Fernando Meco, Director de Marketing de SAS.

Co m p a ny Co nf ide nti al - Fo r I nte rna l Use On ly
Co p y rig ht © 20 16 , S AS I nst itut e I n c. All ri gh ts re served .@FernandoMeco
ANALYTICS OF THINGS
@FERNANDOMECO
MARKETING & SALES OPERATIONS DIRECTOR

Co p y rig ht © 20 16 , S AS I nst itut e I n c. All ri gh ts re served .
AGENDA BUSINESS ANALYTICS: MAKING SENSE OF DATA
IoT isn’t a nice-
to-have
Analytics of
Things
Big data & IoT
People

Source: Magic Quadrant for Advanced Analytics Platforms,
19th February 2015
Source: The Forrester Wave™: Big Data Predictive Analytics
Solutions, Q2 2015

Move the world video link
https://youtu.be/yGGS4lNCxJc

Strategic
Decisions
Tactical
Decisions
Operational Decisions

C o p yri ght © 2 015, SAS Institute Inc. Al l ri ghts reserved.
@FernandoMeco
nternet
OF hings
I
T
Healthcare
Connected Car/
Transportation
Communications
Energy
Connected CustomerSmart Cities and Homes
Surveillance
Building
Management
Agriculture
M2M & Wireless
Sensor Network
Retail
Manufacturing

Is there a problem ?
Where is it heading towards?
Do you see the solution?

FAST MOVING NEW ECOSYSTEMS ARE CREATED ...
Mid 2015: Amazon Dash Button Jan 2016: Amazon Replenishment Services

IOT ANALYTICS AS A KEY ENABLER
“IoT creates a big data problem that analytics must solve
— transform huge volumes of data into a small (readily synthesized by a human
mind) quantity of usable/actionable information.”
- Gartner 2013

BIG DATA IOT – THE NEXT FRONTIER
• Internet of People is now mainstream.
• Next stop – connecting everything – IoT
1 As projected by Dr. John Barrett, Head of Academic Studies, Cork Institute of Technology, Oct. 2012
2 From InformationWeek reports, ID: S7760114, January, 2014
Total value of IoT is2:
• 41% machine-to-machine
• 23% machine-to-person
• 36% person-to-person
In just under 20 years, it’s
estimated that each of us
will be communicating
with 5,000 ‘things’1

INTERNET OF
THINGS
IOT CHARACTERISTICS
• CONNECTS the physical world around itself to other
things, the Internet, a network, etc.
• COMPUTES by processing the inputs collected at
source or in a database. Analytics makes these inputs
into insights & trigger for action into other systems.
• COMMUNICATES with other connected devices or
static systems and the workforce
• REDEFINES OUR ENGAGEMENT with the
physical world – smart , efficient & sustainable
• OBJECTSARE BECOMING EMBEDDED with
sensors and gaining the ability to communicate. When
objects can both sense the environment and
communicate, they become tools for understanding
complexity and responding to it swiftly
WHAT IMPACT

Analytics are Crucial in Digital Business
• Data sources relatively small and
structured, from internal systems
• Majority of analytical activity was
descriptive analytics, or reporting
• Creating analytical models was a
time-consuming “batch” process
• Few organizations “competed on
analytics”—analytics were marginal
to strategy
• Decisions were made based on
experience and intuition
• Complex, large, unstructured data
sources
• New analytical and computational
capabilities
• “Data Scientists” emerge
• Online firms create data-based
products and services
• Analytics integral to running the
business; strategic asset
• Rapid and agile insight delivery
• Analytical tools available at point
of decision
• Cultural evolution embeds
analytics into decision and
operational processes
• Businesses can create data-
based products and services
Big Data + Advanced Analytics + Embedded (real time) Decision Making = VALUE
Source: International Institute for Analytics, 2014

POLL 1. WHAT IS IOT?
20% 40% 60% 80%
¿Qué % de consumidores no
saben lo que es IoT o no les
importa IoT?

POLL 2. SECURITY
AND PRIVACY.
20% 40% 60% 80%
¿Qué % de consumidores están
preocupados sobre la seguridad y la
privacidad de IoT?

BIG DATA, STEP ASIDE.
IOT IS HERE.
2011
HYPE
CYCLE

2014
HYPE
CYCLE
IOT IS HERE.

2015
HYPE
CYCLE
IOT IS HERE.

IOT ISN’T A NICE-TO-HAVE.
De las organizaciones creen queIoT es
críticopara su ventaja competitiva.72%
De los ejecutivos creen queIoT creará
nuevas fuentes deimgresos para sus
operaciones.
84%
Source: http://www.verizonenterprise.com/verizon-insights/ state-of-market-internet-of-things/2016/
Source: Accenture CEO Briefing and The Economist Intelligent Unit

IOT DEPLOYMENTS ARE STILL “EARLY MARKET.”
ENTHUSIASTS
Source: Geoffrey Moore, Technology
Adoption Lifecycle; LNS Research
VISIONARIES PRAGMATISTS & CONSERVATIVES SKEPTICS
THECHASM
THE EARLY
MARKET
THE MAINSTREAM
13% 22% 47% 19%
N=680

FEW HAVE IMPLEMENTED IOT STRATEGIES.
11%
23%
32%
34%
Strategic readiness to apply IoT
technologies to processes
(% of participants)
Strategy in place
— implemented
Strategy in place
— not
implemented
Plan to develop
strategy
No plan to
develop strategy
12%
20%
30%
37%
Strategic readiness to embed IoT
technologies in products
(% of participants)
Strategy in place
— implemented
Strategy in place
— not
implemented
Plan to develop
strategy
No plan to
develop strategy

POLL 3A. CONSUMERS AND SECURITY.
25% 50% 75% 90%
¿Qué % de CONSUMIDORES creen que los
productos IoT no cuentan con la suficiente
seguridad?

POLL 3B. DEVELOPERS AND
SECURITY.
25% 50% 75% 90%
¿Qué % de DESARROLLADORES creen que los
productos IoT no cuentan con la suficiente
seguridad?

THE 5
CHALLENGES.
organizational
alignment
competency
andtalent
technology
adoption
interoperability
standards
datasecurity
andprivacy

THE IOT PROMISE
New Business Models
Quality of Life
Early Warnings
Efficiencies
New
Value
New
Value

New
Value
Efficiencies
New Business
Models
Quality of
Life
Early
Warnings
Analyze
PROMISE OF IOT

New
Value
Analyze
IOT VALUE CHAIN
Act

New
Values
Analyze
IOT VALUE CHAIN
Act
Understand ActSense

INTERNET OF
THINGS
A DATA AND OPPORTUNITY EXPLOSION

INTERNET OF
THINGS
CONNECTIVITY INTRODUCES A NEW COMPLEXITY
Capture
Data
Capture
Data
from
devices
Reduce/
Analyse
data at
the edge
Store
data
Store
data
Analyse
Data
Analyse
Data
Key Issues:
• The velocity and
volume of data may
be huge
• In some cases,
most of the data is
unimportant
Traditional
IoT
Key Issues:
• complex network of
connections between
isolated data sources
• Integrating &
Automating collection

Data
Access
Intelligent
Filter/
Transform
Streaming
Model
Execution
Data
Storage
Ad-Hoc
Analysis
Model Dev/
Deployment
Alerts/
Reporting
INTERNET OF
THINGS
IOT ANALYTICS LIFECYCLE
Streaming
Data
Persisted
Data
Understand ActSense
Streaming
Data

INTERNET OF
THINGS
VALUE IS CREATED BY MAKING SENSE OF DATA
Connected Trsp.
(Smart City)
Smart
Insurance
Smart Grid
Sensors embedded in
road surface
Connected IndividualConnected PMUs
Detect weather, predict
traffic, sense 911 vehicles
Detect where & how one
drives
Detect voltage instabilities
on transmission network
Adjust speed limits and
shift lane directions to
optimize traffic flow
Offer insurance for
actual usage and risk
Trigger corrective
actions to maintain grid
reliability
Sense
Understand
Act
Connected
Factory
Product, process,
equipment attributes
Detect production
variation
Adjust process in real
time to mitigate issue
and protect yield

Video SAS Analytics for IoT powered by
Intel Technology link
https://youtu.be/G2dFDM_9bjY

S. Ransbotham, D. Kiron and P.K. Prentice, “The Talent Dividend: Analytics talent is driving competitive
advantage at data-oriented companies,” MIT Sloan Management Review , April 2015

Co p y rig ht © 20 16 , S AS I nst itut e I n c. All ri gh ts re served .@FernandoMecoS. Ransbotham, D. Kiron and P.K. Prentice, “The Talent Dividend: Analytics talent is driving competitive
advantage at data-oriented companies,” MIT Sloan Management Review , April 2015
Are you ready?

KEY MESSAGES
• IoT: Big data problem that Analytics needs to solve
• IoT: isn’t a nice-to-have
• Analytics…. Applied to business and operational decisions
and
• People!!!

Video How SAS & analytics helped Nepal
http://www.sas.com/en_us/customers/iom.html

GRACIAS

Fernando Meco, Director de Marketing de SAS.

Fernando Meco, Director de Marketing de SAS.

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Fernando Meco, Director de Marketing de SAS.