1. HOW
BIG DATA
TRANSFORMS
OUR WORLD
DDC, Data Visualization Academy Kick-Off, March 12, 2013
Kim Escherich
Executive Innovation Architect, IBM Global Business Services
1

2. The purpose of this session is to discuss trends shaping the
IBM Global Business Services
journey towards the smarter planet – driven by big data
2 © 2011 IBM

3. What is data?
Trends and technologies, by example.
3

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. 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

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
2009
800,000 petabytes
is unstructured
60% capturing and understanding
information rapidly in order to
make swift business decisions

8. Neurowear
Necomimi
hPp://en.necomimi.com/
8

9. fitbit
”Let's make fitness a fun, achievable part of everyday life”
http://www.fitbit.com
9

10. 10

11. Big data, defined
11

12. We’ve Moved into a New Era of Computing
12 terabytes 5 million
of Tweets trade events
created 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. 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 prediction
Run 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. 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 supporting
Customer to uncover customer models around newly discovered buying applications & processes –campaign
Buying acquisition and patterns. Accurately predict likely next best execution, CRM, ecommerce, call
Behavior 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 localized
Enhancement & visualize feedback would predict cross-sell and up-sell opportunities product promotions that can be
Development 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 drives
Ad social data to assess ad campaign to maximize effectiveness fast reaction to optimize
effectiveness awareness, reach campaign strategy and
and reaction to on maximize ROI
and offline ads

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 Corporation
15

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 Corporation
16

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 Corporation
17

18. Watson:
From
Jeopardy
winner
to
healthcare
provider
18

19. The challenge for the chief marketing officer

20. Information Channels Across Time
Note the drop-off for traditional broadcast channels (including websites)!
20 http://www.baekdal.com/articles/Management/market-of-information

21. IBM Institute for Business Value
The vast majority of CMOs are underprepared to manage the impact
of 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. IBM Institute for Business Value
Most CMOs are still focusing on understanding markets versus
understanding individuals to shape their strategy
Sources used to influence strategy decisions
Percent 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 individuals
Source: Q15 What sources of information influence your marketing strategy decisions? n=1733
22 © 2011 IBM Corporation

23. IBM Institute for Business Value
CMOs are overwhelmingly underprepared for the data explosion and
recognize 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%
technology
Channel & 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% ROI
Regulatory 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 1673
23 © 2011 IBM Corporation

24. IBM Institute for Business Value
What s inhibiting them? Building the business case, IT-marketing
alignment/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% Usability
Source: Q23 What are the top 5 barriers to using technology? n=1733
24 © 2011 IBM Corporation

25. The innovation aspect

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. 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 Nature
27
James Bradfield Moody & Bianca Nogrady: The Sixth Wave – How to succeed in a ressource-limted world

28. Price
28

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/Origin
29

30. Thank
you
Kim
Escherich
IBM
Global
Business
Services
escherich@dk.ibm.com
+45
2880
4733
internetoghings.dk
escherich.biz
@kescherich
/in/escherich
/escherich
kescherich@gmail.com
30