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Page 1 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Webinar: Leveraging Big Data to Enhance
Customer Experience in Telecommunications
We Do Hadoop
Sanjay Kumar
General Manager, Telecom
Hortonworks
Alexander Gray, PhD
CTO
Skytree
Page 2 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
The New Landscape of the Telecom Industry
Service
Providers
Social Media &
Mobile:
Explosion of rich
customer data through
Social Media and Mobile
Apps for customer
sentiment & Interests
Customer
Expectation:
With the cultural impact of
web and mobile,
customers are expecting
greater levels of service
and responsiveness
Competitive
Differentiation:
As other service
providers deliver similar
levels of telecom service
and coverage, other
areas of service levels
are needed
New Digital
Ecosystem:
Greater value of Data
on digital ecosystem for
Customers and
Partners driving Data
Monetization
Internet Of Things:
Explosion of data from IOT
with benefits aligned with
insight not correlated to
data volumes
Page 3 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Service Provider Focus
Service
Providers
Customer Experience Management
-  Enhance End-to-end Experience of Customer
-  Become Trusted Partner to Customer
-  Awareness of customer’s needs when and where needed
New Business & Consumer Services
-  New Digital & Infrastructure Services
-  Data Monetization
-  M2M, IoT, Analytics-as-a service
Network Optimization
-  Move to Software Driven Networks
-  Leverage Network Data Assets
-  Self optimizing and provisioning
Page 4 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Hortonworks in Telecom
Hortonworks. We do Hadoop.
Page 5 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Hadoop for the Enterprise:
Implement a Modern Data Architecture with HDP
Customer Momentum
•  330+ customers (as of year-end 2014)
Hortonworks Data Platform
•  Completely open multi-tenant platform for any app & any
data.
•  A centralized architecture of consistent enterprise services
for resource management, security, operations, and
governance.
Partner for Customer Success
•  Open source community leadership focus on enterprise
needs
•  Unrivaled world class support
•  Founded in 2011
•  Original 24 architects, developers,
operators of Hadoop from Yahoo!
•  600+ Employees
•  1000+ Ecosystem Partners
Page 6 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
HDP delivers a completely open data platform
Hortonworks Data Platform 2.2
Hortonworks Data Platform provides Hadoop for the Enterprise: a centralized architecture
of core enterprise services, for any application and any data.
Completely Open
•  HDP incorporates every element
required of an enterprise data
platform: data storage, data
access, governance, security,
operations
•  All components are developed in
open source and then rigorously
tested, certified, and delivered as
an integrated open source platform
that’s easy to consume and use by
the enterprise and ecosystem.
YARN: Data Operating System
(Cluster Resource Management)
1 ° ° ° ° ° ° °
° ° ° ° ° ° ° °
ApachePig
° °
° °
° ° °
° ° °
HDFS
(Hadoop Distributed File System)
GOVERNANCE BATCH, INTERACTIVE & REAL-TIME DATA ACCESS
Apache Falcon
ApacheHive
Cascading
ApacheHBase
ApacheAccumulo
ApacheSolr
ApacheSpark
ApacheStorm
Apache Sqoop
Apache Flume
Apache Kafka
SECURITY
Apache Ranger
Apache Knox
Apache Falcon
OPERATIONS
Apache Ambari
Apache
Zookeeper
Apache Oozie
Page 7 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Traditional systems under pressure
Challenges
•  Constrains data to app
•  Can’t manage new data
•  Costly to Scale
Business Value
Clickstream
Geolocation
Web Data
Internet of Things
Docs, emails
Server logs
2012
2.8 Zettabytes
2020
40 Zettabytes
LAGGARDS
INDUSTRY
LEADERS
1
2 New Data
ERP CRM SCM
New
Traditional
Page 8 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Tomorrow: A Data-Centric Model for Your Business
DATA-CENTRIC
Limitations:
•  Multiple copies of data
•  Difficult cross-system integration
•  Upper-limit on data volumes
before harming performance
Advantages:
•  One version of the data
•  No need for cross-app integration
•  System scales linearly
APP-CENTRIC
App1 App 2 App 3 App 4 App 5 App 6
App Centric will break down
with x10, x100,x1000…
Need to shift to Data Centric
Page 9 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Social
Media
Sentiment
The View from the Customer
Call Center
Interaction
Quality
of
Service
Lifestyle &
Interests
Clickstream
Geolocation
Web Data
Internet of Things
Docs, emails
Server logs
Streaming: Network
Probes, Click Stream,
Sensor, Location
Batch: Call
Detail Records
On-Line: Customer
Sentiment
Unstructured: Txt,
Pictures, Video,
Voice2Text
Page 10 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
DELIVERY
The Destination: Data-Centric Operations
Clickstream
Geolocation
Web Data
Internet of Things
Docs, emails
Server logs
Streaming: Network
Probes, Click Stream,
Sensor, Location
Batch: Call
Detail Records
On-Line: Customer
Sentiment
Unstructured: Txt,
Pictures, Video,
Voice2Text
Personal Data Analysis &
Customer Insight Services
To Customer & Partners
Hadoop Distribution with Yarn: Allows central source of data across all mediums of ingestion and interaction
Existing & Legacy Systems can Contribute and Participate: May extend the life of existing and legacy systems from enriched data
New Applications interact with Data Lake, not each other: Next Generation Apps build around data and can deliver to customers and partners
Page 11 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
IT Operations
Business Functions
-  CEM
-  Marketing
-  Security
-  Network
`
Customer
Go-to-market
Communication Service Provider Adoption Journey
EDW	
  Data	
  
Offload	
  
HDP	
  	
  
Landing	
  Zone	
  
HDP	
  	
  
DataLake	
   Real-­‐7me	
  Streaming	
  
HDP	
  DataLake	
  
Network	
  
Op7miza7on	
  
Dynamic	
  
Network	
  
Provisioning	
  
Top	
  Customer	
  
Driven	
  
Provisioning	
  
Threat	
  
Detec7on	
  
Real-­‐Time	
  
Threat	
  
Analy7cs	
  
Dynamic	
  
PaHern	
  
Detec7on	
  
Customer	
  	
  
Sen7ment	
  
Dynamic	
  
Customer	
  
Profile	
  
360	
  Customer	
  	
  
Household	
  View	
  
Loca7on	
  Based	
  CEM	
  &	
  
Real-­‐7me	
  customer	
  
response	
  
Context	
  Aware	
  
Loca7on	
  Based	
  
Promo7ons	
  
Context	
  Aware	
  
Target	
  
Marke7ng	
  
Next	
  Best	
  	
  
Ac7on	
  
Cyber	
  Security	
  
Analy0cs-­‐as-­‐a-­‐service	
  
Personal	
  
intelligence	
  
Hadoop-­‐as-­‐a-­‐service	
  
Industry	
  	
  
Brokering	
  
M2M/IoT	
  
Page 12 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Customer Experience Management & Marketing Journey
HDP	
  	
  
Landing	
  Zone	
  
HDP	
  	
  
DataLake	
  
Real-­‐7me	
  Streaming	
  
HDP	
  DataLake	
  
Dynamic	
  
Customer	
  
Profile	
  
360	
  Customer	
  
Awareness	
  
&	
  Household	
  
View	
  
Loca0on	
  Based	
  
CEM	
  &	
  Real-­‐0me	
  
customer	
  response	
  Next	
  Best	
  	
  
Ac0on	
  
Customer	
  	
  
Sen0ment	
  
Customer	
  Aware	
  
Loca0on	
  Based	
  
Promo0ons	
  
Mul0-­‐
channel	
  
Customer	
  	
  
Scoring	
  
Models	
  
Page 13 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Data Centric Customer Experience Management
Functional
Area
Core Functional
Components
Description Problem Addressed Business Benefits
Customer
Experience
Manageme
nt
Central Data
Lake for 360
Customer
View
Visibility of customer household
view across services and
accounts through ingestion of
account service and event data
into a central Data Lake with
views into granular customer’s
service experience
-  Silo view of customer in
different systems
-  Social media unstructured
data does not fit into existing
EDW
-  Complete view into
customer experience
across all services
-  Reduction in Customer
Churn
-  Increased Loyalty
Dynamic
Customer
Profile
Summarized instant view of
customer across service
identifiers and customer key
performance metrics and ‘net
promoter scores’. Used for
immediate view of customer
profile
-  How to react to customer
contact & events based on
their experience
-  What is the customer’s
experience level
-  Next Best Action based on
customer’s experience with
service provider (Retail /
Call Center)
-  Greater targeted marketing/
advertising
Real-time
Event
Streaming for
Next Best
Action
Real-time streaming of network
event data to identify customer
location
-  How to determine next best
action when and where they
are most appropriate to a
customer
-  Marketing and CEM analysis
is after the fact; need for
real-time
-  Context sensitive
promotions 10x customer
acceptance
-  Improves customer
experience levels and
customer retention
Page 14 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
HDFS	
  Raw	
  Event	
  
Storage	
  
CEM: Real-time Streaming, 360 Customer Data Lake and
Dynamic Customer Profile Solution
1	
   °	
   °	
  
°	
   °	
   °	
  
°	
   °	
  
HBase	
  Processed	
  
Event	
  Storage	
  
°	
   °	
   °	
  
°	
   °	
   °	
  
°	
   °	
   N	
  
°	
  
Mul0tenant	
  Processing:	
  YARN	
  
(Hadoop	
  Opera7ng	
  System)	
  
Metadata	
  Management	
  HCatalog	
  
Hive	
  /	
  Tez	
  	
  
(Interac7ve	
  
Query)	
  
ISV	
  
(YARN	
  Apps,	
  i.e.	
  
HPA	
  /	
  LASR)	
  
Slider	
  
(Always-­‐on	
  
Services)	
  
HBase	
  /Accumulo	
  
Real-­‐0me	
  Serving	
  
°	
   °	
   °	
  
°	
   °	
   °	
  
°	
   °	
   N	
  
Streaming	
  Event	
  Processor:	
  Storm	
  
Machine	
  
Learning	
  
(Spark)	
  
Indexing	
  
(Lucene)	
  
Rules	
  Processing	
  
(Drools)	
  
In-­‐Line	
  Memory	
  
(Spark)	
  
Message	
  	
  
Queues	
  
Log	
  	
  
Files	
  
Web	
  	
  
Services	
  
JMS
Enrich	
  Events	
  with	
  
Customer	
  info	
  	
  
And	
  Score	
  Matrix	
  
Update	
  Data	
  
Lake	
  
Real-time Intelligent Action
-  Marketing Promotions
-  Next Best Action
-  Dynamic Network Provisioning
Network	
  
Probe	
  
Events	
  
ODBC /
JDBC
Rest API
Native API
Messaging	
  Platrom:	
  Ka]a	
  
Update Customer
Profile and Scores
External	
  Customer	
  Data	
  
References	
  
Page 15 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
HDFS	
  Raw	
  Event	
  
Storage	
  
CEM: Real-time Streaming, 360 Customer Data Lake and
Dynamic Customer Profile Solution
1	
   °	
   °	
  
°	
   °	
   °	
  
°	
   °	
  
HBase	
  Processed	
  
Event	
  Storage	
  
°	
   °	
   °	
  
°	
   °	
   °	
  
°	
   °	
   N	
  
°	
  
Mul0tenant	
  Processing:	
  YARN	
  
(Hadoop	
  Opera7ng	
  System)	
  
Metadata	
  Management	
  HCatalog	
  
Hive	
  /	
  Tez	
  	
  
(Interac7ve	
  
Query)	
  
ISV	
  
(YARN	
  Apps,	
  i.e.	
  
HPA	
  /	
  LASR)	
  
Slider	
  
(Always-­‐on	
  
Services)	
  
HBase	
  Processed	
  
Event	
  Storage	
  
°	
   °	
   °	
  
°	
   °	
   °	
  
°	
   °	
   N	
  
Streaming	
  Event	
  Processor:	
  Storm	
  
Machine	
  
Learning	
  
(Spark)	
  
Indexing	
  
(Lucene)	
  
Rules	
  Processing	
  
(Drools)	
  
In-­‐Line	
  Memory	
  
(Spark)	
  
Message	
  	
  
Queues	
  
Log	
  	
  
Files	
  
Web	
  	
  
Services	
  
JMS
Enrich	
  Events	
  with	
  
Customer	
  info	
  	
  
And	
  Score	
  Matrix	
  
Update	
  Data	
  
Lake	
  
Real-time Intelligent Action
-  Marketing Promotions
-  Next Best Action
-  Dynamic Network Provisioning
Network	
  
Probe	
  
Events	
  
ODBC /
JDBC
Rest API
Native API
Messaging	
  Platrom:	
  Ka]a	
  
Update Customer
Profile and Scores
External	
  Customer	
  Data	
  
References	
  
ML to determine NPS &
other Scores/Metrics
ML Real
time event
score
Page 16 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Data Centric Customer Experience Management
Functional
Area
Example Use
Case
Hortonworks - Hadoop SkyTree – Machine Learning
Customer
Experience
Management
360 Degree
Customer &
Household View
- Computational
Net Promotor
Score & other
Customers Metrics
Collection data across sources into
Hadoop Data Lake for 360 degree view of
Customer and Household: Yarn enabled
Hadoop Architecture – Single set of data
across the entire cluster with multiple
access methods
Ingestion: Multiple sources of unstructured
and structured data include, CDR,
clickstream, network probe & log records,
sensor, IVR Voice-2-Text, social media,
OSS/BSS, etc
Process & Store: Yarn enabled Architecture
– Single set of data across the entire cluster
with multiple access methods. Distributed
storage in HDFS and many processed
workloads managed by Yarn
Query & Alerts: Schema on read allows
multiple methods for queries and alerts
through different applications or through
HDP tools (Hive, Hbase, Storm, etc)
Customer
Sentiment and
Churn Detection
Page 17 © Hortonworks Inc. 2011 – 2014. All Rights Reserved
Thank You!
Sanjay Kumar
General Manager, Telecom
Hortonworks
CONFIDENTIAL	
  
Bigger Data. Better Insights.™
CONFIDENTIAL	
  
Machine  Learning  and  Telecom
Alexander  Gray,  PhD
CTO,  Skytree
CONFIDENTIAL	
  
Machine  Learning  on  Big  Data  
Next  step  in  Big  Data  Journey  –  AnalyEcs  and  Machine  Learning  to  
Make  BeFer  Decisions:  
-­‐  Churn  –  From  PredicEon  to  PrevenEon
-­‐  Net  Promoter  Score  
Requires  a  360  Degree  View  of  Customers
CONFIDENTIAL	
  
External DataInternal Data
Big Data
Environment
DataData
Data warehouse
E-Mail
CRM
Single Customer View
with improved decision making
capabilities based on Customer data
Big Data
Enabling innovative products
& services, customer
satisfaction
Analytics
Churn propensity and prevention,
Product Sentiment, Recommendations
and more.
Customer  360o  View
CONFIDENTIAL	
  
TARGET	
   CONVERT	
   RETAIN	
  
  
Advanced  MarkeEng  AnalyEcs
• Lead	
  Scoring	
  
• Segmenta7on	
  
• Ad	
  Op7miza7on	
  
• Ad	
  Targe7ng	
  
• Campaign	
  Op7miza7on	
  
• Direct	
  Marke7ng	
  
• Algorithmic	
  Pricing	
  
• Recommenda7on/
Personaliza7on	
  
• Promo/Coupon	
  Planning	
  
• Cross/Upsell	
  
• Clickstream	
  
• Product/Service	
  Op7miza7on	
  
• Market	
  Basket	
  Analysis	
  
• Churn	
  Predic7on	
  
• Spend	
  Behavior	
  Analysis	
  
• Social	
  Media	
  Analysis	
  
• Engagement/Cul7va7on	
  
Op7miza7on	
  
• Customer	
  Life7me	
  Valua7on	
  
• Loyalty/Referral	
  Op7miza7on	
  
Customer  Lifecycle  OpEmizaEon
CONFIDENTIAL	
  
UElizing  data:  The  tradiEonal  approach


TradiEonally,  human  domain  experts  dig  into  the  data  via
– VisualizaEon  tools
– Basic  data  analysis
– Querying  a  database  to  seek  paFerns
– “Thinking  hard”  about  the  underlying  processes
And  extract  insights,  plots,  and  decision  rules  that  uElize  the  paFerns  they  find
“Tradi7onal	
  business	
  intelligence”	
  
CONFIDENTIAL	
  
UElizing  data:  The  tradiEonal  approach


Human  experts  are  very  good  at  asking  certain  kinds  of  quesEons,  but  they  are  
limited  in  the  ways  they  can  process  data
This  is  the  age  of  Big  Data:  lots  of  nontrivial  paFerns,  subtle,  nonlinear  relaEons  
that  are  not  visible  to  tradiEonal  analyEcs  and  visualizaEon  tools
Missed  paFerns  è  Missed  accuracy  è  Missed  opportuniEes!
CONFIDENTIAL	
  
UElizing  data:  Machine  Learning
Machine  Learning  is  the  modern  science  of  finding  subtle,  nonlinear  
paFerns  in  data,  that  can  be  used  to:
– PREDICT  outcomes  and  guide  acEons,  e.g.:
•  Provide  targeted  recommendaEons  to  customers
•  Signal  the  need  to  service  before  equipment  failure

– DISCOVER  insights  to  inform  decisions,  e.g.:
•  Which  variables  among  a  set  of  thousands  have  the  most  weight  in  
determining  an  important  outcome?

	
  “Advanced	
  analy7cs”	
  
CONFIDENTIAL	
  
UElizing  data:  Machine  Learning
Machine  Learning  is  the  modern  science  of  finding  subtle,  nonlinear  
paFerns  in  data,  that  can  be  used  to:
– PREDICT  outcomes  and  guide  acEons,  e.g.:
•  Provide  targeted  recommendaEons  to  customers
•  Signal  the  need  to  service  before  equipment  failure

– DISCOVER  insights  to  inform  decisions,  e.g.:
•  Which  variables  among  a  set  of  thousands  have  the  most  weight  in  
determining  an  important  outcome?

	
  “Advanced	
  analy7cs”	
  
Machine	
  Learning	
  empowers	
  human	
  experts	
  with	
  
addi7onal	
  insights	
  that	
  were	
  not	
  available	
  before	
  
	
  
•  It	
  is	
  not	
  Human	
  vs.	
  Machine,	
  but	
  Human	
  and	
  
Machine	
  together,	
  best	
  of	
  both	
  worlds	
  
CONFIDENTIAL	
  
Net  Promoter  Score  (tradiEonal  approach)
Net  Promoter  Score  (NPS)  is  defined  as
%  Promoters  -­‐  %  Detractors
where  Promoter  =  9-­‐10,  Detractor  =  0-­‐6  on  a  scale  of  0-­‐10  in  answer  to  the  
quesEon  "How  likely  is  it  that  you  would  recommend  our  company/product/
service  to  a  friend  or  colleague?”
Thus,  NPS  ranges  from  -­‐100  to  100.
How  good  a  score  is  depends  on  what  your  compeEtors’  scores  are
CONFIDENTIAL	
  
Using  ML  to  improve  Net  Promoter  score
Skytree can improve your
Net Promoter Score"
Given  a  set  of  exisEng  customer  NPSs,  
Skytree  can  tell  you  which  variables  
(gathered  from  other  data  in  the  
organizaEon)  are  significant  in  
producing  the  NPS  score
Skytree  can  tell  you  WHY,  thus  
informing  acEons  to  improve  the  NPS  
score  and  hence  customer  loyalty
Instead  of  using  NPS,  Skytree  could  predict  
customer  loyalty  directly,  without  the  
approximaEons  required  by  NPS
Whereas  NPS  puts  all  customers  in  just  3  
categories  (favorable,  neural,  not  favorable),  
Skytree  enables  targeEng  of  each  customer  
individually,  giving  more  accurate  and  
focused  personalized  markeEng
Skytree can improve customer
loyalty directly"
CONFIDENTIAL	
  
Data  ML  can  use
28	
  




Customer	
  Demographic	
  Data	
  
	
  -­‐	
  Primary	
  household	
  member’s	
  age	
  
	
  -­‐	
  Gender	
  and	
  marital	
  status	
  
	
  -­‐	
  Number	
  of	
  adults	
  
	
  -­‐	
  Primary	
  household	
  member’s	
  occupa7on	
  
	
  -­‐	
  Household	
  es7mated	
  income	
  and	
  wealth	
  ranking	
  
	
  -­‐	
  Number	
  of	
  children	
  and	
  children’s	
  age	
  
	
  -­‐	
  Number	
  of	
  vehicles	
  and	
  vehicle	
  value	
  
	
  -­‐	
  Credit	
  card	
  
	
  -­‐	
  Frequent	
  traveler	
  
	
  -­‐	
  Responder	
  to	
  mail	
  orders	
  
	
  -­‐	
  Dwelling	
  and	
  length	
  of	
  residence	
  
Customer	
  Internal	
  Data:	
  Informa7on	
  
	
  -­‐	
  Market	
  channel	
  
	
  -­‐	
  Plan	
  type	
  
	
  -­‐	
  Bill	
  agency	
  
	
  -­‐	
  Customer	
  segmenta7on	
  code	
  
	
  -­‐	
  Ownership	
  of	
  the	
  company’s	
  other	
  products	
  
	
  -­‐	
  Dispute	
  
	
  -­‐	
  Late	
  fee	
  charge	
  
	
  -­‐	
  Discount	
  
	
  -­‐	
  Promo7on/save	
  promo7on	
  
	
  -­‐	
  Addi7onal	
  lines	
  
	
  -­‐	
  Toll	
  free	
  services	
  
	
  -­‐	
  Rewards	
  redemp7on	
  
	
  -­‐	
  Billing	
  dispute	
  
Customer	
  Internal	
  Data:	
  Usage	
  
	
  -­‐	
  Weekly	
  average	
  call	
  counts	
  
	
  -­‐	
  Percentage	
  change	
  of	
  minutes	
  
	
  -­‐	
  Share	
  of	
  domes7c/interna7onal	
  revenue	
  
	
  
Customer	
  Contact	
  Records	
  
	
  -­‐	
  Customer	
  calls	
  to	
  service	
  centers	
  
	
  -­‐	
  Company’s	
  mail	
  contacts	
  to	
  customers	
  
	
  -­‐	
  Customer	
  contact	
  category:	
  customer	
  general	
  
inquiry,	
  customer	
  requests	
  to	
  change	
  service,	
  
customer	
  inquiry	
  about	
  cancel	
  
Cancel	
  Reason	
  Codes	
  
	
  -­‐	
  Unacceptable	
  call	
  quality	
  
	
  -­‐	
  More	
  favorable	
  compe7tor’s	
  pricing	
  plan	
  
	
  -­‐	
  Misinforma7on	
  given	
  by	
  sales	
  
	
  -­‐	
  Customer	
  expecta7on	
  not	
  met	
  
	
  -­‐	
  Billing	
  problem,	
  
	
  -­‐	
  Moving	
  
	
  -­‐	
  Change	
  in	
  business	
  
A	
  typical	
  Telco	
  set	
  of	
  variables	
  might	
  include:	
  
CONFIDENTIAL	
  
PredicEng  Customer  Churn
Cost	
  of	
  churn:	
  lost	
  revenue	
  +	
  marke7ng	
  
costs	
  to	
  replace	
  depar7ng	
  customers	
  
Goal:	
  predict	
  customers	
  at	
  high	
  risk	
  of	
  
churning	
  while	
  there	
  is	
  s0ll	
  0me	
  to	
  do	
  
something	
  about	
  it.	
  
	
  
Model	
  inputs	
  /	
  features:	
  
•  Customer	
  micro-­‐segments	
  
•  Customer	
  behavior	
  
•  Customer	
  characteris7cs	
  
•  Customer-­‐company	
  interac7on	
  
•  Micro-­‐segment	
  migra7on	
  
•  Note:	
  much	
  of	
  this	
  requires	
  fusing	
  
disparate	
  unstructured	
  data	
  sources	
  
Machine	
  Learning	
  can	
  help:	
  
•  Predict	
  customers	
  at	
  high	
  risk	
  of	
  churn	
  
months	
  in	
  advance	
  of	
  actual	
  or	
  passive	
  churn	
  
•  Customer	
  micro-­‐segmenta0on	
  –	
  
iden7fica7on	
  of	
  customer	
  segments	
  through	
  
unsupervised	
  learning.	
  
Model	
  outputs	
  /	
  interpretability:	
  
•  Iden7ty	
  of	
  high-­‐risk	
  churners:	
  scoring	
  churn-­‐
risk	
  of	
  each	
  customer	
  
•  Rela7ve	
  importance	
  of	
  ML	
  features:	
  	
  
•  where	
  are	
  customers	
  experiencing	
  issues	
  
with	
  products	
  or	
  services?	
  	
  
•  Iden7fica7on	
  of	
  poten7al	
  improvements	
  
to	
  products	
  or	
  services	
  with	
  highest	
  
impact	
  on	
  revenues.	
  	
  
CONFIDENTIAL	
  
PrevenEng  Customer  Churn:  PredicEng  Impact  of  MarkeEng  AcEons
Maximize	
  revenue	
  by	
  iden7fying	
  
marke7ng	
  ac7ons	
  with	
  highest	
  probability	
  
of	
  posi7ve	
  outcome	
  
•  Tailor	
  marke7ng	
  ac7on	
  to	
  specific	
  high-­‐
risk	
  customers	
  
•  Minimize	
  offers	
  to	
  happy	
  customers.	
  
Poten7al	
  Model	
  inputs:	
  
•  Previous	
  customer	
  offers	
  and	
  the	
  
outcome	
  of	
  those	
  offers	
  
•  Customer	
  micro-­‐segments	
  and	
  
migra7on	
  over	
  7me	
  of	
  customers	
  
through/between	
  micro-­‐segments	
  
•  Customer-­‐specific	
  features,	
  including	
  
company-­‐customer	
  interac7ons	
  
Machine	
  Learning	
  Tasks:	
  	
  
•  Rank	
  and	
  score	
  poten7al	
  marke7ng	
  ac7ons	
  on	
  a	
  
per-­‐customer	
  basis	
  
•  Iden7fy	
  micro-­‐segments	
  as	
  basis	
  for	
  targe7ng	
  
marke7ng	
  ac7ons	
  
•  Predict	
  customer	
  life7me	
  value	
  
Examples	
  of	
  Model	
  Outputs	
  /	
  Interpretability:	
  
•  List	
  of	
  scored	
  marke7ng	
  op7ons,	
  specific	
  to	
  each	
  
customer	
  
•  Iden7fica7on	
  of	
  marke7ng	
  ac7ons	
  having	
  
greatest	
  reten7on	
  impact.	
  
•  Reducing	
  marke7ng	
  expense	
  to	
  retain	
  happy	
  
customers.	
  	
  
•  Es7ma7on	
  of	
  impact	
  on	
  customer	
  life7me	
  value	
  
of	
  possible	
  marke7ng	
  ac7ons.	
  
CONFIDENTIAL	
  
Other  ML  OpportuniEes  in  Telecom
OperaEonal:
•  Prevent  SDN  aFacks  and  related  fraud
•  Predict  most  VULNERABLE  POINTS  in  networks
•  Predict  device/  component  FAILURE
•  Detect  ANOMALOUS  behavior,  trigger  alerts
•  AutomaEc  PROVISIONING
CONFIDENTIAL	
  
Typical  Data  Science  Workflow:  Disparate  Tools,  Manual  Processes
Data  Prep:
Transform  and  fuse
data  sets  using  various
tools
Method  SelecEon:  
Manually  pick  and  try  mulEple  

Test:
ConEnually  verify  accuracy
Deployment:
Export  model  for  producEon
Real-­‐Eme  Scoring
Results
New	
  Data`	
  Parameter  SelecEon:
Iterate  on  different  
parameters  for  best  results
Pull  holdout  
data  for  test
Feature  ExtracEon:
Use  subset  of  data  due
to  performance  issues
CONFIDENTIAL	
  
•  Parallelize  without  sacrificing  accuracy
Built  to  Scale  From  the  Ground  Up  for  Big  Data
•  Massive  Hadoop  scaling  with  TrueScaleTM
•  Runs  directly  on  Hadoop  
nodes
•  Minimize  internode  traffic
•  Net  result:  near  linear  scalability
•  Algorithms  deeply  opEmized  	
  
•  In  memory  execuEon
 P
 A
 R
 A
 L
 L
 L
E
 Z
 E
I
CPU
 CPU
 CPU
 CPU
          
            In  Memory
        ExecuEon	
  
Skytree	
  Fast	
  Internode	
  Communica7on	
  
Hadoop  
Data  
Node
Hadoop  
Data  
Node
Hadoop  
Data  
Node
Hadoop  
Data  
Node
Hadoop  
Data  
Node
Hadoop  
Data  
Node
Hadoop  
Data  
Node
Hadoop  
Data  
Node
Hadoop  
Data  
Node
Skytree
 Skytree
 Skytree
 Skytree
 Skytree
 Skytree
 Skytree
 Skytree
 Skytree
            In  Memory
      ExecuEon	
  
CONFIDENTIAL	
  
Skytree  Streamlines  and  Automates  the  Data  ScienEst  Workflow
BeFer  PredicEon/
Results
Data  Prep:  
Broad  ML  
transformaEons
speed  data
extracEon/cleansing
New  Data
Single  click  AutoModel™:  
Automated  method  and  
parameter  selecEon  quickly  
derives  &  verifies  best  models
Feature  ExtracEon:
Use  all  data  you  need
for  beFer  results

Unified	
  Skytree	
  Environment	
  
Single  Step  Train-­‐Tune-­‐Test
Deployment:
Run  on  Skytree  with  streaming  
data  or  export  model  for  
producEon
CONFIDENTIAL	
  
Dataset	
  Size	
  
(Rows)  
Accuracy	
  
(Norm.  Gini)
100,000	
   87.8%	
  
200,000	
   90.1%	
  
400,000	
   91.3%	
  
800,000	
   92.6%	
  
1,600,000	
   93.4%	
  
3,200,000	
   94.4%	
  	
  
•  Source  Dataset:  Pascal  Large  Scale  
Learning  Challenge  DNA  dataset
•  4M-­‐row  dataset  was  held  out  for  
tesEng.
•  6  training  datasets  from  100K  
through  3.2M  rows,  arranged  into  
200  columns,  were  used.
•  Tuned  StochasEc  GBT,  trees  limited  
to  5000
•  No  featurizaEon  applied.



100,000	
   200,000	
   400,000	
   800,000	
   1,600,000	
   3,200,000	
  
86.00%	
  
88.00%	
  
90.00%	
  
92.00%	
  
94.00%	
  
96.00%	
  
Accuracy	
  
(Normalized	
  Gini)	
  
Dataset	
  Size	
  (Rows)	
  
Accuracy	
  as	
  a	
  Func0on	
  of	
  Data	
  
Set	
  Size	
  
Scalability  Drives  BeFer  Accuracy
CONFIDENTIAL	
  
Taming  the  Complexity  of  ML  via  AutomaEon
•  Reduce  data  scienEsts'  Eme  by  90  –  95%
•  Reduce  60  hours  of  data  science  experiment  Eme  
into  4  hours
•  Allowing  data  scienEsts’  to  do  more  strategic  tasks
•  Reduce  total  model  experiment  Eme  by    
25  –  75%
•  Compress  a  3  month  final  model  build  into  1  month
•  Deploy  models  faster
•  Reduce  compute  Eme  by  up  to  30%
•  Reduce  compute  Eme  from  35  days  to  30  days
•  Save  compute  cost  and  resource
•  Get  equivalent  or  beFer  model  results
0	
   20	
   40	
   60	
   80	
  
With	
  AutoModel	
  
Grid	
  Search	
  
Time	
  to	
  Build	
  Final	
  Model	
  using	
  Skytree	
  
Automa7on	
  vs.	
  manually	
  by	
  skilled	
  data	
  
scien7st	
  (in	
  hours)	
  
0	
   5	
   10	
   15	
  
With	
  AutoModel	
  
Grid	
  Search	
  
Total	
  Time	
  Elapsed	
  to	
  Complete	
  Experimenta7on	
  
using	
  Skytree	
  Automa7on	
  vs.	
  manually	
  by	
  skilled	
  
data	
  scien7st	
  (in	
  weeks)	
  
CONFIDENTIAL	
  
Explaining  the  models  to  extract  insights
CONFIDENTIAL	
  
Data  Centric  Customer  Experience  Management    
Func0onal	
  
Area	
  
Example	
  Use	
  Case	
   Hortonworks	
  -­‐	
  Hadoop	
   SkyTree	
  –	
  Machine	
  Learning	
  
Customer	
  
Experience	
  
Management	
  
	
  
360	
  Degree	
  Customer	
  
&	
  Household	
  View	
  
-­‐	
  Computa7onal	
  Net	
  
Promoter	
  Score	
  &	
  
other	
  Customers	
  
Metrics	
  
Collec7on	
  data	
  across	
  sources	
  into	
  Hadoop	
  
Data	
  Lake	
  for	
  360	
  degree	
  view	
  of	
  Customer	
  
and	
  Household:	
  Yarn	
  enabled	
  Hadoop	
  
Architecture	
  –	
  Single	
  set	
  of	
  data	
  cross	
  the	
  
en7re	
  cluster	
  with	
  mul7ple	
  access	
  methods	
  
	
  
Inges7on:	
  Mul7ple	
  sources	
  of	
  unstructured	
  
and	
  structured	
  data	
  include,	
  CDR,	
  
clickstream,	
  network	
  probe	
  &	
  log	
  records,	
  
sensor,	
  IVR	
  Voice-­‐2-­‐Text,	
  social	
  media,	
  OSS/
BSS,	
  etc	
  	
  
	
  
Process	
  &	
  Store:	
  Yarn	
  enabled	
  Architecture	
  –	
  
Single	
  set	
  of	
  data	
  across	
  the	
  en7re	
  cluster	
  
with	
  mul7ple	
  access	
  methods.	
  	
  Distributed	
  
storage	
  in	
  HDFS	
  and	
  many	
  processed	
  
workloads	
  managed	
  by	
  Yarn	
  
	
  
Query	
  &	
  Alerts:	
  Schema	
  on	
  read	
  allows	
  
mul7ple	
  methods	
  for	
  queries	
  and	
  alerts	
  
through	
  different	
  applica7ons	
  or	
  through	
  
HDP	
  tools	
  (Hive,	
  Hbase,	
  Storm,	
  etc)	
  
•  Understand	
  which	
  variables	
  are	
  significant	
  in	
  
producing	
  the	
  NPS	
  score	
  
•  Understand	
  the	
  WHY	
  for	
  an	
  NPS	
  score,	
  thus	
  informing	
  
ac7ons	
  to	
  improve	
  it	
  and	
  hence	
  customer	
  loyalty	
  
•  Finally,	
  the	
  poten7al	
  to	
  predict	
  customer	
  loyalty	
  
directly,	
  without	
  the	
  approxima7ons	
  required	
  by	
  NPS	
  
•  Skytree	
  enables	
  targe7ng	
  of	
  each	
  customer	
  
individually,	
  giving	
  more	
  accurate	
  and	
  
focused	
  personalized	
  marke7ng	
  
Customer	
  Sen7ment	
  
and	
  Churn	
  Detec7on	
  
•  Tailor	
  marke7ng	
  ac7on	
  to	
  specific	
  high-­‐risk	
  
customers	
  
•  Minimize	
  offers	
  to	
  happy	
  customers.	
  
•  Rank	
  and	
  score	
  poten7al	
  marke7ng	
  ac7ons	
  on	
  a	
  per-­‐
customer	
  basis	
  
•  Iden7fy	
  micro-­‐segments	
  as	
  basis	
  for	
  targe7ng	
  
marke7ng	
  ac7ons	
  
•  Predict	
  customer	
  life7me	
  value	
  
CONFIDENTIAL	
  
Bigger Data. Better Insights.™
CONFIDENTIAL	
  
Thanks!
Alexander  Gray,  PhD
CTO,  Skytree
Page 40 © Hortonworks Inc. 2011 – 2015. All Rights Reserved
Next Steps…
Download the Hortonworks Sandbox
Learn Hadoop
Build Your Analytic App
Try Hadoop
Learn more with our partnership
http://hortonworks.com/partner/skytree/
®
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Leverage Big Data to Enhance Customer Experience in Telecommunications – with Skytree and Hortonworks

  • 1. Page 1 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Webinar: Leveraging Big Data to Enhance Customer Experience in Telecommunications We Do Hadoop Sanjay Kumar General Manager, Telecom Hortonworks Alexander Gray, PhD CTO Skytree
  • 2. Page 2 © Hortonworks Inc. 2011 – 2014. All Rights Reserved The New Landscape of the Telecom Industry Service Providers Social Media & Mobile: Explosion of rich customer data through Social Media and Mobile Apps for customer sentiment & Interests Customer Expectation: With the cultural impact of web and mobile, customers are expecting greater levels of service and responsiveness Competitive Differentiation: As other service providers deliver similar levels of telecom service and coverage, other areas of service levels are needed New Digital Ecosystem: Greater value of Data on digital ecosystem for Customers and Partners driving Data Monetization Internet Of Things: Explosion of data from IOT with benefits aligned with insight not correlated to data volumes
  • 3. Page 3 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Service Provider Focus Service Providers Customer Experience Management -  Enhance End-to-end Experience of Customer -  Become Trusted Partner to Customer -  Awareness of customer’s needs when and where needed New Business & Consumer Services -  New Digital & Infrastructure Services -  Data Monetization -  M2M, IoT, Analytics-as-a service Network Optimization -  Move to Software Driven Networks -  Leverage Network Data Assets -  Self optimizing and provisioning
  • 4. Page 4 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Hortonworks in Telecom Hortonworks. We do Hadoop.
  • 5. Page 5 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Hadoop for the Enterprise: Implement a Modern Data Architecture with HDP Customer Momentum •  330+ customers (as of year-end 2014) Hortonworks Data Platform •  Completely open multi-tenant platform for any app & any data. •  A centralized architecture of consistent enterprise services for resource management, security, operations, and governance. Partner for Customer Success •  Open source community leadership focus on enterprise needs •  Unrivaled world class support •  Founded in 2011 •  Original 24 architects, developers, operators of Hadoop from Yahoo! •  600+ Employees •  1000+ Ecosystem Partners
  • 6. Page 6 © Hortonworks Inc. 2011 – 2014. All Rights Reserved HDP delivers a completely open data platform Hortonworks Data Platform 2.2 Hortonworks Data Platform provides Hadoop for the Enterprise: a centralized architecture of core enterprise services, for any application and any data. Completely Open •  HDP incorporates every element required of an enterprise data platform: data storage, data access, governance, security, operations •  All components are developed in open source and then rigorously tested, certified, and delivered as an integrated open source platform that’s easy to consume and use by the enterprise and ecosystem. YARN: Data Operating System (Cluster Resource Management) 1 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ApachePig ° ° ° ° ° ° ° ° ° ° HDFS (Hadoop Distributed File System) GOVERNANCE BATCH, INTERACTIVE & REAL-TIME DATA ACCESS Apache Falcon ApacheHive Cascading ApacheHBase ApacheAccumulo ApacheSolr ApacheSpark ApacheStorm Apache Sqoop Apache Flume Apache Kafka SECURITY Apache Ranger Apache Knox Apache Falcon OPERATIONS Apache Ambari Apache Zookeeper Apache Oozie
  • 7. Page 7 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Traditional systems under pressure Challenges •  Constrains data to app •  Can’t manage new data •  Costly to Scale Business Value Clickstream Geolocation Web Data Internet of Things Docs, emails Server logs 2012 2.8 Zettabytes 2020 40 Zettabytes LAGGARDS INDUSTRY LEADERS 1 2 New Data ERP CRM SCM New Traditional
  • 8. Page 8 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Tomorrow: A Data-Centric Model for Your Business DATA-CENTRIC Limitations: •  Multiple copies of data •  Difficult cross-system integration •  Upper-limit on data volumes before harming performance Advantages: •  One version of the data •  No need for cross-app integration •  System scales linearly APP-CENTRIC App1 App 2 App 3 App 4 App 5 App 6 App Centric will break down with x10, x100,x1000… Need to shift to Data Centric
  • 9. Page 9 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Social Media Sentiment The View from the Customer Call Center Interaction Quality of Service Lifestyle & Interests Clickstream Geolocation Web Data Internet of Things Docs, emails Server logs Streaming: Network Probes, Click Stream, Sensor, Location Batch: Call Detail Records On-Line: Customer Sentiment Unstructured: Txt, Pictures, Video, Voice2Text
  • 10. Page 10 © Hortonworks Inc. 2011 – 2014. All Rights Reserved DELIVERY The Destination: Data-Centric Operations Clickstream Geolocation Web Data Internet of Things Docs, emails Server logs Streaming: Network Probes, Click Stream, Sensor, Location Batch: Call Detail Records On-Line: Customer Sentiment Unstructured: Txt, Pictures, Video, Voice2Text Personal Data Analysis & Customer Insight Services To Customer & Partners Hadoop Distribution with Yarn: Allows central source of data across all mediums of ingestion and interaction Existing & Legacy Systems can Contribute and Participate: May extend the life of existing and legacy systems from enriched data New Applications interact with Data Lake, not each other: Next Generation Apps build around data and can deliver to customers and partners
  • 11. Page 11 © Hortonworks Inc. 2011 – 2014. All Rights Reserved IT Operations Business Functions -  CEM -  Marketing -  Security -  Network ` Customer Go-to-market Communication Service Provider Adoption Journey EDW  Data   Offload   HDP     Landing  Zone   HDP     DataLake   Real-­‐7me  Streaming   HDP  DataLake   Network   Op7miza7on   Dynamic   Network   Provisioning   Top  Customer   Driven   Provisioning   Threat   Detec7on   Real-­‐Time   Threat   Analy7cs   Dynamic   PaHern   Detec7on   Customer     Sen7ment   Dynamic   Customer   Profile   360  Customer     Household  View   Loca7on  Based  CEM  &   Real-­‐7me  customer   response   Context  Aware   Loca7on  Based   Promo7ons   Context  Aware   Target   Marke7ng   Next  Best     Ac7on   Cyber  Security   Analy0cs-­‐as-­‐a-­‐service   Personal   intelligence   Hadoop-­‐as-­‐a-­‐service   Industry     Brokering   M2M/IoT  
  • 12. Page 12 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Customer Experience Management & Marketing Journey HDP     Landing  Zone   HDP     DataLake   Real-­‐7me  Streaming   HDP  DataLake   Dynamic   Customer   Profile   360  Customer   Awareness   &  Household   View   Loca0on  Based   CEM  &  Real-­‐0me   customer  response  Next  Best     Ac0on   Customer     Sen0ment   Customer  Aware   Loca0on  Based   Promo0ons   Mul0-­‐ channel   Customer     Scoring   Models  
  • 13. Page 13 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Data Centric Customer Experience Management Functional Area Core Functional Components Description Problem Addressed Business Benefits Customer Experience Manageme nt Central Data Lake for 360 Customer View Visibility of customer household view across services and accounts through ingestion of account service and event data into a central Data Lake with views into granular customer’s service experience -  Silo view of customer in different systems -  Social media unstructured data does not fit into existing EDW -  Complete view into customer experience across all services -  Reduction in Customer Churn -  Increased Loyalty Dynamic Customer Profile Summarized instant view of customer across service identifiers and customer key performance metrics and ‘net promoter scores’. Used for immediate view of customer profile -  How to react to customer contact & events based on their experience -  What is the customer’s experience level -  Next Best Action based on customer’s experience with service provider (Retail / Call Center) -  Greater targeted marketing/ advertising Real-time Event Streaming for Next Best Action Real-time streaming of network event data to identify customer location -  How to determine next best action when and where they are most appropriate to a customer -  Marketing and CEM analysis is after the fact; need for real-time -  Context sensitive promotions 10x customer acceptance -  Improves customer experience levels and customer retention
  • 14. Page 14 © Hortonworks Inc. 2011 – 2014. All Rights Reserved HDFS  Raw  Event   Storage   CEM: Real-time Streaming, 360 Customer Data Lake and Dynamic Customer Profile Solution 1   °   °   °   °   °   °   °   HBase  Processed   Event  Storage   °   °   °   °   °   °   °   °   N   °   Mul0tenant  Processing:  YARN   (Hadoop  Opera7ng  System)   Metadata  Management  HCatalog   Hive  /  Tez     (Interac7ve   Query)   ISV   (YARN  Apps,  i.e.   HPA  /  LASR)   Slider   (Always-­‐on   Services)   HBase  /Accumulo   Real-­‐0me  Serving   °   °   °   °   °   °   °   °   N   Streaming  Event  Processor:  Storm   Machine   Learning   (Spark)   Indexing   (Lucene)   Rules  Processing   (Drools)   In-­‐Line  Memory   (Spark)   Message     Queues   Log     Files   Web     Services   JMS Enrich  Events  with   Customer  info     And  Score  Matrix   Update  Data   Lake   Real-time Intelligent Action -  Marketing Promotions -  Next Best Action -  Dynamic Network Provisioning Network   Probe   Events   ODBC / JDBC Rest API Native API Messaging  Platrom:  Ka]a   Update Customer Profile and Scores External  Customer  Data   References  
  • 15. Page 15 © Hortonworks Inc. 2011 – 2014. All Rights Reserved HDFS  Raw  Event   Storage   CEM: Real-time Streaming, 360 Customer Data Lake and Dynamic Customer Profile Solution 1   °   °   °   °   °   °   °   HBase  Processed   Event  Storage   °   °   °   °   °   °   °   °   N   °   Mul0tenant  Processing:  YARN   (Hadoop  Opera7ng  System)   Metadata  Management  HCatalog   Hive  /  Tez     (Interac7ve   Query)   ISV   (YARN  Apps,  i.e.   HPA  /  LASR)   Slider   (Always-­‐on   Services)   HBase  Processed   Event  Storage   °   °   °   °   °   °   °   °   N   Streaming  Event  Processor:  Storm   Machine   Learning   (Spark)   Indexing   (Lucene)   Rules  Processing   (Drools)   In-­‐Line  Memory   (Spark)   Message     Queues   Log     Files   Web     Services   JMS Enrich  Events  with   Customer  info     And  Score  Matrix   Update  Data   Lake   Real-time Intelligent Action -  Marketing Promotions -  Next Best Action -  Dynamic Network Provisioning Network   Probe   Events   ODBC / JDBC Rest API Native API Messaging  Platrom:  Ka]a   Update Customer Profile and Scores External  Customer  Data   References   ML to determine NPS & other Scores/Metrics ML Real time event score
  • 16. Page 16 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Data Centric Customer Experience Management Functional Area Example Use Case Hortonworks - Hadoop SkyTree – Machine Learning Customer Experience Management 360 Degree Customer & Household View - Computational Net Promotor Score & other Customers Metrics Collection data across sources into Hadoop Data Lake for 360 degree view of Customer and Household: Yarn enabled Hadoop Architecture – Single set of data across the entire cluster with multiple access methods Ingestion: Multiple sources of unstructured and structured data include, CDR, clickstream, network probe & log records, sensor, IVR Voice-2-Text, social media, OSS/BSS, etc Process & Store: Yarn enabled Architecture – Single set of data across the entire cluster with multiple access methods. Distributed storage in HDFS and many processed workloads managed by Yarn Query & Alerts: Schema on read allows multiple methods for queries and alerts through different applications or through HDP tools (Hive, Hbase, Storm, etc) Customer Sentiment and Churn Detection
  • 17. Page 17 © Hortonworks Inc. 2011 – 2014. All Rights Reserved Thank You! Sanjay Kumar General Manager, Telecom Hortonworks
  • 18. CONFIDENTIAL   Bigger Data. Better Insights.™ CONFIDENTIAL   Machine  Learning  and  Telecom Alexander  Gray,  PhD CTO,  Skytree
  • 19. CONFIDENTIAL   Machine  Learning  on  Big  Data   Next  step  in  Big  Data  Journey  –  AnalyEcs  and  Machine  Learning  to   Make  BeFer  Decisions:   -­‐  Churn  –  From  PredicEon  to  PrevenEon -­‐  Net  Promoter  Score   Requires  a  360  Degree  View  of  Customers
  • 20. CONFIDENTIAL   External DataInternal Data Big Data Environment DataData Data warehouse E-Mail CRM Single Customer View with improved decision making capabilities based on Customer data Big Data Enabling innovative products & services, customer satisfaction Analytics Churn propensity and prevention, Product Sentiment, Recommendations and more. Customer  360o  View
  • 21. CONFIDENTIAL   TARGET   CONVERT   RETAIN     Advanced  MarkeEng  AnalyEcs • Lead  Scoring   • Segmenta7on   • Ad  Op7miza7on   • Ad  Targe7ng   • Campaign  Op7miza7on   • Direct  Marke7ng   • Algorithmic  Pricing   • Recommenda7on/ Personaliza7on   • Promo/Coupon  Planning   • Cross/Upsell   • Clickstream   • Product/Service  Op7miza7on   • Market  Basket  Analysis   • Churn  Predic7on   • Spend  Behavior  Analysis   • Social  Media  Analysis   • Engagement/Cul7va7on   Op7miza7on   • Customer  Life7me  Valua7on   • Loyalty/Referral  Op7miza7on   Customer  Lifecycle  OpEmizaEon
  • 22. CONFIDENTIAL   UElizing  data:  The  tradiEonal  approach TradiEonally,  human  domain  experts  dig  into  the  data  via – VisualizaEon  tools – Basic  data  analysis – Querying  a  database  to  seek  paFerns – “Thinking  hard”  about  the  underlying  processes And  extract  insights,  plots,  and  decision  rules  that  uElize  the  paFerns  they  find “Tradi7onal  business  intelligence”  
  • 23. CONFIDENTIAL   UElizing  data:  The  tradiEonal  approach Human  experts  are  very  good  at  asking  certain  kinds  of  quesEons,  but  they  are   limited  in  the  ways  they  can  process  data This  is  the  age  of  Big  Data:  lots  of  nontrivial  paFerns,  subtle,  nonlinear  relaEons   that  are  not  visible  to  tradiEonal  analyEcs  and  visualizaEon  tools Missed  paFerns  è  Missed  accuracy  è  Missed  opportuniEes!
  • 24. CONFIDENTIAL   UElizing  data:  Machine  Learning Machine  Learning  is  the  modern  science  of  finding  subtle,  nonlinear   paFerns  in  data,  that  can  be  used  to: – PREDICT  outcomes  and  guide  acEons,  e.g.: •  Provide  targeted  recommendaEons  to  customers •  Signal  the  need  to  service  before  equipment  failure – DISCOVER  insights  to  inform  decisions,  e.g.: •  Which  variables  among  a  set  of  thousands  have  the  most  weight  in   determining  an  important  outcome?  “Advanced  analy7cs”  
  • 25. CONFIDENTIAL   UElizing  data:  Machine  Learning Machine  Learning  is  the  modern  science  of  finding  subtle,  nonlinear   paFerns  in  data,  that  can  be  used  to: – PREDICT  outcomes  and  guide  acEons,  e.g.: •  Provide  targeted  recommendaEons  to  customers •  Signal  the  need  to  service  before  equipment  failure – DISCOVER  insights  to  inform  decisions,  e.g.: •  Which  variables  among  a  set  of  thousands  have  the  most  weight  in   determining  an  important  outcome?  “Advanced  analy7cs”   Machine  Learning  empowers  human  experts  with   addi7onal  insights  that  were  not  available  before     •  It  is  not  Human  vs.  Machine,  but  Human  and   Machine  together,  best  of  both  worlds  
  • 26. CONFIDENTIAL   Net  Promoter  Score  (tradiEonal  approach) Net  Promoter  Score  (NPS)  is  defined  as %  Promoters  -­‐  %  Detractors where  Promoter  =  9-­‐10,  Detractor  =  0-­‐6  on  a  scale  of  0-­‐10  in  answer  to  the   quesEon  "How  likely  is  it  that  you  would  recommend  our  company/product/ service  to  a  friend  or  colleague?” Thus,  NPS  ranges  from  -­‐100  to  100. How  good  a  score  is  depends  on  what  your  compeEtors’  scores  are
  • 27. CONFIDENTIAL   Using  ML  to  improve  Net  Promoter  score Skytree can improve your Net Promoter Score" Given  a  set  of  exisEng  customer  NPSs,   Skytree  can  tell  you  which  variables   (gathered  from  other  data  in  the   organizaEon)  are  significant  in   producing  the  NPS  score Skytree  can  tell  you  WHY,  thus   informing  acEons  to  improve  the  NPS   score  and  hence  customer  loyalty Instead  of  using  NPS,  Skytree  could  predict   customer  loyalty  directly,  without  the   approximaEons  required  by  NPS Whereas  NPS  puts  all  customers  in  just  3   categories  (favorable,  neural,  not  favorable),   Skytree  enables  targeEng  of  each  customer   individually,  giving  more  accurate  and   focused  personalized  markeEng Skytree can improve customer loyalty directly"
  • 28. CONFIDENTIAL   Data  ML  can  use 28   Customer  Demographic  Data    -­‐  Primary  household  member’s  age    -­‐  Gender  and  marital  status    -­‐  Number  of  adults    -­‐  Primary  household  member’s  occupa7on    -­‐  Household  es7mated  income  and  wealth  ranking    -­‐  Number  of  children  and  children’s  age    -­‐  Number  of  vehicles  and  vehicle  value    -­‐  Credit  card    -­‐  Frequent  traveler    -­‐  Responder  to  mail  orders    -­‐  Dwelling  and  length  of  residence   Customer  Internal  Data:  Informa7on    -­‐  Market  channel    -­‐  Plan  type    -­‐  Bill  agency    -­‐  Customer  segmenta7on  code    -­‐  Ownership  of  the  company’s  other  products    -­‐  Dispute    -­‐  Late  fee  charge    -­‐  Discount    -­‐  Promo7on/save  promo7on    -­‐  Addi7onal  lines    -­‐  Toll  free  services    -­‐  Rewards  redemp7on    -­‐  Billing  dispute   Customer  Internal  Data:  Usage    -­‐  Weekly  average  call  counts    -­‐  Percentage  change  of  minutes    -­‐  Share  of  domes7c/interna7onal  revenue     Customer  Contact  Records    -­‐  Customer  calls  to  service  centers    -­‐  Company’s  mail  contacts  to  customers    -­‐  Customer  contact  category:  customer  general   inquiry,  customer  requests  to  change  service,   customer  inquiry  about  cancel   Cancel  Reason  Codes    -­‐  Unacceptable  call  quality    -­‐  More  favorable  compe7tor’s  pricing  plan    -­‐  Misinforma7on  given  by  sales    -­‐  Customer  expecta7on  not  met    -­‐  Billing  problem,    -­‐  Moving    -­‐  Change  in  business   A  typical  Telco  set  of  variables  might  include:  
  • 29. CONFIDENTIAL   PredicEng  Customer  Churn Cost  of  churn:  lost  revenue  +  marke7ng   costs  to  replace  depar7ng  customers   Goal:  predict  customers  at  high  risk  of   churning  while  there  is  s0ll  0me  to  do   something  about  it.     Model  inputs  /  features:   •  Customer  micro-­‐segments   •  Customer  behavior   •  Customer  characteris7cs   •  Customer-­‐company  interac7on   •  Micro-­‐segment  migra7on   •  Note:  much  of  this  requires  fusing   disparate  unstructured  data  sources   Machine  Learning  can  help:   •  Predict  customers  at  high  risk  of  churn   months  in  advance  of  actual  or  passive  churn   •  Customer  micro-­‐segmenta0on  –   iden7fica7on  of  customer  segments  through   unsupervised  learning.   Model  outputs  /  interpretability:   •  Iden7ty  of  high-­‐risk  churners:  scoring  churn-­‐ risk  of  each  customer   •  Rela7ve  importance  of  ML  features:     •  where  are  customers  experiencing  issues   with  products  or  services?     •  Iden7fica7on  of  poten7al  improvements   to  products  or  services  with  highest   impact  on  revenues.    
  • 30. CONFIDENTIAL   PrevenEng  Customer  Churn:  PredicEng  Impact  of  MarkeEng  AcEons Maximize  revenue  by  iden7fying   marke7ng  ac7ons  with  highest  probability   of  posi7ve  outcome   •  Tailor  marke7ng  ac7on  to  specific  high-­‐ risk  customers   •  Minimize  offers  to  happy  customers.   Poten7al  Model  inputs:   •  Previous  customer  offers  and  the   outcome  of  those  offers   •  Customer  micro-­‐segments  and   migra7on  over  7me  of  customers   through/between  micro-­‐segments   •  Customer-­‐specific  features,  including   company-­‐customer  interac7ons   Machine  Learning  Tasks:     •  Rank  and  score  poten7al  marke7ng  ac7ons  on  a   per-­‐customer  basis   •  Iden7fy  micro-­‐segments  as  basis  for  targe7ng   marke7ng  ac7ons   •  Predict  customer  life7me  value   Examples  of  Model  Outputs  /  Interpretability:   •  List  of  scored  marke7ng  op7ons,  specific  to  each   customer   •  Iden7fica7on  of  marke7ng  ac7ons  having   greatest  reten7on  impact.   •  Reducing  marke7ng  expense  to  retain  happy   customers.     •  Es7ma7on  of  impact  on  customer  life7me  value   of  possible  marke7ng  ac7ons.  
  • 31. CONFIDENTIAL   Other  ML  OpportuniEes  in  Telecom OperaEonal: •  Prevent  SDN  aFacks  and  related  fraud •  Predict  most  VULNERABLE  POINTS  in  networks •  Predict  device/  component  FAILURE •  Detect  ANOMALOUS  behavior,  trigger  alerts •  AutomaEc  PROVISIONING
  • 32. CONFIDENTIAL   Typical  Data  Science  Workflow:  Disparate  Tools,  Manual  Processes Data  Prep: Transform  and  fuse data  sets  using  various tools Method  SelecEon:   Manually  pick  and  try  mulEple   Test: ConEnually  verify  accuracy Deployment: Export  model  for  producEon Real-­‐Eme  Scoring Results New  Data`  Parameter  SelecEon: Iterate  on  different   parameters  for  best  results Pull  holdout   data  for  test Feature  ExtracEon: Use  subset  of  data  due to  performance  issues
  • 33. CONFIDENTIAL   •  Parallelize  without  sacrificing  accuracy Built  to  Scale  From  the  Ground  Up  for  Big  Data •  Massive  Hadoop  scaling  with  TrueScaleTM •  Runs  directly  on  Hadoop   nodes •  Minimize  internode  traffic •  Net  result:  near  linear  scalability •  Algorithms  deeply  opEmized     •  In  memory  execuEon P A R A L L L E Z E I CPU CPU CPU CPU                      In  Memory        ExecuEon   Skytree  Fast  Internode  Communica7on   Hadoop   Data   Node Hadoop   Data   Node Hadoop   Data   Node Hadoop   Data   Node Hadoop   Data   Node Hadoop   Data   Node Hadoop   Data   Node Hadoop   Data   Node Hadoop   Data   Node Skytree Skytree Skytree Skytree Skytree Skytree Skytree Skytree Skytree            In  Memory      ExecuEon  
  • 34. CONFIDENTIAL   Skytree  Streamlines  and  Automates  the  Data  ScienEst  Workflow BeFer  PredicEon/ Results Data  Prep:   Broad  ML   transformaEons speed  data extracEon/cleansing New  Data Single  click  AutoModel™:   Automated  method  and   parameter  selecEon  quickly   derives  &  verifies  best  models Feature  ExtracEon: Use  all  data  you  need for  beFer  results Unified  Skytree  Environment   Single  Step  Train-­‐Tune-­‐Test Deployment: Run  on  Skytree  with  streaming   data  or  export  model  for   producEon
  • 35. CONFIDENTIAL   Dataset  Size   (Rows)   Accuracy   (Norm.  Gini) 100,000   87.8%   200,000   90.1%   400,000   91.3%   800,000   92.6%   1,600,000   93.4%   3,200,000   94.4%     •  Source  Dataset:  Pascal  Large  Scale   Learning  Challenge  DNA  dataset •  4M-­‐row  dataset  was  held  out  for   tesEng. •  6  training  datasets  from  100K   through  3.2M  rows,  arranged  into   200  columns,  were  used. •  Tuned  StochasEc  GBT,  trees  limited   to  5000 •  No  featurizaEon  applied. 100,000   200,000   400,000   800,000   1,600,000   3,200,000   86.00%   88.00%   90.00%   92.00%   94.00%   96.00%   Accuracy   (Normalized  Gini)   Dataset  Size  (Rows)   Accuracy  as  a  Func0on  of  Data   Set  Size   Scalability  Drives  BeFer  Accuracy
  • 36. CONFIDENTIAL   Taming  the  Complexity  of  ML  via  AutomaEon •  Reduce  data  scienEsts'  Eme  by  90  –  95% •  Reduce  60  hours  of  data  science  experiment  Eme   into  4  hours •  Allowing  data  scienEsts’  to  do  more  strategic  tasks •  Reduce  total  model  experiment  Eme  by     25  –  75% •  Compress  a  3  month  final  model  build  into  1  month •  Deploy  models  faster •  Reduce  compute  Eme  by  up  to  30% •  Reduce  compute  Eme  from  35  days  to  30  days •  Save  compute  cost  and  resource •  Get  equivalent  or  beFer  model  results 0   20   40   60   80   With  AutoModel   Grid  Search   Time  to  Build  Final  Model  using  Skytree   Automa7on  vs.  manually  by  skilled  data   scien7st  (in  hours)   0   5   10   15   With  AutoModel   Grid  Search   Total  Time  Elapsed  to  Complete  Experimenta7on   using  Skytree  Automa7on  vs.  manually  by  skilled   data  scien7st  (in  weeks)  
  • 37. CONFIDENTIAL   Explaining  the  models  to  extract  insights
  • 38. CONFIDENTIAL   Data  Centric  Customer  Experience  Management     Func0onal   Area   Example  Use  Case   Hortonworks  -­‐  Hadoop   SkyTree  –  Machine  Learning   Customer   Experience   Management     360  Degree  Customer   &  Household  View   -­‐  Computa7onal  Net   Promoter  Score  &   other  Customers   Metrics   Collec7on  data  across  sources  into  Hadoop   Data  Lake  for  360  degree  view  of  Customer   and  Household:  Yarn  enabled  Hadoop   Architecture  –  Single  set  of  data  cross  the   en7re  cluster  with  mul7ple  access  methods     Inges7on:  Mul7ple  sources  of  unstructured   and  structured  data  include,  CDR,   clickstream,  network  probe  &  log  records,   sensor,  IVR  Voice-­‐2-­‐Text,  social  media,  OSS/ BSS,  etc       Process  &  Store:  Yarn  enabled  Architecture  –   Single  set  of  data  across  the  en7re  cluster   with  mul7ple  access  methods.    Distributed   storage  in  HDFS  and  many  processed   workloads  managed  by  Yarn     Query  &  Alerts:  Schema  on  read  allows   mul7ple  methods  for  queries  and  alerts   through  different  applica7ons  or  through   HDP  tools  (Hive,  Hbase,  Storm,  etc)   •  Understand  which  variables  are  significant  in   producing  the  NPS  score   •  Understand  the  WHY  for  an  NPS  score,  thus  informing   ac7ons  to  improve  it  and  hence  customer  loyalty   •  Finally,  the  poten7al  to  predict  customer  loyalty   directly,  without  the  approxima7ons  required  by  NPS   •  Skytree  enables  targe7ng  of  each  customer   individually,  giving  more  accurate  and   focused  personalized  marke7ng   Customer  Sen7ment   and  Churn  Detec7on   •  Tailor  marke7ng  ac7on  to  specific  high-­‐risk   customers   •  Minimize  offers  to  happy  customers.   •  Rank  and  score  poten7al  marke7ng  ac7ons  on  a  per-­‐ customer  basis   •  Iden7fy  micro-­‐segments  as  basis  for  targe7ng   marke7ng  ac7ons   •  Predict  customer  life7me  value  
  • 39. CONFIDENTIAL   Bigger Data. Better Insights.™ CONFIDENTIAL   Thanks! Alexander  Gray,  PhD CTO,  Skytree
  • 40. Page 40 © Hortonworks Inc. 2011 – 2015. All Rights Reserved Next Steps… Download the Hortonworks Sandbox Learn Hadoop Build Your Analytic App Try Hadoop Learn more with our partnership http://hortonworks.com/partner/skytree/ ®
  • 41. Page 41 © Hortonworks Inc. 2011 – 2015. All Rights Reserved SAN JOSE June 9-11 BRUSSELS April 15-16 •  Deep-dive technical content •  65+ sessions and 5 tracks •  1,000 attendees •  Sponsorships Available •  Including Pre and Post event community meetups and BOFs •  Hadoop training available •  100+ sessions and 7 tracks •  Deep-dive technical content •  5,000 attendees •  Sponsorships Available •  Including Pre and Post event community meetups and BOFs •  Hadoop training available www.hadoopsummit.org The Largest Hadoop Community Events in 
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