1. 12/04/13
Milano, 04 Dec 2013
Andreas Weigend
@aweigend
The Power of Social Data:
Transforming Big Data
into Decisions
Andreas Weigend
1
1. Data and Decisions
Agenda
 Value of Data?
2. Amazon as Data Refinery
 Equation of Business
3. Implications of Social Data Revolution
 Audience  Connected Individuals and Context
4. Summary Questions via Twitter, use @aweigend
www.weigend.com
2
Handout page 1

2. 12/04/13
Andreas Weigend
@aweigend
15 years ago: Connecting Pages (Google)
10 years ago: Connecting People (FB)
5 years ago: Connecting Apps (Apple)
Now:
Connecting Data
3
Today, in a single day,
we are creating more data
than mankind did
from its beginning
through 2000
4
www.weigend.com
Handout page 2

3. 12/04/13
Andreas Weigend
@aweigend
Mobile
 Context: Many sensors
 Identity: Proxy for person
 Easy for advertiser to reach
user, but high cost of
interrupt if inappropriate
 Easy for user to contribute
5
Social Data: Two Meanings
1.
Relationships between people (“social graph”,
e.g., on Facebook or LinkedIn)
2.
Data people share (or “socialize”, e.g., check‐
in, purchase, book review, picture)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Note: Social Media differs from Social Data (e.g., GPS)
www.weigend.com
6
Handout page 3

4. 12/04/13
Andreas Weigend
@aweigend
Social Data Revolution
• Google has changed the way a billion people
think about information
• Facebook has changed the way a billion people
think about identity
• Amazon has changed the way a billion people
think about purchases
7
1. Transport energy  Industrial Revolution
 Production
2. Transport bits  Information Revolution
 Communication
3. Create (and share) bits  Social Data Rev
8
www.weigend.com
Handout page 4

5. 12/04/13
Andreas Weigend
@aweigend
Data and Decisions
Rule #1:
Start with a question, not with the data
 E.g., Which route do I take?
 E.g., Who do I work with?
9
Mindset
Skillset
Toolset
Dataset
10
www.weigend.com
Handout page 5

6. 12/04/13
Andreas Weigend
@aweigend
Big Data: Mindset
to turn Mess into Decisions
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11
Berkeley
SF Home
Facebook
Stanford
Google
12
www.weigend.com
Handout page 6

7. 12/04/13
Andreas Weigend
@aweigend
Imagine…
…you had your geolocation from the last
decade readily available at your fingertips
• What question would you ask?
• How would knowing that it is recorded 24/7
change your behavior?
13
London
1854
14
www.weigend.com
Handout page 7

8. 12/04/13
Andreas Weigend
@aweigend
google.com/history
15,317
searches
17
What data would you pay for most?
1. Geolocation: Where did a customer go?
2. Search history: What did she search for?
3. Purchase history: What did she buy?
4. Social graph: Who are her friends?
5. Demographics and similar attributes
18
www.weigend.com
Handout page 8

9. 12/04/13
Andreas Weigend
@aweigend
Big Data = Mindset
to turn Mess into Decisions
• External (facing the outside)
• Internal (within the company)
19
The Journey of Amazon
What changed?
20
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Handout page 9

10. 12/04/13
Andreas Weigend
@aweigend
The Journey of Amazon
What changed?
• Algorithms  Data
•
•
•
•
AI
BI
CI
DI
21
The Journey of Amazon
What changed?
• Algorithms  Data
•
•
•
•
AI
BI
CI
DI
www.weigend.com
What did not change?
• “Ask for forgiveness,
not for permission”
• True customer‐
centricity
• Recommendations and
Discovery
22
Handout page 10

11. 12/04/13
Andreas Weigend
@aweigend
1. Data and Decisions
Agenda
 Value of Data?
2. Amazon as Data Refinery
 Equation of Business
3. Implications of Social Data Revolution
 Audience  Connected Individuals and Context
4. Summary Questions via Twitter, use @aweigend
23
Amazon as Data Refinery
Goal: Help people make better decisions
Data strategy: Make it trivially easy to

Contribute

Connect

Collaborate
www.weigend.com
24
Handout page 11

12. 12/04/13
Andreas Weigend
@aweigend
Equation of Business
• Expresses business strategy, values etc.
• Needed for evaluation of experiments
Rule #2:
Base the equation of your business on
metrics that matter to your customers
25
Equation of Business
Rule #3:
Focus on decisions and actions, and design
for feedback
26
www.weigend.com
Handout page 12

13. 12/04/13
Andreas Weigend
@aweigend
5 Stages of Amazon Recommendations
1. Manual (Experts)
2. Implicit (Clicks, Searches)
3. Explicit (Reviews, Lists)
4. Situation (Local, Mobile)
5. Social graph (Connections)
27
Social Commerce
Amazon’s Share the Love
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Handout page 13

14. 12/04/13
Andreas Weigend
@aweigend
The 4 C’s
• Content
• Context
• Connection
• Conversation
29
2000
Markets are Conversations
2013
Conversations are Markets
30
www.weigend.com
Handout page 14

15. 12/04/13
Andreas Weigend
@aweigend
Where are the Conversations?
Company
Consumers
1. Data and Decisions
Agenda
 Value of Data?
2. Amazon as Data Refinery
 Equation of Business
3. Implications of Social Data Revolution
 Audience  Connected Individuals and Context
4. Summary Questions via Twitter, use @aweigend
32
www.weigend.com
Handout page 15

16. 12/04/13
Andreas Weigend
@aweigend
Data sources for marketing
a new phone product
Segmentation
Social Graph
(Demographics, Loyalty)
(Who called whom?)
1.35%
Adoption
rate
4.8x
0.28%
Segmentation
www.weigend.com
Social Graph
Handout page 16

17. 12/04/13
Andreas Weigend
@aweigend
Shift in Mindset
Non‐Social: Audience
Social: Connected Individual
35
1993
“On the Internet, nobody knows you’re a dog”
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Handout page 17

18. 12/04/13
Andreas Weigend
@aweigend
2013
“On the Internet, everybody knows you’re a dog”
Shift in Identity
Non‐social: Attributes
Social: Relationships
38
www.weigend.com
Handout page 18

19. 12/04/13
Andreas Weigend
@aweigend
Shift in Business Models
Non‐social: hotels.com, craigslist
Social: airbnb, lyft, relay rides,
39
E, Me, We!
1.
Digitize: E‐commerce
 Focus on company and products
2. Share: Me‐commerce
 Focus on consumer and attributes
3.
Connect: We‐c0mmerce
 Focus on connection between consumers
www.weigend.com
40
Handout page 19

20. 12/04/13
Andreas Weigend
@aweigend
Connected Individuals
Rule #4:
Embrace transparency: Make it trivially easy
for people to connect, contribute, and
collaborate
41
1. Data and Decisions
Agenda
2. Amazon as Data Refinery
3. Implications of Social Data Revolution
4. Outlook and Summary
Last chance to tweet questions, @aweigend42
www.weigend.com
Handout page 20

21. 12/04/13
Andreas Weigend
@aweigend
GLΛSS
43
The 4 Data Rules
1.
Start with a question, not with the data
2.
Base the equation of your business on metrics that
matter to your customers
3.
Focus on decisions and actions, design for
feedback
4.
Embrace transparency: Make it trivially easy for
people to connect, contribute, and collaborate
45
www.weigend.com
Handout page 21

22. 12/04/13
Andreas Weigend
@aweigend
Some Data Beliefs
1.
Let people do what people are good at, and
computers do what computers are good at
2.
Build stuff that enables a future you want to live in
3.
Give data to get data
46
Questions for you
1. Do your customers understand the
value they get when they give you data?
2. Does your product or service get better
over time and with data, or worse?
47
www.weigend.com
Handout page 22

23. 12/04/13
Andreas Weigend
@aweigend
Questions for me?
Andreas Weigend
weigend.com
Social Data Lab
aweigend@stanford.edu
48
Data Scientist
• Data literate
• Able to handle large data sets
• Understands domain and modeling
• Want to communicate and collaborate
• Curious with “can‐do” attitude
49
www.weigend.com
Handout page 23

24. 12/04/13
Andreas Weigend
@aweigend
Data Science vs Business Intelligence
50
Data Science vs Business Intelligence
51
www.weigend.com
Handout page 24