2000$ per each of us

9. IoT: Devices and Use cases
Devices
• Ad-hoc/ Home/ Consumer
(Embeddables , Wearables,
Holdables, Surroundables)
• Smart Systems—( they
monitor the outside world,
have lot of small sensors)
• M2M/ Industrial Internet
(Sensor and inbuilt, often
pre-designed)
• Drones and Cameras (Never
underestimate the most
ubiquitous IoT device, video
Cameras)
Taxonomy of IoT Use cases.
https://goo.gl/iFNiYv
Use Cases

10. IoT Key Use Cases
• GE 1% initiative
• 1% saving in Airplanes and
turbines can save more than 1B$
each year (GE talk, Statra 2014)
• Walmart RFID based
inventory Management
• Disney Magic Band
• Progressive Insurance
Gadget
• Smart Pill Box

11. Value Preposition

12. New Products
• Drones, VR gadgets
• Smart everyday things ( smart
door bell/ locks, smart Owen,
Glass that change based on
sunlight, smart mirrors, )
• Fitness Tracker, Smart shoes
• Foot traffic sensors and
location analytics (e.g. for
retail)
• Health Sensors, Baby Sensors,
and in home care
• Smart waste management,
parking, traffic, pollution
sensing

13. Better Products
• Digital Twin ( Stats, control e.g. via mobile App)
• Better integration with other products (e.g. Smart
Home)
• Improved User Experience ( e.g. by learning how users
are using the product)
• Predictive Maintenance ( Fix it before it breaks)

14. New Business Models
• Pay per Usage
– per transportation rather than
automobiles
– Pay per hour of use for expensive
equipment
– Per use road tax
• Dynamic Pricing Models
– sensor based auto insurance
premium
– smart lighting/energy fixtures
could charge customers based on
the amount of money they save
• Monetization of Data
– Next slide

15. Data is the New Oil
• Best example is Google,
Facebook ( most valued
companies)
• Some operations can be
justified just to get the data
• Monetize your data
• Retailers could be paying major
US banks $1.7 billion a year by
2015 to send targeted discount
offers to customers (Aite Group)
• Telcos send targeted
advertisements
http://dupress.com/articles/data-as-the-new-
currency/

16. Better Decisions and Operations
• GE 1% initiative
• Data Driven decision
• Relevant information is made
available to the right decision
makers which could be people or
algorithms) in a timely manner.
• ‘Good data beats opinion’
philosophy.
• Question Everything
• Almost everything can be tested,
measured and improved.
If you can’t measure it,
you can’t improve it
Load Kelvin
See Value Proposition of Big Data after a Decade

17. Better User and Customer
Experience
• West airline identify you by the
phone number
• Multi channel ( Phone, SMS,
chat all together)
• Churn Prediction and Customer
Retention
Customers demand personalized, reliable
and durable products and services, at the
time and in the place they want them General Zachary Taylor of
Louisiana, US President 1948
(unpaid mail and nominations)

18. Better Sales and
Marketing
• Customer profiling, and
Segmentations, and
Targeting
• Brand awareness
• Using analytics for up sell,
cross sell
• Social Media analytics

19. How to Big Data/ IoT Wash
your System in 24 hours?
• Publish collect the data you can with
minimal effort ( deploy easiest
sensors)
• Do lot of simple aggregations
• Figure out what data combinations
makes prettiest pictures
• Throw in some machine learning
algorithms, predict something but
don’t compare
• Create a cool dashboard and do a
cool demo, and say that you are just
scratching the surface!!

20. Big Data & IoT Tools
• KPIs
• Analytics ( Batch,
Real-time,
Interactive,
Predicative)
• Visualizations,
Dashboards
• Alerts
• Devices

21. Start Small and Solve a
Concrete Problem
• Use existing Dataset: I already
have a data set, and list of
potential problems, and figure out
how to fix it.
• **Fix a known Problem: Find a
problem, collect data about it,
analyze, visualize, build a model
and improve.
• Improve Overall Process: Instrument processes ( start with
most crucial), find KPIs, analyze and visualize the processes, and
improve
• Collect All: Collect all available data, data mine the data or
visualize, find interesting correlations.

22. Summary
• Information is the Ultimate
competitive Advantage
– Big Data and IoT let them get better
information faster and act
• IoT with Big Data might change
the world as we know it.
• Value Proposition
– New & Better Products
– New Business Models
– Better Decisions and Operations
– Better User and Customer Experience
– Better Sales and Marketing
• Start small and solve a Concrete
Problem