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A Federated Approach to Big Data -- IBM Watson Explorer

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1 A Federated Approach to Big Data -- IBM Watson Explorer
Presented by: Ken Holmes

2 “Data is the New Oil” Exploration can be a critical step!
Data is just like crude. It’s valuable, but if unrefined it cannot really be used.” – Clive Humby, DunnHumby “Data is the New Oil” “We have an economy based on a resource that is not only renewable, but self-generating. Running out is not a problem, drowning in it is.” – John Naisbitt Exploration can be a critical step! Oil which is the fuel for modern economy for centuries. However, Oil in its raw form has little value. It needs to be refined and separated into a large number of consumer products, from petrol and kerosene to asphalt and chemical reagents used to make plastics and pharmaceuticals. It is also used in manufacturing a wide variety of materials. Big Data is just like oil, in it’s raw form it provide no value to enterprise, until it is processed and valuable and actionable business insights are “distilled”. Just like the technology that made available 100 years ago to discover oil and process it to consumable products. Big Data technology is going to transform and revolutionize the way enterprise get and use data. But before you can extract oil, you have to find out where the most productive resources are! The same applies to creating insights from data. 2 2 2

3 The demand for Big Data solutions is real
The healthcare industry loses $250 - $300 billion on healthcare fraud, per year. In the US alone this is a $650 million per day problem.1 One rogue trader at a leading global financial services firm created $2 billion worth of losses, almost bankrupting the company. Here are some examples of how information can work to you advantage or work or against you. While these challenges pose threats, they also pose opportunities. The healthcare industry spends roughly $250 billion on fraud, per year. By 2016, this could grow to more than $400 billion a year. But … Insurance companies that reduce fraud will gain advantages over their competitors. One rogue trader at a leading global financial services firm created $2 billion worth of losses, almost bankrupting the company. But … Financial services firms can use information and analytics to detect and curb rogue trading and gain advantage over firms that don’t leverage their information. $93 billion in total sales is missed each year because retailers don’t have the right products in stock to meet customer demand. But … Retailers who can leverage the many sources of data available to them can optimize inventory and gain competitive advantage over companies that don’t do it as well by having the right merchandise on the shelves at the right time. 6 billion global subscribers in the telco industry are demanding unique and personalized offerings that match their individual lifestyles. But … Telcos that can anticipate and personalize service, leading to better customer retention and average revenue per customer, will have a distinct advantage. So while the amount of data that your organization needs to deal with presents challenges, it also presents many opportunities … these are just a few examples. $93 billion in total sales is missed each year because retailers don’t have the right products in stock to meet customer demand. 5 billion global subscribers in the telco industry are demanding unique and personalized offerings that match their individual lifestyles.2 Source: 1.Harvard, Harvard Business Review, April 2010. 2,IBM Institute for Business Value, The Global CFO Study, 2010. 3 3 3

4 Polling Question How much of available information does a typical organization utilize? 6% 12% 24% 48% 60% Answer: B, according to Forrester Research © 2013 IBM Corporation

5 Of Available Data is Used
12% Only If we accept that data is the new oil, then how organizations use their data can determine the winners and losers. Here’s a startling statistic: According to Forrester Research, on average organizations only use about 12% of their data! When you look at different types of data, utilization rates of structured data is only 32%. That sounds low until you consider unstructured data, which is most of the data in the world. For unstructured data, the utilization plummets to single digits -- 8%. Combined, only about 12% of data available is used. Your customers should question what data they store and what data they actually use. Clearly there is a pressing need to understand what data we have in our organizations and to understand how to utilize it. Of Available Data is Used 32% of structured 8% of unstructured Forrester Research: Can You Give The Business The Data That It Needs? by Michele Goetz, November 13, 2013

6 Big Data Exploration bridges the gap between structured and unstructured data, cloud, on-premise and external Big Data Exploration Stream, Process and analyze Big Data Federate, discover and navigate Big Data sources Virtual Integration Enterprise Systems & Content Stores Here’s a key point about big data exploration: you need the ability to bridge both the structured and unstructured information in your organization. For years we’ve seen businesses focus on primarily structured data. However, over 80% of data in the world today is unstructured and does not live in databases. In many cases, meaningful analysis of data in your organization can only be done when pulling together data from all available sources. This is challenging, however, as organizations have many silos where all their data lives, including the cloud, which do not integrate well with each other. IBM has a solution here in the form of Data Explorer. Lacks structure Each system has its own but different structure ERP CRM SCM SOA, ESB, Web Service Content Mgt Systems Web RSS Feed ____________ Social Media Unstructured docs 80% 20% World’s Total Data: Unstructured Structured

7 Polling Question 2. If “data is the new oil,” what’s the first step in exploiting it? Start drilling immediately Build a refinery Open a chain of gas stations Explore to find the richest deposits Answer: D © 2013 IBM Corporation

8 Understanding Big Data is critical to success
Explore Discover and navigate all Big Data repositories – internal and external sources Analyze Analyze and compare trillions of data records from structured and unstructured sources Understand Correlate & combine all data sources to unearth unique relationships Getting Started is Crucial 8

9 Big Data Analytics Watson Explorer
Phase 1: Leverage Information In-Place Phase 2: Automate and Expand w/ Big Data Analytics Data Scientist / Analyst Business End User Discover & Navigate Advanced Analytics Big Data Analytics Watson Explorer Identify Analysis- Ready Data Serve up Analytical Insights in Context The Virtuous Circle of Information Analysis Hadoop System Stream Computing Internal & External Structured & Unstructured Data Warehouse Critical Information 9

10 Big Data Exploration helps to leverage ALL the data
TRADITIONAL APPROACH BIG DATA APPROACH Analyze all data Analyzed information Analyzed information All available information Analyze small subsets of data © 2013 IBM Corporation

11 Big Data is everywhere, but not integrated in a single view
Hadoop Sensor and machine data Analytics and collaboration ? Web Applications and ECM Social media Systems of record Internal Content External Content Mobile data Contact Center Data Scientist All large organizations face this challenge: information is stored in may different systems and silos, but is not easily accessible at “the point of impact,” to the people who need it most. The information that people need to do their day-to-day work and make important decisions ranges from external content such as social media, feeds from mobile devices, Twitter, etc., to enterprise applications such as CRM, data warehouses, ERP, ECM and more. Despite being surrounded by data, employees struggle to leverage the information they need at the point of impact. Regardless of role, we typically need information from multiple different sources to address their day-to-day challenges. customer service professionals have to open several applications on their desktop at once and struggle to find the information they need to help customers or to upsell or cross-sell. This distracts from their ability to engage customers and address their issues efficiently. Researchers may have difficulty finding out who else is working on a particular topic, or finding the results of other studies that have been done in the past. Marketing professionals have difficulty finding and unlocking customer data to gain insights and understand the market. The organization may be exposed to risk because there is personal information, s and other sensitive content stored where it shouldn’t be. And corporate security officers have difficulty “connecting the dots” because they can only see information in one repository at a time. R&D Marketing Security “I can’t find the right answers fast enough to support my customers.” “I am monitoring all angles – yet I can’t connect the dots.” “Innovation is falling short as I am unable to see the full research picture.” “I can’t unlock the value in my data to drive economic value to my business.” “I can’t get my arms around all of the data in our enterprise.” “I don’trust the data we’re using for important decisions” 11 11

12 Unlock the value of information when users need it most
Watson Explorer Data access & integration Index structured & unstructured data—in place Support existing security Federate to external sources Discovery & exploration Unified view of all information Information-centric applications All at big data scale Unified access and fusion across all sources We address these challenges by adding a layer of capabilities that deliver information from many different sources in a form that is useable at the point of impact. Data Explorer provides indexing and integration capabilities across all of your data sources—both structured and unstructured—in place. So you don’t need to move data to make it accessible. Supports the existing security model of each repository so users can’t see information that would not be accessible to them if they were directly logged into the target systems. For external systems such as premium web-based information sources, or systems you do not choose to index directly, you can establish federated access to query the target systems and integrate results at query time. You can leverage IBM’s IIG capabilities such as MDM, as well as systems such as Business Glossary for standard taxonomies. The resulting rich discovery and navigation capabilities provide easy access to your information with features such as dynamic categorization, rich end-user applications that deliver information in context to users based on their role and current activities. And it does all of this at the scale needed for the challenges of big data. The result, at the point of impact, Customer service agents can view information from multiple sources in a single view, enabling them to assist customers more efficiently. Researchers can quickly see what’s being worked on elsewhere in the enterprise, and leverage past projects and current expertise much more easily. Customer data is much more accessible and can be analyzed to expose new revenue opportunities. Risk is reduced because otherwise hidden information is exposed; compliance is improved with better access to information. Security is enhanced by enabling corporate security officers and investigators to view information across multiple sources. Clearly the ability to bring all of this information together seamlessly drives significant value in an organization. Create unified view of ALL information for real-time monitoring Improve customer service & reduce call times Increase productivity & leverage past work increasing speed to market Analyze customer data to unlock true customer value Identify areas of information risk & ensure data compliance 12 12

13 Business and IT Drivers for Big Data Exploration
1. You must invest a little time to understand the critical business imperatives Sample Business KPIs Average order value Profit margin Net Promoter Score Lifetime customer value Gross margin Customer acquisition rate/cost Average sales price Cross sell & up sell Category margin • Revenue attainment • Cost control • Customer loyalty • Productivity • Compliance • Competitive advantage • Employee engagement Understand the organization’s critical business imperatives and potential use cases 2. Understand Benefits of Big Data Exploration – Do you have a way to explore important data sources? Do you have a way to deliver big data & analytics to the employees who need it? Explore all data to determine what is relevant to big data initiatives Enterprise systems External data “New” data (sensor, etc.). Reduce cost of big data integration Create integrated views for new insights Reduce time-to-value Better use/re-use of info Deploy apps to deliver data & analytics Improve customer service Increase productivity Improve employee performance © 2013 IBM Corporation

14 Benefits of big data exploration are felt throughout the organization—some examples
Sales Less time looking for info; more time in front of customers 360 view of customer Faster response to new opportunities Better up-sell/cross-sell R&D Reduced time looking for info Better re-use of prior research Increased collaboration/expert identification Increased innovation & return on R&D investment Manufacturing Supply chain visibility Access to R&D data Improved collaboration HR Higher morale & engagement Lower churn/turnover Knowledge transfer from senior staff Reduced training/on-boarding time Big Data Exploration use case offers multiple value propositions depending on Where the client is in big data journey What business issues are top-of-mind Support Single point of access for all info Reduced average handle time Improved customer satisfaction Improved morale and retention Increased up-sell and referral Executive Decisions made with better information Reduced risk Multiple ways to critical business issues © 2013 IBM Corporation

15 Examples © 2013 IBM Corporation

16 Watson Explorer for Enterprise Reporting – 360 Degree View
For many years, this automotive industry leader led the way in understanding their customer loyalty and profitability using traditional reporting tools. Their challenge has been in analyzing unstructured data in context with their traditional BI tools and empowering ALL their business users to “see the whole picture.” Their requirements: Discover insights into unstructured text Scalable Platform Secure Rich connectivity The Challenge Watson Explorer Capabilities: Connectivity framework Powerful Text Analytics Security model Application Builder In 2 weeks, Watson Explorer connected to Netezza, OBIEE, Fileshares, SharePoint to: Aggregate Contextual Data Increase information access Increased Visibility into high value data This project is expected to net a cost savings of $7m in their call center operations alone within 2 years. The Solution “We never thought we would be able to see ALL of our data in one place, and it took two days”

17 Watson Explorer Customer Example – Leading Analyst Firm
Adapted relevance lead to greater user satisfaction, click through and up-sell Profile-based suggestions Reports, analysts, and other types of contents are searchable Rich navigation through faceting, clustering & related content Use Watson Explorer as an “application development platform” Integrate different content types

18 Watson Explorer Customer Example - Airbus
Improved customer satisfaction and lowered costs Custom web applications Problem Provide uniform information access platform to develop multiple customer centric applications for Support, Service and Self-service Information locked into multiple data sources with different security schemas Solution Provided connectivity to complex repositories such as Aqualogic, SAP R3 and KM, Siebel Extract and index all metadata Supported existing security policy Run-in parallel parsing agents Results Indexed 2PB of data Deployed in 1 month Multiple front-end applications leveraging common back-end infrastructure Single point access to all repositories Watson Explorer Supplier Information Service manuals Customer profiles Lessons learned Customer call details Sales pipeline 18

19 From challenges to opportunities
Leading Medical Equipment Supplier A leading medical device manufacturer delivers detailed knowledge about customers and products to their contact center agents to enable better engagement and asking “one more question” to increase cross-selling. This leading medical device manufacturer found itself needing to cut costs, improve customer service and increase revenue from existing customers. With a 360º view of each customer, and information quickly available that will resolve the customer’s issue, inbound customer calls can often quickly move beyond the immediate question being asked by the customer to engaging the customer on their next potential purchase. The contact center agent is equipped with right next action and maximize the value of that interaction at point of impact. Knowing everything about that client, combined with the agent’s assessment of their mood on that particular call is critical. If the client's account is in arrears, they might want to remind them of that rather than try to sell them something else. If a client has Product A but not Product B, they might want to explain how Prod B could help them get more value out of Prod A. Or maybe there is a new offering or a webcast you want them to know about. All of this is enabled by the 360º view.. Challenges Drive cost savings in the call center and improve customer satisfaction More efficient use/re-use of information Cope with layoffs forced by increased taxes and financial downturn Outcome Improved productivity of call center reps and other employees Increased services revenue by creating opportunity to ask “1 more question” Improved contact center efficiency, enabling support of larger revenue base without adding headcount Promoted self-service & knowledge management throughout organization Technology cost savings through retiring old systems or moving them to the background Business outcomes Increased revenue and decreased cost in the call center Increased customer satisfaction & employee engagement Created opportunities from each customer interaction - “one more question,” targeted to individual client situation Product Starting Point: Watson Explorer 19 19

20 Large Investment Bank Need Solution/Status Quote from the bank:
Reduce risk and improve compliance Too many silos to monitor across multiple LOBs—needed visibility to all from a single point Improve knowledge sharing and research Deliver 360º view of customers, products and assets Solution/Status Suite of IBM products provided solution that no other single vendor could match Watson Explorer deployed in: PoC in Consumer Client Banking Risk and compliance solution Asset management group PoC Call center knowledge management Big data initiative Quote from the bank: “We knew there had to be a better way than monitoring all those different applications one-by-one.” 20

21 Big Data Developers @ FREE 1000+ Members
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22 Thank you THANK YOU

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