BIG DATA
MASTERCLASS
DUBAI 25 FEBRUARY 2013
DR BRENDAN O’DONOVAN HEAD OF STRATEGY (EMEA)
BUT IS IT
USEFUL TO
BUSINESS?
7
BIG DATA MYTH NUMBER 1:
0% 10% 20% 30% 40% 50% 60% 70% 1985 1989 1993 1997 2001 2005 2009
SEASON WIN% FOR OAKLAND A’S
LESSONS WE SHOULD LEARN FROM MONEYBALL
• Data improves performance, but other factors remain important
• You need to continuously innovate to sustain advantage
• Finding and retaining analytical talent is critical
2012
1.8
ZETABYTES 20158
ZETABYTESComplete works of Shakespeare
Email addresses for 15m customers Aimia's shopper transactional data (280m customers, 68bn items) Volume of data captured by Facebook in 1 day 5MB ~0.5GB 0TB 5TB 5TB 10TB
Complete works of Shakespeare
Email addresses for 15m customers Aimia's shopper transactional data (280m customers, 68bn items) Volume of data captured by Facebook in 1 day 5MB ~0.5GB 0TB 5TB 300TB 600TB
…REALLY WIDELY, BUT VALUE DENSITY FALLS
500TB “All human life is here” Foundation for responsive DM Detailed segmentation and targeting New insights, but costly?
“RETURN ON DATA”
ROD =
Incremental Business Value
True Cost of Using the Data
Storage Processing Analytical
Resource
FRONTIERS IN DATA PROCESSING: TEXT MINING
Flying on Delta has never been this good
Flying on Delta has never been that good
Flying on Delta has never been this good
Delta Passenger (getting off a flight
on a new aircraft)
Delta Passenger (on a social media site)
Delta Passenger
FRONTIERS IN DATA PROCESSING: VIDEO Facial Recognition Speech Recognition & Attribution Embedded or inferred location Social Interactions Brand Interactions
BIG DATA MYTH NUMBER 3:
THERE ARE SOME GOOD EXAMPLES OF LARGE SCALE AUTOMATED PATTERN FINDING
THE REALITY IS THAT HUMAN AND COMPUTER INTELLIGENCE COMPLEMENT EACH OTHER
Creating the Insight (or Model) Acting on the Insight HUMAN AUTOMATED HUMAN/ BESPOKE AUTOMATED/ OFF THE SHELF
DEEP ANALYTICAL TALENT IS LIKELY TO BE IN INCREASINGLY SHORT SUPPLY
FROM MYTH TO REALITY Data is the secret to success Size matters Computers replace analysts Data is another competitive edge Value of data beats volume Analytical resource becomes more critical
1. Focus on the Application
AVOIDING THE BIG DATA PITFALLS
2. Choose Data appropriately and sustainably 3. Get the right People 4. Worry about tools last
Small Data
• Developing segments • Profiling segments
• New product development • Store service performance • Public pricing
• ATL media
1. FOCUS ON THE APPLICATION – BIG OR SMALL DATA
INTENDED USE?
Actions / Decisions which affect groups of customers the same
Actions or decisions which need to be customised to each individual
Big Data
• Assignment to a segment • Credit risk assessment • Targeted marketing • Web personalisation • Private pricing
2. CHOOSE DATA APPROPRIATELY
KEY QUESTIONS TO ASK OF A NEW DATA SOURCE
Volume Coverage Degree of
Structure
MIX BROAD DATA AND DEEP DATA SELECTIVELY
D
EPT
H
BREADTH
As valuable, reusable data elements are discovered through exploring the deep data set, they can be added to our broad data
Deep Data
Coverage of c.50,000 individuals per country across a range of data types – social media, full spending
patterns, demographics, attitudes, property, etc. Drives strategic consulting
and exploration / R&D
Broad Data
Coverage of majority of population across a narrower set of critical /
readily available data types. Drives marketing campaigns and
other direct applications of data
BIG OR SMALL DATA? – DEPENDS ON HOW YOU GET IT Data Type Deep Data Sourcing
(Active consumer opt-ins)
Broad Data Sourcing
(Use of existing data sets / passive permissions)
Social Media Profiles & Connections
Incentivise a limited group of customers to open their Facebook profiles to you
Licence direct feeds of public tweets from Twitter
Locational Data Incentivise group of customers to share
foursquare, or install GPS tracking app on phone
Licence cell-tower based positioning data from a mobile phone operator Attitudes & Preferences,
Property Owned
Market research panelists responding to profiling and omnibus surveys over time
Infer consumer preferences from
spending patterns held by banks
TRANSPARENCY ADDED VALUE CONTROL TRUST We provide our customers with information Our customers have confidence Our customers have control Our customers are aware
MAKE YOUR DATA SUSTAINABLE
CUSTOMERS
3. GET THE RIGHT PEOPLE
Gary Loveman
CEO, Caesars Entertainment Corp
3. GET THE RIGHT PEOPLE
Choosing advisors in the world of Big Data:
Use big data directly in their own business Ability to enhance your data by connecting the dots Strong position on obtaining and sustaining access to consumer data Experience in insight and live usage of data (email, web, etc) …comes right at the top of an alphabetical list of suppliers
4. WORRY ABOUT THE TOOLS LAST
The Real Problem: Not every smart, analytical idea will
work in practice If you can imagine or
describe something you want to do with
data, the tool probably already
EVEN IF DATA ISN’T A SILVER BULLET, THE PRIZE FOR GETTING IT RIGHT CAN BE SUBSTANTIAL
THANK YOU
Evert de Boer
evert.deboer@aimia.com
