the business of big data (ia ventures)
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TRANSCRIPT
The Business of BIG DATA
General Assembly September 14th, 2011
What we’ll cover
What we’ll cover
1. What is Big Data?
2. Characteristics of a Big Data business
3. Creating competitive barriers in Big Data
What we’ll cover
1. What is Big Data?
2. Characteristics of a Big Data business
3. Creating competitive barriers in Big Data
What we’ll cover
1. What is Big Data?
2. Characteristics of a Big Data business
3. Creating competitive barriers in Big Data
What we’ll cover
1. What is Big Data?
2. Characteristics of a Big Data business
3. Creating competitive barriers in Big Data
4. The Big Data team
Why now?
There were 5 exabytes of information created between the dawn of civilization through 2003, but that much information is now created every 2 days, and the pace is increasing
Eric Schmidt, Google CEO, Techonomy Conference, August 4, 2010
Why now?
Data is becoming the new raw material of business: an economic input almost on a par with capital and labour. “Every day I wake up and ask, ‘how can I flow data better, manage data better, analyse data better?” says Rollin Ford, the CIO of Wal-Mart.
Source: Data, Data Everywhere, The Economist, February 25, 2010
There were 5 exabytes of information created between the dawn of civilization through 2003, but that much information is now created every 2 days, and the pace is increasing
Eric Schmidt, Google CEO, Techonomy Conference, August 4, 2010
Why now?
Source: Mike Driscoll, CTO Metamarkets: The Three Sexy Skills of Data Scientists (& Data Driven Startups)
Source: Mike Driscoll, CTO Metamarkets: The Three Sexy Skills of Data Scientists (& Data Driven Startups)
What is Big Data?
Big Data = Complex Data
Large
Real-time
Large• Billions of
web clicks+1TB
• Millions of web pages
10GB-1TB
• Thousands of Sales figures
<10GB
Real-time
So what is a Big Data company?
A Big Data company unlocks intelligence from
complex data
IA Ventures invests in early-stage companies unlocking intelligence from complex data
history of big data
Search Engine
Search Engine
Crawl the web
Query
Search Engine
Crawl the web
Query
Storage
Computation
StorageComputation
StorageComputation
StorageComputation
Distributed
Distributed Storage
Distributed Computation
Map Reduce Big Table
Distributed Storage
Distributed Computation
Map Reduce Big TableHadoop HBase
Distributed Storage
Distributed Computation
Distributed Storage
Distributed Computation
So you want to start a big data company?
What is a Big Data Company
Do Smart Stuff
Source Data
Product
Your
Dat
aO
ther
s D
ata
Data-driven Product
Landscape
Data Product
Sour
ce o
f Dat
a
Final Product
Your
Dat
aO
ther
s D
ata
Data-driven Product
Landscape
Data Product
Sour
ce o
f Dat
a
Final Product
Data Only From Your Platform
Hybrid
Data Only From Others Platforms
Your
Dat
aO
ther
s D
ata
Data-driven Product
Landscape
Data Product
Sour
ce o
f Dat
a
Final Product
Sell Data Directly Sell Insight Sell Product
Your
Dat
aO
ther
s D
ata
Data-driven Product
Landscape
Data Product
Sour
ce o
f Dat
a
Final Product
Moats
Competitive Barriers
Data Network Effects
Competitive Barriers
Data Network Effects Data Economies of Scale
Competitive Barriers
Network Effects
Traditionally think of….
‘Network graphs’
Network Effects
Traditionally think of….
‘Network graphs’
Marketplaces
Network Effects
No network effects
Within the data eco-system…
Data Network Effects
Within the data eco-system…
Data Network Effects
Within the data eco-system…
Economies of Scale
Traditionally think of….
Data Economies of Scale
1. Product
2. Users
3. Data
4. Product evolves
5. Increased user engagement and more data
Within the data eco-system…
Data Economies of Scale
1. Product
2. Users
3. Data
4. Product evolves
5. Increased user engagement and more data
Within the data eco-system…
Big Data Team
Big Data Team
Data science Scalable distributed architectures
Big Data TeamData DNA
Thank you!
Ben Siscovick@bsiscovick
Brad Gillespie@bradgillespie