big data: the new natural resource changing the basis of ... · the emergence of social, mobile,...

© 2012 IBM Corporation 1

Big Data: the new natural resource changing the basis of competitive advantage Frans Bentlage, Vice President Business Analytics and Optimization IBM Benelux


What if...

...you could understand the origins of space...


What if...

...You could stop crime before it even happens...


Understands natural language

Adapts and Learns

Generates and evaluates hypothesis

What if...

IBM WATSON

...Your doctor has all the medical knowledge in the

world...


Force Multiplier: forces that matter and converge: Data and Devices

Big Data Devices

•  In 2016, the gigabyte equivalent of all the movies ever made will cross Global IP networks every 3 minutes

•  Internet of Things generates more data than people do

•  Data transform outcomes – and Watson is now taking patients

  15Bn devices by 2015

  Better, faster, smaller, more flexible, combinable. We spend about 2 hours a day with our devices.

  BYOD grows exponentially

  Functionality is limitless (but alas, battery life is not)

© 2012 IBM Corporation 6 26 June 2013

The emergence of social, mobile, analytics and cloud are fundamentally changing how we live, work and interact

Pervasive connectivity

Big data

Social

Analytics

Mobile Cloud

Digital transformation forces 67% of global consumers want to use mobile devices to check out

18% of Africa’s GDP is expected to be handled through mobile money transfers by 2015

1 out of every 7 minutes spent online is spent on Facebook

40% of people socialize more online than they do face-to-face

80% of new apps will be distributed or deployed via the cloud

1/3 of consumer data will be stored in the cloud by 2016

© 2012 IBM Corporation 7 26 June 2013

73% of CEOs are prioritizing investments in customer insights

82% of CMOs Plan to increase the use of social media

74% of CIOs say mobile solutions are part of their vision for increasing competitiveness

70% of CSCOs Identify supply chain visibility as the top challenge in delivering on their agendas

As a result, leaders are redefining their agendas and reprioritizing investments focused on reshaping their business


Understand the origins of space

• Millions of data sources across the southern hemisphere

• Over an exabyte of data per day

• 1,500 petabytes of information to store each year

Astron and IBM are doing this! By analyzing radio frequencies from space while these stream from thousands of antennas


Stop Crime before it happens

• Serious crime down 30%

• Violent crimes down 15%

• Conviction rate quadrupled from 16% to near 70%

• ROI within 2,7 months*

Memphis Police is doing this! By analyzing the complex, hidden patterns in historic data


Experience and data combined in Predictive Models Integrates data sources from different departments

Marketing campaign costs down 30% Long term customer profitability up 20% ROI within 6 months

Corona Direct optimizes Marketing & Sales and identifies Fraud


BI / Reporting

BI / Reporting

Exploration / Visualization

Functional App

Industry App

Predictive Analytics

Content Analytics

Analytic Applications

IBM Big Data Platform Systems

Management Application

Development Visualization & Discovery

Accelerators

Information Integration & Governance

Databases All types of data

Streaming data

Optimized Hardware

Analytics at the speed of thought: technology, research, industry knowledge

•  Compu&ng power

•  Advanced So3ware

•  Mathema&cal algorithms

•  Industry assets

© 2012 IBM Corporation 13 13

Next Gen Competition


What if your competition isn’t in the industry? It might be Nike or Google – and they own the ecosystems they create

14


What if your competition isn’t in the industry? Maybe a bunch of “teen-preneurs?” Here are five examples of how #geekkidsrule

15

A biomedical lab is run en1rely by teens, and is en1rely open-‐source

Provita Pharmaceuticals


Adidas may not be able to give footballers brains, but they can make coaches smarter. In a new shoe, a chip calculates and stores speed, distance and movement.

The wearable device market will grow 100% by 2014 – to 1.5B1 It will also be a disruptive force in the lives of many


What happens when a shoe can help the blind navigate through vibration? Boundaries are erased, that’s what


Watson will see you now. He is churning through case histories at Memorial Sloan-Kettering, learning to make diagnoses & treatment recommendations

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Watson takes the question in Natural (human) Language all by itself.. Offline….. Has local access to hundreds of raw documents, files, database-copies Has no single database nor Q&A list Reads a Corpus of Documents with 200 Million Pages/second Applies Hypotheses, Finds the Answer and replies based on Confidence Applies Game Strategy and Presses the Buzzer

Jeopardy! The IBM Challenge

What is Watson?


On February 14, 2011, IBM Watson changed history . . .

Word spread virally of the victory with Twitter reaching 11.7M, 30,121 blog mentions, and 15,025 forum posts


The essential challenge

•  Gathering and correlating the broadest possible sources of useful information

•  Articulating and then breaking down a strategic business question into a discrete set of carefully defined queries run against (typically) disparate data sources

•  Combining and evaluating the answers to the individual queries to form a coherent business response to the original question

Answer Evidence “So, how can we

maintain our Category margins in Personal Care products while

growing the overall price gap by 5%

(what are the items that we can get price separation

without our competitors

following us)?”

Now, lets have a retailers merchandiser use Watson Increase modular capacity by 8%

(this equates to increasing the existing 80 stores with 4 bay modulars to carrying 5 bays)

Extend the trait of the Supercenter range of Sports Deodorants to the 97 neighborhood markets in Texas

and Arizona

Implement new pricing zone for Division 1 stores in Wisconsin,

Iowa, Minnesota, Nebraska, Wyoming, Utah, Virginia &

Maryland with 0.8% higher price than zone 7

Implement new pricing zone for neighborhood markets in New

Mexico, Texas, Arizona, Georgia, Mississippi, Louisiana with 1.2%

lower price than Zone 7

Remove the 'Travel Range' from all division 1 stores

Introduce new range of 'Sports

Team affiliated merchandise' into stores within 12 minutes travel of

all sports arenas with capacity above 40,00 sq.ft.

Confidence Level

5 bay modular price mix has 78% higher probability of delivering increased price

gap than 4 bay. (consider decreasing number of 4 bay stores when possible)

87%

Travel range (except in July & August) show 7.1% adverse impact on average

margin in stores stocking 68%

Socio-demographic clustering in these markets 14% more closely aligned to

sports deodorants versus standard range (Sports range shows +1.8% YOY trend in margin compared to volume in current

stores stocking)

74%

Economic study model reflects trend - evidence in details - http://

www.guardian.co.uk/news/datablog/interactive/2011/nov/04/

us-poorest-poverty-map

73%

81%

Social media trend - launched 9 weeks ago in Retailer X. Reports of high

demand / poor availability / ranked #3 desirable product in GQ Magazine last

month

89%


Its about Building the Analytics Competencies of Your Organization

Manage the data

Solid information foundation

Standardized data management practices

Insights accessible and available

Skills developed as a core discipline

Enabled by a robust set of tools and solutions

Develop action oriented insights

Fact-driven leadership

Analytics used as a strategic asset

Strategy and operations guided by insights

Understand the data Act on the data Manage the data Understand the data

Data-Oriented Culture Information Management Analytics Skills and Tools

Transformed organizations mature in mastering 3 competencies to drive sustainable competitive advantage

Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2012.


010100101 Data changes everything