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A Guide to ROI on Big Data investment

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  • BUYERS GUIDEBIG DATA ANALYTICS

  • 01

    02 Why Buy?

    03 Steps for Selecting A Big Data Analytics Solution

    06 Step 1: Define Decision Criteria

    08 Step 2: Agree on Use Cases

    16 Step 3: Qualify Solutions

    25 Step 4: Validate Solution

    36 Key Takeaways (Reducing Time to Value)

    TABLE OF CONTENTS

  • 02Big Data Analytics Buyers Guide

    Data loading

    Data loading

    Analyze data Visualize data Export data Secure data MonitoringTransform data andperform data qualityScheduling anddependencies

    Scheduling anddependencies

    BUILD

    BUY14+ months

    3 months

    BUILDING A BIG DATA ANALYTICSOLUTION CAN TAKE OVER A YEAR...

    AND COST YOU OVER $1M IN SALARIESALONE FOR 1 YEAR

    JOB TITLE

    IT Project Manager

    System Administrator

    Network Administrator

    Database Administrator

    IT Security Manager

    Business Intelligence Analyst

    Data Scientist

    Java Developer

    QA Engineer

    BAY AREA

    $ 140,000.00

    $ 117,000.00

    $ 119,000.00

    $ 125,000.00

    $ 116,000.00

    $ 137,000.00

    $ 138,000.00

    $ 136,000.00

    $ 120,000.00

    $ 1,148,000.00

    NEW YORK

    $ 126,000.00

    $ 105,000.00

    $ 107,000.00

    $ 119,000.00

    $ 104,000.00

    $ 133,000.00

    $ 133,000.00

    $ 133,000.00

    $ 114,000.00

    $ 1,074,000.00

    Big Data Analytics Buyers Guide

  • 03

    SELECTING A BIG DATA ANALYTICSSOLUTION CAN TAKE MONTHS

    DefineDecisionCriteria(.5 month)

    Agree onUse Case(1 month)

    QualifySolutions(1 month)

    Validate(1.5 months)

    Purchase(.5 month)

    AND ALMOST $150K BEFORE YOUSTART THE PROJECT

    JOB TITLE

    Project Manager

    Business Intelligence Analyst

    IT Administrator

    BAY AREA

    $ 52,500

    $ 51,375

    $ 44,645

    $ 148,500

    NEW YORK

    $ 47,250

    $ 49,875

    $ 40,125

    $ 137,250

    Salaries based on 4.5 months of yearly average

    Big Data Analytics Buyers Guide

  • 1. Fewer steps in the process

    Instead of hiring developers, ramping them up, defining, developing, testing, deploying and then analyzing,

    you can go directly to defining and analyzing.

    2. One pre-built solution

    Instead of manually building capabilities for data loading, data parsing, data analytics, visualization,

    scheduling, dependency management, data synchronization, monitoring API, management UI, and security

    integration, you can have it in one, purchased platform.

    3. Pre-built integration, analytics and visualization functionality

    THERE ARE MANY ADVANTAGES TOBUYING A BIG DATA ANALYTICS SOLUTION

    Seamless Data Integration

    Structured, semi and unstructured Pre-built connectors Connector plug-in API

    Powerful Analytics

    Interactive spreadsheet UI Built-in analytic functions Macros and function plug-in API

    Business Infographics

    Combine anything, WYSIWYG Infographics and dashboards Visualization plug-in API

    Below are 3 key reasons we wanted to highlight:

    In this guide, well discuss how you can expedite the deployment and selection process by: Providing a template for decision criteria

    Criteria for identifying big data use cases

    Qualification criteria for the solution

    Validating and calculating ROI to compare your options

    04Big Data Analytics Buyers Guide

  • STEPS FOR SELECTINGA BIG DATA ANALYTICSSOLUTION

  • HOW THIS GUIDE WILL HELP YOUSELECT A BIG DATA ANALYTICSSOLUTION FASTER

    Define decision criteria:

    Before you buy something, you will need to agree on your decision criteria. In this guide, well share a checklist of

    the criteria we have seen customers use during their decision making process.

    Agree on use case(s):

    Often times companies are looking for a place to begin. This part of the guide will help you identify the ideal big

    data use cases to go after as well as show you examples of big data use cases companies have implemented.

    Qualify solutions:

    What is the functionality you need in a big data analytics solutions? What are the capabilities you should look for?

    This part of the guide will outline the key capabilities so you can shorten your list of options to evaluate.

    Validate:

    In this part of the process, you need to consider how you will validate if a solution meets your requirements. Look

    for ways to validate that are cost effective. This part of the guide will give you tips on how to expedite the validation

    process as well as provide an framework to compare your options.

    DefineDecisionCriteria

    Agree onUse Case

    QualifySolutions Validate

    Creating a streamlined buying process is critical. A streamlined buying process paves the way and sets the stage for a streamlined deployment. There are 4 key steps in selecting your big data analytics solution. This guide will go through the things you can

    do to expedite that buying process.

    06Big Data Analytics Buyers Guide

  • DEFINE DECISIONCRITERIA

    STEP 1

    1

  • Ease of use

    Does the business need IT to help?

    Can a business analyst use the tool to do analysis?

    Data Integration

    Does system support native connectors to

    unstructured and semi-structured data sources (e.g.

    log files, social, SaaS, machine data)? Does it support

    flexible partitioning of the data so that it is easy to work

    with large amounts of data? Does the solution provide

    data quality functions so that the data can be quickly

    normalized and transformed?

    Analytics

    Does the solution provide an intuitive environment (e.g.

    spreadsheet) that business users can quickly use?

    Does the solution include pre-built analytic functions?

    Does the system provide a preview to validate analysis

    and show data lineage for auditing data flows? Do

    data models have to be defined before insights can be

    gained? Do analysts need to know what they want to

    do before they have had a chance to look at the data?

    Can analysts look at the data, iterate, make the

    changes they need and analyze without involving IT?

    Visualizations

    Does the solution support complete freeform

    visualization? Or is it just a combination of reports and

    dashboards?

    Integration with existing IT infrastructure

    Does the solution support import from and export into

    other BI systems?

    Administration

    Does the system support flexible security integration

    with LDAP or ActiveDirectory?

    Extensibility

    Does the solution support open APIs for custom data

    connections and custom visualizations?

    Architecture

    Does the solution run natively on Hadoop? Is a

    separate cluster required (ideally no separate cluster

    should be required)? Is the product limited by the

    availability of the memory within the nodes? The ideal

    solution should have no memory constraints. Does the

    solution provide a job planner and optimizer to ensure

    the lowest number of MapReduce jobs is executed?

    Vendor requirements

    Is the system proven, does it have numerous major

    releases? How much is it in enterprise use, has it

    analyzed substantial data, (terabytes, petabytes or

    exabytes)?

    DEFINE DECISION CRITERIA

    After working with hundreds of customers, weve found the following are the top things to look for in a Big Data Analytics Solution.

    DECISION CRITERIA FOR SELECTINGA BIG DATA ANALYTICS SOLUTION

    09Big Data Analytics Buyers Guide

  • 2STEP 2

    AGREE ONUSE CASES

  • WHAT DOES A BIG DATA USE CASE HAVE?What does a Big Data Analytics use case look like?

    10

    This part of the process has taken some companies the longest. First, it is important to understand what a Big Data

    Analytics use case is not. Second, it is important to understand the characteristics of a Big Data Analtyics use case.

    What is NOT a Big Data Analytics use case?

    Its important to draw the distinction between a Big Data Analytics use case and a Business Intelligence use case.

    Business intelligence use cases are about structured data and lead to reports that aggregate or summarize that

    data. These use cases require data models that lead to a set of known questions that can be asked of the data. BI

    use cases involve moderate volumes of structured data, and therefore BI solutions were not designed to handle the

    big data use cases that require larger data volumes and different types of data that change frequently.

    On the other hand, the data in Big Data Analytics use cases are of high complexity, meaning they have data in high

    volumes, high variety and high velocity.

    The ideal Big Data Analytics solution enables users to integrate, analyze, and visualize data to discover insights.

    Users get deeper insights across not only transactions but also interactions to reveal more precise insights, predict

    behavior and even make recommendations of future behavior.

    In the following pages, youll see examples of Datameers customer use cases. These use cases detail the variety,

    volume and velocity of data.

    The goal of depicting these use cases is to help you identify potential use cases of your own. Bottom line: faster

    time to value.

    Big Data Analytics Buyers Guide

  • WHAT IS AN EXAMPLE OF A USE CASE?

    MARKET BASKET ANALYSIS ANDPRICING OPTIMIZATION

    Historical

    Inventory

    Pricing

    Transaction

    Analyze pricing and historical data to price and advertise effectively

    In retail, historical inventory, pricing and transaction data are spread across multiple devices and sources. This data

    changes on a daily - often hourly basis. Business users need to pull together this information to understand the

    seasonality of products, come up with competitive pricing, determine which platforms to support so that their

    online users have optimal performance, and where to target ads.

    11

    Variety Historical, inventory, pricing, and transaction data

    Volume 3000 TB

    Velocity 1M+ rows of additional pricing data added daily

    Big Data Analytics Buyers Guide

  • WHAT IS AN EXAMPLE OF A USE CASE?

    PREDICT SECURITY THREATIdentify where security threats may occur

    The security landscape is always changing. So changes in behavior can indicate where the next attack may occur.

    For example, this company used Datameer to follow a virus that started in Russia, moved across Asia, to the US,

    and forcing Windows upgrades in its path. By seeing where the traffic was generated in particular geographic

    areas, they could predict where the next security threats would be.

    Feeds

    Log Files

    Firewall

    12

    Variety 50+ different feeds, MySQL and JSON data from message queues and flat files, and log files

    Volume As their customer base grew, data volumes outstripped the capacity of their existing

    RDMBS-based system.

    Velocity To maintain SLAs within hours, the company had to rapidly analyze data across growing

    volumes of customer data.

    Big Data Analytics Buyers Guide

  • 13

    WHAT IS AN EXAMPLE OF A USE CASE?

    BEHAVIORAL ANALYTICSImprove game flow and increase number of paying customersThe game for gaming companies is to increase customer acquisition, retention and monetization. This means

    getting more users to play, play more often and longer, and pay. First, analysts use Datameer to identify common

    characteristics of users. As a result, gaming companies can target these users better with the right advertising

    placement and content. To increase retention, analysts use Datameer to understand what gets a user to play

    longer. A user who plays longer and interacts with other players makes the overall gaming experience better.

    User Prole

    Game Event Logs

    Variety Game event logs, user profile data, social interaction data captured during games

    between players

    Volume & Velocity 150+ points of data collected from millions of monthly users

    Big Data Analytics Buyers Guide

  • 14

    WHAT IS AN EXAMPLE OF A USE CASE?

    PREDICTIVE SUPPORTIdentify operational failure and address them before they are reported

    A couple of hours of downtime in a store or production environment means lost revenue, sometimes in the

    millions of dollars. The clues to where downtime may occur are spread across devices around a store or facility

    including WLAN controllers, mobile devices, routers and firewall devices. For this customer, these devices are

    used to run operations such as tracking inventory. Each network device generates enormous amounts of

    machine-generated data.

    Store X

    Store Y

    Store Z

    Variety Device data from WLAN controllers, mobile devices, routers and firewall devices

    Volume & Velocity 10B records per week from all the stores

    Big Data Analytics Buyers Guide

  • WHAT IS AN EXAMPLE OF A USE CASE?

    FRAUD DETECTIONIdentify potential fraud

    Credit card fraud has changed. Instead of stealing a credit card and using it to buy big ticket items, some credit

    card thieves have become more sophisticated. For example, they can now making numerous, small transactions

    that are seemingly benign. But if Joe is making 100 $5 margarita transactions at various locations, something is

    wrong. By analyzing point of sale, geolocation, authorization, and transaction data with Datameer, this financial

    customer was able to identify fraud patterns in historical data.

    15

    Point of Sale

    Geo-location

    Authorization

    Transaction

    Variety Point of Sale, Geo-location, Authorization, Transaction data

    Volume & Velocity 7.5B transactions per month

    Big Data Analytics Buyers Guide

  • This enterprise hardware company was generating and collecting data that was doubling every 15 months. In

    addition to the rapidly growing data volumes, there were hundreds of different semi-structured and unstructured

    log formats. Before Datameer, analysts were forced to write ad hoc Perl code to parse a subset of the log files and

    store data locally. By using Datameer, the company was able to derive valuable insights that helped virtually every

    group Support, Development, Marketing, and Services. For example, Support was able to send out a

    replacement part before the component actually failed. Sales was able to look at usage patterns to improve

    forecasting and renewal negotiations.

    WHAT IS AN EXAMPLE OF A USE CASE

    DEVICE ANALYTICSEnable business analysts or non-technical users through a spreadsheet interface to analyze and do big data discovery

    16

    Log Files

    Data Store

    Transaction Data

    Variety 100s of files, logs and other data sources

    Volume & Velocity Data volume growing 2x every 15 months

    Big Data Analytics Buyers Guide

  • 3STEP 3

    QUALIFYSOLUTIONS

  • 18

    Data LoadingA software has to be developed to load data from multiple, various data sources. This system needs to deal with the distributed nature of Hadoop on the one side and the non-distributed nature of the data source. The system needs to deal with corrupted records and need to provide monitoring services.

    Data Loading

    Dependency ManagementThere are complex dependencies that must be managed. For example, certain data sets have to be loaded before certain jobs in Hadoop can be run.

    DependencyManagement

    Data synchronizationData often needs to be pushed from Hadoop in to a data store like a database or in-memory system. Data

    Synchronization

    Monitoring APIEvery aspect of a big data analytics solution needs to be monitored. Things that need to be monitored include who has access to the system, job health, performance, and data throughput.

    Monitoring API

    Management UIA management user interface is critical for ease of configuration and monitoring.Management UI

    Security Integration For security purposes, it is important to be able to integrate with Kerberos and LDAP.Security

    Integration

    Data ParsingMost data sources provide data in a certain format that needs to be parsed into the Hadoop system. For example, lets consider parsing a log file into records. Some formats are complicated to parse like JSON where a record can be on many lines of text and not just one line per record.

    Data Parsing

    Data AnalyticsIn order for data to be properly analyzed, a big data analytics solution needs to support rapid iterations. Data Analytics

    SchedulingAll the items discussed above need to be orchestrated and scheduled. Scheduling needs to be easy to configure. In addition, the scheduling needs have monitoring services to notify administrators of jobs that fail.

    Scheduling

    Data VisualizationIn order for an analyst to see the insights, data needs to be visualized. Integrating visualization is difficult because middleware needs to be built to deliver the data out of Hadoop and into the visualization layer.

    DataVisualization

    SOLUTIONS QUALIFICATION CRITERIA

    WHAT FUNCTIONALITY DO I NEED?Now that weve talked about the criteria you need to make a decision and how to identify the big data use cases, lets talk about the functionality you need or how to qualify that solution will meet your needs. Your big data analytics solution should have the following capabilities:

    These capabilities map to the steps of the big data analytics process, including: integration functional analytics visualization smart analytics

    Well walk through the things youll want to look for to address each of these steps in the following pages of this section.

    Big Data Analytics Buyers Guide

  • 19

    Import any data type

    Import JobsDatameer loads all data in raw format directly into

    Hadoop. The process is optimized and supported with

    robust sampling, parsing, scheduling and data

    retention tools that make it simple and efficient for any

    user to get the data they need quickly.

    Ensure that data is always current

    Data LinksSome use cases, such as analyzing constantly

    changing user data, lend themselves to streaming the

    data into Hadoop as analytics are run. This ensures

    that user data is always up to date. Datameer provides

    data links to any data source for just that purpose.

    An open data platform

    Data ExportThe beauty of Datameers unique integration and

    analytics capabilities is that their results can be

    exported to other data stores, such as a databases,

    remote file servers, data warehouses, or third-party BI

    (business intelligence) software packages. You can

    initiate a one-time manual export, configure the job to

    run each time the workbook is updated, or at a

    specific time interval.

    SOLUTIONS QUALIFICATION CRITERIA

    BIG DATA ANALYTICS REQUIRES RAPIDINTEGRATION OF ALL TYPES OF DATATo help qualify your solutions (and shorten the list of solutions you evaluate), look for the following integration characteristics.

    Big Data Analytics Buyers Guide

  • 20

    SOLUTIONS QUALIFICATION CRITERIA

    ANALYTICS IS AN ITERATIVE PROCESSAnalytics requires an iterative tool that is also easy to useYou need a complete solution to analyze structured and unstructured data. Integrate all types of data with

    pre-built data connectors to databases, SaaS, log files and other unstructured data sources. Prepare and

    Analyze with point-and-click functions so your analytics are only limited by your imagination. Even the most

    complex nested joins of a large number of datasets can be performed using an interactive dialog. Visualize

    and present your analytics on any device and any browser.

    Pre-built Functions with a Spreadsheet InterfaceThe spreadsheet interface should offer pre-built functions such as currency conversion, date functions etc.

    Prepare and Analyze

    Integrate

    Deploy

    Visualize

    Big Data Analytics Buyers Guide

  • 21

    SOLUTIONS QUALIFICATION CRITERIA

    ANALYTICS REQUIRES VISUALIZATIONTHAT END USERS CAN INTERPRETFlexible data visualizationYou need a library of widgets that includes tables, graphs, charts, diagrams, maps, and tag clouds. This enables

    users to create simple dashboards or stunning business infographics and visualizations. The end result, data

    visualizations that communicate data.

    Beyond static dashboards, your data visualizations should have no built-in constraints. Users need to be able to

    drag and drop any widget, graphic, text, dashboard or infographic element as needed or desired.

    Pageviews

    Daily Average Visitors

    New vs. Returning Visitors

    Click pathsThe most common click paths followed by visitors

    The most popular pages, represented in the tag cloud by page views this month...

    Our stickiest web pages, measured by dwell time

    Our stickiest web pages, measured by dwell time

    0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260

    5.05.56.06.57.07.58.08.59.09.5

    10.010.511.0

    busi

    ness

    _new

    s

    commu

    nity_fo

    rum

    community_news

    info

    tain

    men

    t_hi

    s...

    infotainment_new.

    ..

    external

    Big Data Analytics Buyers Guide

  • 22

    Clustering

    With clustering (a K-means algorithm) Datameer automatically finds non-obvious but related groups within your data

    by automating the process of identifying and measuring common attributes within the dataset. The obvious benefit

    is that if you can segment your data into groups, you can treat the groups differently.

    Automatically find groups and relationships hidden in your data

    SMART ANALYTICS FUNCTIONALITY

    For example, automatically identify groups in:

    Customer databases

    Text documents

    Product libraries

    POS data

    Weblogs

    Health records

    Social media

    Online gaming logs

    Clickpaths

    Decision Trees

    Datameers decision trees (random forest algorithm) help you understand the different combinations of data

    attributes that result in a desired outcome. Decision trees are often used when enriching a dataset with additional

    data sources to optimize a process for a better outcome. The structure of the decision tree reflects the structure

    that is possibly hidden in your data.

    For example, find out what common attributes influence:

    Disease risk

    Fraud risk

    Customer churn

    Purchases

    Online signups

    Root-cause

    Product conversions

    SOLUTIONS QUALIFICATION CRITERIA

    Big Data Analytics Buyers Guide

  • 23

    Column Dependencies

    Want to know how strongly a single data attribute like age, location, or gender, relates to other data attributes like

    income, college degree, or credit score? The column dependency algorithm automatically compares every possible

    data attribute combination and visually ranks the strengths of those relationships so you can instantly see where to

    focus further. Those relationships are important themselves and is often used to help target further analysis.

    For example, see the relationship between:

    Recommendation Engine

    Datameers recommendation engine automatically predicts interests of a person based on historical observations of

    similar peoples interests so you can increase engagement, recommend more relevant choices, increase customer

    satisfaction, and more.

    For example, predict interest in:

    Music

    Movies

    Content

    Services

    Products

    Documents

    Applications

    Title and purchase amount

    Transaction type and frequency

    Location and product selection

    Average session length and virtual goods purchase

    Age and disease type

    Account age and product type

    Age and number of SMS messages

    ...continued SMART ANALYTICS FUNCTIONALITY

    Big Data Analytics Buyers Guide

  • 24

    SOLUTIONS QUALIFICATION CRITERIA

    To summarize a comprehensive big data analytic solution consists of an end-to-end, scalable platform that enables any user to integrate, analyze and visualize all types of data.

    SUMMARY ON HOW TO QUALIFY ABIG DATA ANALYTIC SOLUTION

    1. Ease of Use Does the Solution:

    Provide an intuitive user interface that can be used by anyone?

    Have a web based user interface?

    Support all popular browsers?

    Support HTML5 for usage on desktops, tablet and mobile devices?

    Offer an undo capability?

    3. Analytics Does the solution support:

    A comprehensive set of analytic and transformation functions?

    Special functions for unstructured data?

    Instant feedback and preview to validate analysis?

    Data lineage to audit data flows?

    Grouping of analytics into logical groups?

    Analysis of structured and unstructured data?

    Sentiment analysis?

    4. Visualizations Does the solution:

    Provide an extensive library of graphic widgets including tables, graphs, charts, diagrams, maps, and tag clouds?

    Provide a free form canvas layout with no built in placement constraints?

    Support for network diagram relationships

    Include fonts, color, shapes and clipart?

    Support multiple pages of visualizations?

    Importing of images for backgrounds?

    Support annotations?

    Include comparing current and historical data?

    Enable content sharing?

    2. Data Integration Does the solution support:

    A large set of native connectors for the integration of all types of disparate data (databases, file systems, social media, mainframe, SaaS applications)?

    Support for structured and unstructured data

    Self service data integration without IT

    The ability to work with dirty data?

    Parallel loading of data into Hadoop?

    No size limitations on data?

    Support data retention policies and management

    Offer flexible data partitioning?

    Data links to data sources that streams the data into Hadoop as analytics are run?

    Ingestion of data in raw format directly into Hadoop with robust parsing and sampling?

    Offer REST API to start and monitor import orexport of data?

    Exception reporting on data?

    An API to create custom connectors for proprietary/ custom/legacy applications?

    next page...

    Big Data Analytics Buyers Guide

    The following are things to look for when selecting a Big Data analytics solution:

  • 25

    ...continued HOW TO QUALIFY A BIG DATA ANALYTIC SOLUTION

    6. Administration Does the solution provide:

    Role based security?

    Authentication through LDAP or Active Directory?

    Data retention policy management?

    Multi-tenancy within cluster and other apps?

    Ad-hoc and scheduling of import jobs?

    Web based UI for quick deployment from any browser/desktop?

    Centralized management through a web based interface?

    Log file viewer to audit logs?

    8. System Architecture Describe how the solution:

    Provides linear scalability

    Run natively on Hadoop without a separate layer of integration

    Support virtualized environments

    Allow import and export of data from other Hadoop clusters

    Is architected from the ground up for Big Data and not just an add on or connector

    9. Vendor Requirements Is/Does the vendor:

    Built upon years of deep Hadoop experience?

    Well financed/stable?

    Have customer support globally?

    Have a strong customer base?

    5. Integration with existing IT infrastructure Does the solution:

    Provide integration with HIVE?

    Support all major Hadoop distributions?

    Provide a REST API for orchestrating integration

    7. Extensibility Does the solution provide:

    An SDK to add custom functions?

    Support for Java, R, Ruby, Python?

    Big Data Analytics Buyers Guide

  • 4STEP 4

    VALIDATESOLUTION

  • 27

    Identify Fraud

    Lower CustomerAcquisition Costs

    Increase Retention

    IncreaseConversion Rate

    Lower IT Costs

    Hardware

    Software

    Integration

    People

    Operations

    Logistics

    $$$

    Time

    Flexibility

    VALIDATE AND CALCULATE ROIVALIDATE SOLUTION

    TCO$$$ Return

    Now you need to consider how you will validate if a solution will meet your requirements. Look for ways to validate

    that are cost effective. An extensive validation process can take many resources including people, equipment and

    time. In many cases you could end up spending more money on the resources to evaluate than on the purchase

    price of the solution you chose. Include:

    references a solution provider can offer as a way to validate

    ROI and TCO analysis based on actual customer experiences

    This section will go into the ROI and TCO framework in more detail. Well also walk through some examples of

    ROI so that you have an idea of the ROI that can be achieved with Big Data use cases.

    Below is a framework for measuring return. Return is simply the benefits (which are business benefits and IT

    savings) the total costs (which are related to hardware, software, integration, etc).

    Big Data Analytics Buyers Guide

  • 28

    per month / quarter

    BUSINESS VALUE AND ROIVALIDATE SOLUTION

    Measuring ROI is a process. Step 1: You first need to estimate ROI or business value to provide justification and set goals for your project.

    Step 2: Then you measure the actual ROI.

    Step 3: With the ROI metrics (e.g. % increase in customer conversion), you can update the model after each

    project. With your updates and your model, you can map out future projects.

    EstimateROI

    MeasureROI

    UpdateModel

    Step 1 Step 2 Step 3

    Big Data Analytics Buyers Guide

  • 29

    MEASURE ROIVALIDATE SOLUTION

    Typical TCO (total cost of ownership) and ROI (return on investment) analyses show hardware savings, software

    savings, and productivity gains. In addition, the Datameer analysis provides business benefits such as the increased

    customer conversion rate that leads to $20M in new revenue. This business benefit is magnitudes larger than the IT

    savings. Take the time to find the business benefits and become the big data hero. IT savings are signifcant, but

    business benefits are greater. Datameer can help with this.

    Have a big vision. Start small. Iterate. Build on your successes.

    Once youve measured the ROI for one project you can reuse that ROI metric (e.g. % increase in customer

    conversion rate) to estimate ROI gains for other projects within your organization that have similar use cases.

    HardwareSavings

    SoftwareSavings Productivity

    BusinessBenefit

    Project 3

    Project 2

    Project 1

    Big Data Analytics Buyers Guide

  • 30

    HOW HAS BIG ANALYTICS HELPED?VALIDATE SOLUTION

    Optimize Funnel Conversion

    Behavioral Analytics

    Customer Segmentation

    Predictive Support

    Market Basket Analysis and

    Pricing Optimization

    Predict Security Threat

    Fraud Detection

    Increased customer conversion by 3x

    2X Revenue

    Decreased customer acquisition costs by 30%

    Decreased customer churn

    Reduced time to insight from 12 weeks to 3 days

    Predict security threats within hours

    Prevented $2B in potential fraud

    Software Security

    Online Gaming

    Financial Services

    Enterprise Storage

    Retail

    Software Security

    Financial Services

    USE CASE INDUSTRY BENEFIT

    In this section, youll see how Datameer customers have calculated ROI from using Datameer

    You can use these returns in your estimation of return from a big data analytics project.

    In the following pages you will see examples of our previous use cases and how Datameer customers have

    captured ROI.

    Big Data Analytics Buyers Guide

  • VALIDATE SOLUTION

    OPTIMIZE FUNNEL CONVERSIONIdentify roadblocks in funnel conversion

    Generating traffic is good. But generating traffic that leads to sales is better. Datameer has helped companies

    identify which Google AdWords lead to sales. By analyzing Google AdWords, Salesforce, and Marketo data, this

    company was able to track a lead from AdWord click through to transaction. As a result, this company was able to

    improve funnel conversion by 3x, leading to $20M in additional revenue.

    Customer conversion increased by 60%

    31Big Data Analytics Buyers Guide

    Conversion60%

  • VALIDATE SOLUTION

    BEHAVIORAL ANALYTICSImprove game flow and increase number of paying customersThe game for gaming companies is to increase customer acquisition, retention and monetization. This means

    getting more users to play, play more often and longer, and pay. First, analysts use Datameer to identify common

    characteristics of users. As a result, gaming companies can target these users better with the right advertising

    placement and content. To increase retention, analysts use Datameer to understand what gets a user to play

    longer. A user who plays longer and interacts with other players makes the overall gaming experience better. To

    increase monetization, analysts use Datameer to identify the group of users most likely to pay based on common

    characteristics. As a result of this analysis the company was able to double their revenue to over $100M.

    User Prole

    Game Event Logs

    32Big Data Analytics Buyers Guide

    Increase revenue by 2x

    Revenue2x

  • VALIDATE SOLUTION

    PREDICTIVE SUPPORTIdentify operational failure and address them before they are reported

    A couple of hours of downtime in a store or production environment means lost revenue, sometimes in the

    millions of dollars. The clues to where downtime may occur are spread across devices around a store or facility

    including WLAN controllers, mobile devices, routers and firewall devices. For this customer, these devices are

    used to run operations such as tracking inventory. Each network device generates enormous amounts of

    machine-generated data. By using Datameer to analyze all network data, this company was able to detect

    potential network failures faster. As a result, they were able to reduce the number of network failures by 30%.

    Store X

    Store Y

    Store Z

    33Big Data Analytics Buyers Guide

    Reduced network failure by 30%

    Failure30%

  • 34

    VALIDATION CRITERIA

    MARKET BASKET ANALYSIS ANDPRICING OPTIMIZATION

    Historical

    Inventory

    Pricing

    Transaction

    Analyze pricing and historical data to price and advertise effectively

    In retail, historical inventory, pricing and transaction data are spread across multiple devices and sources.

    Business users need to pull together this information to understand seasonality of products, come up with

    competitive pricing, determine which platforms to support so that their online users would have optimal

    performance, and where to target ads. With Datameer, these business users could do their analysis in 3 days

    instead of 12 weeks with their traditional tools and heavy IT involvement.

    Big Data Analytics Buyers Guide

    Report time from 12 weeks to 3 days

    12 weeksto

    3 days

  • 35

    VALIDATE SOLUTION

    PREDICT SECURITY THREATIdentify where security threats may occur

    The security landscape is always changing. So changes in behavior can indicate where the next attack may occur.

    For example, this company used Datameer to follow a virus that started in Russia, moved across Asia, to the US,

    and forcing Windows upgrades in its path. By seeing where the traffic was generated in particular geographic

    areas, they could predict where the next security threats would be. This enabled them to proactively go after the

    security threats and reduce the risk of a data breach, which on average costs organizations $5.5M.

    Feeds

    Log Files

    Firewall

    Big Data Analytics Buyers Guide

    Predict security threats within hours

    Predictthreat

  • 36

    VALIDATE SOLUTION

    FRAUD DETECTIONIdentify potential fraud

    Credit card fraud has changed. Instead of stealing a credit card and using it to buy big ticket items, some credit

    card thieves have become more sophisticated. For example, they can now making numerous, small transactions

    that are seemingly benign. But if Joe is making 100 $5 margarita transactions at various locations, something is

    wrong. By analyzing point of sale, geolocation, authorization, and transaction data with Datameer, this financial

    customer was able to identify fraud patterns in historical data. This analysis helped the firm identify $2B in fraud.

    By applying the fraud model to new transactions, the company was able to identify potential fraud and proactively

    notify customers.

    Point of Sale

    Geo-location

    Authorization

    Transaction

    Big Data Analytics Buyers Guide

    Prevented $2B in fraud

    Preventfraud

  • 37

    1. Have you defined your decision criteria?

    (See Decision Criteria for selecting a big data analytics solution p.6)

    2. Have you defined and identified your big data use cases?

    (See Decision Criteria for selecting a big data analytics solution p.8)

    3. Have qualified the solutions so that you have only one or two solutions to validate?

    (See Decision Criteria for selecting a big data analytics solution p.16)

    4. Have validated the solution and created the ROI/TCO to compare the solution?

    (See Decision Criteria for selecting a big data analytics solution p.8)

    KEY TAKEAWAYS

    If you have any questions or comments, please contact Karen Hsu [email protected]

    Big Data Analytics Buyers Guide