Creating Competitive Advantage Through Data (IA Ventures)
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Creating Competitive Advantage Through Data Roger Ehrenberg Founder & Managing Partner IA Ventures
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Transcript of Creating Competitive Advantage Through Data (IA Ventures)
CreatingCompetitive AdvantageThrough Data
Roger EhrenbergFounder & Managing PartnerIA Ventures
Big Data,Why Now?
Data Is Pervasivehttp://www.flickr.com/photos/wallyg/3777954520/
http://www.flickr.com/photos/chanc/310847464/http://www.flickr.com/photos/ynse/542370154/http://www.flickr.com/photos/northeastindiana/2313044640/
Source: Mike Driscoll, CTO Metamarkets: The Three Sexy Skills of Data Scientists (& Data Driven Startups)
Growth Encouraged By Technology Trends
1B hosts
ARPAnet Node 1At UCLA
1980 – Apple: $14M per TB
2010 – Barracuda, $70 per TB
$5 per Mbps
$1200 per Mbps
today
todaytoday
today
1998
19691970
1960
# of
hos
ts$
per M
bps
$ pe
r GFL
OPS
$ pe
r TB
Network access
Bandwidth costCPU cost
Storage cost
2009 – AMD Radeon, $0.59
1961 – IBM 1620 , $1,100,000,000
… and Business Needs
Big Data,What Is It?
Billions of web clicks (1TB+)Distributed storageLarge
Millions of web pagesStored on diskMedium
Small Thousands of sales figures (10 GB)Stored in memory
Real-time
Big Data
Large
Real-time
Complex
✗
A Big Data CompanyUnlocks IntelligenceFrom Complex Data
Your
Dat
aO
ther
s D
ata
Data-driven ProductData Product
Sour
ce o
f Dat
a
Final Product
Data Only From Your Platform
Hybrid
Data Only From Others Platforms
Landscape of Big Data Companies
Sell Data Directly Sell Insight Sell Product
Your
Dat
aO
ther
s D
ata
Data-driven ProductData Product
Sour
ce o
f Dat
a
Final Product
Sell Data Directly Sell Insight Sell Product
Data Only From Your Platform
Hybrid
Data Only From Others Platforms
Landscape of Big Data Companies
Your
Dat
aO
ther
s D
ata
Data-driven ProductData Product
Sour
ce o
f Dat
a
Final Product
Sell Data Directly Sell Insight Sell Product
Data Only From Your Platform
Hybrid
Data Only From Others Platforms
Landscape of Big Data Companies
Your
Dat
aO
ther
s D
ata
Data-driven ProductData Product
Sour
ce o
f Dat
a
Final Product
Sell Data Directly Sell Insight Sell Product
Data Only From Your Platform
Hybrid
Data Only From Others Platforms
Landscape of Big Data Companies
Your
Dat
aO
ther
s D
ata
Data-driven ProductData Product
Sour
ce o
f Dat
a
Final Product
Sell Data Directly Sell Insight Sell Product
Data Only From Your Platform
Hybrid
Data Only From Others Platforms
Landscape of Big Data Companies
Your
Dat
aO
ther
s D
ata
Data-driven ProductData Product
Sour
ce o
f Dat
a
Final Product
Sell Data Directly Sell Insight Sell Product
Data Only From Your Platform
Hybrid
Data Only From Others Platforms
Landscape of Big Data Companies
Your
Dat
aO
ther
s D
ata
Data-driven ProductData Product
Sour
ce o
f Dat
a
Final Product
Sell Data Directly Sell Insight Sell Product
Data Only From Your Platform
Hybrid
Data Only From Others Platforms
Landscape of Big Data Companies
Companies focused on delivering increasing insight
BuildingBig Data Moats
http://www.flickr.com/photos/tps58/6158683716
Technical advantages create differentiation
Complex Data ArchitecturesProprietary Algorithms
Rich Analytics
but become commoditized
Complex Data ArchitecturesProprietary Algorithms
Rich Analytics
Technical advantages create differentiation
CreatingIntrinsicAdvantages
Data Exhibits Network Effects
100101001
Insight
11010010Insight
010001011
Insight
ContributoryDatabasePlatform
Data Economies of Scale
User
engage
ment
DataInsig
ht
Improve
ments
PRODUCT
Goal: from passive data
to active asset
People Are Key
Data-Centric DNA
http://www.billfrymire.com/blog/wp-content/uploads/2008/04/dna-strand-code.jpg
Hacking Statistics
Domain ExpertiseDrew Conway, The Data Science Venn Diagram
Hacking Statistics
Domain Expertise
Danger
Zone
MachineLearning
Research
DataScientist
Drew Conway, The Data Science Venn Diagram
Competitive AdvantageComes FromIntrinsic Barriers Built From Data&Brilliant Data-Centric People
Roger Ehrenberg
@infoarbitrage
