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Big Data in Hong Kong -- Dr. Toa Charm

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This is Dr. Toa Charm's presentation from the 15 May 2014 meeting of the Hong Kong Big Data community. Along with Daniel Ng and myself (Scott Drummonds), Dr. Charm presented on big data in Hong Kong …

This is Dr. Toa Charm's presentation from the 15 May 2014 meeting of the Hong Kong Big Data community. Along with Daniel Ng and myself (Scott Drummonds), Dr. Charm presented on big data in Hong Kong to a joint session of HKBD and the Chinese University of Hong Kong MBA consulting club.


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  • 1. Copyright © by 2014 All rights reserved. What's hindering Hong Kong firms in push for big data? Dr. Toa Charm toacharm@gmail.com May 15, 2014 Hong Kong
  • 2. Copyright © by 2014 All rights reserved.  Industry Experience in Business Intelligence and Big Data – Associate Partner, Business Analytics, Greater China, IBM GBS – Regional Head of BI Competency Centre (BICC), Asia Pacific, HSBC – General Manager, Business Intelligence, Greater China, Oracle – Managing Director, Greater China, Hyperion – General Manager, Asia Pacific, Kingdee International Group  Accomplishment in Business Intelligence and Big Data – Established 1st Business Intelligence Competency Centre (BICC) in HSBC Asia Pacific – Founder and Chairperson, BI Special Interest Group, Hong Kong Computer Society – Won Hong Kong Computerworld Best BI Award, Hyperion’s Asia/Pacific Best Partnership Award, Hyperion’s Best Marketing & Best Consulting Award – Forum Chairs/Moderators: Big Data Business Forum (US), Hong Kong BI and Analytics Forum (2011-2013), Retail Analytics Forum, Cloud Asia, Insurance Analytics, Finance Innovation, BankTech Forum, etc.  Qualification and Publications – Doctor of Business Administration, MBA, B.Sc. – Doctoral Thesis: Impact of Organizational Capabilities on Business Intelligence Maturity and Customer Relationship Management Performance – Author of two books to be published in 2014 – “Strategic Success of BI and Big Data Journey in Greater China” and “Strategy - Make or Break Our Company and Career Lives”. – Adjunct Professorship: University of Hong Kong, Fudan University (Shanghai), University of Macau – Completed senior executive programs from Harvard, UC-Berkeley, MIT, CEIBS Dr. Toa Charm 湛家揚博士 Founder & Chairperson, BI and Big Data SIG Hong Kong Computer Society DBA , MBA, B.Sc. , CBIP (TDWI), Big Data Certification (MIT) 2 2
  • 3. Copyright © by 2014 All rights reserved. Big Data Success Vs CEO and CIO Resigned 3
  • 4. Copyright © by 2014 All rights reserved. Big Data Workshop - Outline 4 1. Big Data in a Nutshell 2. Big Data Business Values and Innovations 3. Big Data Challenges in Hong Kong 4. Future Trends
  • 5. Copyright © by 2014 All rights reserved. 1. Big Data in a Nutshell 5
  • 6. Copyright © by 2014 All rights reserved. Big Picture of Big Data 6
  • 7. Copyright © by 2014 All rights reserved. Variety Brings in Complexity 7
  • 8. Copyright © by 2014 All rights reserved. Big Data is the Source of Sustainable Competitive Advantages “From labor-based productivity to data-based productivity is the key for the West to regain advantages ” “Data will become valuable assets, and will become a part of our balance sheet” ~Kenneth Cukier, co-author of the best-selling big data book “Big Data – A Revolution that will transform how we live, work, and think 8
  • 9. Copyright © by 2014 All rights reserved. Financial Impact of Big Data - Mckinsey 9
  • 10. Copyright © by 2014 All rights reserved. 12 Disruptive Technologies (2013-2025) - Big Data is a CSF of all 12 technologies 10
  • 11. Copyright © by 2014 All rights reserved. Worldwide Analytics and BI Survey - Ranked as TOP priority by Global CIOs 3 times in 5 years Source: Gartner Research, 2014 11
  • 12. Copyright © by 2014 All rights reserved. Source: Forbes Retrieved from http://www.forbes.com/sites/gilpress/2013/10/30/top-10-most-funded-big-data-startups-updated/ on Jan 18, 2014 Big Data Innovators and New Challengers 12
  • 13. Copyright © by 2014 All rights reserved. http://www.bigdatalandscape.com/ Born of a New Set of Players - Big Data Vendors and Big Data-Driven Companies 13
  • 14. Copyright © by 2014 All rights reserved. Big Data Workshop - Outline 14 1. Big Data in a Nutshell 2. Big Data Business Values and Innovations 3. Big Data Challenges in Hong Kong 4. Future Trends
  • 15. Copyright © by 2014 All rights reserved. 15Source: TDWI, 4th Quarter 2013 1. Cost Savings 2. Fast and Better Decisions in Existing Functions 3. Data-based Products and Services 4. New Business Models Source: Big Data @work, Thomas Davenport, 2014 Some Key Business Drivers for Big Data
  • 16. Copyright © by 2014 All rights reserved. Business Metamorphosis Data Monetization Business Optimization Business Insights Business Monitoring Big Data Business Model Maturation Index Measures the degree to which your organization has integrated big data and advanced analytics into your business model Traditional BI Big Data 16
  • 17. Copyright © by 2014 All rights reserved. GE predicts that they will contribute to the world GDP by 1,500 billion dollars simply by cost savings through big data 17
  • 18. Copyright © by 2014 All rights reserved. 18
  • 19. Copyright © by 2014 All rights reserved. Crowdsourcing for Analytics - Allstate Underwriting 19 Predictions of bodily injury claims based on automobile characteristics Crowdsourced competitions have yielded stunning successes. In a competition sponsored by Allstate in 2011, top Kaggle contestants easily beat the performance of Allstate’s best baseline model for predicting which autos covered by policies would be involved in bodily injury claims. The winner's model was 270% more accurate than Allstate's baseline model, and the insurer has since incorporated key elements into the models it now uses. Source: Doug Henschen, Executive Editor, InformationWeek, Mar. 7, 2013 http://www.informationweek.com/software/business-intelligence/kaggle-winners-tapped-as-data-analytics/240150254
  • 20. Copyright © by 2014 All rights reserved. The Secret Weapon of Obama for His Presidential Election 20
  • 21. Copyright © by 2014 All rights reserved. Google - Flu Trends Early detection of a disease outbreak can reduce the number of people affected. If a new strain of influenza virus emerges under certain conditions, a pandemic could ensue with the potential to cause millions of deaths (as happened, for example, in 1918). Our up-to-date influenza estimates may enable public health officials and health professionals to better respond to seasonal epidemics and pandemics Source: http://www.google.org/flutrends/about/how.html 21
  • 22. Copyright © by 2014 All rights reserved. The Movie “MoneyBall” - Oakland’s A (Baseball Team) A New Way of Thinking in a Traditional Industry Source: http://www.youtube.com/watch?v=WNlCBy07z08 22
  • 23. Copyright © by 2014 All rights reserved. Final Jeopardy! and IBM Watson - The Power of the IBM Big-Data Machine “Watson” Source: http://www.youtube.com/watch?v=lI-M7O_bRNg Watson won the game! 23
  • 24. Copyright © by 2014 All rights reserved. Citibank is Making use of Watson.. • Citi and IBM have agreed to explore the first consumer banking applications. Citi will focus on how the machine’s deep content analysis and evidence-based learning capabilities could improve customer interactions and simplify the banking experience. • Financial advisers could capture a holistic view of a client’s situation in life, their tolerance for risk, and the best outcomes, based on past performance, of people in the same demographic and psychographic groups. From this information, banks could anticipate the needs of their customers. They’ll be able to stage three-way conversations, including Watson, to help their clients explore questions deeply and make sound decisions…. More to come Source: Manoj Saxena, General Manager,IBM Watson Solutions http://asmarterplanet.com/blog/2012/03/taking-watson-to-the-bank.html 24
  • 25. Copyright © by 2014 All rights reserved. Big Data Application - Insurance 25
  • 26. Copyright © by 2014 All rights reserved. Zest Finance ZestCash, Inc., a financial services technology, startup committed to serving the needs of the underbanked, today announced a new credit decisioning infrastructure (patent pending) that can run multiple underwriting models in parallel, each with a different focus, to better analyze credit risk. ZestCash also introduced Hollerith, a new set of underwriting models that allow the company to extend credit to 25 percent more Americans and increase repayment from customers by 20 percent. 26
  • 27. Copyright © by 2014 All rights reserved. Progressive Auto Insurance - Disruptive Premium Pricing Source: http://www.cio.com/article/736686/How_Progressive_Uses_Telematics_and_Analytics_to_Price_Car_Insurance 27
  • 28. Copyright © by 2014 All rights reserved. Linkedin is Making Use of Big Data - Data-based Products 28
  • 29. Copyright © by 2014 All rights reserved. The Richest in China, Forbes 2013 - Internet + Big Data Savvy Leaders Net Worth US$M Age Robin Li, Baidu Pony Ma, Tencent Jack Ma, Alibaba 29
  • 30. Copyright © by 2014 All rights reserved. Platform Strategy Examples - Alibaba and Tencent 30
  • 31. Copyright © by 2014 All rights reserved. Big Data Value Potential by Industry 31
  • 32. Copyright © by 2014 All rights reserved. Big Data Made the Industry Border Blurred • Small and innovative analytics firm gets into FSI – ZestFinance makes loan to customers with bad or no credit histories basd on a lot more variables instead of FICO credit scores – Wonga offers loans for very short periods by looking at different data sources and make credit decisions on the fly – Cignifi digs deep into mobile data of callers to get clues about their propensity to repay loans • Smaller banks recognize the importance of data, keep their own credit card business and leverage on Cloud-based big data analytics • Tesco collects huge amounts of data on its customers’ shopping habits that allow it to send precisely targeted coupons. The firm has banking ambitions and has already launched credit cards and loans and plans to introduce full bank accounts. • Other firms help customers at the expense of banks – Mint pulls togethers all banks information of a customer – ReadyForZero, SaveUp, Zopa, Prosper and more, bypass banks entirely, letting savers lend directly to borrowers. 32
  • 33. Copyright © by 2014 All rights reserved. Big Data Workshop - Outline 33 1. Big Data in a Nutshell 2. Big Data Business Values and Innovations 3. Big Data Challenges in Hong Kong 4. Future Trends
  • 34. Copyright © by 2014 All rights reserved. Google Trend – “Big Data” United States and Hong Kong 34
  • 35. Copyright © by 2014 All rights reserved. BI & Analytics Adoption in Hong Kong is Far behind the Overall Asia 35 Asia sees big data a low technology priority HK is behind the rest of Asia in taking advantage of Analytics Source: Computerworld Hong Kong, 2013
  • 36. Copyright © by 2014 All rights reserved. Big Data Adoption in Asia Pacific - by industry 36 Source: Economist Intelligence Unit 2013
  • 37. Copyright © by 2014 All rights reserved. 37 Obstacles Importance Type Lack of understanding how to use analytics to improve business 38% Organizational Lack of management bandwidth due to competing priorities 34% Organizational Lack of skills internally in the line of business 28% Organizational Ability to get the data 24% Data Culture does not encourage sharing information 23% Organizational Ownership of the data is unclear or governance is ineffective 23% Data Lack of executive sponsorship 22% Organizational Concerns with the data 21% Data Perceived costs outweigh the projected benefits 21% Financials No case for change 15% Financials Figure 1-2: Primary Obstacles to Widespread Analytics Adoption (IBM and MIT, 2010) Figure 1-1: 2013 Global CIO Top 10 Technologies (Gartner, 2013) Research Problem # 1 Uprising Demand on BI and Organizational Challenges • CIOs ranked BI as their annual top priority 3 times in the last 5 years including 2012 & 2013. It is expected to remain popular with the maturity of Big Data. • Organizational issue is the top challenge for BI success rather than Data and Financial issues. These CIOs need to manage these organizational issues well in order to meet the strong demand of BI and deliver the expected values of BI. • Little is known on organizational issues of BI program success.
  • 38. Copyright © by 2014 All rights reserved. 38 Research Problem # 2 • BI aims to enhance company performance including CRM performance. • As BI gets mature in a company, its CRM Performance is expected to be higher. Higher BI Maturity leads to a higher return of investment as shown in TDWI BI Maturity Model. • However, different enterprises are getting different results even they put same amount of investment on BI projects.BI Maturity Model (Davenport and Harris, 2007) TDWI Maturity Model (Eckerson, 2007a) TDWI Maturity Model (Eckerson, 2007a)
  • 39. Copyright © by 2014 All rights reserved. 39 The Concepts Map indicates that the three key organizational capabilities identified in this study have a positive impact on BI Maturity. this implies that enhancing these organizational capabilities may help a company advance to a higher level of BI Maturity, as discussed earlier in this Chapter. My Doctoral Research Concepts Map Another indication seen from the Concepts Map is the moderating effects of the three variables identified in the research, indicating that Industry moderates the relationship between Staff Capability and BI Maturity but only slightly moderates the relationship between BI Team Capability and BI Maturity. There is no indication that Industry moderates the relationship between Senior Management Capability and BI Maturity. In addition, the Concepts Map indicates that Drivers for Change moderates the relationship between Staff Capability and BI Maturity but only slightly moderates the relationship between BI Team Capability and BI Maturity. There is no indication that Industry moderates the relationship between Senior Management Capability and BI Maturity. Regarding the impact of Organizational Nature, it moderates the relationship between BI Team Capability and BI Maturity but only slightly moderates the relationship between Staff Capability and BI Maturity, as well as the relationship between Senior Management Capability and BI Maturity. Last but not least, the Concept Map indicates that BI Maturity has a positive impact on CRM Performance. As explained in Section 6.4, the higher the BI Maturity is, the better the CRM Performance will be. However, there are a few exceptions where BI Maturity is high but the CRM Performance is relatively low. There might be some moderating or mediating variables between BI Maturity and CRM Performance that cause this kind of variations, as discussed in Section 6.4. Figure 6-11: Concepts Map
  • 40. Copyright © by 2014 All rights reserved. 40
  • 41. Copyright © by 2014 All rights reserved. 41
  • 42. Copyright © by 2014 All rights reserved. Data Analytics - People, Roles and Skills 42
  • 43. Copyright © by 2014 All rights reserved. Data Analytics - Technologies 43
  • 44. Copyright © by 2014 All rights reserved. Strong Demand of Analytics and Data Science Experts around the Globe According to Mckinsey, Just US alone faces a shortage of 140K to 190K people with deep analytical skills as well as 1.5 million managers and analysts to analyze big data and make decisions based on their findings. Source: Mckinsey Global Institute 44 By 2015, big data demand will reach 4.4 million jobs globally but only one third of those jobs will be filled. Source: Gartner
  • 45. Copyright © by 2014 All rights reserved. 20 Master’s Programs on Big Data Analytics and adding up e.g. UC-Berkeley Source: Doug Henschen, Information Week, January 08, 2013 09:06 AM http://www.informationweek.com/big-data/slideshows/big-data-analytics/big-data-analytics-masters-degrees-20/240145673 45
  • 46. Copyright © by 2014 All rights reserved. Data Privacy is the Biggest Enemy of Big Data Long-Term Success + 46
  • 47. Copyright © by 2014 All rights reserved. Big Data Workshop - Outline 47 1. Big Data in a Nutshell 2. Big Data Business Values and Innovations 3. Big Data Challenges in Hong Kong 4. Future Trends
  • 48. Copyright © by 2014 All rights reserved. Gartner Predicts Big Data Needs 5 years to Reach Maturity - Hype Cycle for Emerging Technologies 2013 48
  • 49. Copyright © by 2014 All rights reserved. 49 Some of the Key Elements of Big Data Has Reached Maturity - Hype Cycle for Big Data 2013
  • 50. Copyright © by 2014 All rights reserved. Future Trends • More proven cases • Influence or disrupts more industries and companies • More data scientists and data-savvy managers – More online programs, M. Sc. Data Science, Certification for Professional Qualifications, etc. • Technology maturity • Increase complexity in 3 Vs – Wearables, IOT, sensors • Regulation and Laws for Data Privacy • More Open Data from governments • Adoption – Freemium – Gamification – Visualization – Mobile – Payment • Still needs to resolve toughest organizational challenges on the top of technologies, data and finance • .. More 50
  • 51. Copyright © by 2014 All rights reserved. What's hindering Hong Kong firms in push for big data? Dr. Toa Charm toacharm@gmail.com May 15, 2014 Hong Kong

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