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How LinkedIn Generates Incremental Revenue via Business Analytics and Decision Science! Innovation is the only path! ©2014 LinkedIn Corporation. All Rights Reserved. Simon Zhang, Sr. Director, Business Analytics

Big data presentation linked in simon zhang 20140714

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Simon Zhang shared LinkedIn big data strategy which generating hundreds percentage revenue lift via scalable analytics and data products.

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Page 1: Big data presentation linked in simon zhang 20140714

How LinkedIn Generates Incremental Revenue via Business Analytics and Decision Science!

Innovation is the only path!

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

Page 2: Big data presentation linked in simon zhang 20140714

Recruiting SolutionsRecruiting SolutionsRecruiting Solutions

2

Simon ZhangSenior Director, Business Analytics

©2013 LinkedIn Corporation. All Rights Reserved.Business Analytics

Simon ZhangSenior Director, Business Analytics LinkedIn: http://www.linkedin.com/in/zhangsimon Email: [email protected]

Former Brain Surgeon

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

Page 3: Big data presentation linked in simon zhang 20140714

LinkedIn’s Business Model & Why Analytics is Important

Criticalmassof data

Relevant and valuable

products and services Technology

platform

Member growth and engagement

3©2014 LinkedIn Corporation. All Rights Reserved.

Simon Zhang, Sr. Director, Business Analytics

Page 4: Big data presentation linked in simon zhang 20140714

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Overview of Business Analytics at LinkedIn70 team members support 4500+ employees

Biz Analytics

Engineering

Sales

OperationsProduct

Customer Services

Marketing

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

Data Analytics

Data Infra

BI

Biz

Analytics

Data Scienc

e

SoftwareDevelopment

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Recruiting SolutionsRecruiting SolutionsRecruiting Solutions

LinkedIn Confidential ©2013 All Rights Reserved

Big Data and Big Analytics

5©2014 LinkedIn Corporation. All Rights Reserved.

Simon Zhang, Sr. Director, Business Analytics

Page 6: Big data presentation linked in simon zhang 20140714

What does “big data” mean at LinkedIn?

ERP data…

Social Data…

CRM data…

Web data…

+∞

+∞

Data Volume

Analytical Challenge & Complexity0

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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3 major data dimensions at LinkedIn

IdentityData

SocialData

Behavioral Data

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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ContentData

Page 8: Big data presentation linked in simon zhang 20140714

The definition of analytics:“Understand Past” vs. “Predict Future”

What will happen?

What happened?

Why it happened?

What is happening?

High

High

Business Value

Analytical Challenge & Complexity0

Can we make it better?

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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The only thing that matters:

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result!

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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Core strategy of big data analytics

Phase 1 Phase 2 Phase 3 Phase 4

Create Matrix of

Connections &

Collaborations

Develop Analytics Products

Scale

Analytics

Build

the foundation

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

Page 11: Big data presentation linked in simon zhang 20140714

Decision

Insights

Deep Analysis

BI & Reporting

Ad-hoc Analysis

Data Mgmt & Data Quality Mgmt

Tracking

Products

Decision

Insights

Deep Analysis

BI & Reporting

Ad-hoc Analysis

Data Mgmt & Data Quality Mgmt

Tracking

Products

Phase I: Build the analytics “pyramid”!

Decision

Insights

Deep Analysis

BI & Reporting

Ad-hoc Analysis

Data Mgmt & Data Quality Mgmt

Tracking

Products

Decision

Insights

Deep Analysis

BI & Reporting

Ad-hoc Analysis

Data Mgmt & Data Quality Mgmt

Tracking

Customers, Products, Marketing, Sales, Operations, CS…

1. Understand the products first.

2. Implement tracking to ensure data is useful.

6. Value!

3. Make sure data is deployed efficiently with good quality.

5. “Interesting” is not enough, always ask “so what”.

4. Do the actual work…...

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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Decision

Insights

Deep Analysis

BI & Reporting

Ad-hoc Analysis

Data Mgmt & Data Quality Mgmt

Tracking

Customers, Products, Marketing, Sales, Operations, CS…

Before After

Phase II: Transform “pyramid” to “diamond”

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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500Why?

Scalability is the king!

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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Phase III: Data insights products for ALL LinkedIn members!

Products

Tracking

Data Mgmt

Ad-hoc Analysis

BI & Reporting

Deep Analysis

Insights

Decision

Before After

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

Page 15: Big data presentation linked in simon zhang 20140714

Products

Tracking

Data Mgmt

Ad-hoc Analysis

BI & Reporting

Deep Analysis

Insights

Decision

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Phase IV: Build analytics product matrix and connectivity

Data product

Data product

Data product

Data product

Data product

Data product

Data product

Data product

Data product

Before After

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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Recruiting SolutionsRecruiting SolutionsRecruiting Solutions

LinkedIn Confidential ©2013 All Rights Reserved

Monetization Via Analytics

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©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

Page 17: Big data presentation linked in simon zhang 20140714

Which company?

Who to contact?

How to reach out?

What is the story?

A data driven story for B2B sales & marketing teams!

Which Sales Person?

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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Web API

The technology recipe: Merlin (B2B sales insights system)

Data Visualization

Data ELT and Aggregation

Petabytes

Gigabytes

Megabytes

Terabytes

1

2

3

4

Analytics Portal

d3

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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Kilobytes5

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How to leverage analytics to identify future subscribers?

Identity DataSocial Data

Behavioral Data

Overall Audience

Target Audience

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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The technology recipe: MADOOP -- Predictive Modeling Ecosystem

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Feature Engineering

Model Development & Evaluation

Model Comparison & Validation

Model Deployment

Model Refinement

©2014 LinkedIn Corporation. All Rights Reserved.Shaobo Liu & Simon Zhang, Sr. Director, Business Analytics

Page 21: Big data presentation linked in simon zhang 20140714

Use A/B testing to improve business day by day!

Small improvements on regular bases can make big changes!

(101%) = ?

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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365

(102%) = ?

(103%) = ?

365

365

3,778%

137,741%

4,848,272%

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Experimental Design

Experimental Platform

Metrics Center

Optimization Engine

Product/Marketing

Ideas Test

measure

Plan

The technology recipe: XLNT – A near line A/B Testing System

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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1. 2000+ active online tests

2. 500+ metrics/KPIs

3. 2M+ statistics significances

4. Traffic optimizers for tests

…….

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Customer Care Tickets

Apps Reviews

GroupDiscussions

Twitter feeds, Etc……

NPS Survey

How to measure our customers’ happiness?

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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Building Platform

Collecting data

Analyzing

insights

Findings

Making changes

A text mining analytics solution to understand customer feedbacks

©2014 LinkedIn Corporation. All Rights Reserved.Lutz Finger, Director Biz Analytics Simon Zhang, Sr. Director, Business Analytics 24

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The technology recipe Making customer voices be heard by LinkedIn employees!

25©2014 LinkedIn Corporation. All Rights Reserved.

Simon Zhang, Sr. Director, Business Analytics, George Zhang, Analytics Architect

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Recruiting SolutionsRecruiting SolutionsRecruiting Solutions

LinkedIn Confidential ©2013 All Rights Reserved

Analytics is not about data or business.It is about people!

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Hire the right people with the right……

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What else makes a great analyst?

5%

15%

100%80%

Skills + IQ & EQ + Passion = Good Analyst Great Analyst?

?

0%

+X%

Simon Zhang, Business Analytics

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The power of belief.

28Simon Zhang, Business Analytics

360-339-7320. 360-339-7320.

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Simon Zhang, Business Analytics 29

Analytical mindset evolution

Think

Do

Share

Think

Do

Share

Think

Do

Share

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 400

0.2

0.4

0.6

0.8

1

1.2

1.4

Speed

Adop

tion

Rate

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Speed matters: Three-Second Rule

High

Low

FastSlow

Simon Zhang, Business Analytics

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We expect analysts beyond “Get It Done” mindset!

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100%

Almost Done

Get It Done! ABC

-XX%

What is ‘ABC’?

50%

100%

Simon Zhang, Business Analytics

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ABC = Always Be Closing!

32Simon Zhang, Business Analytics

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Working as ONE person concept!

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Decision

Insights

Deep Analysis

BI & Reporting

Ad-hoc Analysis

Data Mgmt & Data Quality Mgmt

Tracking

Products

The importance of team work!Simon Zhang, Business Analytics

Page 34: Big data presentation linked in simon zhang 20140714

A very useful tool to solve complex analytical problems

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LinkedIn

Team

Me

Me

Team

LinkedIn

• If this is your own business, are you going to do it in this way?• We are not consultants/advisors, we are business owners!

• Make an offer no one can refuse!

Simon Zhang, Business Analytics

Page 35: Big data presentation linked in simon zhang 20140714

Recruiting SolutionsRecruiting SolutionsRecruiting Solutions

LinkedIn Confidential ©2013 All Rights Reserved

Data Science?

Data Art?

Philosophy?

Or Imaginations?

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The connections among universe, brain and social network!

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

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Inspired by

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A brilliant scientist changed the world!

Nikola Tesla

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

Page 38: Big data presentation linked in simon zhang 20140714

Thank you!38

©2014 LinkedIn Corporation. All Rights Reserved.Simon Zhang, Sr. Director, Business Analytics

Questions?