Académique Documents
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DRAFT
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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ATL
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ATL
Basic
analytics
Very large
data volume
A lot of data
(>terabytes), e.g.
- Transaction data
- Personalization
data
- Sensor data
- Machine to
machine logs
- Many years of
data sets
Traditional
analytics
Analytical
complexity
Large number of
variables and steps
required to
parameterize a
question/problem
Advanced statistical
methods and tools
Lack of right/
wrong, fuzzy logic
Advanced
analytics
Complex
data sets
BigData
Lots of unstructured
data: hard to sort,
evaluate or
compare (e.g.
language, sound
recordings, images,
video from social
media)
High velocity
of analytics
Incomplete data,
low data quality or
consistency
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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ATL
Talent
Quality, consistent
data stored in a
manner that is easy
to access
Data
Intent
Tools
ATL
Analytical tools
Lack of systems
to capture data
56% of companies
Lack of
technology to
store and access
data: 47% of
companies
Lack capabilities
to develop data
driven insights:
56% of companies
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ATL
LEGAL
BUSINESS
ENGINEERING
DATA
Critical role
Data
scientists
Role description
Generate ideas, insights, and
questions to be tested
Synthesize conclusions using
business, statistics, and
programming expertise
DATA
(20-25, ~30%)
ENGINEERING
(30-35, ~45%)
Legal
BUSINESS
LEGAL
(10-12, ~15%)
(5-10, ~10%)
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Agenda
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Range
Basic
Traditional
Advanced
Big Data
Healthcare
Payers
Humana/
Anvita
Emory
Providers
Pharma
Retail
Brick & Mortar
Home Depot
Wal-Mart
E-Commerce
Amazon
Financial services
USAA/
CapitalOne
Retail Banking
Retail Insurance
Personal Fin. Software
Progressive/
GEICO/USAA
Mint
TMT
Apple/
Google
Tech
Newspapers
TV
Weather Co.
Netflix
Southern Co.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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10
Impact
Allstate is
seeking to
improve its
analytic
capabilities by
acquiring
Esurance
Low
Basic
analytics
Low
Traditional
analytics
Advanced
analytics
Big Data
High
Data capabilities
ATL
11
Improve
internal
processes
Uses analytics to
find unexpected
product
relationships that
improve sales (e.g.,
beer next to diapers)
Improve
existing
products or
services
Maximizes
engagement by
selecting the optimal
time to send
messages on behalf
of its customers
Build new
offerings
Transform
business model
Detects phone
fraud in near realtime using audioanalysis and a
proprietary
fraudster database
Uses plug-in
devices to track
driver behavior and
proactively select
its customer base
Uses predictive
analytics to direct
preventative care,
making it profitable
to serve sick
patients
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12
Accelerate
Wave 1
1
Ease of Execution
Highest potential
opportunities to be
turbo-charged by
center
Improve
existing
products/
services
Transform/amend
business model
Low
Low
Opportunity Value
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Hi
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13
USER
Digital activity
Real world activity
Communications &
social presence
Content
Financial data
SOURCES OF DATA
PRODUCTS:
Hardware & Devices
TYPES OF DATA
Health data
Device interactions
Product status data
Manufacturing
Logistics
Sales
Marketing
Finance
TV
Computer
Tablet
Mobile
Photo camera
Music player
Home appliance
Operating System
SERVICES:
Software & Systems
ENTERPRISE
MACHINE
Institutional data
Search
Browsers & App Store
Maps
Voice
Mail, Calendar,
Contacts
Media
Storage
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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14
Sources of data
Products: Hardware & Device
PC/
Computer
laptop
Types of data
User
TV
Photo
Camera
cameras
Smart
M
obile
phone
Tablet
M
usic
Music
player
players
Operating
system
Browsers/
Content
SVC/
SW
App store
Search
M aps
Storage
Declared identity
Interests
Relatio nships
Lo catio n
P eo ple
Objects
Events
B ro wser activity
So cial activity
Context
awareness
improves
2
2
2
search
2
2and advertising
2
2
Text
Speech
So cial M edia
P resence
P hysical go o ds interactio n
Co nsumed media
Virtual go o ds
Financial data
A cademic data
1
1
Machine
M edia
P rivate do cuments
Device status
Failure causes
M anufacturing
Lo gistics
Sales
M arketing
Finance
Enterprise
M
ail,
Mail/
calendar,
contact/
calendar
contacts
Voice
Browser,
OS, and
App
store
activity
2
2
2
2
2
2
allows
Google
2
2
2 to improve
2
2 search,
2
2
2
2
2
2
2
optimize advertising, create new
2
2
2
2
2
2
services
(trends,
etc.)
2
2
2
2
2
2
2
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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15
Sources of data
Products: Hardware & Device
PC/
Computer
laptop
User
TV
M
usic
Music
player
players
Home
appliance
Operating
system
M
ail,
Mail/
calendar,
contact/
calendar
contacts
Voice
M edia
Storage
Declared identity
Interests
Relatio nships
Lo catio n
P eo ple
Objects
Events
B ro wser activity
So cial activity
P hysical go o ds interactio n
Text
Speech
P rivate do cuments
Co nsumed media
2
2
Mobile context
2
2
awareness and
2
2
recommendation
2
2
engine
2
1
3
Virtual go o ds
Financial data
Device hardware
and enterprise data
2
1
1
A cademic data
Machine
M aps
P resence
Device status
Failure causes
M anufacturing
Lo gistics
Sales
M arketing
Finance
Enterprise
Browsers/
Content
SVC/
SW
App store
Search
So cial M edia
Types of data
Photo
Camera
cameras
Smart
M
obile
phone
Tablet
Home
appliance,
2
sensor based
identity and
presence data
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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16
Shoppers
Consumers
Parents
Socializers
Seniors
Businesses
Gov/Law Enf
Kid-friendly
social media
Mobile
monitoring for
health/safety
Kid-friendly
social media
In-pharmacy
push reminders
at POS
Transport
Education
Strategy
Marketing
Mobility BU
TV BU
Media BU
IT BU
Plagiarism
detection/
prevention
Invest in content
that align with
customer
preferences
Adapt/update
segmentation in
real-time
Auto-alerts of
positive/negative
reviews
Closed-loop
feedback on device
performance
Understand
customer viewing
habits
Shopping
Digital
content
Emergency
notifications
Track
bottlenecks to
improve routes
Geo/map
Market
alerts
Local health
warnings
Marketers
Calendar-linked
special offers
Financial
Event
location/
landmark
mapping
Automated
news sharing
Enable
unmanned
vehicles
Reviews
News/ent
Travel
Price alerts on
holiday gifts
Healthcare
Fin Svcs
Client
Local deals
Travelers
Professionals
Data users
Updates when
kids/seniors
leave/arrive home
Children
Students
Partner/supplier generated
Demographics
Device
problems
Home
control
Energy
related
Travel
related
Retail/
Inventory
Advertising
/ media
Service/
mtce
Machine generated
Rich media
Browsing
Purchasing
Search
history
Calendar
Time
Transform business
Location
New offerings
Social
User generated
Improve products
Weather
Internal processes
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Determine customer
sources and
geographic radius
Identify
manufacturing
process defects
ATL
17
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ATL
18
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ATL
19
SOURCES OF DATA
Products
SOURCES OF DATA
Services
Products
i1
SOURCES OF DATA
Services
Products
G1
User
Mach
Ent.
Ent.
Ent.
TYPES OF DATA
User
G2
Mach
TYPES OF DATA
User
i2
Mach
TYPES OF DATA
i2
Services
a1
a2
3
3
3
i2
G1
G2
Powerful context
awareness engine
improves search and
advertising
Mail and calendar
capabilities enable
Google to mine interests,
relationships, and events
for advertising purposes
a1
a2
Deep expertise in
logistics has become an
important source of
customer-facing
differentiation
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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20
Sources of data
Products: Hardware & Device
PC/
Computer
laptop
TV
Home
appliance
Operating
system
Search
Browsers/
Content
SVC/
SW
App store
M aps
Declared identity
Interests
Relatio nships
Lo catio n
P eo ple
Objects
Events
2
1
2
Apple
differentiates
its industryApple
differentiates
with
2
2
2
2
leading products with seamless
1
1
1
seamlessintegration
verticalofintegration
services 2
2
User
M
usic
Music
player
players
B ro wser activity
Types of data
Photo
Camera
cameras
Smart
M
obile
phone
Tablet
Voice
M edia
its
across
devices, content and services
2
2
Storage
1
1
So cial activity
P hysical go o ds interactio n
Speech
So cial M edia
P resence
Text
P rivate do cuments
Co nsumed media
Financial data
Digital reco rds o f phys. Go o ds
Virtual go o ds
Health care data
Health insurance data
Machine
Device status
Failure causes
2
2
M anufacturing
Lo gistics
Enterprise
Sales
M arketing
Finance
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ATL
21
Sources of data
Products: Hardware & Device
PC/
Computer
laptop
Enterprise
Machine
Types of data
User
TV
Photo
Camera
cameras
MSmart
obile
phone
Tablet
M
usic
Music
player
players
Operating
system
Browsers/
Content
SVC/
SW
App store
Search
M aps
M ail,
Mail/
calendar,
contact/
calendar
contacts
Voice
M edia
Storage
Declared identity
2
1
Interests
Relatio nships
Lo catio n
P eo ple
Objects
Events
B ro wser activity
So cial activity
P hysical go o ds interactio n
Text
Speech
So cial M edia
0
Data
collected
Data
collected for
0
from
all aspects of
recommendation
0
business
to drive
0
from
all aspects of
recommendation
0
business
engine
0
P resence
P rivate do cuments
Co nsumed media
Financial data
Virtual go o ds
Go vernment data
A cademic data
Device status
Failure causes
M anufacturing
Lo gistics
Deep expertise in
0
0
logistics
has become
an
0
0
0
important
source
of 0
0
0
differentiation
0
0
0
0
Little0 manufacturing
0
data
0
0
0
3
1
Sales
M arketing
Finance
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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22
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23
Other
Other
80
$10Bn or more
Other Mfg.
60
40
$5Bn to $10Bn
$1Bn to $5Bn
20
Financial
Intermediation
Manager
North America
Head of
department
Head of
business unit
Tech, Telco
Services, Telco
Manufacturing
SVP/VP/
Director
Europe
<$1Bn
Company size
(global revenues)
Industry
Respondent
geography
Note: N=409
Source: Bain Big Data Diagnostic Survey
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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24
Intent:
- Respondents were asked to indicated their level of
agreement with the statement We have a clearly
defined strategy for how to use big data effectively
- Respondents that answered strongly agree were
considered to have this capability
Talent:
- Respondents were asked to assess the statement We
lack a dedicated data insight team as a major, minor
or not a reason that they were not more effective
- Respondents who marked not a reason were
considered as having this capability
Data:
- Respondents were asked to indicated their level of
agreement with the statement We have high quality,
consistent data within our organization
- Respondents that answered strongly agree were
considered to have this capability
Tools:
- Respondents were shown a list of analytics tools and
asked which were used within their organization
- Those that selected Advanced analytics tools (e.g.,
HPCC, Hadoop or NoSQL) and Automated cleaning
tools/algorithms were considered to have this capability
Source: Bain Survey, N=409
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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25
38
36
30
20
23
Top
Performers
19
High
10
Medium
0
Low
Org strategy
Talent
Tools
Data
ATL
26
40
36
22
20
Average = 25%
16
Bottom feeders
Low
Medium
High
Top perfomers
ATL
27
ATL
28
38
40
30
25
20
Average
10
10
Bottom feeders
Low
Medium
High
Top Performers
ATL
29
40
37
27
20
Average
19
Bottom feeders
Low
Medium
High
Top Performers
Note: Very frequently defined as 6 times are more in the past 12 months
Source: Bain Survey, N=409
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ATL
30
Top performers:
0%
Average
ATL
31
Average
Data
Tech
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Business
ATL
32
Basic
Traditional
Advanced
Big Data
As issues
arise
As issues
arise
Regularly
Daily
Business roles
Business manager
Business analyst
IT roles
Database manager
Infrastructure manager
and architect
Programmer
Data roles
Data analyst
Statistician
Data scientist
Interaction across
functions
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33
Data scientists
Tech expertise
Generate hypotheses,
business insights, and
questions to test
Business acumen
Validate hypotheses are
actionable, relevant and
aligned with business
priorities
Drive prioritization of
initiatives
Coordinate access to COE
resources (including data
and personnel)
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34
Low
Med.
Service
R&D
Manufact.
Logistics
Marketing
Sales
Also: Product
development
Also:
Production,
Generation
Also:
Distribution,
Network ops
Also: Pricing,
Customer
segmenting
Also: Front
Office, Client
management
High
Back office
Also: Customer
Also: Risk
experience,
management
repairs, claims
Industries
Healthcare
Payers
Providers
Pharma
Retail
Financial services
Retail banking
Personal insurance
Commercial insurance
Personal fin. Software
TMT
Tech
Newspapers
TV
OTT providers
Telecom
Energy/Industrials
Electricity distribution
Electricity retail
Source: Expert Interviews
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ATL
35
Make It Easy:
Provide Analytic Offerings
to Facilitate Creating
Impactful Insights for
customers
Typical internal
use cases:
Personalized
product and
service
offerings
Stuck
in the
middle?
Predictive
maintenance
Supply chain
optimization
Make It Strategic:
Drive Internal Value
from Data Through
Advanced Analytics
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ATL
36
Home Depot
Weather
Company
Detailed
search of
leading
hospitals for
Big Data didnt
turn up any
mentions of
Emory
Several articles
mentioned
Home Depot
using Big Data
to improve
performance
without
growing stores
Search for
Emory and Big
Data turned up
a partnership
with IBM to
pilot predictive
medical care
through realtime analytics
Differentiated
pricing
capabilities
were credited
for much of
this
Independently
verified a
general
understanding
of the
conversation
we had with
their
leadership
team
Since this is
experimental, I
triangulated
Acquisition of
Black Locus in
2012 is the
source of
pricing
capabilities
While dynamic
pricing is
mentioned, its
likely not realtime
Southern
Company
MailChimp
Found some
evidence of
them using
predictive
analytics to
improve
customer
collection
Email
marketing
company
based in
Atlanta with a
web-based app
for small
businesses
Discussed this
with folks close
to the client
who said that
they are
relatively close
to the median
within the
industry, if not
lagging a little
Provides small
businesses
with several
data based
services
Triangulated a
bit generously
This services
analyzes the
most effective
time to send
emails based
on individual
user habits
and their
larger data set
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ATL
Pindrop
Security
This is Rajs
company
Read through
their website
to understand
their products
Settled in on
their fraud
detection
product, which
uses that
audio finger
print of a
particular call,
combined with
the expected
footprint and
their
proprietary
fraudster
database to
determine
fraud likelihood
in ~15
seconds
37
Linear
Logistic
Quantile
Poisson
Polynomial
Nonparametric
y=aixi
Structured
Clean
Well designed and actively collected
Data now
o
o
o
o
Unstructured
Dirty
Passively collected
Exchange agencies
Unstructured Data
Text
Clickstream
Buying history
Location
Images
Weblogs
UPS shipment traffic
etc
Google
Netflix
Amazon
Online Ad companies
Scaling issues
1. Storage
2. Management
a.
b.
Querying
Joining
3. Solver
a.
b.
Training
Eliminate redundant variables
Scaling Solutions
Interactions
Linear models are good but they might be
insufficient
For example user recommendations
Given historical user-movie ratings predict
new ratings
user_rating= ai *user + bi*movie
This approach doesnt work
Similar Items
Back to regression
Wouldnt be nice if we could use the pairwise
interactions in high-dimensional regression?
y=aixi+bijxixj ????
b is k x k
For k=1M b is ~1B !!!!
k
k
d
b