Presentation held by Cloud'N'Sci CEO Pauli Misikangas at University of Helsinki 9.11.2011. Introduces the theory of the Scientific Chasm which explains why complex algorithms are so rarely utilized in business applications. Explains how concrete data refining solutions can be implemented by combining and configuring algorithm modules by multiple vendors hosted at the Cloud’N’Sci.fi web service. Welcomes all algorithm and application developers, data providers and business owners to join the Algorithms-as-a-Service ecosystem creating practical algorithmic solutions for real world data refining needs.

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Keep-it-Simple Complex
Market Market
by Pauli Misikangas, the CEO of Cloud’N’Sci Ltd

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Data is Go(o)d
…but REFINED data is even better!
• DATA has enormous business potential…
– …if you can collect it…
– …find the interesting phenomenon in it…
– …understand the phenomenon…
– …make the right conclusions… DATA REFINING
– …leading to concrete actions... (the tricky part)
– …improving the processes...
– …which are generating the DATA.
• Companies who can do this, will outperform their
competitors who cannot.
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The Art of Data Refining
Digging to Find the Truth
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Example: Visual Data Mining with HeatMiner®
INPUT DATA OUTPUT DATA
Data Refining
Average=7
Average=1
Target values HeatMiner automatically
defining selects 3 columns
heatmap as the optimal view to
colors explain the target
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The Rule of Thumb
Wasted
COMPLEX
METHOD
Effort
OK
SIMPLE
METHOD
Dangerous!
SIMPLE COMPLEX
DATA DATA
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Monitoring the
Current Status
business using the
simplest methods
The ”Keep it Simple”
principle rules the World.
Going a bit deeper
but still avoiding
complex methods
The latest scientific Optimal solutions
analysis methods are are never found.
hidden beyond the
Scientific Chasm
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Complex methods fall into ”No land ahead,
The Scientific Chasm better stop here.”
+
Overall
Business
Missed growth
Benefit Business opportunity!
(value-cost) Decision
Horizon
0
Research &
Simple
The Development
Easy Effort
methods
solution
ready
Scientific Advanced
applied
Chasm solution ready
- R&D for the
advanced Unknown cost,
solution schedule and results
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The Nature of the Game
QUALITY Possibility of
Rapid Success
Good Enough
Risk of
Failure
Algorithms simply
cannot be developed
as normal software!
COST
Fair Estimate Max
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What Happens to Smart Algorithms?
Algorithm Developers,
University Researchers Brilliant
Algorithms Trash Bin, Archive
Only Start-up
Few Company
Commercial
Open Academic
Modules
Source Publications
Application Developers, Commercial
Applications Business,
Software Houses
Industry
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Communication Channel Needed!
Algorithm Developers, I have made
these kind of
University Reseachers ALGORITHMS.
Would someone
like to use them? I have this kind of
DATA and I want to
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use it to improve my
BUSINESS.
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Is there a solution for
I need this kind of my needs?
functionality into my
APPLICATION.
Does anyone have an
algorithm for it?
Application Developers,
Business,
Software Houses
Industry
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Algorithm Business Challenges
Motivation? Platform? Practical work?
Funding? Packaging? Coordination?
Right people?
Best methods? Performance? Integration?
Scalability? Hosting?
Intellectual
Properties?
Usage?
Security? Privacy?
Pricing?
Storage? Transfer?
Quality? Support?
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Benefits? Life time?

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Algorithm Architecture
Algorithm Architectures
INPUT OUTPUT combine algorithm modules
DATA DATA into concrete solutions
Algorithm Architecture
SOLUTION-SPECIFIC CONFIGURATION FILES
Config 1 Config 2 Config 3
Output 1
Output 2
Output 3
Input 1
Input 2
Input 3
Algorithm Algorithm Algorithm
Module 1 Module 2 Module 3
sandbox sandbox sandbox
Each Module must Modules can be Each module is executed in a
have well-specified chained if output strict sandbox for data security
input/output/config and input match and system protection
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The Algorithms-as-a-Service Ecosystem
Customer owns the data and pays for using
the application and data refining services.
Algorithm Architect Business Application Developer
responds for the integrates algorithmic
overall functionality, power into business
documentation and
customer support Application applications
INPUT DATA OUTPUT DATA
Algorithm Architecture
SOLUTION-SPECIFIC CONFIGURATION FILES
Cloud’N’Sci
provides data Config 1 Config 2 Config 3
refining solutions
as a service, hosts
Output 1
Output 2
Output 3
Input 1
Input 2
Input 3
the algorithms, Algorithm Algorithm Algorithm
helps in contract Module 1 Module 2 Module 3
negotiations and
takes care of the
money flow
Algorithm Developers
create, maintain and
own their modules
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Elements of Growth
Each application has
multiple customers
End Users
Algorithmic solutions
can be used in multiple
applications Algorithm modules can
Applications be used in multiple
algorithm architectures
INPUT DATA OUTPUT DATA
Algorithm Architecture
SOLUTION-SPECIFIC CONFIGURATION FILES
Config 1 Config 2 Config 3
Output 1
Output 2
Output 3
Input 1
Input 2
Input 3
Algorithm Algorithm Algorithm
Module 1 Module 2 Module 3
Cloud’N’Sci really scaled
up my algorithm
business! Thanks!
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Algorithms Wanted !
Pilot Customers & Applications
Cloud’N’Sci.fi
NxM Event Time Complex Sensor Vector
Images
Table Sequence Series Graph Data Graphics
Pattern Clustering Optimization Complex Data Image
Mining Algorithms Algorithms Visualization Processing
etc...
Interested? Register yourself as an Algorithm Provider at http://cloudnsci.fi
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