Kim Escherich - How Big Data Transforms Our World


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Kim Escherich - How Big Data Transforms Our World

  1. 1. HOW BIG DATA TRANSFORMS OUR WORLD DDC, Data Visualization Academy Kick-Off, March 12, 2013 Kim Escherich Executive Innovation Architect, IBM Global Business Services1
  2. 2. The purpose of this session is to discuss trends shaping the IBM Global Business Services journey towards the smarter planet – driven by big data2 © 2011 IBM
  3. 3. What is data? Trends and technologies, by example.3
  4. 4. IBM Global Business Services Billions  of  RFID-­‐tags   embedded  into  our   world  and  across   ecosystems   Ze-abyte  Internet   Billions  of   Smartphones,  and   +2  billion     GPS-­‐devices   Internet-­‐subscribers   Petaflop   Super  computers     +20  billion     Connected  devices   INSTRUMENTED   INTERCONNECTED   INTELLIGENT  4 © 2011 IBM
  5. 5. 340.282.366.920.938.463.463.374.607.431.768.211.456   Connected  things   50   40   Billion   30   20   10   People   0   2003   2010   2015   2020  5 Source:  Cisco  IoT  2011  infographic  
  6. 6. 6
  7. 7. Explosion of Data Means a Lot of Information … But we are lacking Insight 44x Business leaders frequently 2020 1 in 3 make decisions based on information they don’t trust, or don’t have 35 zettabytes as much Data and Content Over Coming Decade 1 in 2 Business leaders say they don t have access to the information they need to do their jobs of CIOs cited “Business 83% intelligence and analytics” as 80% part of their visionary plans to enhance competitiveness Of world’s data of CEOs need to do a better job 2009800,000 petabytes is unstructured 60% capturing and understanding information rapidly in order to make swift business decisions
  8. 8. Neurowear  Necomimi   hPp://  8
  9. 9. fitbit ”Lets make fitness a fun, achievable part of everyday life” http://www.fitbit.com9
  10. 10. 10
  11. 11. Big data, defined11
  12. 12. We’ve Moved into a New Era of Computing12 terabytes 5 millionof Tweets trade eventscreated daily per second “We have for the first time an economy based on a key resource [Information] that is Volume Velocity not only renewable, but self- generating. Running out of it is not a problem, but drowning in it Variety Veracity is.”100’s Only 1 in 3 – John Naisbitt Of video feeds from Decision surveillance cameras makers trust their information
  13. 13. What can you do with big data? Know Everything About your Customers Innovate new Products Speed •  Social media customer sentiment analysis and Scale •  Promotion optimization •  Social Media - Product/brand Sentiment •  Segmentation analysis •  Customer profitability •  Brand strategy •  Click-stream analysis •  Market analysis •  CDR processing •  RFID tracking & analysis •  Multi-channel interaction analysis •  Transaction analysis to create insight- •  Loyalty program analytics based product/service offerings •  Churn predictionRun Zero Latency Operations Instant Awareness of Risk•  Smart Grid/meter management and Fraud•  Distribution load forecasting •  Multimodal surveillance•  Sales reporting •  Cyber security•  Inventory & merchandising optimization •  Fraud modeling & detection•  Options trading •  Risk modeling & management•  ICU patient monitoring •  Regulatory reporting•  Disease surveillance•  Transportation network optimization•  Store performance•  Environmental analysis Exploit Instrumented Assets•  Experimental research •  Network analytics •  Asset management and predictive issue resolution •  Website analytics •  IT log analysis
  14. 14. Behavior pattern analysis delivering insights for effective marketing decisions EXPLORATORY PURPOSEFUL PREDICTIVE REAL-TIME & ACTIONABLE Explore patterns that Score customer behavior analysis and create Actionable insight supportingCustomer to uncover customer models around newly discovered buying applications & processes –campaignBuying acquisition and patterns. Accurately predict likely next best execution, CRM, ecommerce, callBehavior retention behavior action for the customer. center, etc. Next best action offer can patterns across all data be modeled and predicted in real-time sources based on customer interaction and transactions.Product Offers, Identify, analyze and Score product sentiment and create models that Actionable insight for localizedEnhancement & visualize feedback would predict cross-sell and up-sell opportunities product promotions that can beDevelopment about your product and insight into product enhancement and executed for maximum impact. development of future portfolio Insight is fed into product enhancement and portfolio decisions Collect and analyze Create predictive models to test and fine tune Real-time ad analysis drivesAd social data to assess ad campaign to maximize effectiveness fast reaction to optimizeeffectiveness awareness, reach campaign strategy and and reaction to on maximize ROI and offline ads
  15. 15. IBM Mobile Solutions Vestas optimizes capital investments based on 2.5 Petabytes of information. •  Model the weather to optimize placement of turbines, maximizing power generation and longevity. •  Reduce time required to identify placement of turbine from weeks to hours. •  Incorporate 2.5 PB of structured and semi-structured information flows. Data volume expected to grow to 6 PB. © 2012 IBM Corporation15
  16. 16. IBM Mobile Solutions Dublin City Centre Increases Bus Transportation Performance •  Public transportation awareness solution improves on-time performance and provides real-time bus arrival info to riders •  Continuously analyzes bus location data to infer traffic conditions and predict arrivals •  Collects, processes, and visualizes location data of all bus vehicles •  Automatically generates transportation routes and stop locations Results: •  Monitoring 600 buses across 150 routes •  Analyzing 50 bus locations per second •  Anticipated to Increase bus ridership © 2012 IBM Corporation16
  17. 17. IBM Mobile Solutions Barnes & Noble helps suppliers track sales and inventory in real time Need •  Publishers absorb the losses on returns when they print too many books, and have stock- outs when they print too few •  To provide publishers with the ability to get real-time insight into sales and view inventory trends over time Benefits •  Decreased time to run queries from weeks to seconds and enabled an 80% reduction in time to run compared to its previous system •  Reduced inventory levels and inventory carrying costs © 2012 IBM Corporation17
  18. 18. Watson:  From  Jeopardy  winner  to  healthcare  provider  18
  19. 19. The challenge for the chief marketing officer
  20. 20. Information Channels Across Time Note the drop-off for traditional broadcast channels (including websites)!20
  21. 21. IBM Institute for Business ValueThe vast majority of CMOs are underprepared to manage the impactof key changes in the marketing arena Underpreparedness Percent of CMOs reporting underpreparedness 50% Data explosion 71% Social media 68%Growth of channel and device choices 65% Shifting consumer demographics 63% Financial constraints 59% Decreasing brand loyalty 57% Growth market opportunities 56% ROI accountability 56% Customer collaboration and influence 56% Privacy considerations 55% Global outsourcing 54% Regulatory considerations 50% Corporate transparency 47%Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141 (n = number of respondents who selected the factor as important)21 © 2011 IBM Corporation
  22. 22. IBM Institute for Business ValueMost CMOs are still focusing on understanding markets versusunderstanding individuals to shape their strategySources used to influence strategy decisionsPercent of CMOs selecting all sources that apply Market research 82% 50% Corporate strategy 81% Competitive benchmarking 80% Customer analytics 74% Marketing team analysis 69% Customer service feedback 68% Financial metrics 68% Campaign analysis 68% Brand performance analysis 65% Sales/sell-through numbers 61% Test panels/focus groups 54% R&D insights 52% Consumer-generated reviews 48% Third-party reviews & rankings 42% Retail and shopper analysis 41% Online communications 40% Professional journals 37% Blogs 26% Key sources to Supply-chain performance 25% understand individualsSource: Q15 What sources of information influence your marketing strategy decisions? n=173322 © 2011 IBM Corporation
  23. 23. IBM Institute for Business ValueCMOs are overwhelmingly underprepared for the data explosion andrecognize need to invest in and integrate technology and analytics Underpreparedness Percent of CMOs selecting as Top 5 Factors Need for change to deal with data explosion Percent of CMOs indicating high/significant need Data explosion 71% Social media 68% Invest in 73% technologyChannel & device choices 65% Integrate Shifting demographics 63% 69% insights Financial constraints 59% Understand 65% Decreasing brand loyalty 57% analytics Growth markets 56% Rethink 64% skill mix ROI accountability 56% Collaborate Customer collaboration 56% 52% with peers Privacy considerations 55% Validate 49% Global outsourcing 54% ROIRegulatory considerations 50% Address 28% privacy Corporate transparency 47%Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 167323 © 2011 IBM Corporation
  24. 24. IBM Institute for Business ValueWhat s inhibiting them? Building the business case, IT-marketingalignment/integration issues and marketing technology skills Barriers to using technology in marketing Top 5 selected by CMOs Cost 72% Lack of ROI certainty 61% Tool implementation issues 47% Lack of skills of (potential) users 46% Lack of marketing and IT alignment 45% Lack of IT integration with organization 43% Ease of use 37% Business case Lack of technological ownership in marketing 34% IT related Marketing related Lack of IT skills 25% IT and marketing related Reliability 18% UsabilitySource: Q23 What are the top 5 barriers to using technology? n=173324 © 2011 IBM Corporation
  25. 25. The innovation aspect
  26. 26. We  are  ushering  in  a  new  wave  of  innovaHon   Age   6th  Wave   Age     of  IT  &   of  Oil,  Cars   Telecom Age     and  Mass     of  Steel,     ProducTon   Electricity   5th  Wave   and  Heavy     Engineering   4th  Wave   Smarter  InnovaHon   Age     of  Steam     and  Railways 3rd  Wave    Products   The     Industrial     §  Instrumented,   RevoluTon 2nd  Wave   interconnected,     and  intelligent   1st  Wave   §  Building  blocks     for  a  smarter  planet   §  Sustainability   1770   1830   1875   1920   1970   2010   Source:    “Next  GeneraTon  Green:  Tomorrow’s  InnovaTon  Green  Business  Leaders”,  Business  Week,  Feb  4,  2008   and  Nicolai  KontraTev:  “The  Major  Economic  Cycles”  (1925)  
  27. 27. Sixth Wave Thinking 6th  Wave   1. Waste = Opportunity 2. Sell the Service, not the Product 3. Digital and Natural Converge 4. Bits are Global, Atoms are Local 5. If in Doubt, Look to Nature27 James Bradfield Moody & Bianca Nogrady: The Sixth Wave – How to succeed in a ressource-limted world
  28. 28. Price28
  29. 29. Biodynamic Organic Conventional Pesticides Production method Herpacides Price Chemicals Production environment Child labor Sustainability Packaging Climate Geosphere Profiled change Environmental Health footprint consequences Positive Biosphere GMO Track Negative Sociosphere Health impact Transport Sustainability History/Origin29
  30. 30. Thank  you       Kim  Escherich   IBM  Global  Business  Services   +45  2880  4733   @kescherich   /in/escherich   /escherich  30