Helping Compliance Cross The Data Chasm


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Helping Compliance Cross the Data Chasm - Webinar for the Compliance Week Magazine, March 27st, 2013

Since 2012, Big Data has become a major topic of discussion, catalyzing attention among the C-Level executives and driving investments and projects inside the enterprise. But what exactly is Big Data from a compliance perspective? And how prepared is compliance to handle this current trend? From what I have learned and experienced, compliance is not adequately prepared and, trust me, the data and analytics people are not making it very easy for you. This presentation will help compliance personnel understand more about Big Data, while providing some real life examples that will help you determine if Big Data is a threat for your job security or a tool to help you thrive.

Mario Faria, Data Strategy Advisor - Boa Vista

Joe McCafferty, Executive Editor, Compliance Week

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Helping Compliance Cross The Data Chasm

  1. 1. Helping Compliance Cross the Data Chasm You can submitWelcome to Compliance Week’s virtual conference on Big Data and how questions to ourcompliance can respond to the emerging risks. speaker by using the “Ask a Question” button on the left side of your screen.This afternoon’s Webcast will feature Mario Faria, data strategist withBoa Vista and will explore some real life compliance tools for crossingthe data chasm.The discussion will be hosted by Compliance Week Executive Editor, JoeMcCafferty. (888) 519-9200
  2. 2. Agenda for Today’s Webcast This Webcast will last for 50 minutes You can submit questions to our speaker by using the 1:30 p.m. Introduction “Ask a Question” Joe McCafferty, Compliance Week button on the left side of your screen. 1:35 p.m. Discussion Mario Faria, Boa Vista 2:05 p.m. Q&A: Will be kept anonymous 2:20 p.m. Closing Remarks: From Compliance Week (888) 519-9200
  3. 3. Introduction: The Series, Schedule & Instructions You can submitUpcoming Virtual Conferences: questions to our speaker by using theVisit our website for future virtual event dates and topics “Ask a Question” button on the left side of your screen.Instructions:Use the “Ask A Question” function (left side of your screen)All questions will be anonymous. (888) 519-9200
  4. 4. Today’s Presenter Mario Faria You can submit questions to our Data Strategy Advisor, Boa Vista speaker by using the “Ask a Question” button on the left• Has worked as a CDO for Boa Vista, a credit bureau services side of your screen. provider in Brazil, which is partly owned by Equifax.• Is a professor of marketing and strategy at the MBA program of the Business School São Paulo (BSP).• Is a contributor of several conferences, magazines and publications in areas of Big Data, Data Analytics, Data Management, Digital Marketing, Social Media, and Technology. (888) 519-9200
  5. 5. Helping Compliance Cross the Data Chasm March 27th, 2013 Mario Faria Data Stratagy Advisor 5 Mario Faria
  6. 6. Objectives of this seminar• To help Compliance people to understand what is currently happening with data and technology• To present some Big Data concepts that will help Compliance people do their jobs better• To provide insights on how Compliance and Data Teams should successfully work together inside an organization 6 Mario Faria
  7. 7. Who am I ?• MIT recognition as the 1st Chief Data Officer and Lead Data Scientist of Latin America• 20+ years working with Information Technology, Management Consulting, Financial Services, Retail, Consumer Goods and Private Equity• Expertise in Data Management, Analytics and BI at Boa Vista (Equifax Joint Venture), IBM, Accenture and Microsoft• Speaker at several conferences on these subjects in USA and throughout Latin America• Contributor writer for magazines and publications in areas of data management, marketing, media and technology 7 Mario Faria
  8. 8. Our agenda today• How we got here• The 5 waves of Technology• From BI to Big Data• The Data Life Cycle• The Chief Data Officer / Head of Analytics / Data Scientists• Is Big Data a threat or a tool for Compliance ?• Going from here• Conclusions• Q&A 8 Mario Faria
  9. 9. There was a time in history of mankind … 9 Mario Faria
  10. 10. On Compliance and Big Data 10 Mario Faria
  11. 11. Compliance and Big Data : more than 38 million results 11 Mario Faria
  12. 12. Compliance and Big Data : more than 1.8 million results 12 Mario Faria
  13. 13. How to make sense ? 13 Mario Faria
  14. 14. Helping Compliance Crossing the Data Chasm Geoffrey A. Moore 14 Mario Faria
  15. 15. How we gothere in terms of Big Data 15 Mario Faria
  16. 16. The Web Evolution : more and more data driven Middle 90s 2005 - 2011 2012 moving forward Web 2.0 Web 3.0 - Data-driven Web 1.0Bricks to Clicks Participatory Web moves from broadcast (push) medium to enabling two-way dialogue based on: - Behavior - Preferences - Profile data - Personalized user experiences Leverage the web as a database - Machine learning - Predictive analytics - Automated modeling Internet of things - Widgets - Peer-to-peer networks - Devices, cars 16 Mario Faria
  17. 17. The 4 driving factors that arechanging the technology industry as we know it• Social• Mobile• Cloud• Information 17 Mario Faria
  18. 18. 18Mario Faria
  19. 19. The 5 Waves of Technology 19 Mario Faria
  20. 20. The 5 waves ofcomputing technology 20 Mario Faria
  21. 21. 1st wave - computers 21 Mario Faria
  22. 22. 2nd wave - ERPs 22 Mario Faria
  23. 23. 3rd wave – CRM andSupply Chain integration 23 Mario Faria
  24. 24. 4th wave – Business Intelligence 24 Mario Faria
  25. 25. 5th wave – Social Computing 25 Mario Faria
  26. 26. From BusinessIntelligence to Big Data 26 Mario Faria
  27. 27. What is Analytics ?“The extensive use of data, statisticaland quantitative analysis, explanatoryand predictive models, and fact-basedmanagement to drive decisions andactions” – Thomas Davenport 27 Mario Faria
  28. 28. Analytic Maturity Curve 28 Mario Faria
  29. 29. 29Mario Faria
  31. 31. Differences between Big Data and Traditional BI projects 31 Mario Faria
  32. 32. The evolution path to Big Data 32 Mario Faria
  33. 33. Big Data is not just about :• Large volumes• Greater scope of information• Real time access to information• New kind of data and analytics• Data influx from new technologies• Non-traditional forms of media• Variety of sources It all of the above, plus a transformation in processes and culture, and it is a disruptive factor for entire industries 33 Mario Faria
  34. 34. Analytics is about customer centricity• Supply Chain forecasting• Behavioral analysis• Operations improvement• Marketing targeting / decisions• Real-time pricing / promotions• Customer experience analysis• Customer insights• Customer lifecycle management• Fraud prevention and analysis• Network monitoring 34 Mario Faria
  35. 35. Big Data & Analytics are transforming how companies operate, internally and externally, at startling speed• Big Data = Big Problem• The change in employee norms is challenging traditional corporate hierarchies• The really big headache for companies is how to break down internal “silos” of information• Tomorrow’s corporate winners will be the Sir Martin Sorrell, businesses that can not just collect CEO WPP, numbers but make sense of them too, @ Davos World and find ways to use this data to foster Economic Forum more collaboration across the Jan 2013 organization 35 Mario Faria
  36. 36. 36Mario Faria
  37. 37. Big Data =Human Behaviour 37 Mario Faria
  38. 38. TheData Life Cycle
  39. 39. Some problems, at this point, in most organizations• Data is fragmented and scattered• Like the truth, data has many versions• The Data Lifecycle is a complex process• A formal process to manage data is a requirement in order to do Analytics 39 Mario Faria
  40. 40. The complexity of the Data Life Cycle 40 Mario Faria
  41. 41. Usage of wrong data can make you lose money 41 Mario Faria
  42. 42. Usage of wrong data can destroy credibility 42 Mario Faria
  43. 43. Who owns the Data inside an organization ? 43 Mario Faria
  44. 44. Chief Data Officer /Head of Analytics / Data Scientists 44 Mario Faria
  45. 45. More and more, data leaders are being hiredto think strategically think about all the stepsfrom getting raw data and making it useful to business users 45 Mario Faria
  46. 46. Chief Data Officer (CDO) /Chief Analytics Officer (CAO) / Lead Data Scientist 46 Mario Faria
  47. 47. Chief Data Officer (CDO) / Chief Analytics Officer (CAO) / Lead Data Scientist• A new profession that is becoming very common in corporations• He/she is a corporate officer who is the business leader for enterprise-wide data processing and data mining.• The CDO typically reports to the CEO or the COO and is a member of the executive management team of a company or business unit.• CDOs leverage their organizations data assets in support of strategy. He/she manages enterprise-wide data administration and is the champion of enterprise information management• CIOs are concerned with this new role, because of the threat to their current status quo 47 Mario Faria
  48. 48. The role of a Chief Data Officer or Lead Data Scientist The insight is operationalized in BI/DW products, by data architectsA data scientist is the one who looks for insights The insight is shared with the enterprise The CDO or Lead Data Scientist is the executive responsible and accountable for the data life cycle inside the organization, managing the people involved in the data activities, such as acquisitions, analytics, processes, governance, quality, technology and budget 48 Mario Faria
  49. 49. Why do you need Chief Data Officer ? 49 Mario Faria
  50. 50. Why do you need a Chief Data Officer ?• Data is about business, its not about IT• Data is an economic asset, so you need a senior person to handle the data initiatives.• As an economic asset, data needs: control, show value and monetization• There is now way you can do Advanced Analytics unless you have some data management practices in place. 50 Mario Faria
  51. 51. How a CDO should implement Big Data projects• Define what Big Data means to the organization• Establish a data-driven culture inside the business units• Adopt the most-suited technologies of business rules• Put in place predictive analytics to build decision systems that are agile, analytic and adaptive 51 Mario Faria
  52. 52. January 2013 “The Forrester Wave™: Big Data Predictive Analytics Solutions, Q1 2013”The Predictive Analytics Process Must Be Continuous To Ensure Effectiveness 52 Mario Faria
  53. 53. Foundations of the Big Data team responsibilities• Data Strategy• Data Analytics• Data Insights• Data Architecture• Data Governance• Data Quality• Data Acquisitions• Data Operations• Data Policies• Data Security• Data Protection 53 Mario Faria
  54. 54. Wait a second !Compliance means conforming to arule, such as a specification, policy,standard or lawIt reminds a lot of what the data guyscall DATA GOVERNANCE 54 Mario Faria
  55. 55. There is, after all, a strong tiebetween Compliance and the foundations of Big Data 55 Mario Faria
  56. 56. Is Big Data a threat or a toolfor Compliance ? 56 Mario Faria
  57. 57. Compliance and Big Data risks 57 Mario Faria
  58. 58. A threatfor Compliance ? 58 Mario Faria
  59. 59. LAST summer, employees at the NationalAeronautics and Space Administration received anin-house newsletter illustrated with mock frontpages of USA Today and The Washington Post andseemingly hyperbolic headlines like: “NASA LaptopStolen, Potential Compromise of 10,000 Employees’Private Information!” – extract from NY Times, Feb16th 2013 59 Mario Faria
  60. 60. The Companies and Countries Losing TheirData, by Sarah Green, March 12, 2013, HBR 60 Mario Faria
  61. 61. The Companies and Countries Losing TheirData, by Sarah Green, March 12, 2013, HBR 61 Mario Faria
  62. 62. One Big Data usage : Social CRM andBehavioral Targeting 62 Mario Faria
  63. 63. Gaydar Project - MIT• Finding out sexual orientations• Facebook posting analysis• Friends lists identifications• Behaviour patterns• Inferences and predictive analysis 63 Mario Faria
  64. 64. Facebook likes can reveal your secretsAccording to a new study from the University of Cambridge, it’spossible to predict a person’s private traits — sexual orientation,political leanings, religion, intelligence, etc. — just by analyzingtheir Facebook likes. Researchers looked at the FB profiles, likes,surveys and personality tests of 58,466 individuals, and from thatdata developed a model that predicts personal attributes with agreat deal of 64 Mario Faria
  65. 65. The Big Data Fragmented Tech Vendors : data life cycle process view 65 Mario Faria
  66. 66. Technology alone will not change the previous resultsTo succeed in Big Data, an organization will be required to change some of its current internal processes 66 Mario Faria
  67. 67. The complexity of an Analytics project• It requires a better, more robust and scalable infra- structure• A new way of thinking about architecture• More deployment options• Changing patterns of data consumption• More complex data management requirements• Data demands from more applications• Data Integration will be a critical path of the project• Pressure for faster results• Different needs and roles after the project goes live (it requires change management and processes reconfiguration) 67 Mario Faria
  68. 68. The catch : just a few companies (users andconsulting) understood the nits and gritsabout Big Data Analytics: it requires you tomoving from a data management vision(tactical) to an information managementvision (strategic) 68 Mario Faria
  69. 69. A requirement for any Big Data project• Any Big data initiative is very dependent upon a scalable and extensible information foundation• Some companies may not have them at home (on premises) and will require a cloud solution to deploy 69 Mario Faria
  70. 70. A toolfor Compliance ? 70 Mario Faria
  71. 71. Big Data for Network Security Monitoring 71 Mario Faria
  72. 72. A real case from a financial services institution• Compliance Team using Big Data tools to Analysing emails and unstructured context documents much faster• Using machine learning to speed up the recognition of false positives / true negatives 72 Mario Faria
  73. 73. Using Big Data for Fraud Management in HealthcareHealthcare Fraud Management using Big Data Analytics, by Trendwise Analytics, 73 Mario Faria
  74. 74. Going from here 74 Mario Faria
  75. 75. 75Mario Faria
  76. 76. The main drivers for Data/Big Data projects• Make more money• Reduce current costs• Improve efficiency 76 Mario Faria
  77. 77. What it takes to make Big Data projects drive results• Data – understand what they have and how to be creative when it comes to using internal and external data• Models – focus on developing models that predict and optimize• People – transform their organizations with tools and effective training so that managers can take advantage of Big Datas insights. 77 Mario Faria
  78. 78. Conclusions 78 Mario Faria
  79. 79. What Compliance has to understand about Big Data• Big Data projects are happening• Where the data is coming from and where it is heading• Who is using it, how it is being used, why it being used and when it is being used• How it is stored• How/If it is being disposed• Security and privacy and issues 79 Mario Faria
  80. 80. Data and Compliance Teams shouldbe able able to work together on Data issues related to Governance, Policies, Security and Protection 80 Mario Faria
  81. 81. What we have seen today• How we got here• The 5 waves of Technology• From BI to Big Data• The Data Life Cycle• The Chief Data Officer / Head of Analytics / Data Scientists• Is Big Data a threat or a tool for Compliance ?• Going from here 81 Mario Faria
  82. 82. “Business are complex systems,optimizing a single element rarelycreates lasting value”- Peter Drucker,the father of modern management 82 Mario Faria
  83. 83. I have learned how to work with Compliance people. And it did help me, as a data leader, to achieve my goals 83 Mario Faria
  84. 84. Q&A 84 Mario Faria
  85. 85. Thank youMario FariaData Strategy Advisor of the Digital Mad : 628-3517 85 Mario Faria
  86. 86. Question & Answer Session You can submit questions to our Mario Faria speaker by using the Data Strategy Advisor, Boa Vista “Ask a Question” button on the left side of your screen. Joe McCafferty (Moderator) Executive Editor, Compliance Week (888) 519-9200
  87. 87. Thank You for Joining UsFeedback You can submitPlease send to: questions to our speaker by using theThanks “Ask a Question”Mario Faria, Data Strategy Advisor, Boa Vista button on the left side of your screen.*CPE Credit *CPE certificates willThe CPE test will appear in a separate window on your screen at the be emailed to you separately followingconclusion of the Webcast. If you have trouble accessing the test, please completion of theemail us at exam (888) 519-9200