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Big Data :
The next frontier for innovation,
 competition, and productivity

      McKinsey Global Institute


        報告人:郭惠民
         2012/06/26

                  1
Contents
1.Mapping global data: Growth and value creation
2.Big data techniques and technologies
3.The transformative potential of big data in five
  domains
4.Key findings that apply across sectors
5.Implications for organization leaders
6.Implications for policy makers




                        2
What is Big data?
What do we mean by "big data"?
“Big data” refers to datasets whose size is beyond the ability of typical
database software tools to capture, store, manage, and analyze.
This definition is intentionally subjective and incorporates a moving
definition of how big a dataset needs to be in order to be considered
big data—i.e., we don’t define big data in terms of being larger than a
certain number of terabytes (thousands of gigabytes).
We assume that, as technology advances over time, the size of
datasets that qualify as big data will also increase. Also note that the
definition can vary by sector, depending on what kinds of software tools
are commonly available and what sizes of datasets are common in a
particular industry. With those caveats, big data in many sectors today
will range from a few dozen terabytes to multiple petabytes (thousands
of terabytes).
Big Data
1.Mapping global data: Growth and value creation
2.Big data techniques and technologies
3.The transformative potential of big data in five
  domains
4.Key findings that apply across sectors
5.Implications for organization leaders
6.Implications for policy makers




                        4
Growth and value creation
 The volume of data is growing at an exponential
  rate
 The intensity of big data varies across sectors but
  has reached critical mass in every sector
 Major established trends will continue to drive
  data growth
 Traditional uses of it have contributed to
  productivity growth — big data is the next frontier




                          5
Growth and value creation - 1




            6
Growth and value creation - 1




            7
Growth and value creation - 2




            8
Growth and value creation - 2




            9
Growth and value creation - 3




            10
Growth and value creation - 3




            11
Growth and value creation - 4




            12
Big Data
1.Mapping global data: Growth and value creation
2.Big data techniques and technologies
3.The transformative potential of big data in five
  domains
4.Key findings that apply across sectors
5.Implications for organization leaders
6.Implications for policy makers




                        13
Big Data Techniques and Technologies
Techniques
   A/B Testing                            Optimization
   Association rule learning              Pattern recognition
   Classification                         Predictive modeling
   Cluster analysis                       Regression
   Crowdsourcing                          Sentiment analysis
   Data fusion and data integration       Signal processing
   Data mining                            Spatial analysis
   Ensemble learning                      Statistics
   Genetic algorithms                     Supervised learning
   Machine learning                       Simulation
   Natural language processing (NLP)      Time series analysis
   Neural networks                        Unsupervised learning
   Network analysis                       Visualization



                                   14
Big Data Techniques and Technologies
Techniques
 Data Mining, Data Warehousing, Business Intelligence
    Association rule learning, Classification, Cluster analysis, Data fusion
      and data integration
 Artificial Intelligence
    Machine learning, Supervised learning, Unsupervised learning,
       Natural language processing (NLP), Neural networks, Ensemble
       learning, Sentiment analysis
 Statistics, Algorithm, Operation Research
    Statistics, Simulation, Regression, Time series analysis, Genetic
      algorithms, Optimization, Pattern recognition, Predictive modeling,
      Spatial analysis
 Social Psychology, Cognition Science
    Crowdsourcing. A/B Testing, Network analysis
 Others
    Signal processing, Visualization


                                    15
Big Data Techniques and Technologies
Technologies
   Big Table                                MapReduce
   Business intelligence (BI)               Mashup
   Cassandra                                Metadata
   Cloud computing                          Non-relational database
   Data mart                                R
   Data warehouse                           Relational database
   Distributed system                       Semi-structured data
   Dynamo                                   SQL
   Extract, transform, and load (ETL)       Stream processing
   Google File System                       Structured data
   Hadoop                                   Unstructured data
   HBase                                    Visualization




                                     16
Big Data Techniques and Technologies
Technologies
           Business Intelligence and Software Tools
    Business intelligence (BI), Data mart, Data warehouse, Mashup
           Extract, transform, and load (ETL), Visualization

        Computing Model and Programming Language
   Cloud computing, Distributed system, Hadoop, MapReduce, R,
                        Stream processing

                             Database
      Relational database, SQL, Big Table, HBase, Cassandra,
                 Non-relational database,, Metadata.

             Data Characteristic and Storage system
      Structured data, Semi-structured data, Unstructured data
                   Google File System, Dynamo.


                                 17
Big Data
1.Mapping global data: Growth and value creation
2.Big data techniques and technologies
3.The transformative potential of big data in five
  domains
4.Key findings that apply across sectors
5.Implications for organization leaders
6.Implications for policy makers




                        18
The transformative potential of big data
 Health care (United States)
 Public sector administration (European Union)
 Retail (United States)
 Manufacturing (global)
 Personal location data (global)




                           19
The transformative potential of big data




                  20
Big Data
1.Mapping global data: Growth and value creation
2.Big data techniques and technologies
3.The transformative potential of big data in five
  domains
4.Key findings that apply across sectors
5.Implications for organization leaders
6.Implications for policy makers




                        21
Key findings that apply across sectors
 big data creates value in several ways
 While the use of big data will matter across sectors,
  some sectors are poised for greater gains
 Big data offers very large potential to generate value
  globally, but some geographies could gain first
 There will be a shortage of the talent organizations
  need to take advantage of big data
 Several issues will have to be addressed to capture
  the full potential of big data




                           22
Key Findings -1
big data creates value in several ways
 Creating transparency
 Enabling experimentation to discover needs,
  expose variability, and improve performance
 Segmenting populations to customize actions
 Replacing/supporting human decision making
  with automated algorithms
 Innovating new business models, products and
  services


                          23
Key Findings - 2




      24
Key Findings - 2




      25
Key Findings - 3




      26
Key Findings - 4




      27
Key Findings - 4




      28
Key Findings - 4




      29
Key Findings - 4




      30
Key Findings - 5
Several issues will have to be addressed to
capture the full potential of big data
Data policies
Technology and techniques
Organizational change and talent
Access to data
Industry structure




                        31
Big Data
1.Mapping global data: Growth and value creation
2.Big data techniques and technologies
3.The transformative potential of big data in five
  domains
4.Key findings that apply across sectors
5.Implications for organization leaders
6.Implications for policy makers




                        32
Implications for organization leaders
 Inventory data assets: proprietary, public, and
  purchased
 Identify potential value creation opportunities
  and threats
 Build up internal capabilities to create a data-
  driven organization
 develop enterprise information strategy to
  implement technology
 Address data policy issues



                          33
Implications for policy makers
 Build human capital for big data
 Align incentives to promote data sharing for the
  greater good
 Develop policies that balance the interests of
  companies wanting to create value from data and
  citizens wanting to protect their privacy and security
 Establish effective intellectual property frameworks
  to ensure innovation
 Address technology barriers and accelerate R&D in
  targeted areas
 Ensure investments in underlying information and
  communication technology infrastructure


                           34
Executive summary
 Data have swept into every industry and business
  function and are now an important factor of production
 Big data creates value in several ways
 Use of big data will become a key basis of competition
  and growth for individual firms
 The use of big data will underpin new waves of
  productivity growth and consumer surplus
 While the use of big data will matter across sectors, some
  sectors are poised for greater gains
 There will be a shortage of talent necessary for
  organizations to take advantage of big data
 Several issues will have to be addressed to capture the
  full potential of big data

                             35
簡報完畢
敬請指導




 36

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Big data_郭惠民

  • 1. Big Data : The next frontier for innovation, competition, and productivity McKinsey Global Institute 報告人:郭惠民 2012/06/26 1
  • 2. Contents 1.Mapping global data: Growth and value creation 2.Big data techniques and technologies 3.The transformative potential of big data in five domains 4.Key findings that apply across sectors 5.Implications for organization leaders 6.Implications for policy makers 2
  • 3. What is Big data? What do we mean by "big data"? “Big data” refers to datasets whose size is beyond the ability of typical database software tools to capture, store, manage, and analyze. This definition is intentionally subjective and incorporates a moving definition of how big a dataset needs to be in order to be considered big data—i.e., we don’t define big data in terms of being larger than a certain number of terabytes (thousands of gigabytes). We assume that, as technology advances over time, the size of datasets that qualify as big data will also increase. Also note that the definition can vary by sector, depending on what kinds of software tools are commonly available and what sizes of datasets are common in a particular industry. With those caveats, big data in many sectors today will range from a few dozen terabytes to multiple petabytes (thousands of terabytes).
  • 4. Big Data 1.Mapping global data: Growth and value creation 2.Big data techniques and technologies 3.The transformative potential of big data in five domains 4.Key findings that apply across sectors 5.Implications for organization leaders 6.Implications for policy makers 4
  • 5. Growth and value creation  The volume of data is growing at an exponential rate  The intensity of big data varies across sectors but has reached critical mass in every sector  Major established trends will continue to drive data growth  Traditional uses of it have contributed to productivity growth — big data is the next frontier 5
  • 6. Growth and value creation - 1 6
  • 7. Growth and value creation - 1 7
  • 8. Growth and value creation - 2 8
  • 9. Growth and value creation - 2 9
  • 10. Growth and value creation - 3 10
  • 11. Growth and value creation - 3 11
  • 12. Growth and value creation - 4 12
  • 13. Big Data 1.Mapping global data: Growth and value creation 2.Big data techniques and technologies 3.The transformative potential of big data in five domains 4.Key findings that apply across sectors 5.Implications for organization leaders 6.Implications for policy makers 13
  • 14. Big Data Techniques and Technologies Techniques  A/B Testing  Optimization  Association rule learning  Pattern recognition  Classification  Predictive modeling  Cluster analysis  Regression  Crowdsourcing  Sentiment analysis  Data fusion and data integration  Signal processing  Data mining  Spatial analysis  Ensemble learning  Statistics  Genetic algorithms  Supervised learning  Machine learning  Simulation  Natural language processing (NLP)  Time series analysis  Neural networks  Unsupervised learning  Network analysis  Visualization 14
  • 15. Big Data Techniques and Technologies Techniques  Data Mining, Data Warehousing, Business Intelligence  Association rule learning, Classification, Cluster analysis, Data fusion and data integration  Artificial Intelligence  Machine learning, Supervised learning, Unsupervised learning, Natural language processing (NLP), Neural networks, Ensemble learning, Sentiment analysis  Statistics, Algorithm, Operation Research  Statistics, Simulation, Regression, Time series analysis, Genetic algorithms, Optimization, Pattern recognition, Predictive modeling, Spatial analysis  Social Psychology, Cognition Science  Crowdsourcing. A/B Testing, Network analysis  Others  Signal processing, Visualization 15
  • 16. Big Data Techniques and Technologies Technologies  Big Table  MapReduce  Business intelligence (BI)  Mashup  Cassandra  Metadata  Cloud computing  Non-relational database  Data mart  R  Data warehouse  Relational database  Distributed system  Semi-structured data  Dynamo  SQL  Extract, transform, and load (ETL)  Stream processing  Google File System  Structured data  Hadoop  Unstructured data  HBase  Visualization 16
  • 17. Big Data Techniques and Technologies Technologies Business Intelligence and Software Tools Business intelligence (BI), Data mart, Data warehouse, Mashup Extract, transform, and load (ETL), Visualization Computing Model and Programming Language Cloud computing, Distributed system, Hadoop, MapReduce, R, Stream processing Database Relational database, SQL, Big Table, HBase, Cassandra, Non-relational database,, Metadata. Data Characteristic and Storage system Structured data, Semi-structured data, Unstructured data Google File System, Dynamo. 17
  • 18. Big Data 1.Mapping global data: Growth and value creation 2.Big data techniques and technologies 3.The transformative potential of big data in five domains 4.Key findings that apply across sectors 5.Implications for organization leaders 6.Implications for policy makers 18
  • 19. The transformative potential of big data  Health care (United States)  Public sector administration (European Union)  Retail (United States)  Manufacturing (global)  Personal location data (global) 19
  • 21. Big Data 1.Mapping global data: Growth and value creation 2.Big data techniques and technologies 3.The transformative potential of big data in five domains 4.Key findings that apply across sectors 5.Implications for organization leaders 6.Implications for policy makers 21
  • 22. Key findings that apply across sectors  big data creates value in several ways  While the use of big data will matter across sectors, some sectors are poised for greater gains  Big data offers very large potential to generate value globally, but some geographies could gain first  There will be a shortage of the talent organizations need to take advantage of big data  Several issues will have to be addressed to capture the full potential of big data 22
  • 23. Key Findings -1 big data creates value in several ways  Creating transparency  Enabling experimentation to discover needs, expose variability, and improve performance  Segmenting populations to customize actions  Replacing/supporting human decision making with automated algorithms  Innovating new business models, products and services 23
  • 31. Key Findings - 5 Several issues will have to be addressed to capture the full potential of big data Data policies Technology and techniques Organizational change and talent Access to data Industry structure 31
  • 32. Big Data 1.Mapping global data: Growth and value creation 2.Big data techniques and technologies 3.The transformative potential of big data in five domains 4.Key findings that apply across sectors 5.Implications for organization leaders 6.Implications for policy makers 32
  • 33. Implications for organization leaders  Inventory data assets: proprietary, public, and purchased  Identify potential value creation opportunities and threats  Build up internal capabilities to create a data- driven organization  develop enterprise information strategy to implement technology  Address data policy issues 33
  • 34. Implications for policy makers  Build human capital for big data  Align incentives to promote data sharing for the greater good  Develop policies that balance the interests of companies wanting to create value from data and citizens wanting to protect their privacy and security  Establish effective intellectual property frameworks to ensure innovation  Address technology barriers and accelerate R&D in targeted areas  Ensure investments in underlying information and communication technology infrastructure 34
  • 35. Executive summary  Data have swept into every industry and business function and are now an important factor of production  Big data creates value in several ways  Use of big data will become a key basis of competition and growth for individual firms  The use of big data will underpin new waves of productivity growth and consumer surplus  While the use of big data will matter across sectors, some sectors are poised for greater gains  There will be a shortage of talent necessary for organizations to take advantage of big data  Several issues will have to be addressed to capture the full potential of big data 35