Big Data : Leveraging the Opportunity to Create Value
1. Big Data : Leveraging the
Opportunity to Create Value
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Source: http://kaleidoscope.kontagent.com/2012/01/30/7-tips-for-leveraging-big-data/
2. The Amount of Data in Our World has been exploding....
Data Generated from the Internet of Things will grow exponentially
as the no. of Connected Nodes increases
Amount of New Data Stored Across Various Geographies
In Petabytes (In 2010)
250
200
Africa
>200
72-215
Security
HealthCare
Energy
Europe
>2000
N.America
>3500
Estimated No. of
Connected Nodes
In Millions
Japan
>400
China, India
>300
150
Industrials
Retail
100
Travel & Logistics
17-50
50
Rest of APAC
>300
Lat.America
>50
Utilities
Automotive
0
2010
2015
Source : Analyst Interviews, McKinsey Global Institute Analysis
Source : IDC Storage reports; McKinsey Global Institute Analysis
Companies in all sectors have at least 100 terabytes of data stored in the
US, many have more than 1 petabyte
Utilities
Stored Data in the US, 2009
In Petabytes
194
Transportation
227
Insurance
243
Retail
Banking
Communications & Media
Government
Discrete Manufacturing
354
Enterprises globally stored more than
7 exabytes of new data on disk drives
in 2010, while consumers stored
more than 6 exabytes of new data on
devices such as PCs and Notebooks.
30 Billion
Pieces of Content shared
on FB everyday
Mobile phones in use in 2010
Terabytes data collected by the US Library of
Congress in April 2011
Sectors in the US have more data
stored per company than the
US Library of Congress
619
715
848
(Source : “Big Data: The next frontier for Innovation, Competition and Productivity” – McKinsey & Co.)
966
Source : IDC ; US Bureau of Labor Statistics, McKinsey Global Institute Analysis
3. And They Just Don’t Come in Huge Volumes, But Also in a Variety of
Formats with Increasing Complexity at a tremendous Velocity....
Variety
People to
People
Virtual
Communities, Social
Networks, Web Logs
People to
Machine
Archives, Medical
Devices, Digital TV, ECommerce, Bank
Cards, Mobiles
Machine to
Machine
Sensors, GPS Devices, Bar
Code
Scanners, Surveillance
Cameras
40% Projected growth in Global Data created per
year.
Velocity
2.9 Million E-Mails sent
every Second
Source : Wipro Infographic - Big Data
20 Hours of Video
uploaded every Minute
50 Million Tweets
per Day
IDC : “Big data technologies describe a new generation of
technologies and architectures, designed to economically
extract value from very large volumes of a wide variety of
data, by enabling high-velocity capture, discovery, and/or
analysis.”
4. Big Data Has the Potential to Generate Tremendous Value for
Organizations Worldwide....
Potential Financial Value Generated Across Sectors
US HealthCare
EU Public Sector
Administration
•
$300 Billion per Year
•
~0.7 percent Annual
Productivity Growth
•
€250 Billion per Year
•
~0.7 percent Annual
Productivity Growth
The Five
Value Pillars
derived
from Big
Data
Global Personal
Location Data
•
$100 Billion+ Revenue
for Service Providers
•
Up to $700 Billion value
To end users.
Performance
Information
Accuracy
Information
Transparency
US Retail
•
60+% increase in Net
Margin possible
•
0.5-1.0 percent Annual
Productivity Growth
Manufacturing
•
Up to 50% decrease in
Product development, assembly
Costs.
• Up to 7% reduction in working
capital
Source : McKinsey Global Institute Analysis
Customer
Segmentation
Accuracy
Decision
Making
Efficiency
Next-Gen
Product &
Services
Development
5. But There Are Issues As Well That Needs to be Addressed to Capture
the Full Potential of Big Data....
1
Shortage of talent necessary for organizations to take advantage of big data. By 2018, the United States
alone could face a shortage of 140,000 to 190,000 people with deep analytical skills as well as
1.5 million managers and analysts.
2
3
Policies related to privacy, security, intellectual property, and even liability will need to be
addressed in a big data world.
Organizations will have to deploy new Technologies & Techniques for Storage, Computing & Analytics.
4
Access to Data would be a key factor. Organizations will have to gain access & Integrate Data from
multiple systems.
5
There is a huge Investment/ Cost involved due to the sheer Volume of Data that it must be difficult
For smaller companies to make efficient use of Big Data.
(Source : “Big Data: The next frontier for Innovation, Competition and Productivity” – McKinsey & Co.)
6. What the Early Adopters Have Been Doing....
“At WalmartLabs, we deal with
both Big Data and Fast Data. We
use Hadoop and other open source
tools to analyze social media data
from Twitter, Facebook, Foursquare
and other sources. We also have
developed our own proprietary
technology code named Muppet to
analyze Fast Data such as Twitter
firehose . Muppet can analyze in
real-time which stores have the
biggest crowds on Black Friday
based on Foursquare check-ins.”
- Rajaraman, SVP, Walmart Global
eCommerce & Head, WalmartLabs
“Amazon uses its cloud storage and
processing power to handle one issue
that is little thought about but vital to
its profitability: combating Warehouse
Theft. Amazon uses it’s Elastic Map
Reduce, a hosted Hadoop framework
running on AWS that lets customers
spin up the equivalent of a super
computer for processing Big Data” –
Alyssa Henry, VP of Amazon’s AWS
Storage Services
57.6% of Organizations Surveyed say
that Big Data is a Challenge.
72.7% of Organizations Consider driving Operational
Efficiencies to be the Biggest Benefit of a Big Data Strategy
Source : Wipro Infographic – Big Data, Research Findings by Deloitte
“The Financial Times uses big data analytics to
optimize pricing on ads by section, audience,
targeting parameters, geography, and time of day.
Our friends at the FT sell more inventory because
the team knows what they have, where it is and
how it should be priced to capture the opportunity
at hand. To boot, analytics reveal previously
undersold areas of the publication, enabling
premium pricing and resulting in found
margin falling straight to the bottom line.”
- David Soloff, CEO Metamarkets on FT.
50% of Organizations say that Big Data
helps in Better meeting Consumer Demand &
Facilitating Growth
90% of Fortune 500 Companies will have
At least one Big Data Initiative by end of 2012.Industry
Revenues is expected to be around $1-1.5 Billion.
7. The Way Forward for Large Organizations to Leverage the Full Potential
of Big Data....
Assess : Assess the internal assets the organization
holds and also have access to externally. Also, conduct
a detailed analysis on the proprietary data one holds,
Could have access to or could be purchased.
AIBIM Framework
Identify :
Monitor
Implement
Build
Identify
Assess
Identify the Potential Value creation
Opportunities provided by Big Data. The Five Value
Pillars derived from Big Data broadly presents the areas
To focus on.
Build : Build Resource capability along with Technology
Capability. High skilled resource capable of handling
Big Data along with Technology platform development
Or partnering with technology vendors with expertise in
Big Data Handling.
Implement : Implement the technology to gather
and analyze Big Data to create meaningful value. It’s
Important to have an effective Enterprise wide Data
Strategy rather than operating in Silos.
Monitor : Monitor data continuously for privacy and
Security issues and device a policy that complies
With privacy laws.
8. Thank You
Strictly Confidential. This document is only for the reference of intended recipients. Please
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do not forward this documentAmarnath.vannarath@gmail.com case
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Source: http://www.abc.net.au/technology/articles/2012/04/16/3478362.htm