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This presentation is Confidential and Proprietary. The information is intended only for D&B customers pursuant to their D&B Master Agreement and for D&B associates or other invited participants. Dun & Bradstreet 2013. Unlocking the Value of Big Data in 2014 Paul Ballew Chief Data & Analytics Officer February 27, 2014

Unlocking the Value of Big Data in 2014

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In this presentation, Paul Ballew, D&B's Chief Data and Analytics Officer, explains the three levels of insight needed to gain an informed perspective for smarter decisions involving big data.

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Page 1: Unlocking the Value of Big Data in 2014

This presentation is Confidential and Proprietary. The information is intended only for D&B customers pursuant to their D&B Master Agreement and for D&B associates or other invited participants. Dun & Bradstreet 2013.

Unlocking the Value of Big Datain 2014

Paul Ballew

Chief Data & Analytics Officer

February 27, 2014

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“Computing power will double about every two years”

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

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1960 1970 1980 1990 2000 2010

Private fixed investment – IT equipment & software has become an increasingly important component

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30 years ago we were in search of the basic tools

• Lack of transactional data – surveys, surveys and more surveys

• Latency issues

• Storage and computing power – remember the days of megabytes or sharing a PC with other team members

• Analytic methods – descriptive at best

• … fragmented views of the truth that lacked foresight in most cases

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30 years later these issues have been solved for (and now replaced with others)

• Transactional data on steroids

• Storage and processing power – our head is now in the clouds

• Analytic capabilities that allows us to filter, determine casualty and be prescriptive and proscriptive

• …. However we are still struggling to get to a complete view, determine causality and have the ability to possess foresight

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The challenging news is that accomplishing our primary mission is still difficult – and the current environment is forcing us to up our game

GROWING GLOBALIZATION: Information is massively connected, created and consumed everywhere

BIG DATA DEMANDS BIG INSIGHT: Companies must sift through huge quantities of

data to arrive at actionable insight

DISRUPTIVE TECHNOLOGICAL CHANGE:Businesses must embrace new but quickly adopted

social, mobile, local and cloud technologies

PROLONGED ECONOMIC UNCERTAINTY: Continued uncertain financial outlook is forcing

businesses to do more with less

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Dilbert may not need actionable insights…relying on other factors

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But our real customers continue to ask more difficult questions and expect innovation to outpace their need

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2.5 exabytes of data created everyday – almost

2 zeta bytes/year = 200 billion high definition movies

75% of digital information come from individuals

Data is growing by a minimum of 50%/year

Every hour enough information is

consumed to fill 7 million DVDs2.7 billion “likes” &

30 billion pieces of content are posted on Facebook daily

More data crosses the internet every second than the amount that was

stored on the net 20 years ago

90% of the world’s data was created in

the last 2 years

250 billion emails are sent

everyday

The solution - Big Data? Absolutely, but what we really need is Big Insight

Big Data85% of this data is unstructured

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Data Data Data DATA!It’s not just about DATA!

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Math Math Math MATH!It’s not just about MATH!

It’s about making better business

decisions

Where to invest?

How do to optimize sales &

marketing investments?

How to target better?

How to minimize my risk?

How to manage world class

supply chain?

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Put simply, there are three levels of insight required along your journey to informed perspective

I See You

Global DataCompleteness

I Know You

Multi-LingualIdentityResolution

I Can PredictYour Behavior

PredictiveAnalytics

Transparent Relationships Insight for Decisions

“I need integration of assets and transactional data.”

“I need foundationalbusiness insight.”

“I need predictive insightson-demand.”

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So we have evolved our strategy with a focus on providing actionable insight

Complete Transparency in Business Relationship

Propritary Business Activity

Signals

3rd Party Business Activity Signals

Logistic – Shipping & Delivery

Spend & Purchasing

Transaction Data

Real EstateTransactions &

Ownership

Social Media

Innovating and expanding data collection will result in:

Linking together relationships between trading partners to see a complete supply chain

Identifying the “heartbeat” of a business, predicting its future health, and rapidly seeing changes

Deeper insight based on signal patterns to anticipate the future behavior of a business

Understanding the true size of a business in multiple dimensions, including social influence beyond its balance sheet

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And this evolution includes leveraging new data assets and predictive insights

FINANCIAL/TRANSACTIONAL

Spend DataTrade Data

Public RecordsShipment Data

Labor market Data

INTELLECTUALPatents

Goodwill, IntangiblesFuture Inventions

CONNECTIONSCorporate Linkage

PitCoBLogistics

Trade GroupsSupply Chain & Distribution PHYSICAL

INFRASTRUCTUREProperty

Real EstateEquipment

SOCIAL/INFLUENTIALTwitter

FacebookFliptop/Leadspace

Aggregators

CORPORATE RESPONSIBILITY

GreenEthical

Recognition / AwardsCharity / Social Responsibility

Political

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Our new data innovations are radically enhancing our predictive power

TraditionalSize Attributes

Number of Employees

Sales Revenue

NewData Sources

ProprietaryData Signals

Untraditional Size ‘Proxies’ Enhancing

Analytic Capabilities

&

Closing Foundational Data Gaps

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012345678910Marketing Composite Score

Total Loss Viability

Physical

Delinquency

Influential

Financial

MCSIllustration

SIZE

RISK

3 SIZE Measurementstrending over time

+

3 RISK Measurements

=

1 POWERFUL Score

New strategies exist for risk-reward tradeoffs with a multi-dimensional marketing score

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And new analytic capabilities the multi-dimensional Viability rating delivers a highly insightful and reliable assessment of a company’s future viability

PREDICTIVE DESCRIPTIVE

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Identifying unique drivers, root causes, and sensitivities that lead to specific types of outcomes is also critical

Big disparate sources of data…

…compiled, analyzed, and correlated with other

signals/events over time…

…create insights that anticipate changes in…

Risk

Marketing

Other Adjacencies

…predictors, triggers, activities

Trending Measuring Counting events Counting sources Noting Order Other

Material Changes

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By leveraging signals, you have the ability to predict the likelihood a material change in a company’s profile will occur in the next year

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Advanced Analytics

Activity Signals

Behavioral Trends

Event Frequencies

Changes in Traditional Data Sources

AnticipatoryAnalytics

RiskProfileChange

OpportunityProfileChange

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Advanced analytics can identify businesses that are poised for growth, and anticipate customers’ progression across the business lifecycle

Businesses can be thought to have stages of ‘size’,

like caterpillars growing into butterflies

Starting up

Going Public

Growing Physicallyand Financially

Going Global

Foresight into future needs enablesyou to take the best action at the best time

EggCaterpillar

Molting Larva

Pupa

Emerging Adult

Adult

Engage HereHigh probability of

growth in near future

Act NowIndication a major business

transition lies ahead

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Foundational The full commercial opportunityD&B Full Universe, Identify Resolution, Linkage

Firmographic Prospects that ‘look’ like best customersSIC, Employee, Multiple-Dimensional Size, Geo, Predictive Insight (Proxies)

Strategic And have right risk-reward balance Marketing Composite Score

Strategic And have greatest estimated spend potential Custom Expenditure Model

Strategic And have greatest potential for future growth Material Change

Strategic And are most likely to engage you Custom Response Model

AdvancedAnd most likely to engage via specific channel, at specific time, with specific offer

Customer Management Actions - Lead Management Actions

10M

5M

1M

400K

90K

60K

50K

I see you & know

you I can predict your future behavior

But in order to be successful we must systematically tackle the needs of our customers

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The winning hand is to incorporate science into workflows in a systematic way….

Virtuous Cycle

Teach & Learn

Inform

Focus on Creating an Informed Perspective for Customers

Develop foundational knowledge

Integrate assets including Transactional Data

Establish completeand intimate knowledge of customers and prospects

Transform insightsinto action

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So we have developed a roadmap focused on a systematic approach to providing customers the insight they need

Provide Complete Transparency on Business Relationship:

• Globally consistent data

• Complete and actionable view

Provide Foresight To Execute Proactive Actions

• Advanced analytics

• Consultative support

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30 years into my journey the speed of technological change is still hard to comprehend

In 1995 there were 16 million internet users daily

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In 2013 there are 2.5 billion internet users daily – enabled by 1.5 billion smart phones (introduced in 2005!)

Or predict what is next….

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I See You

BASIC INFORMATION

DECISION SUPPORT

ROBUST / PREDICTIVE

I Know You

I Can Predict Your Future Behavior, and Take Action

As information matures, the ability to use it to drive different business activity evolves

The real goal is to have a complete, intimate, consistent and actionable view of customers and prospects

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Data sensing at the “Event Horizon”

We must embrace information that is rich, varied, and full of opportunity and shift our focus from “hunting and gathering” to new opportunities beyond just “Big Data”

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The

informed.

future belongs to

Follow the conversation at: @dnbUS@PaulBDnB

Visit us at: www.dnb.com

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