Big Data Analytics in light of Financial Industry

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Big Data Analytics in light of Financial Industry

  1. 1. Big Data & Analytics Niklas Karlsson niklas.karlsson@capgemini.com BIM lead Sweden
  2. 2. Big Data – What is all the fuss about? http://youtu.be/LrNlZ7-SMPk Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 2
  3. 3. Big Data – What is all the fuss about? “The effective use of Big Data has the potential to transform economies, delivering a new wave of productivity growth…Using Big Data will become a key basis for competition…” “We estimate that a retailer embracing Big Data has the potential to increase operating margin by more than 60%” “$300bn – the potential saving in US healthcare” “$250bn – the potential saving in European Public Sector” McKinsey Institute – Big Data: The next frontier for innovation, competition and productivity – May 2011 “Data-Driven Decision-making can explain a 5-6% increase in output and productivity, beyond what can be explained by traditional inputs and IT usage.” MIT – Strength in Numbers – April 2011 “Survey participants estimate that, for processes where Big Data analytics has been applied, on average, they have seen a 26% improvement in performance over the past three years, and they expect it will improve by 41% over the next three.” & Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 3
  4. 4. BIG DATA IN ACTION In September 2012, California passed a law allowing self-driving cars to be tested on its roads. In 2040, it is anticipated people will not need to get driver’s licenses. Cars will be able to drop someone off and then go find a parking space. Take a ride in a self-driving car. http://youtu.be/cdgQpa1pUUE Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 4
  5. 5. Use Cases Understanding the customer Through social media, how they navigate on web pages, telecoms usage… gives a step change in understanding and tailoring offers for / retention of the customer Internet of things Equipment everywhere is getting real-time remote monitoring. (>4bn connected IPs). Analyzing this data give opportunities for preventative maintenance and proactive system response Business Performance Understanding market perception of your company and products from call center voice and social media sources, detailed analysis of operations from machine sensor data and competitor analysis from market data Smart Meters and Grid Vast volumes of data will be generated. Getting insights to optimize the grid, provide customer energy advice and offers will need Big Data processing Planes, boats and trains Now provide continuous telemetry data – allows performance to be optimized, risks are identified early and support is more effective Extended Supply Chain RFID allows a whole new level of supply chain monitoring and optimization Risk Mitigation Understanding systems and processes better and customer sentiment early can radically reduce risk A company whose offers are 10% more effective, which is able to provide the right service at the right time 10% better and its supply network 10% cheaper, is the company that will be around tomorrow. Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 5
  6. 6. What if… You could detect a neonatal infections sooner? Solution 120 children monitored :120K message per sec, billion messages per day 24 hour earlier detection of infections Big Data enabled doctors from University of Ontario to apply neonatal infant monitoring to predict infection in ICU 24 hours in advance Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 6
  7. 7. WHAT IS BUSINESS ANALYTICS? Analytics has been defined as “the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions”  “There is considerable evidence that decisions based on analytics are more likely to be correct than those based on intuition.”  “Decision making and the techniques and technologies to support and automate it will be the next competitive battleground for organizations. Those who are using business rules, data mining, analytics and optimization today are the shock troops of this next wave of business innovation.” Thomas Davenport, author of Competing on Analytics Analytics in Action http://youtu.be/yGf6LNWY9AI Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 7
  8. 8. Source: Davenport, T. H., & Patil, D. J. (2012). Data Scientist. Harvard business review Business Information Management Big Data & Analytics | October 2013 8 Copyright © 2013 Capgemini. All rights reserved. 8
  9. 9. We have a Big Data Methodology We have developed a Big Data strategy, methodology and delivery capability to help clients take advantage of Big Data:  Big Data Process Model New Business Model or Business Process Improvement Acquisition Collection of data Marshalling Organization and storing of data Analysis Action Finding insights Predictive modelling Changing business outcomes Data Governance Big Data PoV  Development and Implementation Considerations Managing Data Integration integration of Data Integrity Master data, governance & data quality Business, Architecture Functional and Technical Data Storing Structured, non structured modelling... data sources Privacy & Security Dealing with new customer data sources Action M2M, ERP injection, dialog with suppliers... Analytics Value Models that deliver business value First use Be sure the first project step will be a success ! Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 9
  10. 10. Our structured, but flexible, approach to developing Big Data Strategies 1. Stakeholder meetings 2. Analysis & Design 3. Big Data Strategy Policies & Standards Systems Integration Compliance 5 4 3 2 Document Management Information Quality 1 Governance Knowledge Management 0 Performance Management Lifecycle Management Business Intelligence Security Culture Desired Position As Is Position  A kick-off to convey importance & challenges associated with Big Data  A rapid assessment using Focused Interviews with the key stakeholders from business and IT  We use our enhanced information diagnostic to support the capture of feedback  This identifies “burning platforms” and assessment against best practice  Establishes business justification for change with key stakeholders  A detailed assessment using output from the stakeholder interviews  Additional information gathering interviews with client and Capgemini Subject Matter Experts  Analyze available unstructured & semistructured data sources to build Big Data analytics  This identifies opportunities with supporting evidence  Where possible, it also provides benchmarking against other organizations  An information vision agreed by stakeholders from business and IT with respect to Big Data assessment framework developed by Capgemini  A transformation roadmap, agreed by stakeholders from business and IT, required to achieve the vision  Business case(s) to support the roadmap (or key steps within it)  The initial steps on the roadmap need to be pragmatic and prioritised to deliver benefits quickly Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 10
  11. 11. Big Data players Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 11
  12. 12. If we only knew?       What are the questions that need to be asked? What are the answers that help us move from data to decisions? Can we shift insight into action? How do we tie information to business process? Who needs what information at what right time? How often should this information be updated, delivered, and shared? Business Information Management 12 Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 12
  13. 13. Extra slides Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 13
  14. 14. Analytical Sandbox Analytics Sandbox Data Visualization Prebuilt Connectors and Standard Analytical Algorithms Power User Machine Data Weblo gs Web Logs Social Media Social Media Data Unstructured Data  Readymade environment for customers to start building PoCs  Ready analytical plug-ins to expedite analytical development (Fraud detection, sentiment analysis etc.) Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 14
  15. 15. Capgemini BIM + Big Data CUBE Lab Our BIM CUBE hosts the Big Data lab We are able to show and to build PoCs on these technologies: What is the BIM CUBE: Customers can:    Located at Capgemini Mumbai and occupying a space of over 400 sq feet, the CUBE features an interactive kiosk that outlines our BIM Service Model Customers can navigate themselves, or have a guided tour, to help them gain greater insight into the broad spectrum of BIM Solutions    Experience innovative Business Information Management solutions Interact with BIM Subject Matter Experts Witness the solutions created for similar customers Review proof of concepts and technology innovations, as well as productivity tools We are at the forefront of the technology disruptions fuelling information led transformation Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 15
  16. 16. Use Cases - Financial Services Customer Risk Analysis Surveillance and Fraud Detection Build comprehensive data picture of customer side risk • Publish a consolidated set of attributes for analysis • Map ratings across products Trade surveillance records activity in a central repository • Centralized logging across all execution platforms • Structured and raw log data from multiple applications Parse and aggregate data from difference sources • Credit and debit cards, product payments, deposits and savings • Banking activity, browsing behaviour, call logs, e-mails and chats Pattern recognition detect anomalies/harmful behaviour • Feature set and timeline vector are very dynamic • Schema on read provides flexibility for analysis Merge data into a single view • A “fuzzy join” among data sources • Structure and normalize attributes • Sentiment analysis, pattern recognition Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 16
  17. 17. Use Cases - Financial Services Central Data Repository Personalization and Asset Management Financial Data messy due to many interacting systems • Personal data is obfuscated for security and records get out of sync • Trades need to be “sessionized” into accounts and products • Discrepancies are difficult to reconcile, need to track corrections Institutional and personal investing services • Arms investor with sophisticated models for their positions • Success measured by upsell and conversion (as well as profit) Big Data as a centralized platform for data collection • Single source for data, processing happens on the platform • Metadata used to track information lifecycle Data served via APIs or in Batch • Single version of the truth, data processed and cleansed centrally • Clear audit trail of data dependencies and usage Data analysis across distinct data sources • Market data and individual assets by investor • Investor strategy, goals and interactive behaviour Data sources combined in HDFS • Models written in Pig with UDFs and generated regularly • Reports for sales and fed into online recommendation system Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 17
  18. 18. Use Cases - Financial Services Market Risk Modeling Trade Performance Analysis Evaluating asset risk is very data intensive • Trade volumes have increased dramatically • Classic indicators at the daily level don’t provide a clear picture Increased Demands on Trade Analytics • Regulatory requirements for best price trading across exchanges • Increased competition and scrutiny adds a focus on optimization Trends across complex instruments can be hard to spot • Models require massive brute force calculation • Multiple models built in batch and in parallel Data is primarily structured and sourced from RDBMS • Transactional data sqooped to combine with market feeds • Resulting predictions sqooped and served via RDBMS Trade Analytics becomes a Clickstream problem • Trade execution systems include order trails and execution logs • Sessionized across order systems and combined with system logs Processing, Analysis and Audit Trail all in Hadoop • KPIs summarized as regular reports written in Hive • Data available for historical analysis and discovery Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 18
  19. 19. Big Data Deployments In Financial Services Global Bank  Business Challenge: • Global bank establishing “Analytics” as a core competency. Bank focusing on Information and Data as strategic asset. • Bank is focused on Big Data as key analytics tool and establishing a Big Data COE to be leveraged into multiple lines of business of the bank – retail, cards, commercial  Solution: • Capgemini selected by Bank to be its strategic partner for Big Data. (selected versus Accenture, TCS, Cognizant) • Big Data established as a “shared service” across multiple LOBs. • Capgemini involved in the “ideation” phase with business and IT sponsors to define business cases. • Business Cases: Next Best Action, Sentiment Analysis, Cross-Sell/Upsell, Fraud Analytics, Mortgage Dispositions Business Information Management Big Data & Analytics | October 2013 Copyright © 2013 Capgemini. All rights reserved. 19
  20. 20. About Capgemini With more than 125,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model www.capgemini.com The information contained in this presentation is proprietary. © 2013 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.

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