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Advanced Fraud Detection & Prevention Through Big Data Mark Johnson – Director, Engineered Systems, Oracle Public Sector


The following is intended to outline our general product direc4on. It is intended for informa4on purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or func4onality, and should not be relied upon in making purchasing decisions. The development, release, and 4ming of any features or func4onality described for Oracle’s products remains at the sole discre4on of Oracle.


Big Data and Advanced Analytics

• What is Big Data? WHAT

• Why embark on a Big Data / Advanced Analytics initiative? WHY

• What are the tools available? HOW


What Makes it Big Data?

VOLUME VELOCITY VARIETY VALUE

SOCIAL

BLOG

SMART METER

101100101001001001101010101011100101010100100101


Big Data - Volume Global digital data is growing by 40-60% YoY!

Structured Data Unstructured Data

2009 = .8 Zetabytes = .08 ZB Structured Data = .72 ZB Unstructured Data 2020 = 35 Zetabytes

= 3.5 ZB Structured Data = 31.5 ZB Unstructured Data*

•  Chart conservatively assumes a constant 9:1 ratio of unstructured data vs. structured data (based upon IDC’s estimate that 90% of all digital data is unstructured). •  Chart does not reflect IDC’s projection that unstructured data is currently growing twice as fast as structured data at the rate of 63.7% vs. 32.3% CAGR.

(1 Zetabyte = 1 Trillion Gigabytes)

LEGEND

Source: IDC Digital Universe Study, A Digital Universe Decade – Are Your Ready?, 2010


Big Data - Velocity

A single jet engine can produce up to 20TB of data per hour


Big Data - Variety Semantic Graphs

Big Data: Decisions based on all your data

Machine-Generated/ Sensor Data

Social Data

Documents

Video

Geospatial

Imagery


Big Data – Value Density Finding the knowledge in all your data

Hadoop




• Why embark on a Big Data / Advanced Analytics initiative? WHY



Big Data Buzz

“Keeping Afloat in a Sea of 'Big Data” ITBusinessEdge – 9/6/11

“Why big data is a big deal” InfoWorld – 9/1/11

“The challenge– and opportunity– of big data” McKinsey Quarterly—5/11

“Getting a Handle on Big Data with Hadoop” Businessweek-9/7/11

“Ten reasons why Big Data will change the travel industry” Tnooz -8/15/11

“The promise of Big Data” Intelligent Utility-8/28/11


Why Is Big Data Important?

Source: * McKinsey Global Institute: Big Data – The next frontier for innovation, competition and productivity (May 2011)

US HEALTH CARE

$300 B

Increase industry value per year by

US RETAIL

60+%

Increase net margin by

MANUFACTURING

–50%

Decrease dev., assembly costs by

GLOBAL PERSONAL LOCATION DATA

$100 B

Increase service provider revenue by

EUROPE PUBLIC SECTOR ADMIN

€250 B

Increase industry value per year by


Big Data in Public Sector

Fraud Preven+on

Revenue Management

Cons+tuent Sen+ment

Threat Iden+fica+on

Economic Analysis

Healthcare

Regulatory Compliance, Licensing & Law Enforcement

Open Government

Maintenance & U+li+es


Tax Gap Impacts Budgets, Operations, and Current and Future Citizen Services

States Are Impacted by the Non Compliant Tax Payers

• Cyclically lower tax receipts and declining federal aid have contributed to revenue shortfalls. This has trickled down to the taxpayer and impacted compliance across a myriad of tax revenue streams.

•  Improved compliance and analysis is required to reduce tax gap Sources: (1) US Census Bureau: State Government Finances Summary: 2010, Governments Division Brief, Dec 2011

$757

$108

$11 $7

Source: 2011 US Census Annual Survey of State Tax Collections

~$757B in revenues

Gross Tax Gap

84%

10%

6%

Source: IRS 2006 Tax Gap, Dec 2011

$450M Underreporting Underpayment Non-filing

~$136B lost


Uses of Big Data in a Tax Environment

  Audit leads for non-filers selling on e-tailer sites

  Sales tax nexus payments

Geographic information

Seller Data

Corporate Affiliations

Accessing external databases and unstructured data


Uses of Big Data in a Tax Environment

  Purchasing information to identify taxpayers required to pay use tax

  Professional Services Info for taxpayers required to pay privilege licenses and fees

Social media

Accessing external databases and unstructured data

Transportation

Goods


Big Data and Analytics

  Business Users can quickly see the information they need and drill down to statistics

  Analysts have easy access to powerful visualization tools

  Mobile Applications for secure access to key data any

time

Powerful, intuitive dashboards for every level of the organization


Policy Implications of Big Data in Government

•  What information can/should the government collect & aggregate? •  How is that information (and the resultant data) protected? •  How are errors identified & corrected? •  How is data collected by private companies accessed? •  Which government agencies can use the data? •  Etc…




• Why embark on a Big Data / Advanced Analytics Initiative? WHY



Make BeKer Decisions Using Big Data

Big Data in Action

ANALYZE

DECIDE ACQUIRE

ORGANIZE


Oracle Complete Big Data Platform

Oracle Exalytics

InfiniBand

Big Data Appliance

Oracle Exadata

InfiniBand

Acquire Organize & Discover Analyze Decide


Oracle Complete Big Data Platform

Oracle Exalytics

InfiniBand

Big Data Appliance

Oracle Exadata

InfiniBand

Acquire Organize & Discover Analyze Decide

Hadoop

Open Source R

Linux

Oracle NoSQL Database

Big Data Connectors

Oracle Data Integrator

In-‐Datab

ase An

aly+

cs

Data Warehouse

Oracle Advanced Analytics

Oracle Database

Analy+c Applica+ons Alerts, Dashboards, MD-‐Analysis, Reports, Query Web Services BI Abstrac+on


Oracle Big Data Appliance

• Optimized and Complete – All you need to store and integrate big data

•  Integrated with Oracle Exadata – Analyze all your data

•  Easy to Deploy – Risk Free, Quick Installation and Setup

•  Single Vendor Support –  Full Oracle support for all hardware and software


Big Data as a Service

• Comprehensive •  Pre-packaged algorithms • Optimized for extreme analytics


Q&A


Reference Information

•  Big Data: www.Oracle.com/BigData • Oracle Tax:

http://www.oracle.com/us/industries/public-sector/tax-revenue-management-345392.html

•  Engineered Systems: www.oracle.com/us/products/engineered-systems

•  For more information, visit oracle.com or call +1.800.ORACLE1 to speak to an Oracle representative