"Data are becoming the new raw material of business." – Craig Mundie, Senior Advisor to the CEO at Microsoft.

1. Learning from Conversation with the Governor:
Big Data Challenges for Bank of Thailand
Korkrid Akepanidtaworn
Data Science Society
LSE Students’ Union
December 7, 2016
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 1 / 44

2. Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 2 / 44

3. Big Data What’s Big Data?
Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 3 / 44

4. Big Data What’s Big Data?
What and Why Big Data?
In Veerathai Santiprabhob (Governor)’s View
Big data is considered a new term for many industrial sectors in
Thailand, including Bank of Thailand.
Big Data: Volume, Velocity, and Variety...
The governor said it is particularly interesting to look at the data that
come up often and discover the underlying behavioral pattern or
change.
In the past, Bank of Thailand was used to spending time collecting
data and presenting the monthly or annual report, especially the
summary statistics table.
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 4 / 44

5. Big Data What’s Big Data?
Key Changes Contributing to an Influx of Data
In Veerathai Santiprabhob (Governor)’s View
Computers are becoming more intelligent and tremendously faster
than ever.
Data warehouse is transforming into data lake. The databases are
able to store more, various types of data, and cost of doing so is
much less, thanks to cloud computing technologies.
The growing use of the Internet (via mobile phones, wifi, and laptops)
gives rise to the larger number of digital citizens, and hence the larger
amount of data being generated in each connected device.
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 5 / 44

6. Big Data What’s Big Data?
Electronic Airplane Ticket
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 6 / 44

7. Big Data What’s Big Data?
Bluesmart: Smart Luggage
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 7 / 44

8. Big Data What’s Big Data?
Amazon Go: More Convenient Shopping
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 8 / 44

9. Big Data What’s Big Data?
Internet of Things
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 9 / 44

10. Big Data What’s Big Data?
Internet of Things
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 10 / 44

11. Big Data Living in a VUCA World
Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 11 / 44

12. Big Data Living in a VUCA World
VUCA
V Volatility. The nature and dynamics of change, and the
nature and speed of change forces and change catalysts.
U Uncertainty. The lack of predictability, the prospects for
surprise, and the sense of awareness and understanding of
issues and events.
C Complexity. The multiplex of forces, the confounding of
issues, no cause-and-effect chain and confusion that surround
an organization.
A Ambiguity. The haziness of reality, the potential for
misreads, and the mixed meanings of conditions;
cause-and-effect confusion.
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 12 / 44

13. Big Data Living in a VUCA World
VUCA
If Bank of Thailand increase the money supply, the commercial banks
in Thailand are more likely to give out loans, which leads to more
opportunities for investments consumption.
But that is not the case anymore because a commercial bank is not
the sole mechanism in our financial system (e.g. capital market).
The connection between the commercial bank and capital market is
even more complex and difficult to predict.
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 13 / 44

14. Big Data Living in a VUCA World
VUCA
When Bank of Thailand implements any kind of policy, we want to
use the data to understand the changes/responses not only the Thai
population, but also a particular segment of the society.
How does the result differ for people in Bangkok and in countryside?
How does the policy affect the small and the medium-sized businesses.
Bank of Thailand needs some data that can serve as a leading
indicator of what economic variable most influencing individual and
business units.
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 14 / 44

15. Big Data Living in a VUCA World
Big Data Analytics in Banking
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 15 / 44

16. Big Data Living in a VUCA World
Big Data Analytics in Banking
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 16 / 44

17. Big Data Living in a VUCA World
Digital Transforation in a Banking Industry
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 17 / 44

18. Big Data Living in a VUCA World
Banking on Big Data 2.0
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 18 / 44

19. Big Data Living in a VUCA World
Big Data Analytics in Banking
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 19 / 44

20. Big Data Living in a VUCA World
Big Data Analytics in Banking
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 20 / 44

21. Big Data Living in a VUCA World
Financial Technology (FinTech) and Data Science
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 21 / 44

22. Data Governance
Concern of Big Data: Data Privacy
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 22 / 44

23. Data Governance
Data Governance Framework
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 23 / 44

24. Data Governance
Data Protection in EU
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 24 / 44

25. Data Governance
Discussion of Open Data
The debate on Open Data is still evolving.
The best open government applications seek to empower citizens, to
help small businesses, or to create value in some other positive,
constructive way.
Opening government data is only a way-point on the road to
improving education, improving government, and building tools to
solve other real world problems.
What are your thoughts on open data? Is this a good idea for the
government, businesses, and academics?
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 25 / 44

26. Nowcasting Economies Forecasting
Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 26 / 44

27. Nowcasting Economies Forecasting
Forecasting in Finance and Economics
The process of making predictions of the future based on past and
present data and most commonly by analysis of trends.
A commonplace example might be estimation of some variable of
interest at some specified future date. Prediction is a similar, but
more general term.
Risk and uncertainty are central to forecasting and prediction; it is
generally considered good practice to indicate the degree of
uncertainty attaching to forecasts.
In any case, the data must be up to date in order for the forecast to
be as accurate as possible.
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 27 / 44

28. Nowcasting Economies Forecasting
The Practice of Forecasting
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 28 / 44

29. Nowcasting Economies Nowcasting
Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 29 / 44

30. Nowcasting Economies Nowcasting
Nowcasting in Economics
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 30 / 44

31. Nowcasting Economies Nowcasting
Now-casting in Economics
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 31 / 44

32. Nowcasting Economies Nowcasting
Now-casting in Economics
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 32 / 44

33. Nowcasting Economies Nowcasting
Now-casting in Economics
Nowcasting is defined as the prediction of the present, the very near
future and the very recent past in economics.
It has recently become popular in economics as standard measures
used to assess the state of an economy, e.g., gross domestic product
(GDP), are only determined after a long delay, and are even then
subject to subsequent revisions.
Nowcasting models have been applied in many institutions, in
particular Central Banks.
The technique is used routinely to monitor the state of the economy
in real time.
Example: Now-casting and the real-time data flow, Marta Babura,
Domenico Giannone, Michele Modugno and Lucrezia Reichlin
(European Central Bank)
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 33 / 44

34. Nowcasting Economies Nowcasting
BOT is heading to Real-Time Economy
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 34 / 44

35. Nowcasting Economies Nowcasting
Big Data and Data Science
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 35 / 44

36. Big Data Challenges in Summary Organisations Lack Data Specialists
Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 36 / 44

37. Big Data Challenges in Summary Organisations Lack Data Specialists
Organisations Lack Data Specialists
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 37 / 44

38. Big Data Challenges in Summary Data-Driven Team Culture
Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 38 / 44

39. Big Data Challenges in Summary Data-Driven Team Culture
Big Data Analytics Work Together as Team
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 39 / 44

40. Big Data Challenges in Summary Database Architecture
Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 40 / 44

41. Big Data Challenges in Summary Database Architecture
Good Data Architecture Leads to Good Data Analysis
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 41 / 44

42. Big Data Challenges in Summary Data Governance
Outline
1 Big Data
What’s Big Data?
Living in a VUCA World
2 Data Governance
3 Nowcasting Economies
Forecasting
Nowcasting
4 Big Data Challenges in Summary
Organisations Lack Data Specialists
Data-Driven Team Culture
Database Architecture
Data Governance
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 42 / 44

43. Big Data Challenges in Summary Data Governance
Data Governance to Build Trust
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 43 / 44

44. Big Data Challenges in Summary Data Governance
Actionable Data Insight to Drive Economic and Business
Values
Korkrid Akepanidtaworn (LSESU) Learning from Conversation with the Governor: Big Data Challenges for Bank of ThailandDecember 7, 2016 44 / 44