BBDO Proximity: Big-data May 2013

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  • 22WhyBigData?Organizations are facing bigger and bigger challenges when itcomes to collecting and using data. Companies can access largeamounts of information, but do not know how to interpret it toobtain results that provide added value for their businesses orcustomers. Often this is due to the raw availability of the data andits lack of structure, or the lack of the technological infrastructureand knowledge needed to make use of it. But all of this ischanging, thanks to what has come to be known as Big Data.
  • 3The best way to start the conversationabout Big Data is to define it. Its name isperhaps confusing and not quite apt, sinceit implies that existing data is small, orthat we simply have a lot more data. Thereality is, the term Big Data is applied toinformation that cannot be analyzed withtraditional tools or processes.Big Data has three fundamentalcharacteristics: it involves managing alarge volume of information, processingthe data quickly or in real time, andintegrating a large variety of informationsources that may be able to drawconclusions from data connections thatare not apparent from the start.
  • 4A recent study discovered that a largeamount of todays business leaders areaware that they do not have accessto all of the insights that would helpthem improve decision-making in theircompanies. The companies, in turn, arefacing increasing challenges in a timein which data is being generated likenever before and in which they have thecapacity to store this information. Thisrepresents a great opportunity for thesecompanies to equip themselves with real-time knowledge that can truly help themunderstand and adapt to individualsand their needs, and make decisionsaccordingly.It may seem paradoxical, but while itis possible for todays businesses toaccess information that can potentiallybe decisive for their core strategies, theircapacity to process, filter and analyzeincreasing quantities of information isdecreasing. The data which couldrepresent a truly golden opportunity just continues to pile up. This is whereBig Data comes in as a key player for thebusiness.1
  • 6$5 billion in Big Data software, hardware,and services$50 billion estimated for 2017$1.1 billion revenue for IBM comes fromBig Data70% of data storage is in North Americaand Europe60% potential increase in the operatingmargin for the retail sector$10 billion potential health-related marketfor Big Data in 2020180,000 Big Data experts will be neededover the next 5 years in the USA2,470 venture capital fund investments inBig Data companies in the USA in 20111 billion gigabytes of data on the Internet40% annual growth worldwideBig Datain Figures2012 MARKETGROWTH FORECASTSLEADING COMPANYGEOGRAPHYRETAILERSHEALTHDEMAND FOR LABORINVESTMENT FINDSINTERNET DATADATA GENERATION
  • 7The world is changing in leaps andbounds. We use more and moretechnological devices in our daily lives,and thus we are able to capture morethings. It has been observed that whenwe can capture things, we tend to holdon to them.Thanks to technological progress,people and objects are increasinglyinterconnected 24 hours a day without anytype of interruption. This interconnectionis rapidly escalating, and the flow ofdata exchange that it inspires is growingwithout bounds. The reduction in thesize and price of circuits, like those usedin smartphones, watches, heart ratemonitors, mp3 players, and tablets, etc.,contributes to this growth. Thanks to thedecreased cost of these circuits, we arenow able to endow just about everythingwith intelligenceeven a floor cleaner likethe Roombaand obtain answers from thisintelligence in the form of data.These types of devices are highlyreliable, sufficiently enough to have beenimplemented in security systems forsome time now. For example, a freighttrain has hundreds of sensors thatmonitor the climate conditions insidethe wagon, the status of certain piecesof machinery, or shipments. Theseprocessors interpret in real time the datafrom sensors in parts that are proneto wear, like the bearings, in order toidentify the components that are inneed of repair before they fail andpotentially cause a problem. The railsalso have sensors.
  • 8This data implies a fundamental changein the way we analyze this data, sinceit no longer follows a traditionalstructure and therefore requiresmore sophisticated technologies andmethodologies.The success of an organization willincreasingly stem from and dependon its ability to draw conclusionsregarding the diverse types of dataavailable to it. Getting ahead of thecompetition requires, in the majority ofcases, identifying a trend, a problem,or an opportunity microseconds beforeanybody else. Thats why organizationsmust be able to analyze this informationif they want to gain insights andknowledge that will help them with theirbusiness. They must start by identifyingthe opportunities behind Big Data, as thispaper seeks to illustrate.
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  • How much datadoes socialmedia generate?10More than 144.8 million emails sent/received per dayMore than 684,000 pieces of content and 34,000 brand likesMore than 340 million tweets per dayMore than 72 hours (259,200 seconds) of video consumedevery minute272,000 dollars transacted every day
  • 113,600 new photos every minuteMore than 2 million queries every minute3,125 new photos every minuteAround 47,000 application downloads per minuteMore than 2,000 check-ins every minute27,000 new posts every minute571 web pages published every minute350 new entries every minute
  • 1212AccessibilityandTechnologyare KeyBig Data was one of the main subjects discussedat the Oracle OpenWorld 2011 conference. Thefocus on Big Data at this conference revolvedaround offering enormous machines with massivecapacities, multi-parallel processing, unlimitedvisual analysis, and treatment of heterogeneousdata, etc. In short, solutions designed to meet theregular, massive needs of large organizations.
  • 13However, other types of companies optfor approximations using cloud-basedand open-source tools, like Hadoop, apopular open-source software frameworkthat allows applications to work with largeamounts of data and thousands of nodes.Hadoop was inspired by tools used byGoogle and by non-relational databasesnecessary for storing and processingthe enormous complexity of all typesof data, which in many cases do notfollow the logic of ACID (Atomicity,Consistency, Isolation and Durability)guarantees, typical of conventionaldatabases. It seems that solutions of thistype will be increasingly adopted in thefuture, although exciting questions abouttheir implementation and uses remainunanswered.
  • 14It was precisely with the idea of increasingBig Datas reach that Google introducedBigQuery some time ago, an onlineservice for processing large volumesof information. The service, however,is targeted towards professionals, andtherefore it is not free of charge.With BigQuery, Google takes advantageof all its knowledge on processing largevolumes of information and making itavailable to companies that are unableto purchase their own infrastructure, thusoffering them a cloud-based modelthat provides storage space as wellas a data-mining service. Thanks toBigQuery, companies can make theirfirst inroads into processing largevolumes of information, although,logically, it may be necessary to hire aspecialized service in order to receivemore in-depth service or analysis. Evenso, Googles initiative seems to be ofinterest, as it is a way to advertise BigData around the world.
  • 15In any case, the utilities and applicationsthat Big Data can provide are alreadywithin reach for many users, and in away that allows them to recognize andunderstand the massive convergence ofdata. Any user may consult and use thetools that already exist on the Web.For example, a user may go to GoogleMaps, write an address, choose thesatellite view, and see the traffic in thearea that he/she wants to visit in real time,based on information that other usershave sent to the network via an Androidterminal. Google has also discovered thatcertain search terms are valid indicators ofthe evolution of the flu, and the resultsare shown on Google Flu Trends.2Approximate calculations of flu activitycan thus be made for certain regions,which could be of use when it comesto taking preventive action. We can findother similar examples to the one justmentioned.2
  • 16Another facet of Big Data that has a strongpotential for further development involvescitizen access to public data, which, untilnow, was only available for analysis bythe public administrations. In 2009, thegovernment of the United States was apioneer by opening the doors to all of itsinformation on the website, you can access a great dealof information that has been available toUS residents for a while now. To date,the site has received more than 100million visits, and local authorities andinstitutions have started to release theirdata to citizens, following PresidentObamas lead. Cities like San Franciscoand New York, and the states of California,Utah and Michigan, among others, havelaunched their own websites based on model. The same is taking placein countries like Canada, Australia andthe United Kingdom, and with such well-known institutions as the World Bank.Another public-interest use for Big Datawas developed by IBM.3Using SmartMeters, IBM analyzed a neighborhoodspower consumption with sensorsthat provided energy consumptiondata, with the goal of making thatconsumption more efficient. Based onthis information, the company was ableto determine inhabitants energy-usagepatterns throughout the day, see howdemand varied, and even change someof those patterns by implementingvarious strategies and client discounts.3
  • 17The benefits of intelligent analysisThe insights detected by Smarter Analytics help companies make faster and better decisions and automateprocesses. In addition, they contribute towards building a solid foundation of product analysis and strategicservices in order to take advantage of all data sources, both structured and unstructured. All this data willalso support taking decisions at times of change and help companies move beyond the competition.Increase data oncustomers and retainthe most valuable onesContinuallyimprove operationalefficiencyPrevent fraudandmanage riskTransform andautomate financialprocesses
  • 18Even the Leicester Tigers rugby team hasstarted using Big Data to help preventinjuries.4Thanks to the increasing availability ofpublic data, people have developedhundreds of applications that society canbenefit from, for example, applicationsthat allow you to see pollution levels byregion, that help travelers find the fastestroute to their destinations, and that informnew homeowners about the safety oftheir neighborhood. Never before has somuch valuable, objective information beenavailable to help people make the bestdecisions possible in their day-to-day lives.As opposed to the way things usually findpopularity, Big Data is being propelled bythe public sector, as it shows people itsvalue and potential. The time has comefor Big Data to expand into the privatesector, and for marketing and customer-relations departments to take advantageof the opportunity to increase their profitsand productivity, and to be able to adapttheir business strategies to the newchanges that are to come by using all theinformation available through Big Data.4
  • 19191 in every 4rugby players isinjured duringtraining sessionsHamstring injuriescause players tohave to sit outan average of14 gamesResearchers areusing equationsto predict sportsinjuriesThe organizationsthat apply predictiveanalysis are 2.2times more likely tobeat their opponentsUsing data to stand up to rugby injuries
  • 2020MarketingwithBig DataDigital is the new frontier. Everything is goingdigital. As a result, people, devices andcompanies are managing larger and largeramounts of data. Companies need to find a wayto innovate in terms of examining all this data, soas to create actions and concrete strategies thatwill add much more value.
  • 21One of the biggest changes were seeingin the online advertising industry is anincreased focus on data and analysis.Marketers are hungry for information aboutwhat their audiences do online and howtheyre responding to ads. At the sametime, its not always easy to navigate withmassive amounts of data, so, in order tobe meaningful, that data needs to becombined with insights so marketersunderstand how to activate on thefindings.Lauren Weinberg, VP, Strategic Insightsand Research, Yahoo!
  • 22Large companies are aware of this andare increasingly dedicating departmentsand resources to data collection andapplication.
  • 24Big Dataand CRMThe large quantity of information beinguploaded to the Internet r...