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© 2010 – 2016 eoda GmbHOliver Bracht
R in the German Mittelstand
Bringing data science to small and medium-sized enterpris...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
About eoda
I...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Core Data Sc...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Mittelstand
...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
• Mostly fam...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
The German M...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
The Mittelst...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
• Company is...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Success fact...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Risks
• IT d...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
• Use Case E...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Level 2: Pro...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Level 2: Pro...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Level 3: Pro...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Level 3: Pro...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Versioning F...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Output
Techn...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Conclusion
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Statistics,
...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Guerilla & P...
© 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de
Introduction | First contact | Proof of Concept | Production
Statistics,
...
© 2010 – 2016 eoda GmbHOliver Bracht
@eodaGmbH
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R in the Mittelstand: Bringing Data Science to small and mid-size companies.

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Most success stories of R in business are told by either new economy companies or large international enterprises. However, there is another field where R can enable success. Small to midsize, mostly family owned, old economy companies: the Mittelstand.
Besides its size, Mittelstand companies are characterized by their organisational culture, their value sets and their management philosophies. Hence, the introduction of Data Science in general and R in particular to Mittelstand companies needs to consider this specific characteristic in order to be successful.
This talk will focus on patterns that Mittelstand companies typically follow when they implement R. Main challenges of the process as well as road blockers on the way will be pointed out. It will give practical advice with real world examples and finally propose strategies of how to achieve long term success.


Oliver Bracht is chief data scientist at eoda GmbH, a German Data Science company. Oliver has more than ten years of professional experience in the field of Data Science. With his colleagues at eoda, he has worked for more than 200 customers of different branches in terms of R-training, -support, -services and software development.

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R in the Mittelstand: Bringing Data Science to small and mid-size companies.

  1. 1. © 2010 – 2016 eoda GmbHOliver Bracht R in the German Mittelstand Bringing data science to small and medium-sized enterprises eRum 2016 Oliver Bracht Chief Data Scientist Implementing R in the Mittelstand Bringing data science to small and medium-sized companies
  2. 2. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production About eoda Interdisciplinary Team Statisticians | Engineers | Economists | Sociologist | … Based in Kassel - Germany Data Science Consulting, Training, Support, Software and Analytic Services with a focus on R
  3. 3. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Core Data Science Lab Pioneer Requirement New Economy Enterprises Mittelstand Introduction of R
  4. 4. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Mittelstand Statistical Definition Number of employees between 10 and 500 Turnover between €2 million and €50 million About 99% of all companies in Germany are SMEs
  5. 5. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production • Mostly family-owned • CEO is often a member of the owner family • Successful and profitable ever since • Often located on the landside, in small towns • Many global leaders in niche markets • Mainly industrie and commerce • Strong engineering culture The German Mittelstand Characteristics
  6. 6. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production The German Mittelstand Characteristics • Often conservative with regard to IT • Low notion of employer targeting • Long term employee relationship • Low software development skills • Low analytical maturity level
  7. 7. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production The Mittelstand’s road of implementing R Level 1: First contact Level 2: Proof of Concept Level 3: Production
  8. 8. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production • Company is not using any Data Science Tools so far - beside Excel • A single person or small group starts using R for certain tasks • Often interns or entrants • Software decision independent from the IT-department • Non strategic decision • Colleagues, supervisors and management are excited Level 1: First contact
  9. 9. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Success factors • Involve IT department as early as possible • Try to enlarge the internal Data Science Team • by training (internal, on-site, online) • by hiring • Get as soon as possible to the next level Level 1: First contact
  10. 10. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Risks • IT department raises difficulties • Getting lost in ad-hoc requests • Becoming everybody's problem solver Level 1: First contact
  11. 11. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production • Use Case Evaluation • Data Availability • Analytical Complexity • Business Value • Select the most promising use cases for implementation • Plan to accomplish more than one use case Level 2: Proof of Concept
  12. 12. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Level 2: Proof of Concept Success Factors • Make sure that implementation is principally possible • Have your target in mind, don't get lost in details • Involve business as much as possible • Don‘t scare business with statistical terms • Keep analytic approach and business demand in line
  13. 13. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Level 2: Proof of Concept Risks • Promising particular success • Sticking to your original ideas if they don‘t fit anymore • Showing preliminary results to business people • Investing too much energy in optimization and performance • Communication between Data Science and Business
  14. 14. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Level 3: Production • Implementing Proof-of-Concept approaches into Production • Shift from laboratory to automation • Shift from hacking to programming
  15. 15. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Level 3: Production Success Factors • Focus on software developers skills • Care much about performance • Put a first stable version on the live system before adding new features • Open a backlog for future improvements
  16. 16. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Versioning Failure controll Dependency Management Documentation Package Building Staging Testing Deployment Profiling Level 3: Production Sucess Factors
  17. 17. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Output Technical Implementation Analytic Level 3: Production Risks • Underestimation of effort for maintenance and bug fixing • Debugging is harder on Production systems • Appling code changes without tests on staging systems • „Unknown“ input
  18. 18. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Conclusion
  19. 19. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Statistics, Methods Domain- knowledge Data Science Software Development
  20. 20. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Guerilla & Proof-of-Concept Statistics, Methods Domain- knowledge Software Development
  21. 21. © 2010 – 2016 eoda GmbHOliver Bracht www.eoda.de Introduction | First contact | Proof of Concept | Production Statistics, Methods Domain- knowledge Production Software Development
  22. 22. © 2010 – 2016 eoda GmbHOliver Bracht @eodaGmbH @eodaGmbH eodaGmbH blog.eoda.de eoda GmbH Universitätsplatz 12 34127 Kassel - Germany www.eoda.de/en info@eoda.de +49 561 202724-40 The Data Science Specialists.

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