Big Data - from hype to reality


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Invited talk given at Big Data event in Sept 2013, organized by European Communications.
Concrete Telefonica experiences in the big data space

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  • Example: O2 Retail has three stores in Birmingham that are all very close to one another. O2 Retail wanted to know, which one they should shut down. Smart Steps showed them: Each stores catchment Each stores battleground with each otherThe age group and gender of the people that were around each storeThis provided O2 retail with the context to decide whichstore should be closed
  • Telefonica Dynamic Insights aggregates and anonymises mobile network data to understand how segments of the population collectively behave. With this data you can find out: Location Time of event (sms/call etc.)Profile (gender, age group, home/work/visiting) Gfk has a history of analysing large data sets and transforming these into meaningful insights. They have: Consumer Panels Audience Demographics GeomarketingThis partnership brings together the best of two worlds and together we have the data and the skills to draw out relevant insights that can help businesses make big decisions better.
  • Maintaining customer privacy is at the heart of what we doWe use anonymised and aggregated mobile network data to provide extrapolated trends about footfall by time, gender, and age – an individual customer’s identity is removedWe comply with local data regulations and policies in each of the markets we go intoWe use this to derive the kind of insights to help companies and public sector organisations to make better informed decisions, reduce costs through increased efficiency, and better understand and serve the needs of their customers.One way encryption:The IMSI (international Mobile Subscriber Identity – 15 digit code) is scrambled using an algorithm that cannot be undone, but will be recognised as the same IMSI and scrambled to the same code next time we see it.The age, gender and postal area (not the last 2 letters in a postcode) are attributed to the IMSI to create the demographic information.
  • Big Data - from hype to reality

    1. 1. Dr. Richard Benjamins Director Business Intelligence Telefonica Digital Big Data – From hype to reality Telefonica Digital © 2013
    2. 2. 2Telefonica Digital The hype remains
    3. 3. 3Telefonica Digital is getting more and more crowded
    4. 4. 4Telefonica Digital “Data-driven” pays off, but it is hard to get there
    5. 5. 5Telefonica Digital Privacy remains an issue
    6. 6. 6Telefonica Digital PI EconomyBig Data for other businessBig Data to optimise your business How can businesses play in the Big Data space? Different “business” models with different maturities and different risks Leverage data to understand and improve business (x/up sell, churn) and products Data = improved business Recognize that digital data is delicate (privacy) Turn that into an opportunity Data = risk = business Insights that help improve businesses and governments Data = business Leverage data for targeting users with relevant ads and higher CTR and conversion Data = better advertising Telefonica Dynamic Insights Smart cities Improve services Advertising Access to insights Become a gatekeeper of personal data
    7. 7. 7Telefonica Digital Big Data to optimise Telefonica Digital’s business • Traditionally, insights from data are generated in a fragmented way across the organisation, limiting the quality of decisions • There is an “easy” opportunity to create a more integrated view of customers, products and markets, leveraging Open Data as well Analyst reports Macro KPIs, markets Social media DWH Campaigns & Sentiment analysis Business KPIs Network data Network KPIs Strategy dept. Marketing dept. BI dept. Network dept. Report 1 Report 2 Report 3 Report 4 From a fragmented view on markets and products Open Data Analyst reports Social media DWH Network data Big Data Platform One consolidated view To an integrated view based on internal data of P&S, social media, network data, analyst data and Open Data
    8. 8. 8Telefonica Digital Deliver Big Data in your organisation – become data-driven From To Considerations Multi-million up-front investments Pay as you grow • Legacy systems? • Agile progress Focus only on large business cases Allowing exploratory self- serve • Skills, culture • Tools to empower Central Distributed Self serve • Skills • Culture Data as an afterthought Data by design and by default • Culture • Process Expensive on demand data capture Data as the rule • Provider contracts • Process
    9. 9. 9Telefonica Digital ....made better Big decisions….. 1st product – “Smart Steps” for Retailers: • Decide on store location • Understanding store performance vs footfall • Plan local marketing campaigns and track their impact • Optimise resource planning – staffing/open hours Smart steps, for retailers
    10. 10. 10Telefonica Digital Retailers have questions... I know the activity that goes on inside my stores. But what % of my target market is walking past outside? What is the opportunity that I am missing? I am a large supermarket owner and one of my competitors has opened up down the road. I need to identify our battleground. Where is my competitor strongest and weakest? Where should I locate my new store? Where should I target loyalty or acquisition marketing campaigns? Where are my customers coming from? I need to manage my resources. When are my peak times? Could I be operationally more effective if I changed my opening times? Strategic Decisions Performance Management Retailers worry about …
    11. 11. 11Telefonica Digital Smart steps Telefonica Dynamic Insights Gfk Mobile Behavioural Patterns Consumer Data Assets Smart Steps
    12. 12. 12Telefonica Digital 39 % 39 2G Network 3G Network 900 MHz 1800 MHz 2100 MHz 2013 4G Network NETWORK DATA The o2 mobile network has hundreds of cells to measure the trends in footfall across the country
    13. 13. 13Telefonica Digital PRIVACY ANONYMISATION Before Telefonica Dynamic Insights (TDI) receives the data, all personal information is removed. The data TDI receives are cryptographically hashed values AGGREGATION The hashed values are aggregated into groups, i.e. gender & age band. At this stage there are only crowds of o2 customers EXTRAPOLATION We take our sample and extrapolate to population totals, using mathematical algorithms. This gives us the grouped values Smart Steps uses. A 3 step process
    14. 14. 14Telefonica Digital 39 % 39 Easier to use Further protecting anonymity Extrapolated to represent local population 200 x 200 GRID Footfall is rendered into 200 x 200 metre grid squares across the country
    15. 15. 15Telefonica Digital Example question of a marketer COUNT What are the profiles of the people in the area of my store? How does the footfall in our area change throughout the day?
    16. 16. 16Telefonica Digital Differential aspect Export data and combine with other sources Today’s data tomorrow. Fastest data delivery in the market Insights 24/7/365. Data every hour, day, week and month. You choose. Intuitive web tool covering the whole of the UK to draw insights from Eliminates retailers’ blind spots. The profile of the footfall in their area Vast sample base based on observed crowd behaviour