Keynote talk of Richard Benjamins, Director of Business Intelligence at Telefonica Digital, at the European Data Forum 2013, 9 April 2013 in Dublin, Ireland: Big Data - Big Opportunities - Big Risks? And what about Europe?

1. Big Data –
Big opportunities –
Big risks?
And what about Europe?
Dr. Richard Benjamins
Director Business Intelligence
Telefonica Digital
Telefonica
Digital
© 2013

2. Index
Context: Telefonica
Conclusions
01 Digital
06
The Big Data opportunity What about Big Data in
02 07 Europe?
What is Big Data?
03
Big Data risks
04
What role can
05 businesses play?

3. 01
Telefonica Digital is Telefonica’s digital arm
Telefonica Digital 3

4. 02
The Big Data Opportunity Big Business
Big Data
McKinsey McKinsey
Telefonica Digital 4

5. 02
But also society will benefit from big data
Telefonica Digital 5

6. 02
And data keeps growing exponentially
Telefonica Digital 6

7. 03
But what is Big Data
1. Big Data is Only About Massive Data Volume
2. Big Data Means Hadoop
3. Big Data Means Unstructured Data
4. Big Data is for Social Media Feeds and Sentiment
Analysis
5. NoSQL means No SQL
Gartner’s Hype Cycle: technologies, use cases,
new sources of data
Dave Feinleib, Forbes blog
Telefonica Digital 7

8. 03
A closer look at where Big Data sits
From a telco perspective
Type of Big OTT/Telco Cost of data By product/ Batch/real- Strength of
Data collection seeking time telco?
Social media OTT Low Active Both No
Web logs Both Low Passive Both No
Network data Telco High Passive Both Yes
(telco)
M2M (sensor) Both High Active Both Might
data
Open data OTT Low Both Batch No
Transact. data Both Medium Passive Both No
Telefonica Digital 8

9. 04
But be aware of the privacy time bomb
Data “scandals” abound
“It’s Tracking Your Every Move and You May Not Even Know”
Three Mile Island accident
killed the nuclear industry in
the US
“Betrayed by our own data”
Regulators are watching
Telefonica Digital 9

10. 04
There is increasing awareness of what customer data
companies store
Telefonica Digital 10

11. 04
And the industry is learning by doing
Telefonica Digital 11

12. 04
Society is also evolving, but in what direction?
• Customers are largely unaware of
Ignorance what is happening
• Customers make an explicit trade-off
Trading for each service
• Are customers wanting organizations
to use their (personal) data to improve
Wanting? their lives?
Key evolving data concepts:
• Individual, aggregated, anonymized
• Customer consent (ex/implicit – opt-in/out)
• Legal ≠ accepted by society
Telefonica Digital 12

13. 05
So how can businesses play in the Big Data space?
Different “business” models with different maturities and different risks
“Old wine in new bottles” “Big Data” PI Economy
Become a
Improve Access to
Advertising gatekeeper of
services insights personal data
Data = improved Data = better Data = risk =
Data = business
business advertising business
Leverage data to Leverage data for Recognize that
understand and targeting users Insights that help
digital data is
improve business with relevant ads improve
delicate (privacy)
(x/up sell, churn) and higher CTR businesses and
Turn that into an
and products and conversion governments
opportunity
M2M
Smart cities
Telefonica Digital 13

14. 06
Conclusions on “Big Data”
Find your position in three key dimensions
Native big data technology
Privacy risk
Apps
Value
Insights
Processed
Anonymous data
data
Raw data
“Bigness” of data “Bigness” of data “Bigness” of data
Telefonica Digital 14

15. 07
And what should Europe’s role this time?
Big Data looks like an ideal opportunity for Europe
A second
opportunity?
Telefonica Digital 15

16. 07
Europe knows the Lisbon Council failed
To become the most competitive and dynamic knowledge-based economy in the world
Telefonica Digital 16

17. 07
Why is it so hard for Europe to be competitive compared
to US? – my observation
Situation in US Situation in EU
Telefonica Digital 17

18. 07
A lively Quora discussion (another US innovation)
Telefonica Digital 18

19. 07 EC programs
But Europe is improving …
Forced by the crisis
Neelie Kroes: “All EU-funded
research results will be
available under open access”
The big data revolution, March 26, 2013
Private initiatives
Telefonica Digital 19