A Federated Approach to Big Data -- IBM Watson Explorer

Presented by: Ken HolmesPresented by: Ken Holmes

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“Data is the New Oil”

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“Data is the new Oil.Data is just like crude. It’s valuable, but if unrefined it cannot really be used.” – Clive Humby, DunnHumby

“We have an economy based on a resource that is not only renewable, but self-generating. Running out is not a problem, drowning in it is.”– John Naisbitt

Exploration can be a critical step!

The demand for Big Data solutions is real

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The healthcare industry loses $250 - $300 billion on healthcare fraud, per year. In the US alone this is a $650 million per day problem.1

One rogue trader at a leading global financial services firm created $2 billion worth of losses, almost bankrupting the company.

5 billion global subscribers in the telco industry are demanding unique and personalized offerings that match their individual lifestyles.2

$93 billion in total sales is missed each year because retailers don’t have the right products in stock to meet customer demand.

Source: 1.Harvard, Harvard Business Review, April 2010.

2,IBM Institute for Business Value, The Global CFO Study, 2010.

© 2013 IBM Corporation4

Polling Question

1. How much of available information does a typical organization utilize?

A. 6%

B. 12%

C. 24%

D. 48%

E. 60%

OnlyOnly

Of Available Data is UsedOf Available Data is Used

Forrester Research: Can You Give The Business The Data That It Needs?by Michele Goetz, November 13, 2013

32% of structured8% of unstructured

Big Data Exploration bridges the gap between structured and unstructured data, cloud, on-premise and external

Unstructured docsContent Mgt Systems

Enterprise Systems & Content Stores

ERP CRM SCM SOA, ESB,Web Service

Each systemhas its own but differentstructure

Lacks structure

Web RSS Feed____________Social Media

Big Data Exploration

20%80%World’s Total Data:

Unstructured Structured

Stream, Process and analyze Big DataFederate, discover and

navigate Big Data sources

Virtual Integration

© 2013 IBM Corporation7

Polling Question

2. If “data is the new oil,” what’s the first step in exploiting it?

A. Start drilling immediately

B. Build a refinery

C. Open a chain of gas stations

D. Explore to find the richest deposits

Understanding Big Data is critical to success

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Explore Discover and navigate all Big Data

repositories – internal and external sources

Analyze Analyze and compare trillions of

data records from structured and unstructured sources

Understand Correlate & combine all data

sources to unearth unique relationships

Getting Started is Crucial

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Data Scientist / Analyst

Advanced AnalyticsAdvanced Analytics

Watson Explorer

Critical Information

Structured &

Unstructured

Inte

rnal

&

Exter

nal

Business End User

Discover & NavigateDiscover & Navigate

Identify Analysis-Ready Data

Serve up Analytical

Insights in Context

The Virtuous Circle of

Information Analysis

Big Data Analytics

Phase 1: Leverage Information In-Place

Phase 2: Automate and Expand w/ Big Data Analytics

Phase 2: Automate and Expand w/ Big Data Analytics

HadoopSystem

Stream Computing

Data Warehouse

Big Data Exploration helps to leverage ALL the data

© 2013 IBM Corporation

TRADITIONAL APPROACH

Analyze small subsets of data

Analyzedinformation

All available information

BIG DATA APPROACH

Analyze all data

Analyzedinformation

Big Data is everywhere, but not integrated in a single view

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External ContentInternal Content

“I am monitoring all angles – yet I can’t connect the dots.”

“I am monitoring all angles – yet I can’t connect the dots.”

“I don’trust the data we’re using for

important decisions”

“I don’trust the data we’re using for

important decisions”

“I can’t unlock the value in my data to drive

economic value to my business.”

“I can’t unlock the value in my data to drive

economic value to my business.”

“Innovation is falling short as I am unable

to see the full research picture.”

“Innovation is falling short as I am unable

to see the full research picture.”

“I can’t find the right answers fast

enough to support my customers.”

“I can’t find the right answers fast

enough to support my customers.”

?“I can’t get my arms around all of the data

in our enterprise.”

“I can’t get my arms around all of the data

in our enterprise.”

Systems of record

Applications and ECM

E-mail and collaboration

Sensor and machine data

HadoopAnalytics

Web

Social media

Mobile data

Contact Center R&D Marketing

Data Scientist Security

Unlock the value of information when users need it most

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Create unified view of ALL information for real-time monitoring

Create unified view of ALL information for real-time monitoring

Identify areas of information risk & ensure data

compliance

Identify areas of information risk & ensure data

compliance

Analyze customer data to unlock true customer valueAnalyze customer data to unlock true customer value

Increase productivity & leverage past work increasing speed to

market

Increase productivity & leverage past work increasing speed to

market

Improve customer service & reduce

call times

Improve customer service & reduce

call times

Watson Explorer

Discovery & exploration•Unified view of all information•Information-centric applications•All at big data scale

Unified access and fusion across all sources

Data access & integration•Index structured & unstructured data—in place•Support existing security •Federate to external sources

Business and IT Drivers for Big Data Exploration

© 2013 IBM Corporation

Understand the organization’s critical

business imperatives and potential use cases

Sample Business KPIs1. Average order value2. Profit margin3. Net Promoter Score4. Lifetime customer value5. Gross margin6. Customer acquisition rate/cost7. Average sales price8. Cross sell & up sell 9. Category margin

Sample Business KPIs1. Average order value2. Profit margin3. Net Promoter Score4. Lifetime customer value5. Gross margin6. Customer acquisition rate/cost7. Average sales price8. Cross sell & up sell 9. Category margin

2. Understand Benefits of Big Data Exploration – Do you have a way to explore important data sources? Do you have a way to deliver big data & analytics to the employees who need it?

2. Understand Benefits of Big Data Exploration – Do you have a way to explore important data sources? Do you have a way to deliver big data & analytics to the employees who need it?

1. You must invest a little time to understand the critical business imperatives1. You must invest a little time to understand the critical business imperatives

• Revenue attainment• Cost control • Customer loyalty • Productivity• Compliance • Competitive advantage • Employee engagement

Explore all data to determine what is

relevant to big data initiatives

Enterprise systemsExternal data“New” data (sensor, etc.).

Explore all data to determine what is

relevant to big data initiatives

Enterprise systemsExternal data“New” data (sensor, etc.).

Reduce cost of big data integration

Create integrated views for new insights Reduce time-to-valueBetter use/re-use of info

Reduce cost of big data integration

Create integrated views for new insights Reduce time-to-valueBetter use/re-use of info

Deploy apps to deliver data & analytics

Improve customer serviceIncrease productivityImprove employee performance

Deploy apps to deliver data & analytics

Improve customer serviceIncrease productivityImprove employee performance

Benefits of big data exploration are felt throughout the organization—some examples

© 2013 IBM Corporation14

SalesLess time looking for info; more time in front of customers360 view of customerFaster response to new opportunitiesBetter up-sell/cross-sell

SalesLess time looking for info; more time in front of customers360 view of customerFaster response to new opportunitiesBetter up-sell/cross-sell

ManufacturingSupply chain visibilityAccess to R&D dataImproved collaboration

ManufacturingSupply chain visibilityAccess to R&D dataImproved collaboration

R&DReduced time looking for infoBetter re-use of prior researchIncreased collaboration/expert identificationIncreased innovation & return on R&D investment

R&DReduced time looking for infoBetter re-use of prior researchIncreased collaboration/expert identificationIncreased innovation & return on R&D investment

SupportSingle point of access for all infoReduced average handle timeImproved customer satisfactionImproved morale and retentionIncreased up-sell and referral

SupportSingle point of access for all infoReduced average handle timeImproved customer satisfactionImproved morale and retentionIncreased up-sell and referral

HRHigher morale & engagement Lower churn/turnoverKnowledge transfer from senior staff Reduced training/on-boarding time

HRHigher morale & engagement Lower churn/turnoverKnowledge transfer from senior staff Reduced training/on-boarding time

ExecutiveDecisions made with better informationReduced risk Multiple ways to critical business issues

ExecutiveDecisions made with better informationReduced risk Multiple ways to critical business issues

Big Data Exploration use case offers multiple value propositions depending on•Where the client is in big data journey•What business issues are top-of-mind

Examples

© 2013 IBM Corporation

Watson Explorer for Enterprise Reporting – 360 Degree View

For many years, this automotive industry leader led the way in understanding their customer loyalty and profitability using traditional reporting tools. Their challenge has been in analyzing unstructured data in context with their traditional BI tools and empowering ALL their business users to “see the whole picture.”

Their requirements:

•Discover insights into unstructured text•Scalable Platform•Secure•Rich connectivity

The Challenge

Watson Explorer Capabilities:•Connectivity framework•Powerful Text Analytics•Security model•Application Builder

In 2 weeks, Watson Explorer connected to Netezza, OBIEE, Fileshares, SharePoint to:

•Aggregate Contextual Data•Increase information access•Increased Visibility into high value data

This project is expected to net a cost savings of $7m in their call center operations alone within 2 years.

The Solution

“We never thought we would be able to see ALL of our data in one place, and it took two days”

“We never thought we would be able to see ALL of our data in one place, and it took two days”

Integrate different content types

Rich navigation through faceting, clustering & related content

Profile-based suggestions

Adapted relevance lead to greater user satisfaction, click through and up-sell

Reports, analysts, and other types of contents are searchable

Use Watson Explorer as an “application development platform”

Watson Explorer Customer Example – Leading Analyst Firm

Watson Explorer Customer Example - Airbus

Problem– Provide uniform information access platform to

develop multiple customer centric applications for Support, Service and Self-service

– Information locked into multiple data sources with different security schemas

Solution– Provided connectivity to complex repositories such

as Aqualogic, SAP R3 and KM, Siebel– Extract and index all metadata– Supported existing security policy– Run-in parallel parsing agents

Results– Indexed 2PB of data– Deployed in 1 month– Multiple front-end applications leveraging common

back-end infrastructure– Single point access to all repositories

Improved customer satisfaction and lowered costs

Watson Explorer

Custom web applications

• Supplier Information• Service manuals• Customer profiles• Lessons learned• Customer call details• Sales pipeline

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From challenges to opportunities

• Increased revenue and decreased cost in the call center• Increased customer satisfaction & employee engagement• Created opportunities from each customer interaction - “one more

question,” targeted to individual client situation

• Increased revenue and decreased cost in the call center• Increased customer satisfaction & employee engagement• Created opportunities from each customer interaction - “one more

question,” targeted to individual client situation

Business outcomes

Product Starting Point: Watson Explorer

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Leading Medical Equipment Supplier

Leading Medical Equipment Supplier

A leading medical device manufacturer delivers detailed knowledge about customers and products to their contact center agents to enable better engagement and asking “one more question” to increase cross-selling.

Need• Reduce risk and improve compliance

• Too many silos to monitor across multiple LOBs—needed visibility to all from a single point

• Improve knowledge sharing and research

• Deliver 360º view of customers, products and assets

Solution/Status• Suite of IBM products provided solution

that no other single vendor could match

• Watson Explorer deployed in:

• PoC in Consumer Client Banking

• Risk and compliance solution

• Asset management group PoC

• Call center knowledge management

• Big data initiative

Large Investment Bank

Quote from the bank:“We knew there had to be a better way than monitoring all those different applications one-by-one.”

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