data analytics and big data - actuaries institute · “data scientist”: the sexiest job of the...

© 2012 The Quantium Group Pty Ltd. In Commercial Confidence

Data Analytics and Big Data

Young Actuaries Program - Wider Fields and Broader Horizons

November 2012

© 2012 The Quantium Group Pty Ltd. In Commercial Confidence 2

Information is beautiful – David McCandless


Advantage for lefties

Source: Information is Beautiful – David McCandless

26%

wealthier


Career IQs

150

stupidly clever

gifted

above average

Sharon Stone

Stephen Hawking

140

130

120

110

Senior Politician

Doctor

Lawyer

Accountant

Estate Agent average Source: Information is Beautiful – David McCandless



5



6

© 2012 The Quantium Group Pty Ltd. In Commercial Confidence © 2012 The Quantium Group Pty Ltd. In commercial confidence 7

The use of Big Data will drive new wave of growth


There is more media

content created each day

in 2011 than in all of the

years from the dawn of

time until 2008.

Eric Schmidt

CEO, Google


We probably haven't heard the

name of what will be the world's

largest company in 2020.

Rupert Murdoch


Big Data has 3 Keys

© 2012 The Quantium Group Pty Ltd. In Commercial Confidence © 2012 The Quantium Group Pty Ltd. In commercial confidence

Finding the right way to extract value from big data will be

an industry in itself

A further 1.5 million analysts are needed to interpret and

action the results

US government announced a $200m ‘Big Data R&D

initiative’ to make better sense of the mountains of data

being created and collected

11

Expansion of demand - 190,000 people with deep

analytical skills are needed in the USA alone


12

Big data will revolutionise all aspects of society


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14


Who is Quantium?

15

Quantium is Australia’s leading

data-driven strategy consultancy

As actuaries we help businesses build value by using data to drive

innovation, customer engagement and business performance


Harvard business review profiles the “Data Scientist”

16

“The Sexiest

Job of the

21st Century”


“Data Scientist”: The Sexiest Job of the 21st Century

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“ What abilities

make a data scientist

successful? Think of

him or her as a hybrid

of a data hacker, analyst,

communicator and

trusted advisor. The

combination is extremely

powerful – and rare ”



18

Harvard Business Review identifies data scientists as those who:

make discoveries while

swimming in data –

indeed, it’s their preferred

method of navigating the

world around them

advise executives

and product managers

on the implications

of the data for

products, processes

and decisions

are creative in displaying

information visually and in

making the patterns they

find clear and compelling

can join together rich data

sources, clean the data,

and confidently work

with incomplete data

have an intense

curiosity to go beneath

the surface of a

problem, find the

questions at heart, and

distill them into a very

clear set of hypotheses

that can be tested

are able to bring structure

to large quantities of

formless data and make

analysis possible


The Actuarial “Data Scientist” Skill Set

Analytics

Data Business



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Big data – Creating a holistic customer view


Actuaries produce the NAB Online Retail Sales Index

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… and the NAB Charitable Giving Index

23


Actuarial models combined with Market Blueprint® big data

creates “People Like U”

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Demonstration: UBank’s ‘People Like U’ allows Australians to profile

their spend behaviour in various categories against similar people…



25


Australian retail : a 2 speed economy?

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Jan

-20

11

Feb

-201

1

Ma

r-20

11

Ap

r-2

01

1

Ma

y-2

011

Jun

-20

11

Jul-

20

11

Au

g-2

011

Sep

-201

1

Oct

-20

11

No

v-2

011

De

c-20

11

Jan

-20

12

Feb

-201

2

Ma

r-20

12

Ap

r-2

01

2

Ma

y-2

012

Jun

-20

12

Jul-

20

12

Au

g-2

012

Year on Year Growth

Bricks & Mortar Online

Year on Year Retail Growth

Source:


-

50

100

150

200

250

.

2010 2011 2012

Ind

ex

ed

Mu

sic

, M

ov

ie a

nd

Bo

ok

s S

ale

s

(10

0 =

Ov

era

ll S

ale

s in

Ja

nu

ary

20

10

)

Online Spend Offline Spend Overall Spend

Music, Movies and Books Sales

Online Music, Movies and Books sales have overtaken

traditional offline sales

27

24%

In less than a

decade, online

music, movies

and books

overtakes total

bricks and

mortar sales 140%

-34%

Source:


0%

5%

10%

15%

20%

25%

30%

35%

Overseas online purchases – a substantial threat?

Proportion of Online Spend Going Overseas

Source:

3 4 5 6 7 8 9 10 11 12 1 2 3 4

2011 2012

International


“Cyber Monday” – 10m US shoppers spend $1.2bn in 24 hours


Despite publicised crashes, there was still a massive increase in

sales volumes for participating brands during Click Frenzy

-

50

100

150

200

250

300

350

19:0

0

21:0

0

23:0

0

1:0

0

3:0

0

5:0

0

7:0

0

9:0

0

11:0

0

13:0

0

15:0

0

17:0

0

19:0

0

21:0

0

23:0

0

1:0

0

3:0

0

5:0

0

7:0

0

9:0

0

11:0

0

13:0

0

15:0

0

17:0

0

19:0

0

21:0

0

23:0

0

Nov 19 Nov 20 Nov 21

Ind

exed

Tra

nsacti

on

s O

nlin

e100 =

7p

m N

ovem

ber

19

Non-participating brands Participating brands

Indexed Transactions Online

Source:


#ClickFail?

31

Spend Per Capita on Click Frenzy Frenzy brands generated sales 2.5 times

more than their previous biggest day ever

“Halo effect” – non-participating brands

experienced a 30% uplift in their online sales

1 in 10 Click Frenzy shoppers shopped

more than once, with nearly half of them

shopping across multiple categories

Almost half of the spend by Click Frenzy

shoppers under 20 was on fashion

Over a quarter of the spend by Click Frenzy

shoppers over 60 was on liquor Source:


The Actuarial “Data Scientist” Skill Set

Analytics

Data Business



33

“ Big data shows no signs

of slowing. If companies

sit out this trend’s early days

for lack of talent, they risk falling

behind as competitors and

channel partners gain nearly

unassailable advantages.

Think of big data as an epic

wave gathering now, starting

to crest. If you want to

catch it, you need people

who can surf ”


Thank you

Wade Tubman

[email protected]

0424 079 544



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