Presentation from the Markedsføringsdagen 2013 conference, june 12 2013 in Copenhagen. Contains an overview of trends, uses, challenges for the CMO and innovation aspects of big data.

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2. The purpose of this session is to discuss trends shaping the
journey towards the smarter planet – driven by big data
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3. © 2011 IBM
IBM Global Business Services
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INSTRUMENTED
Billions
of
RFID-­‐tags
embedded
into
our
world
and
across
ecosystems
Ze-abyte
Internet
Petaflop
Super
computers
+2
billion
Internet-­‐subscribers
+20
billion
Connected
devices
INTERCONNECTED
INTELLIGENT
Billions
of
Smartphones,
and
GPS-­‐devices

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5. 55 5
GlobalDataVolumeinExabytes
Multiple sources: IDC,Cisco
100
90
80
70
60
50
40
30
20
10
AggregateUncertainty%
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2005 2010 2015
Enterprise Data
Data quality solutions exist for
enterprise data like customer,
product, and address data, but this
is only a fraction of the total
enterprise data.
By 2015 the number of networked devices will
be double the entire global population. All
sensor data has uncertainty.
The total number of social media accounts
exceeds the entire global population. This
data is highly uncertain in both its
expression and content.

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fitbit”Let's make fitness a fun, achievable part of everyday life”
http://www.fitbit.com

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Neurowear
Necomimi
hCp://en.necomimi.com/

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10. 2009
800,000 petabytes
as much Data and Content
Over Coming Decade
44x
Of world’s data
is unstructured
80%
Explosion of Data Means a Lot of Information …
But we are lacking Insight
2020
35 zettabytes
Business leaders frequently
make decisions based on
information they don’t trust, or
don’t have
1in3
83%
of CIOs cited “Business
intelligence and analytics” as
part of their visionary plans
to enhance competitiveness
Business leaders say they don’t
have access to the information
they need to do their jobs
1in2
of CEOs need to do a better job
capturing and understanding
information rapidly in order to
make swift business decisions
60%
90%of the world’s data was
created in the last two
years

11. Big data, defined
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12. Variety
Volume Velocity
Veracity
of Tweets
created daily
12 terabytes
trade events
per second
5million
Of video feeds from
surveillance cameras
100’s
“We have for the first time an
economy based on a key
resource [Information] that is
not only renewable, but self-
generating.
Running out of it is not a
problem, but drowning in it
is.”
– John Naisbitt
Decision
makers trust
their information
Only 1 in 3
We’ve Moved into a New Era of Computing

13. What can you do with big data?
Innovate new Products Speed
and Scale
Know Everything About your Customers
• Social Media - Product/brand Sentiment
analysis
• Brand strategy
• Market analysis
• RFID tracking & analysis
• Transaction analysis to create insight-
based product/service offerings
• Social media customer sentiment analysis
• Promotion optimization
• Segmentation
• Customer profitability
• Click-stream analysis
• CDR processing
• Multi-channel interaction analysis
• Loyalty program analytics
• Churn prediction
Run Zero Latency Operations
• Smart Grid/meter management
• Distribution load forecasting
• Sales reporting
• Inventory & merchandising optimization
• Options trading
• ICU patient monitoring
• Disease surveillance
• Transportation network optimization
• Store performance
• Environmental analysis
• Experimental research
Instant Awareness of Risk
and Fraud
• Multimodal surveillance
• Cyber security
• Fraud modeling & detection
• Risk modeling & management
• Regulatory reporting
Exploit Instrumented Assets
• Network analytics
• Asset management and predictive issue resolution
• Website analytics
• IT log analysis

14. PURPOSEFUL
Behavior pattern analysis delivering insights for
effective marketing decisions
EXPLORATORY REAL-TIME &
ACTIONABLE
PREDICTIVE
Customer
Buying
Behavior
Explore patterns that
to uncover customer
acquisition and
retention behavior
patterns across all data
sources
Score customer behavior analysis and create
models around newly discovered buying
patterns. Accurately predict likely next best
action for the customer.
Actionable insight supporting
applications & processes –campaign
execution, CRM, ecommerce, call
center, etc. Next best action offer can
be modeled and predicted in real-time
based on customer interaction and
transactions.
Product Offers,
Enhancement &
Development
Identify, analyze and
visualize feedback
about your product
Score product sentiment and create models that
would predict cross-sell and up-sell opportunities
and insight into product enhancement and
development of future portfolio
Ad
effectiveness
Actionable insight for localized
product promotions that can be
executed for maximum impact.
Insight is fed into product
enhancement and portfolio decisions
Collect and analyze
social data to assess
awareness, reach
and reaction to on
and offline ads
Create predictive models to test and fine tune
ad campaign to maximize effectiveness
Real-time ad analysis drives
fast reaction to optimize
campaign strategy and
maximize ROI

15. © 2013 IBM Corporation
IBM Global Business Services
15
Vestas optimizes
capital investments
based on 2.5
Petabytes of
information.
• Model the weather to optimize
placement of turbines,
maximizing power generation
and longevity.
• Reduce time required to identify
placement of turbine from weeks
to hours.
• Incorporate 2.5 PB of structured
and semi-structured information
flows. Data volume expected to
grow to 6 PB.
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16. © 2013 IBM Corporation
IBM Global Business Services
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Dublin City Centre Increases
Bus Transportation
Performance
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• Public transportation awareness solution
improves on-time performance and provides
real-time bus arrival info to riders
• Continuously analyzes bus location data to
infer traffic conditions and predict arrivals
• Collects, processes, and visualizes location
data of all bus vehicles
• Automatically generates transportation
routes and stop locations
Results:
• Monitoring 600 buses across 150 routes
• Analyzing 50 bus locations per second
• Anticipated to Increase bus ridership

17. © 2013 IBM Corporation
IBM Global Business Services
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Barnes & Noble helps
suppliers track sales and
inventory in real time
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Need
• Publishers absorb the losses on returns when
they print too many books, and have stock-
outs when they print too few
• To provide publishers with the ability to get
real-time insight into sales and view inventory
trends over time
Benefits
• Decreased time to run queries from weeks to
seconds and enabled an 80% reduction in
time to run compared to its previous system
• Reduced inventory levels and inventory
carrying costs

18. © 2013 IBM Corporation
IBM Global Business Services A Major Government Medical
& Social Benefits Agency
Identifies Improper Payments
Need
• To prevent and detect criminal activity, waste,
abuse and mismanagement of payments
Benefits
• When weeks of analysis failed to uncover
improper payments, the Big Data analytics
engine did it in 4 hours – and led to a $140 million
payoff
• 360O view of member benefits history and
entitlement resulted in savings from identification
of improper payments worth over $140M.
• Contributed to a 35-fold improvement in savings
and cost-avoidance
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Fraud, Waste and Error

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Watson:
From
Jeopardy
winner
to
healthcare
provider

20. The challenge for the chief marketing officer

21. © 2013 IBM Corporation
IBM Global Business Services
21
9
13
12
2
4
3
1
7
Changing
Business
ImperaIves
The
Vast
Majority
of
CMOs
are
Underprepared
50
60
70
40
20 40 600
8
6
Financial constraints
Decreasing brand loyalty
Growth market opportunities
ROI accountability
Customer collaboration and influence
Privacy considerations
Global outsourcing
Regulatory considerations
Corporate transparency
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7
8
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Data explosion1
Social media2
Growth of channel and device choices3
Shifting consumer demographics4
Mean
Marketing Priority Matrix
Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=1733; Q8 How prepared are you to
manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7)
Factors impacting
marketing
Percent of CMOs selecting
as “Top five factors”
Underpreparedness
Percent of CMOs reporting
underprepared
5
10
11

22. © 2011 IBM Corporation22
Most CMOs are still focusing on understanding markets versus
understanding individuals to shape their strategy
IBM Institute for Business Value
Source: Q15 What sources of information influence your marketing strategy decisions? n=1733
Sources used to influence strategy decisions
Percent of CMOs selecting all sources that apply
50%Market research
Corporate strategy
Competitive benchmarking
Customer analytics
Marketing team analysis
Customer service feedback
Financial metrics
Campaign analysis
Brand performance analysis
Sales/sell-through numbers
Test panels/focus groups
R&D insights
Consumer-generated reviews
Third-party reviews & rankings
Retail and shopper analysis
Online communications
Professional journals
Blogs
Supply-chain performance
82%
81%
80%
69%
68%
65%
61%
54%
52%
41%
74%
48%
40%
42%
68%
68%
37%
25%
26% Key sources to
understand individuals

23. © 2011 IBM Corporation23
CMOs are overwhelmingly underprepared for the data explosion and
recognize need to invest in and integrate technology and analytics
IBM Institute for Business Value
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673
Underpreparedness
Percent of CMOs selecting as “Top 5 Factors”
Data explosion 71%
Social media 68%
Channel & device choices 65%
Shifting demographics 63%
Financial constraints 59%
Decreasing brand loyalty 57%
Growth markets 56%
ROI accountability 56%
Customer collaboration 56%
Privacy considerations 55%
Global outsourcing 54%
Regulatory considerations 50%
Corporate transparency 47%
Need for change to deal with data explosion
Percent of CMOs indicating high/significant need
Invest in
technology
Understand
analytics
Collaborate
with peers
Validate
ROI
Address
privacy
Integrate
insights
Rethink
skill mix
73%
69%
65%
64%
52%
49%
28%

24. © 2011 IBM Corporation24
What’s inhibiting them? Building the business case, IT-marketing
alignment/integration issues and marketing technology skills
IBM Institute for Business Value
Lack of ROI certainty
Cost
Tool implementation issues
Lack of IT integration with organization
Lack of marketing and IT alignment
Lack of IT skills
Lack of skills of (potential) users
Lack of technological ownership in marketing
Ease of use
Reliability
Barriers to using technology in marketing
Top 5 selected by CMOs
Source: Q23 What are the top 5 barriers to using technology? n=1733
61%
72%
47%
43%
45%
25%
46%
34%
37%
18%
Business case
IT related
Marketing related
IT and marketing related
Usability

25. The innovation aspect

26. 1770
1875
1920
1830
2010
1970
InnovaHon
1st
Wave
2nd
Wave
3rd
Wave
4th
Wave
5th
Wave
6th
Wave
Smarter
Products
§ Instrumented,
interconnected,
and
intelligent
§ Building
blocks
for
a
smarter
planet
§ Sustainability
The
Industrial
RevoluIon
Age
of
Steam
and
Railways
Age
of
Steel,
Electricity
and
Heavy
Engineering
Age
of
Oil,
Cars
and
Mass
ProducIon
Age
of
IT
&
Telecom
Source:
“Next
GeneraIon
Green:
Tomorrow’s
InnovaIon
Green
Business
Leaders”,
Business
Week,
Feb
4,
2008
and
Nicolai
KontraIev:
“The
Major
Economic
Cycles”
(1925)
We
are
ushering
in
a
new
wave
of
innovaHon

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Sixth Wave Thinking
1. Waste = Opportunity
2. Sell the Service, not the Product
3. Digital and Natural Converge
4. Bits are Global, Atoms are Local
5. If in Doubt, Look to Nature
6th
Wave
James Bradfield Moody & Bianca Nogrady: The Sixth Wave – How to succeed in a ressource-limted world

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Price

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Price
Organic
Production
method
Biodynamic
Conventional
Pesticides
Production
environment
Chemicals
Herpacides
Child labor
Sustainability
GMO
Environmental
footprint
Climate
change
Geosphere
Biosphere
Sociosphere Health
impact
Health
consequences
Positive
Negative
Profiled
Packaging
History/Origin
Transport
Track
Sustainability
Network

30. Thank
you
Kim
Escherich
IBM
Global
Business
Services
escherich@dk.ibm.com
+45
2880
4733
internetohhings.dk
escherich.biz
@kescherich
/escherich
/in/escherich
kescherich@gmail.com
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