step by step – a process for building analytical insights

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The Briefing Room with Dr. Kirk Borne and Actian Live Webcast February 18, 2014 Watch the archive: https://bloorgroup.webex.com/bloorgroup/lsr.php?RCID=5be6631268cccc1e605b12b31b58ee08 Change is everywhere in the world of analytics these days, and not just due to Big Data. The maturation of parallel processing is transforming how data can be loaded, prepared and processed, which means the window of possibility has widened dramatically in terms of what can be done. This is good news for just about everyone, especially the dedicated business analyst, who can now accomplish in hours what used to take days or weeks. Register for this episode of The Briefing Room to hear Data Science luminary Dr. Kirk Borne of George Mason University, as he describes the changing landscape of analytics. He'll be briefed by John Santaferraro of Actian, who will tout his company's analytical platform. While Santaferraro gives his talk, he'll be accompanied by a data analyst who will walk through a demonstration of the various steps for building analytical solutions. Visit InsideAnlaysis.com for more information.

TRANSCRIPT

Page 1: Step by Step – A Process for Building Analytical Insights

Grab some coffee and enjoy the pre-show banter before the top of the hour!

Page 2: Step by Step – A Process for Building Analytical Insights

The Briefing Room

Step By Step – A Process for Building Analytical Insights

Page 3: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

Welcome

Host: Eric Kavanagh

[email protected] @eric_kavanagh

Page 4: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

!   Reveal the essential characteristics of enterprise software, good and bad

!   Provide a forum for detailed analysis of today’s innovative technologies

!   Give vendors a chance to explain their product to savvy analysts

!   Allow audience members to pose serious questions... and get answers!

Mission

Page 5: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

Topics

This Month: BIG DATA

March: CLOUD

April: BIG DATA

2014 Editorial Calendar at www.insideanalysis.com/webcasts/the-briefing-room

Page 6: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

Big Data

“In God we trust. All others must bring data.”

~W. Edwards Deming, Statistician

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Twitter Tag: #briefr

The Briefing Room

Analyst: Kirk Borne

Kirk Borne is a Transdisciplinary Data Scientist and an Astrophysicist. He is Professor of Astrophysics and Computational Science at George Mason University. He has been at Mason since 2003, where he does research, teaches, and advises students in the Data Science program. Previously, he spent nearly 20 years in positions supporting NASA projects, including an assignment as NASA's Data Archive Project Scientist for the Hubble Space Telescope, and as Project Manager in NASA's Space Science Data Operations Office. He has extensive experience in big data and data science and he is on the editorial boards of several scientific research journals and is an officer in several national and international professional societies devoted to data science, data mining, and statistics. He has published over 200 articles (research papers, conference papers, and book chapters), and given over 200 invited talks at conferences and universities worldwide.

@KirkDBorne http://kirkborne.net

Page 8: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

Actian

! Actian is a database and software development company

!   The Actian Analytics Platform connects to data and Big Data sources to perform actionable and advanced analytics

!   The platform is comprised of Actian DataFlow (formerly Pervasive DataRush), Actian Matrix (formerly ParAccel) and Actian Vector

Page 9: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

Guest: John Santaferraro

John Santaferraro is the Vice President of Product Marketing at Actian. Prior to joining Actian, Santaferraro was an independent industry analyst in the business intelligence and analytics market. Before that he developed and executed a vertical market strategy for Hewlett Packard's BI group, focusing on energy, communications, retail, healthcare and financial services; he was also instrumental in helping establish HP’s new BI business group with a combination of solutions, products and consulting. In 2000, John founded a marketing and sales consulting company, Ferraro Consulting, providing business acceleration strategy for technology companies.

Page 10: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  10

Suppor'ng  the  Data  Scien'st  Accelera'ng  Big  Data  2.0    John  Santaferraro  –  VP  of  Solu'ons  and  Product  Marke'ng  

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Confiden'al  ©  2014  Ac'an  Corpora'on  11

Only  the  Privileged  Excel  in  Big  Data  Analy'cs  

Data  

Value  

Page 12: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  12

The  “Moneyball”  Effect  

! Analy'cs  Go  Mainstream  ■ Major  League  Baseball  ■  Hire  the  best  team  

■ NSA  and  Big  Data  ■  ???????????????  

■  Target  and  Pregnancy  ■  Predic'ng  pregnancies  

Page 13: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  13

What  is  a  Data  Scien'st?  

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Confiden'al  ©  2014  Ac'an  Corpora'on  14

A  data  scien'st  “…incorporates  varying  elements  and  builds  on  

techniques  and  theories  from  many  fields,  including  mathema'cs,  

sta's'cs,  data  engineering,  paZern  recogni'on  and  learning,  advanced  compu'ng,  visualiza'on,  uncertainty  modeling,  data  warehousing,  and  high  performance  compu'ng  with  the  goal  of  extrac'ng  meaning  from  data  and  crea'ng  data  products.”  

What  is  a  Data  Scien'st?  

Created by Calvin Andrus, depicts a mash-up of disciplines from which Data Science is derived, 13 July 2012 http://en.wikipedia.org/wiki/Data_science

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Confiden'al  ©  2014  Ac'an  Corpora'on  15

Less  than  

20%  of  data  scien'sts  have  the  

data  and  compute  power  they  need  to  do  their  jobs  

The  average  data  scien'st  spends  

70%  of  their  'me  finding  data,  

manipula'ng  data,  and  wai'ng  for  queries  to  run  

Data  Science  Challenges  

15

More  than  

60%  of  all  data  scien'sts  working  Hadoop  are  s'll  trying  to  created  a  business  case  

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Confiden'al  ©  2014  Ac'an  Corpora'on  16

“A  business  scien'st  is  an  expert  in  the  science  of  business,  si]ng  between  the  business  analyst  and  the  data  scien'st,  pulling  together  cross-­‐

func'onal  exper'se  from  data  science,  analy'cs,  business  applica'ons,  business  processes,  and  

business  strategy.  

What  is  a  Business  Scien'st?  

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Confiden'al  ©  2014  Ac'an  Corpora'on  17

Business  Science  Skillset  

Understand How Analytics Work

Understand Emerging Data Types

Understand Business Operations & Strategy

Learn Quickly

Think Outside the Box

Tell Compelling Stories

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Confiden'al  ©  2014  Ac'an  Corpora'on  18

! Libraries  of  Analy'c  Func'ons  Run  at  Extreme  Speed  ■  Transforma'onal  Analy'cs  

■  Sta's'cal  Analy'cs  ■ Machine  Learning  Analy'cs  

■  Clustering  Analy'cs  ■  Discovery  Analy'cs  

! Visual  Framework  for  Data  Discovery,  Prepara'on  and  Analy'cs    ■  Drag  and  Drop  Interac'on    ■  Libraries  of  Data  Prepara'on  Operators  

■  Libraries  of  Analy'c  Operators  

■  High-­‐Performance,  Parallel  Processing  on  Hadoop  (or  other  file  systems)  

The  Tools  of  the  Business  Scien'st  

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Confiden'al  ©  2014  Ac'an  Corpora'on  19

The  Ac'an  Analy'cs  Pladorm:    Accelera'ng  Big  Data  2.0TM  

Extreme Agility

Extreme Scale

Extreme Performance

Actian Analytics PlatformTM

Analyze

Act

Connect

Actian Analytics Accelerators

Accelerate Hadoop

Accelerate Analytics

Accelerate Business

Intelligence

Enterprise

Applications Data Warehouse

Social

Internet of Things

SaaS

WWW Machine Data

Mobile World-Class Risk Management

Competitive Advantage

Customer Delight

Disruptive New Business Models NoSQL Traditional

Data Value

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Confiden'al  ©  2014  Ac'an  Corpora'on  20

Select From Libraries of Analytics

Exch

ange

Dat

a an

d W

orkl

oads

Hadoop Move Into a High

Performance Analytic

Engine for Low Latency

Connect to Any Data Source

Actian Analytics PlatformTM

Enterprise Data

Machine Data

Social Data

Business Processes

Users

Machines

Applications

Data Warehouse

Deliver A

nalytic Services

Manage Data Flows and Deliver Data Services

SaaS Data

Ac'an  Analy'cs  Pladorm:      The  High  Performance  Exoskeleton  for  Hadoop  

Amazon Redshift

Page 21: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  21

Actian AnalyticsTM

On

Dem

and

Inte

grat

ion

Hadoop Actian MatrixTM

Actian DataConnectTM

Actian Analytics PlatformTM

Enterprise Data

Machine Data

Social Data

Business Processes

Users

Machines

Applications

Data Warehouse

On D

emand

Analytic Services Actian VectorTM

Actian DataFlowTM

SaaS Data

•  Visual, drag and drop interface for all data management on Hadoop •  High performance data management and analytics natively on HDFS •  SQL access to Hadoop data for low latency analytics •  High speed data transfer across relational and non-relational

Ac'an  Analy'cs  Pladorm:      The  High  Performance  Exoskeleton  for  Hadoop  

Amazon Redshift

Page 22: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  22 Confidential © 2014 Actian Corporation 22

Ac)an  Analy)cs  Pla0orm  

Hadoop – Leader Node

Optimized, On-HDFS Processing

Query Pipelining

CPU Pipelining

Reuse and share all components from

operators to workflows

Optimize

Choose from five sets of operators: Connections

Transformation Data Quality

Analytics Data Science

Automatically detect resources, plan

optimal utilization, and parallelize all

workloads on Hadoop

Use dual pipeline parallelism to

accelerate performance 30X

Run fully optimized processing directly on the Hadoop node via

YARN

Take processing to where the data lives, runs natively on any Hadoop distribution

Visual Framework

Manage the entire analytic process in a visual framework with no coding required.

Ac'an  Analy'cs  Pladorm  –  High  Performance    Data  Management  and  Analy'cs  Na'vely  on  HDFS  

≠ ☼ ≡ ∞ ∆ ∑ √ ≈ ∑ = ? # ~ ‰

Page 23: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  23 Confidential © 2014 Actian Corporation 23

Ac'an  Analy'cs  Pladorm  –  High  Performance,  Low  Latency  Analy'cs  on  Hadoop  Data    

LEADER NODE

On-Demand Integration

Analytic Libraries

Optimizer

Orchestration

On-Demand Analytics

700+ in-database, analytic functions

Massively Parallel Columnar

Compressed Compiled

Connected

Node-to-node, bi-directional sharing of analytics & processes with Hadoop nodes

Serve up high-performance analytic

processing for any app

Connect to any data source at the point of

the query

Manage data flows across the entire analytic process

5 LEVELS OF OPTIMIZATION:

SQL Planning Execution

Communications Memory

H H H H

H H H H

H H H H

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Confiden'al  ©  2014  Ac'an  Corpora'on  24

Actian AnalyticsTM

Hadoop Actian MatrixTM

Actian DataConnectTM

Actian Analytics PlatformTM

Enterprise Data

Machine Data

Social Data

Business Processes

Users

Machines

Applications

Data Warehouse

On D

emand

Analytic Services

Actian DataFlowTM

SaaS Data

Ac'an  Analy'cs  Pladorm:    High  Speed  Interac'on  Between  Rela'onal  and  Non-­‐Rela'onal  

Amazon Redshift

On

Dem

and

Inte

grat

ion

Nod

e-to

-Nod

e C

onne

ctio

n

Page 25: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  25

Actian AnalyticsTM

Hadoop Actian MatrixTM

Actian DataConnectTM

Actian Analytics PlatformTM

Enterprise Data

Machine Data

Social Data

Business Processes

Users

Machines

Applications

Data Warehouse

On D

emand

Analytic Services

Actian DataFlowTM

SaaS Data

Ac'an  Analy'cs  Pladorm:    Deep  Integra'on  for  High  Performance  SQL  Analy'cs  

Amazon Redshift

On

Dem

and

Inte

grat

ion

HC

atal

og

Hiv

e

Page 26: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  26

Actian AnalyticsTM

Hadoop Actian MatrixTM

Actian DataConnectTM

Actian Analytics PlatformTM

Enterprise Data

Machine Data

Social Data

Business Processes

Users

Machines

Applications

Data Warehouse

On D

emand

Analytic Services

Actian DataFlowTM

SaaS Data

Ac'an  Analy'cs  Pladorm:    Deep  Integra'on  for  High  Performance  SQL  Analy'cs  

Amazon Redshift

On

Dem

and

Inte

grat

ion

SQL, Python,

Java

Page 27: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  27

Select From Libraries of Analytics

Exch

ange

Dat

a an

d W

orkl

oads

Hadoop Move Into a High

Performance Analytic

Engine for Low Latency

Connect to Any Data Source

Actian Analytics PlatformTM

Enterprise Data

Machine Data

Social Data

Business Processes

Users

Machines

Applications

Data Warehouse

Deliver A

nalytic Services

Manage Data Flows and Deliver Data Services

SaaS Data

Ac'an  Analy'cs  Pladorm:      The  High  Performance  Exoskeleton  for  Hadoop  

Amazon Redshift

Page 28: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  28

A  Tradi'onal  Approach  to  Churn  Analysis  

CRM

Account Info and Demographics

CONNECT ANALYZE ACT

LOGISTIC REGRESSION

LONG MODEL

TURNS

LIMITED MODEL INPUTS

MINIMUM

ACCURACY

GROUP DERIVE FIELDS CUSTOMER

CHURN PREDICTION

PRE-SET

VISUALIZATIONS

SMALL INCREASE IN

EXISTING CUST REVENUE

LIMITED HISTORICAL DATA

PULLS

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Confiden'al  ©  2014  Ac'an  Corpora'on  29

An  Enriched  Approach  to  Churn  Analysis  

CRM

Account Info and Demographics

JOIN

CONNECT ANALYZE ACT

AGGREGATE DECREASED PROVIDER

FEES

FILE PARSER

GEOSPATIAL NETWORK ANALYSIS

FAST NETWORK ISSUE ALERTS

CDR Logs

Customer and Network Call Quality

FILE PARSER

FILE PARSER

LOGISTIC REGRESSION

GROUP DERIVE FIELDS

CDR Logs

Geospatial Dimensions

JOIN GROUP DERIVE

FIELDS CUSTOMER

CHURN PREDICTION

WITH TARGETED CUSTOMER CONTACT

LIST

SIGNIFICANT INCREASE IN

EXISTING CUST REVENUE

Device Data

Mobile Device Mgmt

SFDC Event Filter

IMPROVED INDUSTRY CUST SATISFACTION

SCORES

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Confiden'al  ©  2014  Ac'an  Corpora'on  30

An  Expanding  Approach  to  Churn  Analysis  

CRM

Account Info and Demographics

JOIN

CONNECT ANALYZE ACT

AGGREGATE DECREASED PROVIDER

FEES

FILE PARSER

GEOSPATIAL NETWORK ANALYSIS

FAST NETWORK ISSUE ALERTS CDR Logs

Customer and Network Call Quality

FILE PARSER

FILE PARSER

LOGISTIC REGRESSION

GROUP DERIVE FIELDS

CDR Logs

Geospatial Dimensions

JOIN GROUP DERIVE

FIELDS CUSTOMER

CHURN PREDICTION

WITH TARGETED CUSTOMER CONTACT

LIST

SIGNIFICANT INCREASE IN

EXISTING CUST REVENUE

Device Data

Mobile Device Mgmt

SFDC Event

Filter

IMPROVED CUSTOMER

SATISFACTION SCORES

MARKET DATA

Competitive Offerings

FILE PARSER

Page 31: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  31

Actian AnalyticsTM

Hadoop Actian MatrixTM

Actian DataConnectTM

Actian Analytics PlatformTM

Enterprise Data

Machine Data

Social Data

Business Processes

Users

Machines

Applications

Data Warehouse

On D

emand

Analytic Services

Actian DataFlowTM

SaaS Data

Ques'ons  

Amazon Redshift

On

Dem

and

Inte

grat

ion

SQL, Python,

Java

Page 32: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  32

www.ac'an.com    facebook.com/ac'ancorp    @ac'ancorp    

Thank  You  

Page 33: Step by Step – A Process for Building Analytical Insights

Confiden'al  ©  2014  Ac'an  Corpora'on  33

This  document  is  for  informa'onal  purposes  only  and  is  subject  to  change  at  any  'me  without  no'ce.  The  informa'on  in  this  document  is  proprietary  to  Ac'an  and  no  part  of  this  document  may  be  reproduced,  copied,  or  transmiZed  in  any  form  or  for  any  purpose  without  the  express  prior  wriZen  permission  of  Ac'an.    This  document  is  not  intended  to  be  binding  upon  Ac'an  to  any  par'cular  course  of  business,  pricing,  product  strategy,  and/or  development.  Ac'an  assumes  no  responsibility  for  errors  or  omissions  in  this  document.  Ac'an  shall  have  no  liability  for  damages  of  any  kind  including  without  limita'on  direct,  special,  indirect,  or  consequen'al  damages  that  may  result  from  the  use  of  these  materials.  Ac'an  does  not  warrant  the  accuracy  or  completeness  of  the  informa'on,  text,  graphics,  links,  or  other  items  contained  within  this  material.  This  document  is  provided  without  a  warranty  of  any  kind,  either  express  or  implied,  including  but  not  limited  to  the  implied  warran'es  of  merchantability,  fitness  for  a  par'cular  purpose,  or  non-­‐infringement.  

Disclaimer  

Page 34: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

Perceptions & Questions

Analyst: Kirk Borne

Page 35: Step by Step – A Process for Building Analytical Insights

Kirk Borne @KirkDBorne

School of Physics, Astronomy, & Computational Sciences College of Science, George Mason University, Fairfax, VA

Data Science for Everything

Page 36: Step by Step – A Process for Building Analytical Insights

Let us start with a Big Data Quiz … Complete this sentence: Big Data is … a)  the new oil. b)  the new black. c)  the new bacon. d)  sexy. e)  everything, quantified and tracked! f)  All of the above

Page 37: Step by Step – A Process for Building Analytical Insights

Definitions of Big Data From Wikipedia: •  Big Data refers to any

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. 

.

My suggestion: •  Big Data refers to

“Everything, Quantified and Tracked!”

•  Examples: –  Smart Cities –  Retail Analytics –  Personalized Healthcare (myDNA) –  Cybersecurity – National Security –  Big Data Science Projects –  Social Networks –  IoT = Internet of Things – M2M = Machine-to-Machine – … everything!

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•  If we collect a thorough set of parameters (high-dimensional data) for a complete set of items within our domain of study, then we would have a “perfect” statistical model for that domain.

•  In other words, Big Data becomes the model for a domain X = we call this X-informatics.

• Anything we want to know about that domain is specified and encoded within the data.

• The goal of Big Data Science is to find those encodings, patterns, and knowledge nuggets.

•  See article by IBM’s James Kobielus: “Big-Data Vision? Whole-population analytics” at http://bit.ly/QB0uYi

Rationale for Big Data Science

Page 39: Step by Step – A Process for Building Analytical Insights

Characterizing and Exposing the Big Data Hype: 3 V’s or ?

n  If the only distinguishing characteristic was that we have lots of data, we would call it “Lots of Data” (or a Tonnabytes!)

n  Big Data characteristics: the 3+n V’s = 1.  Volume (lots of data = “Tonnabytes”) 2.  Variety (complexity, curse of dimensionality, many formats) 3.  Velocity (high rate of data and information flow, real-time, incoming!) 4.  Veracity (necessary & sufficient data to test many hypotheses) 5.  Value

6.  Variability 7.  Venue 8.  Vocabulary

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The Data Scientist toolkit n  It is a collection of mathematical, computational, scientific,

and domain-specific methods, tools, and algorithms to be applied to Big Data for discovery, decision support, and data-to-knowledge transformation:… n  Statistics n  Data Mining (Machine Learning) & Analytics (KDD) n  Data & Information Visualization n  Semantics (Natural Language Processing, Ontologies) n  Data-intensive Computing (e.g., Hadoop, Cloud, …) n  Modeling & Simulation n  Metadata for Indexing, Search, & Retrieval n  Advanced Data Management & Data Structures n  Domain-Specific Data Analysis Tools

40

Page 41: Step by Step – A Process for Building Analytical Insights

1. Begin with the end in mind (= goal-based, data-driven decision making, “knowledge discovery by design”)

2. Data Science is Science (= hypothesis testing, and all that) 3. Know thy data (= data profiling, unsupervised exploration) 4. Love thy data (= including ugly data: skewed distributions,

outliers, long & fat tails) 5. Overfitting is a sin (= “models should be as simple as possible,

but no simpler” ~ A.Einstein) 6. Honor thy data’s first mile and last mile (a) The First Mile is the hardest.

(ubiquitous heterogeneous data) (b) The Last Mile is the hardest.

(actionable intelligence)

The 6 Commandments of Data Science (Based on “The 5 Fundamental Concepts of Data Science” :

http://www.statisticsviews.com/details/feature/5459931/Five-Fundamental-Concepts-of-Data-Science.html)

http://www.datagovernance.com/cartoon_17.html

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Questions to Actian Corporation: 1. Most things in the world that are labeled “2.0” typically enable some sort of social

experience or social networking characteristic. How is ‘Big Data 2.0’ like that, and how is it different?

2. You talk about Unconstrained Analytics. That sounds like “Data Science Unleashed” – is that a reasonable analogy? How so?

3. How important are visual cues and visual analytics in Actian’s Big Data 2.0 design and implementation? And how have you incorporated them?

4.  I/O bottlenecks (for data access and movement) are typically the most severe technological constraints in Big Data. How does Actian manage the big constraints imposed by big data inertia?

5. Data Science is truly science insofar as it involves hypothesis generation, experimental design, testing, analysis, and hypothesis refinement – what are some of the unique ways that Actian empowers and enables a data scientist to perform different steps in this process?

6. One solution to the Big Data and Data Scientist talent gap is to put powerful tools into schools and into the hands of students, and/or to provide financial incentives to students (e.g., scholarships). Is Actian planning any university programs like that?

7.  Some say that Big Data 3.0 will be based on the semantics, context, and meaning of data – does Actian have goals or a vision in this direction?

8. What do you see as the next evolutionary step in Big Data Science?

Page 43: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

Page 44: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

Upcoming Topics

www.insideanalysis.com

2014 Editorial Calendar at www.insideanalysis.com/webcasts/the-briefing-room

This Month: BIG DATA

March: CLOUD

April: BIG DATA

Page 45: Step by Step – A Process for Building Analytical Insights

Twitter Tag: #briefr

The Briefing Room

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