Big Data : Leveraging the Opportunity to Create Value

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  • 1.Big Data : Leveraging the Opportunity to Create Value THANK YOUStrictly Confidential. This document is only for the reference of intended recipients. Please do not forward this document without the prior consent of Corporate Planning. In case you are not the intended recipient, please delete / destroy the document.Source:

2. The Amount of Data in Our World has been exploding.... Data Generated from the Internet of Things will grow exponentially as the no. of Connected Nodes increasesAmount of New Data Stored Across Various Geographies In Petabytes (In 2010)250 200Africa >20072-215Security HealthCare EnergyEurope >2000N.America >3500Estimated No. of Connected Nodes In MillionsJapan >400 China, India >300150Industrials Retail100Travel & Logistics17-50 50 Rest of APAC >300Lat.America >50Utilities Automotive0 20102015Source : Analyst Interviews, McKinsey Global Institute AnalysisSource : IDC Storage reports; McKinsey Global Institute AnalysisCompanies in all sectors have at least 100 terabytes of data stored in the US, many have more than 1 petabyteUtilitiesStored Data in the US, 2009 In Petabytes194Transportation227Insurance243Retail Banking Communications & Media Government Discrete Manufacturing354Enterprises globally stored more than 7 exabytes of new data on disk drives in 2010, while consumers stored more than 6 exabytes of new data on devices such as PCs and Notebooks.30 BillionPieces of Content shared on FB everydayMobile phones in use in 2010Terabytes data collected by the US Library of Congress in April 2011 Sectors in the US have more data stored per company than the US Library of Congress619 715 848(Source : Big Data: The next frontier for Innovation, Competition and Productivity McKinsey & Co.)966Source : IDC ; US Bureau of Labor Statistics, McKinsey Global Institute Analysis 3. And They Just Dont Come in Huge Volumes, But Also in a Variety of Formats with Increasing Complexity at a tremendous Velocity.... Variety People to People Virtual Communities, Social Networks, Web LogsPeople to Machine Archives, Medical Devices, Digital TV, ECommerce, Bank Cards, MobilesMachine to Machine Sensors, GPS Devices, Bar Code Scanners, Surveillance Cameras40% Projected growth in Global Data created per year.Velocity2.9 Million E-Mails sent every SecondSource : Wipro Infographic - Big Data20 Hours of Video uploaded every Minute50 Million Tweets per DayIDC : Big data technologies describe a new generation of technologies and architectures, designed to economically extract value from very large volumes of a wide variety of data, by enabling high-velocity capture, discovery, and/or analysis. 4. Big Data Has the Potential to Generate Tremendous Value for Organizations Worldwide.... Potential Financial Value Generated Across SectorsUS HealthCareEU Public Sector Administration $300 Billion per Year ~0.7 percent Annual Productivity Growth 250 Billion per Year ~0.7 percent Annual Productivity GrowthThe Five Value Pillars derived from Big DataGlobal Personal Location Data $100 Billion+ Revenue for Service Providers Up to $700 Billion value To end users.Performance Information AccuracyInformation TransparencyUS Retail 60+% increase in Net Margin possible 0.5-1.0 percent Annual Productivity GrowthManufacturing Up to 50% decrease in Product development, assembly Costs. Up to 7% reduction in working capitalSource : McKinsey Global Institute AnalysisCustomer Segmentation AccuracyDecision Making EfficiencyNext-Gen Product & Services Development 5. But There Are Issues As Well That Needs to be Addressed to Capture the Full Potential of Big Data.... 1Shortage of talent necessary for organizations to take advantage of big data. By 2018, the United States alone could face a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts.23Policies related to privacy, security, intellectual property, and even liability will need to be addressed in a big data world.Organizations will have to deploy new Technologies & Techniques for Storage, Computing & Analytics.4 Access to Data would be a key factor. Organizations will have to gain access & Integrate Data from multiple systems.5There is a huge Investment/ Cost involved due to the sheer Volume of Data that it must be difficult For smaller companies to make efficient use of Big Data.(Source : Big Data: The next frontier for Innovation, Competition and Productivity McKinsey & Co.) 6. What the Early Adopters Have Been Doing....At WalmartLabs, we deal with both Big Data and Fast Data. We use Hadoop and other open source tools to analyze social media data from Twitter, Facebook, Foursquare and other sources. We also have developed our own proprietary technology code named Muppet to analyze Fast Data such as Twitter firehose . Muppet can analyze in real-time which stores have the biggest crowds on Black Friday based on Foursquare check-ins. - Rajaraman, SVP, Walmart Global eCommerce & Head, WalmartLabsAmazon uses its cloud storage and processing power to handle one issue that is little thought about but vital to its profitability: combating Warehouse Theft. Amazon uses its Elastic Map Reduce, a hosted Hadoop framework running on AWS that lets customers spin up the equivalent of a super computer for processing Big Data Alyssa Henry, VP of Amazons AWS Storage Services57.6% of Organizations Surveyed say that Big Data is a Challenge. 72.7% of Organizations Consider driving Operational Efficiencies to be the Biggest Benefit of a Big Data StrategySource : Wipro Infographic Big Data, Research Findings by DeloitteThe Financial Times uses big data analytics to optimize pricing on ads by section, audience, targeting parameters, geography, and time of day. Our friends at the FT sell more inventory because the team knows what they have, where it is and how it should be priced to capture the opportunity at hand. To boot, analytics reveal previously undersold areas of the publication, enabling premium pricing and resulting in found margin falling straight to the bottom line. - David Soloff, CEO Metamarkets on FT.50% of Organizations say that Big Data helps in Better meeting Consumer Demand & Facilitating Growth 90% of Fortune 500 Companies will have At least one Big Data Initiative by end of 2012.Industry Revenues is expected to be around $1-1.5 Billion. 7. The Way Forward for Large Organizations to Leverage the Full Potential of Big Data.... Assess : Assess the internal assets the organization holds and also have access to externally. Also, conduct a detailed analysis on the proprietary data one holds, Could have access to or could be purchased.AIBIM FrameworkIdentify : Monitor Implement Build Identify AssessIdentify the Potential Value creation Opportunities provided by Big Data. The Five Value Pillars derived from Big Data broadly presents the areas To focus on.Build : Build Resource capability along with Technology Capability. High skilled resource capable of handling Big Data along with Technology platform development Or partnering with technology vendors with expertise in Big Data Handling.Implement : Implement the technology to gather and analyze Big Data to create meaningful value. Its Important to have an effective Enterprise wide Data Strategy rather than operating in Silos.Monitor : Monitor data continuously for privacy and Security issues and device a policy that complies With privacy laws. 8. Thank You Strictly Confidential. This document is only for the reference of intended recipients. Please Email : without the prior consent of Corporate Planning. In do not forward this case you are not the intended recipient, please delete / destroy the document. Twitter : freaks007Blog : Source:


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