Big Data: Electronic Gold

And why Oreus should invest in Big Data

Thomas Snuverink

Big Data is everything

Limitless possibilities:• Doctor Movement• Social Media

connections• Purchase Behavior• Weather

Predictions

Big Data is not necessarily big:• Traffic data in Waze• Product movement

within factory• Ford Fusion data

processor

Big Data is “the term for a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications”

The 3V’s:• Velocity• Variation• Volume

Big Data is everywhere

Government

Science

Commercial

• NSA: going through your emails, Skype conversations and Facebook messages

• Rijkswaterstaat improvement of flood control

• Realtime data collection and analysis at LHC CERN

• DNA Genomics analysis• SETI project looking for alien life

• Walmart product placement• Alber Heijn Bonuskaart• Facebook, Twitter and LinkedIn User Data

Big Data is getting big due to hardware and software innovation, and The Internet of Things

Hardware Innovations• Larger Data Storage Facilities• Faster Supercomputers

Software Innovations• Introduction of Hadoop and

NoSQL• Improvement in Visualization

Tools

The Internet of Things: We create and capture more data about ourselves• RFID• GPS• Mobile Devices/Connectivity (WiFi/3G/4G)• Cameras• Sensors• Social Media: Moods and Emotions

Big Data is monetized in 3 ways

It makes companies more efficient

It is a company’s key product

It is a company’s key differentiator

• UPS efficient fleet management– Savings: $20 million a year on fuel alone

• Increasing Seattle Children’s Hospital efficiency by basing layout on big data– Savings: $23 million a year

• Companies offering their Big Data capabilities:– IBM– SAP– Oracle

• User information for advertisement:– Facebook– Twitter– Google

• Netflix and Amazon.com ‘s recommender systems

• Banks using Big Data for predictions, analysis and product creation

The Big Data market will grow enormously

Big Data 2012*• $813 Million• Main players:

– IBM (18.6%)

– Intel(14.9%)

– HP (10%)

– Fujitsu (5.6%)• Main segments:

– Storage (15%)– Services (38%)– Analytics (20%)

Big Data 2016*• $51 Billion*• $16 Billion in revenue

for IBM alone• Data storage segment

will grow most (53%)• Healthcare is the fastest

growing target market

*IDC predictions

Big Data is BIG MONEY

McKinsey GI: “The effective use of Big Data has the potential to transform economies, delivering a new wave of productivity growth and consumer surplus.”

Peter Sondergaard (Gartner): “By 2020, every company will be an IT company and every leader will be a digital leader.”Chief Digital Strategist

Obama: “Big Data is about what your relationship is with the people who are most important to you and an awareness of the potential in that relationship.”

There is a wide range of Big Data companies both establishes and start-upStart-ups• DataSift: software to analyze social

media data.• Karmasphere: software to analyze

large amounts of data generated in collaborative projects.

• Retention Science: software to analyze customer data and reduce churn.

Established• IBM: First-mover in Big Data that

offers both hard and software• Intel: Leverages its competence in

chip-building to provide top of the line Big Data hardware.

• Amazon.com: Combines its two core competences of cloud-based services and handling large amounts of data as a cloud SaaS to clients.

Focused primarily on software and many more than these examples. All of which are hugely successful and are currently raising venture capital.

Focused primarily on large clients and total Big Data packages often including the hardware needed for Big Data analysis.

Oreus can profit from the Big Data surge by investing in Big Data Start-ups

• Large players are too diversified to profit from the Big Data surge as

• Small start-ups are more flexible and attentive to niches and new applications of Big Data

• Software of start-ups focus enables low investments

Dutch Big Data Start-Ups:• Synerscope: building software to

visualize big data inferences• Algoritmica: software modelling

for predective uses• Dataquote: customer analysis for

the real-estate market