This document discusses how companies can embed big data and analytics into their business to deliver sustainable value. It notes that the pace of change is faster than ever, requiring companies to innovate constantly. Examples are given of how companies like Capital One are experimenting 30,000 times per year to improve customer targeting and outcomes. The document advocates adopting a new methodology focused on hypothesis generation and rapid testing to take advantage of big data's potential for insights.

1. Oracle – Big Data at
Work
Embedding Big Data &
Analytics into the Business to
Deliver Sustainable Value
www.pwc.com

2. PwC
Analytics is at the core of our Customer Impact proposition
2

3. PwC
The case for Big Data
is compelling
3
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

4. PwC
Pace of change…..
4
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

5. PwC
Pace of change – is like no other time in history…..
Radio – 38
years Television –
15 years
Ipod – 3.6
years
Ipad – 1.5
years
5
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

6. PwC
Pace of change is difficult for companies to keep
pace with…
6
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

7. PwC
Companies must innovate to survive…
7
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

8. PwC
Social media, “smart Mobility”, new consumption
Analytics and Cloud computing are already
shaping the Decade of Change
The ‘disruptors’ Today’s digital ecosystem
Social media
Smart Mobility
Analytics
(incl. consumption data)
Cloud computing
Integrated
Customer — centric
Continuous interaction
Collaboration
8
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

9. PwC 9
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

10. PwC
Rise of the super consumer
People are more
selective on brands
they engage with
Less brand loyalty
(only 25% indicate
brand loyalty)
They are more
informed
More connected
(Social / Mobile)
Choice has never
been easier.
Consumers are in
control than ever
before
Expectations of
value are rapidly
evolving
10
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

11. PwC
Embedding Big Data & Analytics into the Business to Deliver Sustainable Value
Rise of the super consumer
25% of consumers
who complain about
products on
Facebook or Twitter
expect a response
withing 1 hour
Facebook will
account for 13% of
worldwide mobile
ad revenue in 2013
Twitter users send
400M tweets each day
700 YouTube video
links are shared on
Twitter every minute
79% of social media
log ins by online
retailers are with
Facebook, compared
to 12% for Google+,
and 4% for Twitter
The equivalent of
100 hours of video
is uploaded to
YouTube each
minute
11
October 2013

12. PwC
Mobile
12
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

13. PwC
28.0B5
9.6B5
15.0B10
7.2B9
8.0B8
7.0B6
5.9B3
The Next 8 Years
2.4B1
Bank Accounts
Mobile Subscribers
World Population
Devices connected
to the Internet
1.9B4
2012
7.6B11
5.36B8
3.0B7
2015
11.0B
7.8B8
3.6B72020
Smartphones
Sources and Copyright information is located at the back of this presentation
13
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

14. PwC
So….
Change is here. It is not going away…
Analytics is no longer just the realm of MIS and
marketing campaigns.
It is central to how organisations innovate around
the actual experience delivered to customers…
14
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

15. PwC
Analytics
15
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

16. PwC
62% of Executives believe Big Data has significant
potential to create business advantage….
16
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

17. PwC
Draft
Lots of discussion around “Big Data”, but we are
still at the early stages…..

18. PwC
By now, most of you have heard about the 3 V’s
of Big data - Volume, Velocity and Variety
Velocity
(From Batch to
Streaming Data)
Often time-sensitive,
data must be analyzed
as it’s streaming in to
maximize its value to
patient care (e.g. patient
monitoring)
Volume in petabytes
(From Terabytes to Zettabytes)
Electronic medical records, images, email,
web communications
Variety
(From Structure to
Unstructured)
Structured and
unstructured data:
audio transcription,
imaging, click
streams
18
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

19. PwC
• Selectively store data
required for analysis
• Sample down data
• Expensive to store
• Propose explanations
to solve business
problems that could be
solved with available
data
• Moderate to
expensive to
analyse
Big Data shifts the analytics cost-curve
Emphasis is on hypothesis and experimentation
Sample Store Extrapolate What-if Insight
Store Everything Hypothesis Experiment Validate Insight
Traditional
Business
Intelligence
Big Data
• What data can I
afford to keep?
• What data do I
discard?
• What reports will I
need to run?
• High up-front
costs
• Develop models
extrapolated from the
data that can be
effectively stored and
analysed
• Expensive to
analyse
• Perform what-if and
scenario analysis
• Cost effective storage
means that all data can
be stored
• Store first and analyse
later
• Low cost to store
(commodity
hardware and disk)
• Design experiments
• Extract features
• Dynamic schemas
• Low cost to
process
• Validate predicted
outcomes
19
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

20. PwC
Embedding Big Data & Analytics into the Business to Deliver Sustainable Value
The real story around big data is that it allows the
analytics team to do what they have always
wanted to do…. Ask questions of the data
Emphasis is on hypothesis and experimentation
Sample Store Extrapolate What-if Insight
Store Everything Hypothesis Experiment Validate Insight
Traditional
Business
Intelligence
Big Data
$$
$$
20
October 2013

21. PwC
To take advantage of big data requires a different
“operating model around analytics”
MIS
Department
Innovation
Teams
Analytics
COE
Answers Questions
Most business are here….
21
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

22. PwC
New methodology / process model required
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value
22
Hypothesis
Explore
Business
Question
Test &
Learn
Measure
Refine
• Integrated teams
(Business, analytics, digital, product)
• Identify business opportunities
• Formulate hypothesis
• Customer value proposition
• Adopt rapid test & learn cycles
• Refine

23. PwC
Who is doing it well??
23
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

24. PwC
Who has heard of Capital One Labs??
Remember 2006
HBR: Competing on Analytics??
“Capital One conducts 30,000 experiments a
year, with different interest rates, incentives,
direct mail packaging and other variables.
Its goal is to maximise the likelihood that both
potential customers will sign up for credit
cards and they will pay back Capital One.”
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value
24

25. PwC
Who has heard of Capital One Labs??
25
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

26. PwC
Capital One Labs
http://www.youtube.com/watch?v=DVCGOXvjqMw
1.28
26
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

27. PwC
Example #1 — Product & service innovation - “Telematics”
Accident Response
Roadside Assistance
Accident Avoidance
Traffic Pattern
Detection
Entertainment
Car Sensors
On Board
Diagnostic
Report
Mobile Device
Telematics Platform
Anti-Theft/ Location
Accident Detection
Traffic Pattern
Detection
Navigation
Accident Report
On Board
Diagnostics
Marketing
Alerts
Driver Scoring
Remote
Entertainment
Vehicle
History
Report
Vehicle Repair
Estimate
Anti-
Theft/
Location
Medical Info
27
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

28. PwC
The next telematics wave…the Connected Home
Core premise:
The earlier that an event can be predicted, the more it can be controlled. Home Intelligence solutions now
offer home automation solutions that covers security, HVAC, energy management, remote access and
appliance monitoring & control
In the world of preventative diagnostics,
‘Real-time’ information could be fed
into claims/risk prevention functions so
that early warnings of an event could
trigger action to reduce or even prevent
it from occurring
28
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

29. Example #2 - Fitness
29

30. Example #3 - Next Generation Health
Heath and
Healthy Lifestyle
Dashboard fuelled
by the customers
own
“consumption
data”.
This would
require
collaboration
between different
players in the
ecosystem.
30

31. PwC
Example #4 - PeopleLikeU
31
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value

32. PwC
Wrap up
• The “perfect storm” (Social, Mobile, Analytics, Cloud) is driving the
need for greater insights in order for companies to continue to be
relevant to customer
• Advances in computing power has removed technology constraints
• Business must adapt its operating model to take advantage of the
potential of new analytical capabilities
• Leaders are creating “innovation hubs” that integrate analytics as a
key component of how they innovate new products & services
October 2013Embedding Big Data & Analytics into the Business to Deliver Sustainable Value
32