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Our Big Data Journey

           A Consultant’s Perspective
                April 26, 2012



5/1/2012                1               CrinLogic
5/1/2012   2   CrinLogic
A little Big Data story to start us out ;)




5/1/2012             3             CrinLogic
About me
David Douglas is a member of Hadoop-DC and co-founder of CrinLogic. He has
over 17 years of IT consulting experience with concentration in Business
Intelligence, Agile and Lean software development, and large program
implementations. He is a passionate believer in Big Data and the enormous
possibilities it offers.

CrinLogic is a Big Data consulting firm. Our passion for Big Data is surpassed
only by our curiosity and love of learning. We offer full service Big Data
consulting services and training. Visit us at www.CrinLogic.com. We are based in
DC, Chicago, Austin, and Sarajevo.

david@crinlogic.com
443.413.4038



 5/1/2012                                4                        CrinLogic
This talk is about…
Some things I’d like you to walk away with
1. A big picture perspective on this market
2. What customers are saying
3. Thoughts on developing a business case
4. Learnings



 What this talk is not about
 1. A technical discussion of Big Data

 5/1/2012                         5      CrinLogic
Data for this talk came from
1. Talking with 30 plus companies from all walks
   of life and all stages of maturity
2. Talking with colleagues in the Big Data space
   (hardware and software vendors)
3. Current customer engagements
4. Research

My biggest surprise is my awareness of how little I know. No one really
understands how to build a Big Data solution. We are all learning as we go.


 5/1/2012                               6                        CrinLogic
My Perspective on Big Data
   Enterprise Data Architecture
                                  Iterative

   Rising tide              Post adopter
                             syndrome

 Failures

       Business problem   Systems Thinking
            focused
5/1/2012             7             CrinLogic
Yes it is big and growing!




5/1/2012           8         CrinLogic
Except when compared to Bieber




 5/1/2012        9          CrinLogic
And me of course ;)




 Though I’ve been trending down…
 5/1/2012           10             CrinLogic
Need to expand my Network on LinkedIn




 5/1/2012          11         CrinLogic
So what do the customers
             really think?




5/1/2012            12        CrinLogic
They are confused




                         and rightfully so!

5/1/2012            13             CrinLogic
No generally accepted definition for “Big Data”

 “We don’t generate enough data for that”
 “Don’t you need at least 100TBs?”
 Or they simply think they are already using Big Data


 And lest we forget the 3Vs…
 Volume, Variety, Velocity
 (just a couple pointers on these)




 5/1/2012                      14           CrinLogic
So many products and choices promising so much

Where                            Database

                Open Source


 Hardware                        Analytical
                                 Tools
                Network


5/1/2012               15             CrinLogic
So much software offerings




5/1/2012         16          CrinLogic
No generally accepted definition for “Data
Scientist”
Are they a critical success factor for Big Data Solutions?
[True or False]

Were they a critical success factor to Business
Intelligence solutions?


OSEMI – Obtain, Scrub, Explore, Model, Interpret
www.dataists.com Hillary Mason & Chris Wiggins




 5/1/2012                                 17      CrinLogic
So tell me the why please?




5/1/2012          18         CrinLogic
McKinsey’s 5 Value Propositions
1. Make information transparent and usable more
   readily
2. Expose variability and enable performance
   improvement
3. Better customer segmentations
4. Advanced analytics for better decision making
5. New products




 5/1/2012                  19               CrinLogic
Not seeing the Big Analytics Piece
In fact, of the many companies employing Big Data we’ve
talked to or are working with are not doing big data
analytics




5/1/2012                   20               CrinLogic
Tactical versus Strategic
Tactical solves an immediate pain point
•Batch jobs taking too long
•Reaching limit of scalability on current infrastructure
•Budget was reduced recently but still have to deliver
•New project ‘just so happens’ to need this newer technology

Strategic implies                       Big Data as strategic
•Seeking competitive differentiation    direction is much
•Creating actual solutions with value   harder



 5/1/2012                         21                 CrinLogic
Big Data Strategic Business Case
Approach



5/1/2012          22          CrinLogic
Figure out the Business Case
Congratulations! The CEO of a large Financial Services firm has
asked you and your team to map out the company’s Big Data
Strategy so he can present to the board. He is known for being
thorough. Now get to work!!
Of the below choices, which is the best first step?
a.   Scour the Internet for Big Data    c.   Phone a friend (or CrinLogic)
     use case success stories for       d.   Build relationships, interview all
     Financial Services and then go          areas of the company, research
     talk to VPs in that area                market, and consolidate the
b.   Build a virtual cluster on your         results [but time-box it to a
     machine, open direct link to            couple weeks]
     Twitter hose and show CEO what
     the community is saying about
                                       Goal is to identify the most
     him real-time                     appropriate areas to start…high
                                       reward…high visibility
 5/1/2012                              23                       CrinLogic
This can be helpful…
                                                   Manage                                            Manage
                                                                                                                                      Manage
  Develop Business           Acquire              Customer               Service                   Delinquencies
                                                                                                                                     Finance &
      Strategy              Customers            Relationshi            Customers                  Recoveries &
                                                                                                                                     Accounting
                                                      p                                                Fraud

      Establish                               Develop Account
                         Develop Card                               Define Customer         Develop Collections                  Manage Accounting
      Strategic                              Management Offers
                       Acquisition Offers                             Experience                Strategies                         and Reporting
     Imperatives                                 & Policies

                                              Design Account
  Develop Marketing   Develop Acquisition                          Develop Servicing        Develop Recoveries
                                               Management                                                                         Manage Treasury
       Strategy           Campaigns                                   Strategies                Strategies
                                                Campaigns

   Develop Market                            Identify Customers/   Provide Customer           Develop Fraud                      Manage Planning &
                       Identify Prospects
     Innovations                                    Targets             Service                 Strategies                           Analysis

                                                                                                Collect on
                      Solicit Prospects &     Communicate                                       Delinquent                        Manage Line of
                                                                   Maintain Accounts
                       Promote Offers         Offers/Changes                                     Accounts                           Business


Sample                      Decision
                      Applications & Book
                           Accounts
                                                 Decision
                                             Response/Request
                                                                   Process Credit Card
                                                                      Transactions
                                                                                             Recover Charged
                                                                                               Off Accounts                      Manage Credit Risk


Large                 Fulfill on Decisions
                                                 Fulfill on                                 Detect and Recover
                                                                                                   Fraud
Financial                                     Offers/Changes



Institution                                                                             Manage                      Manage
                                                                                                                                      Manage
                                                                                                                                     Regulatory
                                                  Manage                                Human                     Information
                                                                                                                                      Affairs &
                                              Correspondence                           Resources                  Technology
                                                                                                                                     Compliance

                                               Manage Funds                                                       Manage IT       Manage External
                          Manage Rewards                                            Manage HR
                                               Disbursements                                                      Operations       Compliance



 5/1/2012                                                          24                                                          CrinLogic
Identify Big Data Impact Areas
                                                    Manage                                            Manage
                                                                                                                                      Manage
    Develop Business          Acquire              Customer               Service                   Delinquencies
                                                                                                                                     Finance &
        Strategy             Customers            Relationshi            Customers                  Recoveries &
                                                                                                                                     Accounting
                                                       p                                                Fraud

       Establish                               Develop Account
                          Develop Card                               Define Customer         Develop Collections                 Manage Accounting
       Strategic                              Management Offers
                        Acquisition Offers                             Experience                Strategies                        and Reporting
      Imperatives                                 & Policies

                                               Design Account
   Develop Marketing   Develop Acquisition                          Develop Servicing        Develop Recoveries
                                                Management                                                                        Manage Treasury
        Strategy           Campaigns                                   Strategies                Strategies
                                                 Campaigns

     Develop Market                           Identify Customers/   Provide Customer            Develop Fraud                    Manage Planning &
                        Identify Prospects
       Innovations                                   Targets             Service                  Strategies                         Analysis

                                                                                                 Collect on
                       Solicit Prospects &     Communicate                                       Delinquent                       Manage Line of
                                                                    Maintain Accounts
                        Promote Offers         Offers/Changes                                     Accounts                          Business

                             Decision                                                         Recover Charged
                                                  Decision          Process Credit Card
                       Applications & Book                                                      Off Accounts                     Manage Credit Risk
                                              Response/Request         Transactions
                            Accounts

                                                  Fulfill on                                 Detect and Recover
                       Fulfill on Decisions                                                         Fraud
                                               Offers/Changes


No Impact                                                                                                                             Manage
                                                                                         Manage                      Manage
                                                                                                                                     Regulatory
Low Impact                                         Manage                                Human                     Information
                                                                                                                                      Affairs &
                                               Correspondence                           Resources                  Technology
                                                                                                                                     Compliance
Moderate Impact

High Impact                                    Manage Funds                                                     Manage IT         Manage External
                          Manage Rewards                                            Manage HR
                                               Disbursements                                                    Operations         Compliance



 5/1/2012                                                           25                                                       CrinLogic
Manage


Naturally! Fraud & Recoveries                                                                                   Delinquencies
                                                                                                                Recoveries &
                                                                                                                    Fraud



    Develop               Develop                           Collect on                Recover
                                       Develop Fraud                                                          Detect and
   Collections           Recoveries                         Delinquent               Charged Off
                                         Strategies                                                          Recover Fraud
   Strategies            Strategies                          Accounts                 Accounts

• Analyze Collections                 • Research Fraud   • Determine Collections   • Charge Off Bad Debt    • Detect Fraud
  Strategies                            Strategies         Strategy
                                                                                   • Process                • Decision
• Maintain Collections                • Design/Test      • Enter Collections         Bankruptcies             Identity Fraud
  Systems                               Fraud
                                                         • Exit Collections        • Process Estates        • Decision
                                        Strategies
                                                           Strategy                                           Transaction
                                                                                   • Process Recoveries
                                      • Implement                                                             Fraud
                                                         • Fulfill Collections       Payments
                                        Fraud
                                                           Strategy                                         • Recover Fraud
                                        Strategies
                                                         • Monitor
                                                           Commitments
                                                         • Service Collections
                                                           Account




No Impact

Low Impact

Moderate Impact

High Impact



 5/1/2012                                                        26                                        CrinLogic
Be ready to answer these questions
 1.Do they currently have an analytics group?
 2.Do they make decisions based on data?
 3.Do they have data center management skills?
 4.Do they have stringent regulatory requirements?
 5.What are the current sources of data?
 6.What other sources of data are of interest?
 7.What are their KPIs?
 8.What is the maturity of their enterprise data architecture?
 9. What is the maturity of their business intelligence
   initiative(s)?
 10. Others?



5/1/2012                       27                    CrinLogic
Predictive Analytics Maturity Model
      Maturity Level                                                                          Supply Chain Simulator
                                                                                              PnP Simulator
                                              Full picture/context optimization               Mix Simulator
                                                                                                                                         Global Suite
 Analytics                                                                                                                               (Supply Chain/PnP/Mix/Media …)
                                                                                              Media Buy
 Holy Grail                                                                                                                              with integrated workflow (ERP …)
                                                                                              […]

             5
                                                                                                                                                             Actionable
Analytical                                                                                                                               Optimization        Implementable
Master                                                                                                                                                       Insights
( Institutionalized
Analytics)                                                                                                         Forecasting/Full
                                                           Threshold                                               Simulation
             4                                             based
                                                           Insights
                                                                                              Preemptive
                                                                                              Suggestions
                                                                                                                   Forward Looking DSS

                                                                                              Insights
Analytical
Practitioner                                         Automated               Automated
(In-house Insight                                                            Insights
s team)
                                                     Decks
                                                                                                  Pricing and Promotions
                                                                                                  Marketing Mix
             3                                                    Specialized/Targeted
                                                                  Analytics Products              Segmentation
                                                                                                                              Current Market is fragmented and
                                                                                                                              overlapping.
                                                                                                  Consumerization
Analytics                                                                                                                     Highly specialized.
                                                                                                  Assortment
Amateur                                                                                                                       Many players often produced excel-
                                                                                                  Churn/Attrition
(Some BI)                                                                   Oracle Suite                                      based tools
                                                                                                  Supply Chain
                                                                            Microsoft Suite       […]
                                      Full BI Suites With Some              SAS
             2                        Data Mining/Analytics                 IBM
                                      (Mostly Built-In)                     Spotfire
Localized
                                                                            […]
Analytics
(Some Sales
Drilldown)


             1              BI Tools/ Reporting                  MS Office Tools
                            Engine                               BI Reporting Tools
                            Really basic Analytics               Internal attempts
Analytics
Laggard



                      Data/Software                                                                                                         Decision Sciences

MAP 4.0 Product                  Features
                                          Model courtesy of Dhiraj Rajaram, CEO Mu Sigma and
                                                            Joseph de Castelnau, SVP Engineering Nielsen                                 CrinLogic
Opportunity Areas
   High                                                                           Highest benefits
                                                                                   are most likely
                                                                                   realized when
                                                                                   building these
                                                                                    products or
                                                                                      features
Business
Strategic                                                                          Size of bubble = Est.
Value                                                                              Effort




    Low


                            IT Strategic
            Low                                                         High
                            Value
                  Sources: “Measuring the Business Value of Information Technology”, Intel Press

   5/1/2012                                29                                       CrinLogic
Opportunity Areas
                                                                                   Size of bubble = Est.
   High                                                                            Effort




Business
Strategic
Alignment




                  So why do these get built?


    Low


                            IT Strategic
            Low             Alignment
                                                                          High
                    Sources: “Measuring the Business Value of Information Technology”, Intel Press

   5/1/2012                                  30                                       CrinLogic
The Things We Learned




5/1/2012             31            CrinLogic
Implementation Approach
•      Big Data does not lend itself to a Big Bang approach (actually does
       anything really?)
•      Proof of concepts make perfect sense to gain traction (top-down push is
       preferable to federated)
•      As with any effort with such potential, appropriate oversight by
       combination of IT/Business executive

Other considerations
•      Form a central team with key skills in building Big Data solutions. This consulting
       team should help train, mentor, and provide consulting expertise to new initiatives
       ….helps ensure consistency in approach.
•      There is a price of entry…each new participating area should bring resources to the
       table
•      Encourage building a community of analytic junkies and support them…community
       building … goal is information sharing…build a Big Data culture
•      Preference for consolidation




    5/1/2012                                  32                          CrinLogic
Components of Commodity Hardware


             # sockets, # cores, core
             memory, processor
             speed




             SATA, SSD, # Disks




5/1/2012                  33            CrinLogic
2009/2010 H/W Recommendations
•      4 x 1TB hard drives
•      2 x Quad-core CPUs, each 2.0-2.5GHz
•      16GB RAM
•      Gigabit Ethernet




    5/1/2012             34           CrinLogic
Commodity Hardware Today
           4-6 x 2TB SATA Drives
1U         1 or 2 Socket
           1 x 6 or 2 x 6 Cores         Approx $4K
           4GB Core Memory
           24+ GB RAM
           12 x 2TB SATA Drives
2U
           1 or 2 Socket
                                        Approx $6K    10GB
           1 x 6 or 2 x 6 Cores                       ethernet?
           4-8GB Core Memory                          ($7K)
           24 + GB RAM
           20 or 36 x 2TB SATA Drives
4U
           80 x 3TB (???)
           1 or 2 Socket                Approx $12K
           1 x 6 or 2 x 6 Cores
           4-8GB Core Memory
5/1/2012                        35               CrinLogic
Thoughts on Storage TCO
•      *Price != Cost and TCA is < 20% of TCO
•      $ per TB not an exact science




*David Merrill, Hitachi Data Systems Chief Economist, “Storage Economics: Four Principles for Reducing Total Cost of Ownership” July, 2011

    5/1/2012                                                           36                                            CrinLogic
‘New to Big Data’ learnings
                                            Iterative process…if you go in
A lot of this is not                        claiming you ‘know’ the use case you
intuitive…e.g. MapReduce,                   want to solve you are in for a surprise
Columnar based DBs and we live in an
RDBMS world

                                                    Open Source or
It takes a wealth of skills not
                                                    ‘Free’ not a big
resident in a single person…
understand batch MapReduce framework,               selling point for the
networks, grid computing, analytics, subject        larger companies
matter experts, and more




5/1/2012                               37                          CrinLogic
Some key learnings from early adopters
Don’t forget operations…in Be ready to embrace
2010 Facebook had between 400-500    emergent solutions and
operations professionals…on par with
entire engineering organization
                                     emergent architecture…
Source: http://framethink.wordpress.com/2011/01/17/how-    and emergent support base within
facebook-ships-code/                                       company


        Vendor support still
        needs to catch up…not the
        level of support companies are used to
        from established technology vendors




    5/1/2012                                          38                       CrinLogic
Thinking about workloads…latency

                     Solutions are generally a mix
                        of different paradigms

           Start here!

High Latency                                         Low Latency
(1 hour plus)                                        (real-time)




5/1/2012                          39                 CrinLogic
Other Random Learnings
•      For many companies, there will likely be a cultural
       change required to become good in Big Data
       analytics
•      Customers have major concerns about security and
       cloud
•      Don’t tell a risk officer that Hadoop’s replication
       framework mitigates need for disaster recovery 
•      How about you all…any Random Learnings you want
       to share?



    5/1/2012                   40                CrinLogic
Big Data Analytics Learnings
 “Analytics is the act of taking Big Data streams and human-sizing
 them for our small data brains.”
 Source: http://www.dataspora.com/2010/05/new-tools-for-big-data/#more-182



There are no turnkey solutions in analytics space
(efforts underway to make big data analytics accessible to the non-Data Scientist)




 5/1/2012                                    41                              CrinLogic
Final Thoughts




5/1/2012          42        CrinLogic
Musings
• Chief Data Officer || Chief Data Scientist
• Just because you can retain all this data does it
  mean you should?
• Big Data and virtualization




 5/1/2012                43               CrinLogic
Thinking about Starting a Big Data solution

1.   Big Data strategy assessment?
2.   Go small (success breeds success)
3.   Let RT and near RT come to you…don’t start there
4.   Ensure you have the right skills (or bring them in)
5.   If only R&D focus then upside may be
     limited…business needs to have a seat at the table

Consider hiring a professional Big Data consulting firm to
help in the transition!


 5/1/2012                     44                 CrinLogic
Some good resources for you
Blogs                                      Videos
Databases and Data Infrastructure          http://www.youtube.com/watch?v=SS27F-
http://www.dbms2.com                       hYWfU&feature=relmfu
http://dbmsmusings.blogspot.com.           http://www.youtube.com/watch?v=2FpO7w6X
                                           41I
http://databeta.wordpress.com.
                                           http://www.youtube.com/watch?v=OmlX3IHb
http://blogs.gartner.com/donald-feinberg
                                           0JE
http://itmarketstrategy.com/
                                           http://www.youtube.com/watch?src_vid=UaGI
Big Data Analytics                         NWPK068&annotation_id=annotation_65559
http://hunch.net/                          &v=XAuwAHWpzPc&feature=iv
http://ml.typepad.com/                     http://www.youtube.com/watch?v=eUcej07dG
www.dataists.com                           u4
http://www.dataspora.com/blog/             http://www.youtube.com/watch?v=viPRny0nq
http://blog.data-miners.com/               3o
http://www.visualcomplexity.com/vc/blog/


 5/1/2012                                  45                       CrinLogic
Q&A




5/1/2012    46   CrinLogic

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Our Big Data Journey: A Consultant's Perspective

  • 1. Our Big Data Journey A Consultant’s Perspective April 26, 2012 5/1/2012 1 CrinLogic
  • 2. 5/1/2012 2 CrinLogic
  • 3. A little Big Data story to start us out ;) 5/1/2012 3 CrinLogic
  • 4. About me David Douglas is a member of Hadoop-DC and co-founder of CrinLogic. He has over 17 years of IT consulting experience with concentration in Business Intelligence, Agile and Lean software development, and large program implementations. He is a passionate believer in Big Data and the enormous possibilities it offers. CrinLogic is a Big Data consulting firm. Our passion for Big Data is surpassed only by our curiosity and love of learning. We offer full service Big Data consulting services and training. Visit us at www.CrinLogic.com. We are based in DC, Chicago, Austin, and Sarajevo. david@crinlogic.com 443.413.4038 5/1/2012 4 CrinLogic
  • 5. This talk is about… Some things I’d like you to walk away with 1. A big picture perspective on this market 2. What customers are saying 3. Thoughts on developing a business case 4. Learnings What this talk is not about 1. A technical discussion of Big Data 5/1/2012 5 CrinLogic
  • 6. Data for this talk came from 1. Talking with 30 plus companies from all walks of life and all stages of maturity 2. Talking with colleagues in the Big Data space (hardware and software vendors) 3. Current customer engagements 4. Research My biggest surprise is my awareness of how little I know. No one really understands how to build a Big Data solution. We are all learning as we go. 5/1/2012 6 CrinLogic
  • 7. My Perspective on Big Data Enterprise Data Architecture Iterative Rising tide Post adopter syndrome Failures Business problem Systems Thinking focused 5/1/2012 7 CrinLogic
  • 8. Yes it is big and growing! 5/1/2012 8 CrinLogic
  • 9. Except when compared to Bieber 5/1/2012 9 CrinLogic
  • 10. And me of course ;) Though I’ve been trending down… 5/1/2012 10 CrinLogic
  • 11. Need to expand my Network on LinkedIn 5/1/2012 11 CrinLogic
  • 12. So what do the customers really think? 5/1/2012 12 CrinLogic
  • 13. They are confused and rightfully so! 5/1/2012 13 CrinLogic
  • 14. No generally accepted definition for “Big Data” “We don’t generate enough data for that” “Don’t you need at least 100TBs?” Or they simply think they are already using Big Data And lest we forget the 3Vs… Volume, Variety, Velocity (just a couple pointers on these) 5/1/2012 14 CrinLogic
  • 15. So many products and choices promising so much Where Database Open Source Hardware Analytical Tools Network 5/1/2012 15 CrinLogic
  • 16. So much software offerings 5/1/2012 16 CrinLogic
  • 17. No generally accepted definition for “Data Scientist” Are they a critical success factor for Big Data Solutions? [True or False] Were they a critical success factor to Business Intelligence solutions? OSEMI – Obtain, Scrub, Explore, Model, Interpret www.dataists.com Hillary Mason & Chris Wiggins 5/1/2012 17 CrinLogic
  • 18. So tell me the why please? 5/1/2012 18 CrinLogic
  • 19. McKinsey’s 5 Value Propositions 1. Make information transparent and usable more readily 2. Expose variability and enable performance improvement 3. Better customer segmentations 4. Advanced analytics for better decision making 5. New products 5/1/2012 19 CrinLogic
  • 20. Not seeing the Big Analytics Piece In fact, of the many companies employing Big Data we’ve talked to or are working with are not doing big data analytics 5/1/2012 20 CrinLogic
  • 21. Tactical versus Strategic Tactical solves an immediate pain point •Batch jobs taking too long •Reaching limit of scalability on current infrastructure •Budget was reduced recently but still have to deliver •New project ‘just so happens’ to need this newer technology Strategic implies Big Data as strategic •Seeking competitive differentiation direction is much •Creating actual solutions with value harder 5/1/2012 21 CrinLogic
  • 22. Big Data Strategic Business Case Approach 5/1/2012 22 CrinLogic
  • 23. Figure out the Business Case Congratulations! The CEO of a large Financial Services firm has asked you and your team to map out the company’s Big Data Strategy so he can present to the board. He is known for being thorough. Now get to work!! Of the below choices, which is the best first step? a. Scour the Internet for Big Data c. Phone a friend (or CrinLogic) use case success stories for d. Build relationships, interview all Financial Services and then go areas of the company, research talk to VPs in that area market, and consolidate the b. Build a virtual cluster on your results [but time-box it to a machine, open direct link to couple weeks] Twitter hose and show CEO what the community is saying about Goal is to identify the most him real-time appropriate areas to start…high reward…high visibility 5/1/2012 23 CrinLogic
  • 24. This can be helpful… Manage Manage Manage Develop Business Acquire Customer Service Delinquencies Finance & Strategy Customers Relationshi Customers Recoveries & Accounting p Fraud Establish Develop Account Develop Card Define Customer Develop Collections Manage Accounting Strategic Management Offers Acquisition Offers Experience Strategies and Reporting Imperatives & Policies Design Account Develop Marketing Develop Acquisition Develop Servicing Develop Recoveries Management Manage Treasury Strategy Campaigns Strategies Strategies Campaigns Develop Market Identify Customers/ Provide Customer Develop Fraud Manage Planning & Identify Prospects Innovations Targets Service Strategies Analysis Collect on Solicit Prospects & Communicate Delinquent Manage Line of Maintain Accounts Promote Offers Offers/Changes Accounts Business Sample Decision Applications & Book Accounts Decision Response/Request Process Credit Card Transactions Recover Charged Off Accounts Manage Credit Risk Large Fulfill on Decisions Fulfill on Detect and Recover Fraud Financial Offers/Changes Institution Manage Manage Manage Regulatory Manage Human Information Affairs & Correspondence Resources Technology Compliance Manage Funds Manage IT Manage External Manage Rewards Manage HR Disbursements Operations Compliance 5/1/2012 24 CrinLogic
  • 25. Identify Big Data Impact Areas Manage Manage Manage Develop Business Acquire Customer Service Delinquencies Finance & Strategy Customers Relationshi Customers Recoveries & Accounting p Fraud Establish Develop Account Develop Card Define Customer Develop Collections Manage Accounting Strategic Management Offers Acquisition Offers Experience Strategies and Reporting Imperatives & Policies Design Account Develop Marketing Develop Acquisition Develop Servicing Develop Recoveries Management Manage Treasury Strategy Campaigns Strategies Strategies Campaigns Develop Market Identify Customers/ Provide Customer Develop Fraud Manage Planning & Identify Prospects Innovations Targets Service Strategies Analysis Collect on Solicit Prospects & Communicate Delinquent Manage Line of Maintain Accounts Promote Offers Offers/Changes Accounts Business Decision Recover Charged Decision Process Credit Card Applications & Book Off Accounts Manage Credit Risk Response/Request Transactions Accounts Fulfill on Detect and Recover Fulfill on Decisions Fraud Offers/Changes No Impact Manage Manage Manage Regulatory Low Impact Manage Human Information Affairs & Correspondence Resources Technology Compliance Moderate Impact High Impact Manage Funds Manage IT Manage External Manage Rewards Manage HR Disbursements Operations Compliance 5/1/2012 25 CrinLogic
  • 26. Manage Naturally! Fraud & Recoveries Delinquencies Recoveries & Fraud Develop Develop Collect on Recover Develop Fraud Detect and Collections Recoveries Delinquent Charged Off Strategies Recover Fraud Strategies Strategies Accounts Accounts • Analyze Collections • Research Fraud • Determine Collections • Charge Off Bad Debt • Detect Fraud Strategies Strategies Strategy • Process • Decision • Maintain Collections • Design/Test • Enter Collections Bankruptcies Identity Fraud Systems Fraud • Exit Collections • Process Estates • Decision Strategies Strategy Transaction • Process Recoveries • Implement Fraud • Fulfill Collections Payments Fraud Strategy • Recover Fraud Strategies • Monitor Commitments • Service Collections Account No Impact Low Impact Moderate Impact High Impact 5/1/2012 26 CrinLogic
  • 27. Be ready to answer these questions 1.Do they currently have an analytics group? 2.Do they make decisions based on data? 3.Do they have data center management skills? 4.Do they have stringent regulatory requirements? 5.What are the current sources of data? 6.What other sources of data are of interest? 7.What are their KPIs? 8.What is the maturity of their enterprise data architecture? 9. What is the maturity of their business intelligence initiative(s)? 10. Others? 5/1/2012 27 CrinLogic
  • 28. Predictive Analytics Maturity Model Maturity Level Supply Chain Simulator PnP Simulator Full picture/context optimization Mix Simulator Global Suite Analytics (Supply Chain/PnP/Mix/Media …) Media Buy Holy Grail with integrated workflow (ERP …) […] 5 Actionable Analytical Optimization Implementable Master Insights ( Institutionalized Analytics) Forecasting/Full Threshold Simulation 4 based Insights Preemptive Suggestions Forward Looking DSS Insights Analytical Practitioner Automated Automated (In-house Insight Insights s team) Decks Pricing and Promotions Marketing Mix 3 Specialized/Targeted Analytics Products Segmentation Current Market is fragmented and overlapping. Consumerization Analytics Highly specialized. Assortment Amateur Many players often produced excel- Churn/Attrition (Some BI) Oracle Suite based tools Supply Chain Microsoft Suite […] Full BI Suites With Some SAS 2 Data Mining/Analytics IBM (Mostly Built-In) Spotfire Localized […] Analytics (Some Sales Drilldown) 1 BI Tools/ Reporting MS Office Tools Engine BI Reporting Tools Really basic Analytics Internal attempts Analytics Laggard Data/Software Decision Sciences MAP 4.0 Product Features Model courtesy of Dhiraj Rajaram, CEO Mu Sigma and Joseph de Castelnau, SVP Engineering Nielsen CrinLogic
  • 29. Opportunity Areas High Highest benefits are most likely realized when building these products or features Business Strategic Size of bubble = Est. Value Effort Low IT Strategic Low High Value Sources: “Measuring the Business Value of Information Technology”, Intel Press 5/1/2012 29 CrinLogic
  • 30. Opportunity Areas Size of bubble = Est. High Effort Business Strategic Alignment So why do these get built? Low IT Strategic Low Alignment High Sources: “Measuring the Business Value of Information Technology”, Intel Press 5/1/2012 30 CrinLogic
  • 31. The Things We Learned 5/1/2012 31 CrinLogic
  • 32. Implementation Approach • Big Data does not lend itself to a Big Bang approach (actually does anything really?) • Proof of concepts make perfect sense to gain traction (top-down push is preferable to federated) • As with any effort with such potential, appropriate oversight by combination of IT/Business executive Other considerations • Form a central team with key skills in building Big Data solutions. This consulting team should help train, mentor, and provide consulting expertise to new initiatives ….helps ensure consistency in approach. • There is a price of entry…each new participating area should bring resources to the table • Encourage building a community of analytic junkies and support them…community building … goal is information sharing…build a Big Data culture • Preference for consolidation 5/1/2012 32 CrinLogic
  • 33. Components of Commodity Hardware # sockets, # cores, core memory, processor speed SATA, SSD, # Disks 5/1/2012 33 CrinLogic
  • 34. 2009/2010 H/W Recommendations • 4 x 1TB hard drives • 2 x Quad-core CPUs, each 2.0-2.5GHz • 16GB RAM • Gigabit Ethernet 5/1/2012 34 CrinLogic
  • 35. Commodity Hardware Today 4-6 x 2TB SATA Drives 1U 1 or 2 Socket 1 x 6 or 2 x 6 Cores Approx $4K 4GB Core Memory 24+ GB RAM 12 x 2TB SATA Drives 2U 1 or 2 Socket Approx $6K 10GB 1 x 6 or 2 x 6 Cores ethernet? 4-8GB Core Memory ($7K) 24 + GB RAM 20 or 36 x 2TB SATA Drives 4U 80 x 3TB (???) 1 or 2 Socket Approx $12K 1 x 6 or 2 x 6 Cores 4-8GB Core Memory 5/1/2012 35 CrinLogic
  • 36. Thoughts on Storage TCO • *Price != Cost and TCA is < 20% of TCO • $ per TB not an exact science *David Merrill, Hitachi Data Systems Chief Economist, “Storage Economics: Four Principles for Reducing Total Cost of Ownership” July, 2011 5/1/2012 36 CrinLogic
  • 37. ‘New to Big Data’ learnings Iterative process…if you go in A lot of this is not claiming you ‘know’ the use case you intuitive…e.g. MapReduce, want to solve you are in for a surprise Columnar based DBs and we live in an RDBMS world Open Source or It takes a wealth of skills not ‘Free’ not a big resident in a single person… understand batch MapReduce framework, selling point for the networks, grid computing, analytics, subject larger companies matter experts, and more 5/1/2012 37 CrinLogic
  • 38. Some key learnings from early adopters Don’t forget operations…in Be ready to embrace 2010 Facebook had between 400-500 emergent solutions and operations professionals…on par with entire engineering organization emergent architecture… Source: http://framethink.wordpress.com/2011/01/17/how- and emergent support base within facebook-ships-code/ company Vendor support still needs to catch up…not the level of support companies are used to from established technology vendors 5/1/2012 38 CrinLogic
  • 39. Thinking about workloads…latency Solutions are generally a mix of different paradigms Start here! High Latency Low Latency (1 hour plus) (real-time) 5/1/2012 39 CrinLogic
  • 40. Other Random Learnings • For many companies, there will likely be a cultural change required to become good in Big Data analytics • Customers have major concerns about security and cloud • Don’t tell a risk officer that Hadoop’s replication framework mitigates need for disaster recovery  • How about you all…any Random Learnings you want to share? 5/1/2012 40 CrinLogic
  • 41. Big Data Analytics Learnings “Analytics is the act of taking Big Data streams and human-sizing them for our small data brains.” Source: http://www.dataspora.com/2010/05/new-tools-for-big-data/#more-182 There are no turnkey solutions in analytics space (efforts underway to make big data analytics accessible to the non-Data Scientist) 5/1/2012 41 CrinLogic
  • 42. Final Thoughts 5/1/2012 42 CrinLogic
  • 43. Musings • Chief Data Officer || Chief Data Scientist • Just because you can retain all this data does it mean you should? • Big Data and virtualization 5/1/2012 43 CrinLogic
  • 44. Thinking about Starting a Big Data solution 1. Big Data strategy assessment? 2. Go small (success breeds success) 3. Let RT and near RT come to you…don’t start there 4. Ensure you have the right skills (or bring them in) 5. If only R&D focus then upside may be limited…business needs to have a seat at the table Consider hiring a professional Big Data consulting firm to help in the transition! 5/1/2012 44 CrinLogic
  • 45. Some good resources for you Blogs Videos Databases and Data Infrastructure http://www.youtube.com/watch?v=SS27F- http://www.dbms2.com hYWfU&feature=relmfu http://dbmsmusings.blogspot.com. http://www.youtube.com/watch?v=2FpO7w6X 41I http://databeta.wordpress.com. http://www.youtube.com/watch?v=OmlX3IHb http://blogs.gartner.com/donald-feinberg 0JE http://itmarketstrategy.com/ http://www.youtube.com/watch?src_vid=UaGI Big Data Analytics NWPK068&annotation_id=annotation_65559 http://hunch.net/ &v=XAuwAHWpzPc&feature=iv http://ml.typepad.com/ http://www.youtube.com/watch?v=eUcej07dG www.dataists.com u4 http://www.dataspora.com/blog/ http://www.youtube.com/watch?v=viPRny0nq http://blog.data-miners.com/ 3o http://www.visualcomplexity.com/vc/blog/ 5/1/2012 45 CrinLogic
  • 46. Q&A 5/1/2012 46 CrinLogic