Applications in R. Success and Lessons Learned from the Marketplace. David Smith. Neera Talbert. July 29, 2014

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1 Applications in R Success and Lessons Learned from the Marketplace David Smith Chief Community Officer Revolution Analytics Neera Talbert VP Professional Services Revolution Analytics July 29, 2014

2 Agenda Introduction to R Growth of R Applications of R Q&A David Smith Chief Community Editor, blog.revolutionanalytics.com Co-author, Introduction to R

3 OUR COMPANY OUR SOFTWARE SOME KUDOS The leading provider of advanced analytics software and services based on open source R, since 2007 The only Big Data, Big Analytics software platform based on the data science language R Visionary Gartner Magic Quadrant for Advanced Analytics Platforms,

4 What is R? Most widely used data analysis software Used by 2M+ data scientists, statisticians and analysts Most powerful statistical programming language Flexible, extensible and comprehensive for productivity Create beautiful and unique data visualizations As seen in New York Times, Twitter and Flowing Data Thriving open-source community Leading edge of analytics research Fills the talent gap New graduates prefer R

5 Poll #1 What data analysis software is used where you work? 5

6 R s popularity is growing rapidly R Usage Growth Rexer Data Miner Survey, Language Popularity IEEE Spectrum Top Programming Languages #9: R Rexer Data Miner Survey IEEE Spectrum, July

7 R is among the highest-paid IT skills in the US Dice Tech Salary Survey, January 2014 O Reilly Strata 2013 Data Science Salary Survey 7

8 Technical Support for Open Source R AdviseR from Revolution Analytics Technical support for open source R, from the R experts. and phone support 8AM-6PM, Mon-Fri Support for R, validated packages, and third-party software connections On-line case management and knowledgebase Access to technical resources, documentation and user forums Exclusive on-line webinars from community experts Guaranteed response times R SUPPORT 12 MONTHS $795 PER USER Also available: expert hands-on and on-line training for R, from Revolution Analytics AcademyR. 8

9 Applications of R 9

10 Facebook Exploratory Data Analysis Experimental Analysis Generally, we use R to move fast when we get a new data set. With R, we don t need to develop custom tools or write a bunch of code. Instead, we can just go about cleaning and exploring the data. Solomon Messing, data scientist at Facebook

11 Facebook Big-Data Visualization It resonated with many people. It's not just a pretty picture, it's a reaffirmation of the impact we have in connecting people, even across oceans and borders. Paul Butler, data scientist, Facebook

12 Google R is really important to the point that it's hard to overvalue it. Daryl Pregibon Head of Statistics, Google Advertising Effectiveness The great beauty of R is that you can modify it to do all sorts of things. Hal Varian Chief Economist, Google Economic forecasting 12

13 Twitter A common pattern for me is that I'll code a MapReduce job in Scala, do some simple command-line munging on the results, pass the data into Python or R for further analysis, pull from a database to grab some extra fields, and so on, often integrating what I find into some machine learning models in the end Ed Chen, Data Scientist, Twitter Data Visualization Semantic clustering 13

14 Public Health City of Chicago Food poisoning monitor 14

15 The New York Times Interactive Features Data Journalism Election Forecast Dialect Quiz NFL Draft Picks Wealth distribution in USA 15

16 Data Visualization The New York Times Facebook IPO Baseball legends 16

17 Video Games Video Gaming Player Churn Game design Difficulty curve Level trouble-spots In-game purchase optimization Fraud detection Player communities Multiplayer Matchmaking Game Analysis 17

18 Real Estate Housing The core innovation that Zillow offers are its advanced statistical predictive products, including the Zestimate, the Rent Zestimate and the ZHVI family of real estate indexes. By using R in production as well as research, Zillow maximizes flexibility and minimizes the latency in rolling out updates and new products. Statistical forecasting Crime mapping choroplethr package 18

19 Finance and Banking Credit Risk Analysis Financial Networks 19

20 Pharmaceuticals R use at the FDA is completely acceptable and has not caused any problems. Dr Jae Brodsky, Office of Biostatistics, Food and Drug Administration Regulatory Drug Approvals Reproducible research Accurate, reliable and consistent statistical analysis Internal reporting (Section 508 compliance) 20

21 Marketing Analytics Power 4X performance 50M records scored daily We ve combined Revolution R Enterprise and Hadoop to build and deploy customized exploratory data analysis and GAM survival models for our marketing performance management and attribution platform. Given that our data sets are already in the terabytes and are growing rapidly, we depend on Revolution R Enterprise s scalability and power we saw about a 4x performance improvement on 50 million records. It works brilliantly. - CEO, John Wallace, DataSong Scalability TB s data from 200+ data sources 10 s thousands attributes 100 s millions of scores daily We ve been able to scale our solution to a problem that s so big that most companies could not address it. If we had to go with a different solution we wouldn t be as efficient as we are now. - SVP Analytics, Kevin Lyons, exelate Performance 2X data 2X attributes no impact on performance We need a high-performance analytics infrastructure because marketing optimization is a lot like a financial trading. By watching the market constantly for data or market condition updates, we can now identify opportunities for our clients that would otherwise be lost. - Chief Analytics Officer, Leon Zemel, [x+1]

22 is the Big Data Big Analytics Platform All of Open Source R plus: Big Data scalability High-performance analytics Development and deployment tools Data source connectivity Application integration framework Multi-platform architecture Technical Support Available training and services 22

23 Poll #2 What kinds of R projects are underway where you work? 23

24 Neera Talbert, VP Big Data & Advanced Analytic Services Leads Services at Revolution Analytics Fifteen years of experience the business analytics software industry Works with Fortune 500 companies to define analytics strategy, implement analytic based decision making, reduce decision latency, and increase speed of decision making Analytics, business intelligence, big data analytics, risk Customer intelligence, supply chain, manufacturing, retail, oil & gas, public sector. 24

25 Organizational Readiness There will be almost half a million jobs in five years, and a shortage of up to 190,000 qualified data scientists, plus a need for 1.5 million executives and support staff who have an understanding of data McKinsey Global Institute April 2013

26 Opportunity to develop talent Data Science the sexiest job in the 21st century, - Harvard Business Review A cross between computer engineers, statisticians and business analyst people who ask good questions and open to working with unstructured information Universities can t produce them fast enough need 60% more resources McKinsey Global Institute

27 Our Philosophy The Hands-on exercises were the best part of Revolution Analytics training - A participant from a global telecom company

28 Course Catalog

29 RRE Certification Testing Demonstrate your R and RRE programming knowledge Fundamentals in R Language Data Management in Revolution R Enterprise Modeling in Revolution R Enterprise Independently proctored exam online and onsite

30 Training Data Science team for Big Data Analytics 4X performance 50M+ records scored daily Key Technology: Revolution R Enterprise and Hadoop, replacing SAS and Open Source R Outcomes: Massively scalable infrastructure to support attribution and optimization at an individual customer level (segments of one) for clients such as Williams-Sonoma. Client saved $250K in one campaign. Rapid development and deployment of customer-specific models, using innovative analytic techniques such as big data GAM Survival models Bottom Line: Driving revenue lift and cost savings through marketing optimization Profile: Multi-channel marketing attribution and analytics software developer and service provider. Growing, innovative, cost-conscious. Given that our data sets are already in the terabytes and are growing rapidly, we depend on Revolution R Enterprise s scalability and power. We saw about a 4x performance improvement on 50 million records. It works brilliantly. CEO, John Wallace (DataSong formerly named UpStream) 30

31 Model Development for Supply Chain Analytics with Hadoop >Sales and Demand Data Analysis >R/RRE Model Development Key Technology and Services: R for Big Data Analytics, Consulting, Training Analytic Approach: Aggregate data from 15 data sources including ERP data, store sales data and sales forecast data to 25,000 store locations, 50 SKUs nightly across 6 forecast models, order planning models, running back tests and validation. Worked with client to establish big data environment and models that will generate 6.5 billion computations daily by end of the year (in a 4-hour window for processing). Scale and performance will allow new capabilities such as seasonality, promotions and incentives. Profile: The Application Development team worked with Revolution Analytics Consultants to build cloud-based supply chain analytics platform Bottom line: Work with client to develop predictive models, starting with rigorous forecasts across various models, generating forecast statistics and scoring each model against historical data to come up with the best fit. The forecast is input into an order-planning model that generates recommendations to optimize product distribution and ensure in-stock rate targets are achieved so that the right amount of product is in the right location at the right time.. The amount of analytic horsepower required for this application cannot be supported in traditional means; it would require millions of dollars of hardware. R + Hadoop is allowing us to have the compute capacity to run 6.5 billion computations on nightly basis to generate order plans for our clients. VP Application Development Confidential Do Not Distribute 31

32 Model Development for Vehicle Data Analysis >Warranty & Sensor Data Analysis >R/Revolution R Enterprise Training Key Technology and Services: Revolution R Enterprise for Big Data Analytics, Consulting, Training Analytic Approach Warranty Data Analysis: Estimating the life of an automobile component using Survival Analysis with Cox proportional hazards. Models are trained using historical data, consisting of warranty claims, and region and weather related variables such snow, rain, temperature etc. Outcome: New analytics paradigm for existing processes introduced, with potential for millions of dollars in cost savings through improved warranty contracts, and re-designed automobile components. Profile: The Analytics R&D team of the multinational automobile manufacturer worked with Revolution Analytics Consultants to perform Survival Analysis, and to build and deploy Decision Trees and Time Series models Analytic Approach Sensor Data Analysis: Use sensor data from vehicle components to build Decision Trees for classification, and to establish range of predicted values for sensor readings so that actual readings can be analyzed for outliers. Bottom line: New analytics initiative for building an intelligent automobile system that s capable of guiding the driver upon detection of anomalies in driving patterns. The consultants and training instructors from Revolution Analytics were very knowledgeable and supported me very well. I am looking forward to taking my learnings to the larger analytics team at my company. Senior Researcher, Analytics R&D Confidential Do Not Distribute 32

33 R Package Validation User-contributed, Open Source R package validation for Clinical Trial compliance to support move from SAS to R & RRE Profile: The Clinical Trials Analytics team at the multinational biopharmaceutical company moved from SAS to R to develop big data analytics for Clinical Trials Key Technology and Services: RUnit testing framework, Revolution R Enterprise (RRE) and open source R Approach: Validate third party (user-contributed) R packages from CRAN by executing unit and regression tests for functions both in the stated base package and its dependent packages. Outcome: Client moving from SAS to RRE for new analytics initiatives for improved performance and cost savings, and requires validation for user contributed packages for reliability and compliance. Challenge: The Clinical Trials Analytics team had big data and big computation challenges, and needed a centralized, scalable, and high-performance platform to concurrently run the analytic models for faster analysis. Bottom Line: Revolution R Enterprise acts as their statistical analytics platform providing a centralized and scalable platform for 10 s of data scientists and analysts. Confidential Do Not Distribute 33

34 Model Optimization for Customer Analytics > 84% improvement in performance & reliability of Guest Scoring model > Multi-layer big data infrastructure architecture design Key Technology and Services: Hadoop, Open Source R, Consulting and Training Analytic Approach: Assess the end-to-end flow of the current Guest scoring model, and re-write the existing rmr/ R code using optimization techniques. Outcome: 84% reduction in run time of the Guest Scoring model, which helps the gaming company target their customers with a customized marketing campaign within minutes of performing a new activity such as checking into the hotel, and buying tickets to a show. Profile: The advanced analytics & IT Infrastructure teams at the Las Vegas-based gaming corporation build and deploy analytical models for internal customers such as Marketing & Sales. Challenge: The IT Infrastructure team at the company was challenged to support innovative, R-powered big data analytics initiatives and needed to optimize their Analytics and Visualization architecture. Bottom line: Revolution Analytics consultants helped re-write R analytics running inside Hadoop to achieve superior performance and as a second project, designed a big data architecture incorporating Cloudera, Teradata, Alteryx and Tableau Excellent work, Revolution!! We re very glad that you came on board to help us. Revolution Consultants get an A+. Technical Program Manager, Big Data Initiatives Confidential Do Not Distribute 34

35 Revolution Analytics Services Overview Training Project Services Quick Start Services Post Go-Live Support On-Site or Remote Classes Classroom or Self Paced Standard or Tailored Analytics Strategy Analytics Architecture Full Life Cycle Projects Application Migration Proof of concept Staff Augmentation Package Certification Pre-production Jumpstart value Combines software, training, and services Technical Account Management On-going Training 35

36 Poll #3 What's the biggest R need at your company? 36

37 Why are so many companies using R? Big Data Data Science Competition and Innovation Open Source Ecosystem 37

38 Q&A / Resources What is R? revolutionanalytics.com/what-is-r Companies using R revolutionanalytics.com/companies-using-r AcademyR training revolutionanalytics.com/academyr AcademyR Certification revolutionanalytics.com/academyr-certification Contact Revolution Analytics revolutionanalytics.com/contact-us 38

39 Thank you Join us August 7 th at 10:00 AM, Pacific, for our Moving from SAS to R webinar. Please visit our website to register GET.REVO, 39

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