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How Data Science is Changing the Way Companies Do Business
Colin White
BI Research
July 17, 2014
2
Sponsor
3
Speakers
Bill Franks
Chief Analytics Officer,
Teradata
Colin White
President,
BI Research
Colin White
President, BI Research
TDWI-Teradata Web Seminar
July 2014
How Data Science is Changing the Way
Companies Do Business
The Evolution of Business Intelligence
5 Copyright BI Research, 2014
Type of analysis
Prescriptive What action should be taken?
Predictive What could happen?
Descriptive What is happening now?
What has happened?
Diagnostic Why did it happen?
Real-time dashboards
PDF reports via e-Mail
Behavioral analysis
Interactive BI dashboards
Predictive models
Forecasts
Rules-driven actions
Optimization
Business value
Examples of deliverables
Business question
BI
Data science
It’s Really About More “Advanced” Analytics
Type of analysis
Prescriptive What action should be taken?
Predictive What could happen?
Descriptive What is happening now?
What has happened?
Diagnostic Why did it happen?
Real-time dashboards
PDF reports via e-Mail
Behavioral analysis
Interactive BI dashboards
Predictive models
Forecasts
Rules-driven actions
Optimization
Business value
Examples of deliverables
Business question
BI
Data science
6
Applies to these
types of analytics
as well
Fast Time to Business Value: Requirements
7
Type of analysis
Prescriptive What action should be taken?
Predictive What could happen?
Usable by business analysts, not just data scientists –
easier to use analysis and visualization tools
Seamless extension to diagnostic and descriptive BI
Iterative development, easy to deploy and maintain, and
(where required) near real-time results
Business question
Predictive models
Forecasts
Rules-driven actions
Optimization
Examples of deliverables
Copyright BI Research, 2014
Solution: Next Generation BI
8
New business
insights
Reduced
costs
New
technologies
Enhanced
data
management
Advanced
analytics
New
deployment
options
Next
generation
BI
DRIVERS
TECHNOLOGIES
Copyright BI Research, 2014
New Business Insights: Customer Marketing
9 Copyright BI Research, 2014
Situational 1-to-1 Marketing – reach individual
customers with the right messages and offers
• Micro-segmentation
• Analyze all channels: web, stores, call centers,
purchases, buying patterns
• Analyze other information for influential factors:
geography, weather
Customer experience management – make all
experiences beneficial to customer/business
Customer perception management – analyze
trends in social channels and respond
appropriately
In all cases analysts need to be able to move
from analyzing past events to predicting future
outcomes
New Business Insights: Fraud Detection
10 Copyright BI Research, 2014
New Business Insights: The Internet of Things
11 Copyright BI Research, 2014
Further reading: GE Document - Industrial Internet: Pushing the Boundaries of Minds and Machines
New Technologies: eXtended Data Warehouse
Copyright BI Research, 2014 12
Traditional EDW environment
Investigative computing platform
Data refinery
Data integration platform
Operational real-time environment
RT analysis platform
Other internal & external structured & multi-structured data
Real-time streaming data
Analytic tools & applications
Operational systems
RT BI services
Two Key New XDW Components
Copyright BI Research, 2014 13
Data refinery
Investigative computing platform
Analytic tools & applications
Investigative Computing Platform
o Used for exploring data and
developing new analyses and
analytic models
o Output used by an enterprise DW,
real-time analysis engine, or stand-
alone LOB application
Data Refinery
o Ingests raw detailed data in batch
and/or real-time into a managed
data store
o Distills the data into useful
information and distributes results
to other systems
Other internal & external data,
RT streaming data
EDW data
Operational data
EDW data & analyses
models & rules
applications
The Evolution of Open Source Software
R (commercial version available)
RapidMiner
(commercial version available)
KNIME
(commercial version available)
Apache Mahout (algorithm library)
Weka (algorithm library)
Issue: How easy is it to use these
products to bridge the gap
between BI and data science?
Copyright BI Research, 2014 14
What is Data Science?
One person or a team of specialists?
Physical or virtual team?
Where in the organization does it report,
e.g., central IT, corporate executive, or
business unit management?
Part of, or separate from, a BI center of
expertise or data governance group?
Actual skills required?
Which skills are the most difficult to
learn or obtain?
Education, recruiting or outsourcing for
filling skill gaps?
Traditional BI/DW versus millennial
employee skills, experience and politics
Business expertise
Modeling & analysis
skills
Data engineering
skills
Copyright BI Research, 2014 15
Next Generation BI = Traditional BI + Data Science
Copyright BI Research, 2014 16
Descriptive BI
Diagnostic BI
Predictive BI
Prescriptive BI
Business requirements
Modeling
Data preparation
Model deployment
Business & data
understanding
Data warehouse
Raw data
Selected hypotheses
Improved understanding
Business Analyst Data Scientist
The Role of Investigative Computing
Enables data scientists and analysts to blend new types
of data with existing information to discover ways of
improving business processes
Allows data scientists and analysts to experiment with
different types of data and analytics before committing
to a particular solution
May employ an analytic sandbox, analytic platform or a data refinery
Results may include data schemas, analyses, analytic models, business
rules, decision workflows, dashboards, LOB applications, etc.
Represents a shift in the way organizations build analytic solutions:
o Increases flexibility and provides faster time to value because data does not
have to be modeled or integrated into an EDW before it can be analyzed
o Extends traditional business decision making with solutions that increase the
use and business value of analytics throughout the enterprise
Copyright BI Research, 2014 17
Example: Teradata Aster Behavior Path Analysis
Copyright BI Research, 2014 18
Example: Alteryx + Tableau
Copyright BI Research, 2014 19
Example: Teradata – Identify/Retain “At Risk” Users
Copyright BI Research, 2014 20
Hadoop captures,
stores and transforms
social, images, and call records
Aster does web
sessionization, path and basic
sentiment analysis
with multi-structured
data
Data Sources
Multi-Structured Raw
Data
Call Center Voice Records
Traditional Data Flow
Analysis + Marketing
Automation
(Customer Retention Campaign)
Capture, Retain and
Refine Layer
ETL Tools
Hadoop
Call Data
Teradata
Integrated DW
Dim
en
sio
na
l D
ata
An
aly
tic R
esu
lts
Aster Discovery Platform Raw
Sentiment
Data
SOCIAL FEEDS
POS
Web Sale
Cust & Item
Master
Mobile Sale
Surveys and Customer Feedback
WEB AND MOBILE
CLICKSTREAM
Customer Feedback
Aster pre-built operators:
sessionization, n-path, many to
many basket and affinity,
collaborative filtering for
recommendations
Source: Teradata
Gaining Business Value from Next Generation BI
Managers don’t have to be data scientists, but they need to:
• Understand the fundamental principles well
enough to appreciate the business
opportunities, communicate with technologists
and evaluate proposals for data science projects
• Be willing to invest in data and experimentation
and supply the required resources
• Keep the BI and data science team on track
Understand how to gain competitive advantage (or parity) from
data science in the context of the corporate strategy and that of
competitors
Maintain momentum over competitors
Collaborate with, and examine data science projects in other
organizations
Copyright BI Research, 2014 21
Final Thoughts
Organizations need to build a high quality data
science team that is managed by a
knowledgeable person such as a chief analytics
officer
Keep humans in the decision making loop
Mining and analyzing personal data raises
important ethical and privacy issues that should
not be ignored
Applying BI analytics to a well-structured problem
versus exploratory data mining requires different
skills and tools, but these two approaches need
to be able to work together
Copyright BI Research, 2014 22
Note: Several of the ideas presented on these last two slides were
summarized from information in the book “Data Science for Business”
How Data Science is Changing the Way Companies Do Business
Bill Franks Chief Analytics Officer, Teradata TDWI-Teradata Web Seminar July 2014
24 Proprietary and Confidential to Teradata and Bill Franks. Do not distribute without permission.
Leverage Analytics In Diverse Ways
Perform discovery analysis alongside confirmatory analysis to maximize benefits
Discovery Analysis
Full scope not defined
Interactively evolving hypotheses
Business problem is developing
Aim is to identify new theories
Confirmatory Analysis
Examining predefined problems
Assessing specific hypotheses
Business problem well defined
Aim is to validate a theory
25 Proprietary and Confidential to Teradata and Bill Franks. Do not distribute without permission.
Utilize New Analytic Disciplines
Statistics Forecasting
Augment traditional analytic approaches with new
approaches
26 Proprietary and Confidential to Teradata and Bill Franks. Do not distribute without permission.
Utilize New Analytic Disciplines
Statistics
Graph Analysis
Text Analysis
Geospatial
Forecasting
Augment traditional analytic approaches with new
approaches
27 Proprietary and Confidential to Teradata. Do not distribute without permission.
Teradata Aster SNAP™ Framework
28 Proprietary and Confidential to Teradata and Bill Franks. Do not distribute without permission.
Your Team Will Need To Expand & Evolve
• No single individual will likely know every analytic discipline
• Build out a team that has what you need in total
Person 1 Person 2
+ =
Total Package!
29 Proprietary and Confidential to Teradata and Bill Franks. Do not distribute without permission.
Do You Need A Chief Analytics Officer?
• What is a Chief Analytics Officer & why do you need one?
Hire Me!
30 Proprietary and Confidential to Teradata and Bill Franks. Do not distribute without permission.
Do You Need A Chief Analytics Officer?
• What is a Chief Analytics Officer & why do you need one?
• What about a Chief Data Officer?
Hire Me!
31 Proprietary and Confidential to Teradata. Do not distribute without permission.
Math
and Stats
Data
Mining
Business
Intelligence
Applications
Languages
Marketing
ANALYTIC TOOLS & APPS
USERS
DISCOVERY PLATFORM
INTEGRATED DATA WAREHOUSE
ERP
SCM
CRM
Images
Audio
and Video
Machine
Logs
Text
Web and
Social
SOURCES
DATAPLATFORM
UNIFIED DATA ARCHITECTURESystem Conceptual View
Marketing
Executives
Operational
Systems
Frontline
Workers
Customers
Partners
Engineers
Data
Scientists
Business
Analysts
TERADATA DATABASE
TERADATA ASTER DATABASE
TERADATA DATABASE
HORTONWORKS
Your environment must enable any analysis against any type or volume of data at any time…
Teradata Unified Data Architecture (UDA)
LANGUAGES MATH & STATS DATA MINING BUSINESS INTELLIGENCE APPLICATIONS
Engineers
Data Scientists Business Analysts Marketing Front-Line Workers
Operational Systems Customers / Partners Executives
32 Proprietary and Confidential to Teradata and Bill Franks. Do not distribute without permission.
Spread Your Bets With The Teradata UDA!
• Who knows what the future holds?
• Don’t place all your chips on an architecture that assumes specific outcomes
• Hedge your bets with an architecture that can adapt to whatever the future holds!
33 Proprietary and Confidential to Teradata. Do not distribute without permission.
Question & Answer
• Thank you!
34
Questions??
35
Contact Information
If you have further questions or comments: Colin White, BI Research [email protected]
Bill Franks, Teradata