Dr. Richard Benjamins Group Director BI & Big Data Telefonica Big Data – From Hype to Reality...
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Transcript of Dr. Richard Benjamins Group Director BI & Big Data Telefonica Big Data – From Hype to Reality...
Dr. Richard BenjaminsGroup Director BI & Big DataTelefonica
Big Data – From Hype to Reality
Telefonica
© 2014
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Overview
• What & Why of Big Data
• Opportunities of Big Data
• Privacy challenge
• Example application: Smart Steps
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What’s the big deal with Big Data?
McKinsey
Big Data
McKinsey
Big Deals
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Big Data is a hype
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But what is Big Data?
Dave Feinleib, Forbes blog
1. Big Data is Only About Massive Data Volume2. Big Data Means Hadoop3. Big Data Means Unstructured Data4. Big Data is for Social Media Feeds and Sentiment
Analysis5. NoSQL means No SQL
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Where does all the hype come from?
Google started it,
Yahoo open sourced it,
Facebook and others used
it,
but
McKinsey’s report took it to
Fortune500 Board
meetings…
Today, huge marketing budgets are being thrown at those two words,
driven by new business… no wonder all the noise!
2004: Google publishes Map Reduce paper
(link: here)
2006: Yahoo’s Doug Cutting open sources Hadoop out of his older search engine project Nutch.
(Link: here)
2011: McKinsey Global Institute
publishes report on Big Data’s market potential for business, reaching out of the tech. world
(link: here)
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Where is Big Data coming from?
Type of Big Data
OTT/Telco Cost of data collection
By product/ seeking
Batch/real-time
Differential?
Social media OTT Low Active Both No
Web logs Both Low Passive Both No
Network data (telco)
Telco High Passive Both Yes
M2M (sensor) data
Both High Active Both Might
Open data OTT Low Both Batch No
Transact. data Both Medium Passive Both No
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PI EconomyExamples of external useInternal use
Several business opportunities with (big) data
Different “business” models with different maturities and different risks
Leverage data to understand and
improve business (x/up sell, churn)
and products
Data = improved business
Recognize that digital data is
delicate (privacy) Turn that into an
opportunity
Data = risk = business
Insights that help improve
businesses and governments
Data = business
Leverage data for targeting users
with relevant ads and higher CTR and conversion
Data = better advertising
M2MSmart cities
Improve services
Advertising Access to insights
Become a gatekeeper of personal data
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But Big Data is also good for society and environment
H1N1 virus pandemicTelefonica used mobile data to measure the spread of a global epidemic (“swine flu”) in Mexico DF
To understand more about human mobility and the spread of epidemics through society, Telefónica Digital’s research team used anonymised and aggregated mobile phone call records to measure numbers of people visiting locations such as airports or universities.
The study found successful Mexican Government’s decision to shut down key infrastructures, reducing virus propagation by 10%.
2012 Earthquake in MexicoDimensioning emergency services in advance for an optimal response to natural disaster situations
After the magnitude 7.4 earthquake in Mexico DF, Telefonica researchers captured modile data records that once anonymized and aggregated allowed building visualizations of the density of calls in the differents part of the city, immediately depicting the areas most affected by the earthquake.
With Big Data tools like this, it would be possible for authorities to better anticipate contingency plans, dimensioning emergency services and placing them in those points where there is evidence that will be mostly needed in case of catastrophic events.
(Click images for more)(Click images for more)
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Privacy remains an issue
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There is increasing awareness of what customer data companies store
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The industry is learning by doing
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Are you aware where your data is going?
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To the US …
Europe’s leading analytics companies call upon European Institutions to replace Google Analytics
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....made better
Big decisions…..
1st product – “Smart Steps” for Retailers:
• Decide on store location
• Understanding store performance vs footfall
• Plan local marketing campaigns and track their impact
• Optimise resource planning – staffing/open hours
Smart steps, for retailers
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Retailers have questions...
I know the activity that goes on inside my stores. But what % of my target market is walking past outside? What is the opportunity that I am
missing?
I am a large supermarket owner and one of my
competitors has opened up down the road. I need to identify our battleground. Where is my competitor strongest and weakest?
Where should I locate my new store?
Where should I target loyalty or acquisition marketing
campaigns? Where are my customers coming from?
I need to manage my resources. When are my peak times? Could I be
operationally more effective if I changed my opening times?
Strategic Decisions
Performance Management
Retailers worry about …
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Case study with 4th largest UK food retailer
“Unlike some of our competitors, we don’t have a store card to tell us who our customers are, and how they shop our stores, which means we’re at a disadvantage in targeted marketing. Over-rewarding one loyal customer disadvantages us in investing in the next”
400 stores nation wide
Crawford Davidson: Customer Director at Morrisons Supermarkets:
“This increase in customers was achieved without any reduction in customer spend, and with an improved new customer activation rate. Overall there was a 150% increase in the amount of new or reactivated customers who visited Morrisons stores. This is a fantastic result.”
“Smart Steps identified many more suitable target post code sectors, enabling us to send promotional coupons to double the number of households”
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39%39
2G Network
3G Network
900 MHz
1800 MHz
2100 MHz
2013 4G Network
NETWORK DATA
The o2 mobile network has hundreds of cells to measure the trends in footfall across the country
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PRIVACY
ANONYMISATIONBefore Telefonica Dynamic Insights (TDI) receives the data, all personal information is removed. The data TDI receives are cryptographically hashed values
AGGREGATIONThe hashed values are aggregated into groups, i.e. gender & age band. At this stage there are only crowds of o2 customers
EXTRAPOLATIONWe take our sample and extrapolate to population totals, using mathematical algorithms. This gives us the grouped values Smart Steps uses.
A 3 step process
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39%39
Easier to useFurther
protecting anonymity
Extrapolated to represent local
population
200 x 200 GRID
Footfall is rendered into 200 x 200 metre grid squares across the country
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Example question of a marketer
COUNT
What are the profiles of the people in the area of my store?
How does the footfall in our area change throughout the
day?
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Differential aspect
Export data and combine with other
sources
Today’s data tomorrow. Fastest data delivery in
the market
Insights 24/7/365. Data every hour, day, week
and month. You choose.
Intuitive web tool covering the whole of
the UK to draw insights from
Eliminates retailers’ blind spots. The profile of the footfall in their
area
Vast sample base based on observed crowd
behaviour
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And what about the Semantic Web and Data?
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Semantic web and data trends
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Semantic Web and Gartner’s Hype Cycles
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2006 – 5 to 10 years for reaching mainstream
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2009 – more than 10 years to go
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2012 – more than 10 years to go