Dr. Richard Benjamins
Director Business Intelligence
Telefonica Digital
Big Data –
From hype to reality
Telefonica
Digital
© 2013
6Telefonica Digital
PI EconomyBig Data for other businessBig Data to optimise
your business
How can businesses play in the Big Data space?
Different “business” models with different maturities and different risks
Leverage data to
understand and
improve business
(x/up sell, churn)
and products
Data = improved
business
Recognize that
digital data is
delicate (privacy)
Turn that into an
opportunity
Data = risk =
business
Insights that help
improve
businesses and
governments
Data = business
Leverage data for
targeting users
with relevant ads
and higher CTR
and conversion
Data = better
advertising
Telefonica Dynamic Insights
Smart cities
Improve
services
AdvertisingAccess to
insights
Become a
gatekeeper of
personal data
7Telefonica Digital
Big Data to optimise Telefonica Digital’s
business• Traditionally, insights from data are generated in a fragmented way across the organisation,
limiting the quality of decisions
• There is an “easy” opportunity to create a more integrated view of customers, products and
markets, leveraging Open Data as well
Analyst reports
Macro KPIs, markets
Social media DWH
Campaigns & Sentiment
analysis
Business KPIs
Network
data
Network KPIs
Strategy
dept.
Marketing
dept.
BI
dept.
Network
dept.
Report 1 Report 2 Report 3 Report 4
From a fragmented view on markets and
products
Open Data
Analyst reports
Social media DWH Network
data
Big Data Platform
One consolidated
view
To an integrated view based on
internal data of P&S, social
media, network data, analyst data
and Open Data
8Telefonica Digital
Deliver Big Data in your organisation –
become data-driven
From To Considerations
Multi-million up-front
investments
Pay as you grow • Legacy systems?
• Agile progress
Focus only on large
business cases
Allowing exploratory self-
serve
• Skills, culture
• Tools to empower
Central Distributed
Self serve
• Skills
• Culture
Data as an afterthought Data by design and by
default
• Culture
• Process
Expensive on demand
data capture
Data as the rule • Provider contracts
• Process
9Telefonica Digital
....made betterBig decisions…..
1st product – “Smart Steps” for Retailers:
• Decide on store location
• Understanding store performance vs footfall
• Plan local marketing campaigns and track their impact
• Optimise resource planning – staffing/open hours
Smart steps, for retailers
10Telefonica Digital
Retailers have questions...
I know the activity that
goes on inside my stores.
But what % of my target
market is walking past
outside? What is the
opportunity that I am
missing?
I am a large supermarket
owner and one of my
competitors has opened up
down the road. I need to
identify our battleground.
Where is my competitor
strongest and weakest? Where should I locate
my new store?
Where should I target loyalty
or acquisition marketing
campaigns? Where are my
customers coming from?
I need to manage my resources.
When are my peak times? Could I be
operationally more effective if I
changed my opening times?
Strategic Decisions
Performance Management
Retailers worry about …
11Telefonica Digital
Smart steps
Telefonica
Dynamic InsightsGfk
Mobile Behavioural Patterns Consumer Data Assets
Smart Steps
12Telefonica Digital
39
%
39
2G Network
3G Network
900 MHz
1800 MHz
2100 MHz
2013 4G Network
NETWORK DATA
The o2 mobile network has hundreds of cells to measure the trends in
footfall across the country
13Telefonica Digital
PRIVACY
ANONYMISATIONBefore Telefonica Dynamic Insights (TDI) receives the data, all
personal information is removed. The data TDI receives are
cryptographically hashed values
AGGREGATION
The hashed values are aggregated into groups, i.e. gender & age
band. At this stage there are only crowds of o2 customers
EXTRAPOLATIONWe take our sample and extrapolate to population totals, using
mathematical algorithms. This gives us the grouped values Smart
Steps uses.
A 3 step process
14Telefonica Digital
39
%
39
Easier to use
Further
protecting
anonymity
Extrapolated to
represent local
population
200 x 200 GRID
Footfall is rendered into 200 x 200 metre grid squares across the country
15Telefonica Digital
Example question of a marketer
COUNT
What are the profiles of the
people in the area of my store?
How does the footfall in our
area change throughout the
day?
16Telefonica Digital
Differential aspect
Export data and
combine with other
sources
Today’s data tomorrow.
Fastest data delivery in
the market
Insights 24/7/365. Data
every hour, day, week
and month. You choose.
Intuitive web tool
covering the whole of
the UK to draw insights
from
Eliminates retailers’
blind spots. The profile
of the footfall in their
area
Vast sample base
based on observed
crowd behaviour