Big data and analytics

responsive, credible, flexible

Big Data and Analytics:
New data sources create
transformation opportunities
Mike Davis
Principal Analyst

© All images acknowledged 1
© msmd advisors Ltd 2012

Running order
Why all the fuss about big data?

So who uses big data? (and why)

How has it helped business to date?

Where else can it help?

CIO concerns?

WIIFY (what's in it for you)

2

Information management is about
USING information
– to make a decision

3

Decision making requires effective
information
…That’s delivered:

At the right place
– and in context

At the right time
– and complete / credible / trusted

To the right person(s)
– who have authority to
make decisions

4

The need for precision

5

Small decisions – big effects

6

Understanding data

7

Understanding data

8

Understanding data

9

Understanding data

10

Understanding data

11

It's all his fault

12

5 Terabytes of electronic data under
management

13

Big data and the challenge of decision
making
Size

Scope

Speed
14

There's simply too much data to deal
with
The petabyte is the new data norm

Tsunami of human and machine generated data
Multiple formats

Democratisation of data
800 Tweets per second (12 gigabytes)
Facebook generates 100 TB of data…per day

Organisations are struggling to store, access and
process data efficiently
Structured and unstructured information is
processed in separate systems
Some formats are difficult to process

15

So where's the value in big data?

16

So who uses big data? And what's in it
for your organisation?
Internet Google, Amazon, eBay, AOL – everything

Mobile Gaming On line betting, multi user games

Marketing Social Network Analysis, Digital Advertising

Telcos Call Routing Management, Subscriber Churn

Retail Tesco – customer segmentation, Netflix –
everything

Utilities Smart Grid for meters

Insurance Telemetrics on cars

Banking Fraud detection

17

Big data in marketing -
Social network analysis

World’s biggest marketing focus
group

Who’s talking about you? What are they
saying? Why?

Who are the opinion leaders?

Highly contextual text analytics

Classic many-to-many relationship problem
Map & measure relationships & flows
between people, groups, computers,
URLs, etc.

Facebook adds 10 – 15 TB/day to DW
18

Big data and mobile gaming/on line
betting
Billing

Demographic info
Mobile device, location, time

Usage
What’s hot, what's not

Levels of play/betting

Customer segmentation
ID top players/punters, leaders

Social Media comment
Trending and sentiment

19

Big data in telco/ISPs
Call routing optimization

200 GBytes compressed CDRs uploaded
daily (from 1 Tbyte raw data)

Constraints: tower location,
interconnection agreements

Customer churn analysis & prevention

Traditionally:
Look at call quality

Today:
Social community analysis
Who’s calling who?
Security issues?? 20

Big data in retail - Tesco

Major use of BI and loyalty program

Outsourced to Dunnhumby for analysis
80% of customers are Clubcard
members
Constantly updating data – every
transaction improves data quality
Targeted promotions both direct and
sponsored by suppliers (revenue
stream)

21

Big data in utilities
SINGLE RESIDENTIAL METER – a 6 digit
reading

Every quarter =4
Every day = 365
Every hour = 8760
Every 15 minutes = 35,040
Every 5 minutes = 105,120
Every minute = 525,600

Every 30 seconds = 1,501,200/per meter/per
year

The UK has 26 million household meters

PG&E added 1.2 Pbytes storage to support 700k SMART meters in 2008.
They have 10x that today

22

Big data in insurance – the single view
and the spy in the car

23

Should you have concerns?

Who owns the data?

Who can access the data?

How quickly does it need to be
processed?

How easily can it be understood?

Who’s running the IM department
anyway?

24

WIIFY? - we do not need to be afraid
of big data
You will not be the first

Big data brings value – not traditional ROI
(unless it is your business)

We have the tools – we may need to bring them together

We have the skills – we may need to bring them together

We need to see an organisation’s information assets as a whole

We do however need the organisation to mature in its
understanding of the role and value of information

Big data should mean BIG opportunities
25

responsive, credible, flexible

Thank you
www.msmd-advisors.com
@mikemasseydavis

26

Big data and analytics

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