What is AI without Data?

4/16/2018
1
What is AI without Data?
The New Convergence of Data; the
Next Strategic Business Advantage
David Smith
DATA is the central asset of your company. The growth of data has accelerated beyond even
the opportunistic forecast of a few years ago. The new definition of convergence is very
different from even a decade ago.
The new trends of Big Data, Data Science, Cloud, A I, Mobility and IoT are changing how
organizations are using data. It is now a critical business asset.
New business processes will revolve around the data and it will soon become even more
intensive through massive streaming data coming from ubiquitous sensors in the Internet of
Things. Variety, not volume or velocity will drive the investments. During this session you
will see how the data has become a strategic business advantage and its value will only
increase in the next decade.
David Smith
CEO
david@strategicpathways.com
linkedin.com/in/davidsmithaustin
What is AI without
Data?
The New Convergence
of Data; the Next
Strategic Business
Advantage
Copyright 2018 All Rights reserved May not be distributed without permission David Smith
Copyright 2018 David Smith All Rights Reserved

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Why bother with the future?
"If you think that you can run an
organization in the next 10 years as
you've run it in the past 10 years you're
out of your mind.“
CEO,
Coca Cola
The Age of Data
In the last two years we have generated more data than in
the history of mankind
Data is expected to double in size every two years
through 2020, exceeding 40 zettabytes (40 trillion
gigabytes)
2020
2012 - 2014
The Beginning –
2011 The Economist:
digital information increases10
times/5 years!
2016 - 2017

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Forecast of Data Growth
zettabytes (ZB) – 1 of which accounts for 1 billion terabytes (TB)

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Business Problem
More than half of business and IT
executives, 56 percent, report they feel
overwhelmed by the amount of data their
company manages. Many report they are
often delayed in making important
decisions as a result of too much
information. Surprisingly, 62 percent of C-
level respondents – whose time is
considered the most valuable in most
organizations – report being frequently
interrupted by irrelevant incoming data.

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Entering the Age of Data
Data is THE central business asset:
– “Data are an organization’s sole, non-depletable, non-
degrading, durable asset. Engineered right, data’s value
increases over time because the added dimensions of
time, geography, and precision.” (Peter Aitken)
Data generation has changed forever
– Instrumentation of All businesses, people, machines
Data is born digitally and flows constantly
– “All things are flowing..” (Heraclitus, 500 BC)
DATA

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Types of Data

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Today most data is retrospective,
there is a need for real-time and
predictive
Retrospective
Real-time
Predictive
Today's Cycle
Where is Real Time?

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Volume
Variety
Velocity
………..
Volume
Volume is increasing at incredible
rates. With more people using
high speed internet connections
than ever, plus the growth of IoT
and always on devices these are
causing this tremendous increase
in Volume.

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Variety
Next in breaking down Data into easily digestible
bite-size chunks is the concept of Variety. Take
your personal experience and think about how
much information you create and contribute in
your daily routine. Your voicemails, your e-mails,
your file shares, your TV viewing habits, your
Facebook updates, your LinkedIn activity, your
credit card transactions, etc.
Whether you consciously think about it or not the
Variety of information you personally create on a
daily basis which is being collected and analyzed
is simply overwhelming.
Variety
•FB generates 10TB daily
•Twitter generates 7TB of data
Daily
•IBM claims 90% of today’s
stored data was generated
in just the last two years.

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Variety
Big Data isn't just numbers, dates, and strings.
Big Data is also geospatial data, 3D data,
audio and video, and unstructured text,
including log files and social media.
Traditional database systems were designed to
address smaller volumes of structured data,
fewer updates or a predictable, consistent
data structure.
Streaming data and real-time analysis includes
different types of data
Velocity
The speed at which data enters organizations these
days is absolutely amazing. With mega internet
bandwidth nearly being common place anymore in
conjunction with the proliferation of mobile devices,
this simply gives people more opportunity than ever
to contribute content to storage systems.

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Velocity
• Clickstreams and ad impressions capture user
behavior at millions of events per second
• High-frequency stock trading algorithms reflect
market changes within microseconds
• Machine to machine processes exchange data
between billions of devices
• Infrastructure and sensors generate massive log
data in real-time
• On-line gaming systems support millions of
concurrent users, each producing multiple inputs
per second.
But I Believe These are the Real Four

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The Structure of Data
 Structured
• Most traditional data
sources
 Semi-structured
• Many sources of big data
 Unstructured
• Video data, audio data
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Historical Development of Database
Technology
Early Database Applications: The Hierarchical and
Network Models were introduced in mid 1960’s
and dominated during the seventies. A bulk of
the worldwide database processing still occurs
using these models.
Relational Model based Systems: The model that
was originally introduced in 1970 was heavily
researched and experimented with in IBM and the
universities. Relational DBMS Products emerged
in the 1980’s.

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Historical Development of Database
Technology
Object-oriented applications: OODBMSs were
introduced in late 1980’s and early 1990’s to
cater to the need of complex data
processing in CAD and other applications.
Data on the Web and E-commerce
Applications: Web contains data in HTML
(Hypertext markup language) with links
among pages. This has given rise to a new
set of applications and E-commerce is using
new standards like XML (eXtended Markup
Language).
Extending Database Capabilities
New functionality is being added to DBMSs in
the following areas:
– Scientific Applications
– Image Storage and Management
– Audio and Video data management
– Data Mining
– Spatial data management
– Time Series and Historical Data Management
– IoT
– Streaming
The above gives rise to new research and development in
incorporating new data types, complex data structures, new
operations and storage and indexing schemes in database
systems.

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Top10 Time Series Databases
• DalmatinerDB
• InfluxDB
• Prometheus
• Riak TS
• OpenTSDB
• KairosDB
• Elasticsearch
• Druid
• Blueflood
• Graphite (Whisper)

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The Intelligence is in the Connections
Connections between people
ConnectionsbetweenInformation
Email
Social Networking
Groupware
Javascrip
t Weblogs
Databases
File Systems
HTTP
Keyword Search
USENET
Wikis
Websites
Directory Portals
2010 -
2020
Web 1.0
2000 - 2010
1990 - 2000
PC Era
1980 - 1990
RSS
Widgets
PC’s
2020 - 2030
Office 2.0
XML
RDF
SPARQLAJAX
FTP IRC
SOA
P
Mashups
File Servers
Social Media Sharing
Lightweight Collaboration
ATOM
Web 3.0
Web 4.0
Semantic Search
Semantic Databases
Distributed Search
Intelligent personal agents
Java
SaaS
Web 2.0Flash
OWL
HTML
SGML
SQL
Gopher
P2P
The Web
The PC
Windows
MacOS
SWRL
OpenID
BBS
MMO’s
VR
Semantic Web
Intelligent Web
The Internet
Social Web
Web OS
Source: Gartner, Cisco, DSmith
Big Challenge
24/7 Streaming Data
It seems that everything in 2018 will have a
sensor that sends information back to the
mothership.

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The Ubiquity of Data Opportunities
With vast amounts of data now available, companies in
almost every industry are focused on exploiting data for
competitive advantage.
In the past, firms could employ teams of statisticians,
modelers, and analysts to explore datasets manually, but
the volume and variety of data have far outstripped the
capacity of manual analysis.
At the same time, computers have become far more
powerful, networking has become ubiquitous, and
algorithms have been developed that can connect
datasets to enable broader and deeper analyses than
previously possible.
The convergence of these phenomena has given rise to the
increasing widespread business application of data
science principles and data mining techniques.
33
Data Science as a strategic asset
“85% of eBay’s analytic workload is new and
unknown. We are architected for the
unknown.”
Oliver Ratzesberger, eBay
Data exploration – data as the new oil
 The exploration for data, rather than the exploration of data
 Uncovering pockets of untapped data
 Processing the whole data set, without sampling
 eBay’s Singularity platform combines transactional data with
behavioral data, enabled identification of top sellers, driving
increased revenue from those sellers 34

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Data as a strategic asset
“Groupon will not be the first or last organization
to compete and win on the power of data. It’s
happening everywhere.”
Reid Hoffman and James Slavet
Greylock Partners
Data harnessing – data as renewable energy
 Harnessing naturally occurring data streams
 Like harnessing raw energy to be converted into usable
energy
 Conversion of raw data into usable data
35
Emergence of a Fourth Research
Paradigm: Data Science
Thousand years ago –
– Experimental Science
Description of natural phenomena
Last few hundred years –
– Theoretical Science
Newton’s Laws, Maxwell’s Equations…
Last few decades –
– Computational Science
Simulation of complex phenomena
Today –
– Data-Intensive Science
Scientists overwhelmed with data!

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Key to Creating Artificial Intelligence:
Increasing Computational Power
NNow =
• Beating a
mouse brain
• About a
thousandth of
a human

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Information and Communication
Trends
• Seamless Interoperability Between
Heterogeneous Networks
• Mobility for All – Devices for All Things
• User Centered Content-Based Information
Access
• Agents Take Over Routine Work
• “E”- Processes for Business and Private Life
• Human Computer Interaction is Turning Into
Human Computer Cooperation
• Human is not part of most computer and data
interaction
The “Fat Pipe”

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What is direction of DATA
Walmart handles more than 1 million customer
transactions every hour.
• Facebook handles 40 billion photos from its
user base.
• Decoding the human genome originally took
10years to process; now it can be achieved
in one week.

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“The market for enterprise AI systems will increase from $202.5 million
in 2015 to $11.1 billion by 2024.”
- Tractica
Internet of Things:
The Next Frontier

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Data available from “Internet of
Things”

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IoT is generating massive volumes of structured and
unstructured data, and an increasing share of this data is
being deployed on cloud services. The data is often
heterogeneous and lives across multiple relational and
non-relational systems.
When these smart devices are connected to intelligent
applications such as Siri, Alexa ,Cortana or Google Home,
the possibilities become endless. Conversational AI will
enable high-level conversations with these intelligent
applications These bots, per Microsoft CEO Satya Nadella,
will be the next apps. 2018 will see the convergence of
these intelligent applications with many IoT devices.

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As the world gets smarter,
infrastructure demands will grow
Smart
traffic
systems
Smart water
management
Smart
energy
grids
Smart
healthcare
Smart
food
systems
Smart oil
field
technologies
Smart
regions
Smart
weather
Smart
countries
Smart
supply
chains
Smart
cities
Smart retail

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Will technological breakthroughs be developed in time to boost economic productivity and
solve the problems caused by a growing world population, rapid urbanization, and climate
change?
Game Changer - Impact of New Technologies
• The Internet of Things
• Not just Big Data, but a zettaflood
• Much D to D
• Wisdom of the Data Science
• The next 'Net’
• Move from physical to virtual
• The world gets Bio
• Regenerative Medicine

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Conclusion
The Age of Data is here
Data is the central business asset
Data generation has changed forever
• The World is moving to Real Time
• Data Science is the Key
Your legacy analytic software WILL fail in the Age of
Data
Crisis of software that scales to meet demand
Streaming data changes the concept of data
Think about where the data comes from
Attempt to capture and analyze any data that might be
relevant, regardless of where it resides
Data Science is changing how data is:
– Collected, discovered, analyzed, used, acted upon …
In Parting: Be Paranoid
“Sooner or later, something
fundamental in your business
world will change.”
 Andrew S. Grove, Founder, Intel
“Only the Paranoid Survive”

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Thank You
David Smith
david@strategicpathways.com
9 global GIS data sets that you can download for
free.
1 Natural Earth Data.
2 Esri Open Data.
3 USGS Earth Explorer.
4 OpenStreetMap.
5 NASA's Socioeconomic Data and Applications Center
(SEDAC)
6 Open Topography.
7 UNEP Environmental Data Explorer.
9 NASA Earth Observations (NEO)

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