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Using Data Strategy Design to
Build Data-Driven Products
Martin Szugat at Product Tank Munich on 26.06.2017
datentreiber.de
Driving your business forward.
Consulting, workshops and seminars on data strategy design.
1996-2008
Software developer, consultant,
trainer and author
Study & research of bioinformatics
(Data Science)
2001-2008
Managing director & shareholder of
SnipClip GmbH
2008-2013
Program director of Predictive
Analytics World conferences in
Germany
2014-dato
Managing director & owner of
Datentreiber GmbH
2014-dato
Founder and director of
Datengipfel academy
2017-dato
Drivers for AI spring:
 Improved methods & open source tools
 Processing power (i.e. GPU) & memory
 Availability and quality of data
Breakthroughs in AI are mainly driven by data.
Source: http://www.kdnuggets.com/2016/05/datasets-over-algorithms.html
How machine programs work.
Data Algorithm
Infor-
mation
How machine learning works.
Past
Data
Training
Algorithm
Trained
Model
Future
Data
Trained
Model
Infor
mation
http://www.r2d3.u
s/visual-intro-
to-machine-
learning-part-1/
What makes data valuable?
Quantity (i.e instances)
Density (i.e. features)
Quality
 Completeness
 Currentness
 Correctness
 Reliableness
 Representativity
 …
More data means better predictions (in general).
Source: https://medium.com/mmc-writes/the-fourth-industrial-revolution-a-primer-on-artificial-intelligence-ai-ff5e7fffcae1
„Data is the new oil.“
So what?
The startup founder ...
… looking for data.
“Accessing and owning a large, domain-specific dataset to build high
accuracy models can be the single hardest problem that founders need to
solve in the beginning.”
Source: https://medium.com/@muellerfreitag/10-data-acquisition-strategies-for-startups-47166580ee48
“Owning a large, domain-specific dataset can therefore become a significant
source of competitive advantage […]”
Source: https://medium.com/@muellerfreitag/10-data-acquisition-strategies-for-startups-47166580ee48
The Chief Data Officer …
… is drowning in data ...
… but his company is …
… thirsty for information.
Most data lakes are …
… data swamps.
Data exploitation
Data refinement
Data utilization
Big Data Ansatz
Big data approach:
finding the needle in the haystack …
… by accumulating more hay.
The alternative:
data strategy design
Data utilization
Data refinement
Data exploitation
Data-driven business is lead by a value-oriented strategy.
Exploitation Refinement Utilization
What‘s a „data product“?
Data Algorithm
Infor-
mation
„Data Product“
[2]:
“A data product is a
computer application
that takes data
inputs and generates
outputs, feeding
them back into the
environment.”
„Data Product“
[1]:
“Customers buy the
data 'product' once,
and continue to use
it as is.”
„Data Product“
[3]:
“A data product is
digital information
that can be
purchased.”
What‘s a data-driven product?
Data Algorithm
Infor-
mation
It‘s valueable.It‘s unique.
It‘s an unique value proposition. (model)
It‘s a driven-driven product.
It‘s customer needs.
Predicting blockbusters.
Source: http://dataconomy.com/using-wikipedia-activity-data-forecast-movie-success/
Data Strategy Design Kit by Datentreiber
Data-driven Business Model Generation
https://www.amazon.com/Business-Model-Generation-Visionaries-Challengers/dp/0470876417/ref=sr_1_1
Cinema
Operator
Prediction of
percentage of
seats sold
License cost
reduction
Website
SaaS
Email
Predictive
Modeling
Marketing &
Sales
Data
Scientists
M&S
Manager
HR
Software
Marketing
Budget
Monthly Pay per
Cinema Hall
???
Prediction of
percentage of
seats sold
Prediction of
percentage of
seats sold
Predictive
Model: Total
Revenue
Predictive
Model: Seats
Sold
Wikipedia
Movie Data Movie Total
Revenue
Figures
Seats Sold
per Movie
Wikipedia
Movie Data
Movie Total
Revenue
Figures
Seats Sold
per Movie
Movie Name
Mapping
Table
???
Data Traps
Wikipedia
Movie Data
Movie Total
Revenue
Figures
Seats Sold per
Movie
Movie Name
Mapping Table
Prediction
Game
Prediction of
percentage of
seats sold
Predictive
Model: Total
Revenue
Predictive
Model: Seats
Sold
Wikipedia
Movie Data Movie Total
Revenue
Figures
Seats Sold per
Movie
Movie Name
Mapping Table
Prediction
Game
Data
WarehouseETL Tool Predictive
Modeling Tool
Website
Development
Tools
Data
Engineers
Data
Scientists
Web
Developers
Seller: Movie
Total Revenue
Figures
Cinema
Operator
Prediction of
percentage of
seats sold
License cost
reduction
Website
SaaS
Email
Predictive
Modeling
Marketing &
Sales
Seats Sold
per Movie
HR
Software
Marketing
Budget
Monthly Pay per
Cinema Hall
Prediction
Game
Movie Name
Mapping
Table
Prediction
Game
Seller: Movie
Total Revenue
Figures
Data Network Effects
More Data
(Seats
Sold)
Smarter
Algorithms
Better
Product
More
Clients
Get started.
Go to www.datenstrategiedesign.de.
May the data be with you.
datentreiber.deWir treiben Ihr Unternehmen voran.
Martin Szugat
Managing director
Telefon: +49 [0]881 12 88 46 53
E-Mail: ms@datentreiber.de
Web: www.datentreiber.de
Blog: www.datenstrategiedesign.de

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Using Data Strategy Design to Build Data-Driven Products

Editor's Notes

  1. http://go-digital.net/blog/tag/behavioral-targeting-gone-bad/
  2. http://www.r2d3.us/visual-intro-to-machine-learning-part-1/
  3. https://image-store.slidesharecdn.com/24aea309-cc6d-4b9d-8c44-55341a83dd90-original.jpeg
  4. [1] http://www.datasciencecentral.com/profiles/blogs/when-it-comes-to-monetization-not-all-data-is-created-equal, [2] https://en.wikipedia.org/wiki/Data_analysis#Data_product, [3] http://searchcio.techtarget.com/definition/Data-products