We make ICT strategies work. Big Possibilities!

Transcription

1 We make ICT strategies work Big Possibilities!

2 2 Content 1 What are we talking about? 2 Key Challenges 3 How to make it run? 2

3 Detecon Factors What are we talking about? Big Data: All of a sudden a new buzz word occurred. 3

4 Detecon Factors What are we talking about? There is an increasing interest in getting insight into people s thoughts and sentiments. Companies are getting keen on analytics Advertisements are placed individually Why is there an advertisement from a hotel in Bangkok on a regional German newspaper s website? I recently booked a flight to Bangkok. 4

5 Detecon Factors What are we talking about? Everybody is talking about Big Data, but do all of us have the same understanding about it? Definition Of Big Data (Forrester) Big Data is the frontier of a firm s ability to store, process, and access (SPA) all the data it needs to operate effectively, make decisions, reduce risks, and serve customers. To remember the pragmatic definition of big data, think SPA the three questions of big data: Store. Can you capture and store the data? Process. Can you cleanse, enrich, and analyze the data? Access. Can you retrieve, search, integrate, and visualize the data? 5

6 Detecon Factors What are we talking about? The four V s describe the character of Big Data. Big Data is generating additional Value by analyzing data with Volume, Variety and Velocity" ( the 4 V's ): Volume means that Big Data technology should be able to deal with large volumes of data. Velocity means that Big Data technology should be able to analyze large volumes of data quickly. Variety means that Big Data technology should be able to handle several types of data. 6

7 Detecon Blogs Factors What are we talking about? Big Data describes the Industrial Revolution of Data where data turns into a production factor in many industries, thus creating value. VOLUME In 2005, humankind created 150 exabytes of information. In 2011, 1,200 exabytes were created. The Economist Transactions Observations In every minute more than 2 million status updates are posted on Facebook Facebook VELOCITY Sales Orders Demand Mobile Service Calls Customer CRM Tweets ERP Social Sensors M2M s GPS Video RFID Machines VARIETY 80% of enterprise data will be unstructured, spanning traditional and non traditional sources. Gartner Interactions 7

8 Detecon Factors What are we talking about? Big Data analytics allows processing of previously untapped data sources and enables realtime analytics on a broader scale.. Technology breakthrough by pioneers New options of data analytics Traditional Business Intelligence Big Data Analytics Limited extent of data Volume Any historic data Parallel processing Structured, internal data Variety Integration of external and unstructured data 1 Core Multi-core In-memory processing DB RAM CPU Results of analysis in hours or days Velocity Analysis in real-time 8

9 What are we talking about? Big Data is able to create new business opportunities but also comes along with significant IT challenges. Traditional BI & DWH environment Big Data environment Central architecture Distributed architecture Vertical scaling Partitioning and horizontal scaling Established market leaders New providers Star Schema SQL Slice & Dice ETL Cube RDBMS Mature technologies and concepts New technologies and concepts Text Mining NoSQL Semantics Hadoop Analytics as a Service In Memory 9

10 Detecon Factors What are we talking about? Big Data is already here leading firms and governments in the world are already dealing with data sets several times larger than what was present just a few years ago. stores and analyzes 30+ Petabytes of user generated data handles 75 million events a day to aid targeted advertising handles 1 million customer transactions per hour Everyday ~5 billion people are calling, messaging, and using their mobile devices Source: Wikibon 10

11 Content 1 What are we talking about? 2 Key Challenges 3 How to make it run? 11

12 Key Challenges Big Data implies to cope with major business challenges and with alignment of IT architecture and innovation strategy. Questions for business leaders How can we differentiate in products and services from our competitors by Big Data Analytics? How does Big Data technology help us save money? How can we improve customer satisfaction with Big Data Analytics?? Increased competition! Higher demands from 2 nd time car buyers! Rising wages! Telematics! Increased usage of social media! Impact Will vertical scaling still work with Big Data? Should we invest in a more distributed architecture? Should we work with new specialized vendors? Questions for IT leaders Can we keep established concepts and technologies? Star Schema Slice & Dice Cube SQL ETL RDBMS How to get the different fractions together? How to create an overall view that finally adds value to the company? How to focus on the essentials rather than getting lost in details? 12

13 Detecon Factors Key Challenges Big Data projects rarely start as a greenfield approach. We have to deal with a lot of challenges that lie in the history of an organization An Organization is facing various challenges when thinking about using Big Data. Some key challenges are: Managing customer perception through multiple channels Complex customer segmentation and service offerings Organizational issues Shortcomings of legacy systems Key questions: Does it make sense to start a Big Data project if the challenges are that big? What is the value? 13

14 14 Content 1 What are we talking about? 2 Key Challenges 3 How to make it run? 14

15 How to make it run? Business and IT leaders have different topics on their agenda. However, they have to work together. Questions for business leaders How can we differentiate in products and services from our competitors by Big Data Analytics? How does Big Data technology help us save money? How can we improve customer satisfaction with Big Data Analytics?? Increased competition! Higher demands from 2 nd time car buyers! Rising wages! Telematics! Increased usage of social media! Will vertical scaling still work with Big Data? Should we invest in a more distributed architecture? Should we work with new specialized vendors? Questions for IT leaders Can we keep established concepts and technologies? Star Schema Slice & Dice Cube SQL ETL RDBMS Integrationg the interface of business and IT We use an integrated approach to incorporate business units and IT organizations to achieve holistic project solutions Business and IT experts with profound knowledge Approach 15

16 How to make it run? Business and IT have to work together. But in which area? Big Data can have an impact on different areas of the value chain. Focus application fields What new opportunities do you see for your organization as the result of the availability of increased amounts of data? Big Data potential along client functions Example: DPDHL Operational Efficiency 51 Product Mgmt Marketing & Sales Order Mgmt Service delivery Billing Customer Care Strategic Direction* 36 Develop new products and services Customer Service New Products and Services Enhanced customer experience Informed strategic direction* Improved operational eff. Customer Experience 20 Better customer service % of respondents agree (two answers allowed) Source: Detecon; Economist Intelligence Unit Survey (2011) * Based on transparency over performance 16

17 How to make it run? Discovery Strategies for Big Data Potential Variety. Which use cases benefit from integration of unstructured data? Leveraging internal and external data Sample Big Data opportunities Example: DPDHL Operational Efficiency Big Data Analytics Traditional BI ERP Purchase detail Purchase record Payment record CRM Segmentation Offer details Customer touches Support Contacts WEB Social Interactions Behavioral Targeting Video/Audio/Images Search Marketing Web logs Offer history M2M Spatial & GPS data Sensors/RFID Device data Product/Service logs Electr. on-board record Pallet/Case/SKU tags Speech-to-text Use spatial/gps and electronic on board record to identify inefficiencies in routing and fleet management Strategic Direction Use offer history, web logs and payment history to identify loyal private customers Customer Service Use image recognition in customer care to speed up damage compensation New Products and Services / Customer Experience Better user experience by full transparency over shipping information Increasing variety and complexity of data Source: Detecon; Teradata (2012) 17

18 How to make it run? Discovery Strategies for Big Data Potential Volume. Which valuable insights can be generated from high data volumes? Sample types of analytics for high data volume Sample Big Data opportunities Example: DPDHL Past What happened? Reporting, Dashboards Why did it happen? Forensics and Data Mining Geo correlation Cross relations with demographics Copyright detection Text analysis Web Tracking Image/video recognition Policy breach detection What is happening? Real-Time Analytics Why is it happening? Real-Time Data Mining Sentiment analysis Trend recognition Predictive Analytics Future Fraud prevention Simulations Recommendation engine Incident prediction What is likely to happen? What should I do about it? Predictive Analytics Scenario analysis Operational Efficiency Use incident prediction for preventive maintenance to reduce down times of machines and fleet Automated image recognition to detect and trace damaged parcel in operations Strategic Direction Synchronized order management and billing for improved cash management Customer Service Use pattern recognition to identify fraud in damage and loss compensation Customer Experience Integrate data along all customer touch points for better customer segmentation Source: Detecon; Gartner, AIIM (2012) 18

19 How to make it run? Discovery Strategies for Big Data Potential Velocity. Which use cases are enabled by real-time analytics? Sample types of analytics for high velocity Sample Big Data opportunities Example: DPDHL Past What happened? Reporting, Dashboards Why did it happen? Forensics and Data Mining Geo correlation Cross relations with demographics Copyright detection Text analysis Web Tracking Image/video recognition Policy breach detection What is happening? Real-Time Analytics Why is it happening? Real-Time Data Mining Sentiment analysis What is likely to happen? Predictive Analytics What should I do about it? Prescriptive Analytics Trend recognition Fraud prevention Recommendation engine Incident prediction Future Simulations Scenario analysis Operational Efficiency Real-time routing based on traffic forecast and most likely location for reception Improved capacity planning based on real time data from order management Strategic Direction Use sentiment analysis for better understanding of sales figures New Products and Services Combine customer profiles with real-time information of web logs to improve recommendation engines in online shops Source: Detecon; Gartner, AIIM (2012) 19

20 BIGDATA T-SYSTEMS EVENT 12DEC2013 SHORT VERSION UPDATE 1 0TO.PPT Capitalizing on Big Data Top-Down < 2 Jahre 2-5 Jahre > 5 Jahre Detecon Frame Template How to make it run? You may have a lot of data but how do we exploit this hidden gold mine and use it to our advantage? Identify potential true value, areas of application and expected benefits Virtual Risk Mgmt Legal Officer Board/ CEO Virtual Compliance Organization Head of Internal Audit Organization transformation Acquiring new skills and talent Breakdown information to data Big data analysis techniques Define data structure Identify sources and ensure integrity Define data policies and processes Landscape assessment and roadmap In/Out Sourcing, Cloud computing Design, implementation and integration 20

21 Detecon Frame Template How to make it run? First step is to identify potential value creation opportunities. Detecon supports clients in discovering Big Data strategies and application. Identify Use Cases Characterize Data Measure Benefit Prioritize Use Cases Identify potential industry specific business areas for quick wins Scope and identify target case across the underlying functions List and describe potential related use cases Creative workshops for screening potentials Identify required information to support use case Define data characteristics per use case (velocity, variety, volume) Identify existing data status and potential new requirements for extracting needed data Identify value of utilizing business data across the value creation criteria Define measures for value creation in terms of increasing efficiency, reducing cost, speeding decision making, increasing revenues, etc.. Prioritize use cases according to: Business Potential Degree of Maturity Time to implementation Volume Produ ct Mgmt Marketin g & Sales Orde r Mgmt Service delivery Billin g Custo mer Care High data volume for deeper and robust insights Operational Efficiency 51 Develop new products and services Strategic Direction* 36 Enhanced customer experience Customer Service 27 Informed strategic direction* Improved operational eff. Better customer service Variety Integrate new data types to gain new insights Velocity High velocity for time critical insights New Products and Services Customer Experience < 2 Jahre 2-5 Jahre > 5 Jahre 21

22 BIGDATA T-SYSTEMS EVENT 12DEC2013 SHORT VERSION UPDATE 1 0TO.PPT Detecon VCB_G2M_GHANA_03.PPT - complexity & portfolio size - Frame Template How to make it run? In the second step we define the strategy and determine the best partner fit to help achieve the Big Data potential. Define Strategy Define Arch/ Org. Assess Partners Implement solution Define overall strategy in relation to Big Data Identify business processes to be migrated towards Big Data implementation List key success factors to drive implementation and adoption Determine best practice requirements to meet organization goals Identify organizational capability and identify gaps Determine suitable setup to best exploit Big Data advantage Reshape organization into a data centric driven culture Draw up long list of potential partners Determine evaluation criteria Draw up requirements and partner assessment criteria Tendering and preparation Partner evaluation and selection Vendor/ partner negotiation support Vendor integration Testing and launch opportunity (revenue; profit etc.) Target market time Organization Set-Up Efficient interworking between local and central organization is key for business sucess goals alternative routes external constraints: regulation, legal framework etc. Market Positioning 1 Market Positioning 2 internal constraints: human resources, financial capabilities etc. retail & financial services public sector & infrastructure industry equipment mgmt. & control environment & agriculture resources advertising & signage M2M vertical application areas building/home utilities personal monitoring automotive transport & logistics Blindtext RSA Marketing & Produktmgt. Sales* VGK44 Finance F Page 6 Ghana Era/PTC TMCZ TMUK TMAUt Sales* Blindtext Blindtext Blindtext Blindtext Blindtext Blindtext Blindtext Blindtext Blindtext Blindtext Blindtext Bill of Quantities Compliance Sheet Reference List Generic Building Blocks Request For Proposal Scope of Project Responsibility Matrix Instructions to Bidders Narrative Requirements Selection Criteria Time and Delivery schedule 1 Intermediate product portfolio Initial product portfolio 2 Target product portfolio Launch + 6 months months - time - 3 connected cons. electronics future Service Level Agreement Terms and Conditions Key Performance Indicators 22

23 How to make it run? Through the internet, a lot of data is available in an unstructured form as written text in natural language. Analysis needs advanced language processing capabilities. Detecon BIG DATA Solution Facebook Twitter internet Web crawler Millions of text items Analytic program Blogs Rating sites Unstructured Big data storage NLP natural language processing structured Big data storage Classic Search engine Other sources Multilanguage Thesaurus & Grammar As natural language is diffcult to process, a pre-pass transforms the text into a structured form that captures the meaning and can be tagged/analyzed by standard BI tools. 23

24 How to make it run? Natural language processing analyses syntax and semantic of a text and tries to transform it into a structure that is easily accessible for classic processing. internet Detecon BIG DATA Solution hate 10% Evaluation for product xyz don t like 40% 50% like Unstructured Big data storage I have bought xyz. I m very happy. Product abc is a real disappointment. All holidays with efg are fun. I like xyz. I hate abc. NLP natural language processing Multilanguage Thesaurus & Grammar structured Big data storage source product valuation reliability Faceb. xyz high medium Blog X abc very low high Blog X efg good high Site Y xyz very low low Site Y abc very low low 24

25 Proof of concept Strategic concept How to make it run? Detecon will work with client to develop an overarching strategic concept and prove it in concrete subprojects. Detecon BIG DATA Solution Client Blueprint Technology knowledge map Legal assessment Stakeholder map and interviews Transparency and organizational issues Business Potential Market analysis Applicability to company, fit with capabilities and skills Technology assessment Customer View Customer sensitivity for data protection and privacy concerns Incentive scheme for user data Roadmap I. Business Opportunity II. Use Case III. Use Case II. Validation Use Case II. Use Case III. Proof of IV. Prototype IV. Prototype V. Validation IV. Prototype VI. Implementation V. Validation V. Validation 25

26 Detecon Frame Template Overall Benefits of Big Data Big Data is important simply because it can lead to a significant impact; it allows the organization to go far beyond what is achievable with current practices. Big Data a transformational change Big Data is important because it is not incremental rather a transformational change It has an impact across organizations It radically changes the way companies are managed and run It capitalizes on Notes The enormous amount of data being generated The huge advances in computing capabilities The vast amount and inter-relations between data It is both relevant and necessary Organizations that embrace it will realize significantly enhanced revenues and / or cost savings The impact and benefit will only increase with the continued digitalization across the world Been referred to as the 4 th revolution following the industrial, computer and internet revolution Source: Wikibon 26

27 Detecon It is in your hands to make something out of it!!! 27

28 Detecon Contact sheet Dr. Stefan Weigand Managing Director Detecon Consulting Co. Ltd. Sanlitun Diplomatic Office Building Compound Office 041&042, Entrance 1 No. 1, Gongti Beilu, Chaoyang District Beijing, P. R. China Phone: Fax: Stefan.Weigand@detecon.com 28