Big Data A new era or just a temporary hype? Thomas Richard HaasData MiningSpring term 2014

Agenda A Keeping a close eye on Big Data - Growing amount of data - Definition and Characteristics B What does Big Data provide? - Some techniques and technologies - Challenges for management and IT - How Wal-Mart learns about their customers C Quo Vadis Big Data? D Literature 2

A Keeping a close eye on Big Data Growing amount of data 2.4 billion people with internet access 2012 Web 2.0 RFID Computational performance 22% use a smartphone “From the beginning of human until the mid of the 2000s, People produced information about five Exabyte’s. Today, 2.5 Exabyte’s are produced – per day!” (Eric Schmitt, ex-CEO of Google, quoted in Smolan & Erwitt, 2012) Industry 4.0 3

A Keeping a close eye on Big Data Definition and Characteristics The data is generated and stored by a lot of different systems and sources, empowered by the access to customer data, web communities and newly deployed assets. (in Bughin et al. 2010) “[…] explosion of mobile networks, cloud computing and new technologies.” (Bollier 2010) VolumeVarietyVelocity 4

B What does Big Data provide? Some techniques and technologies Association Rule Learning  Find relationships  Market basket analysis Machine Learning  Learn from data  Natural language processing Business Intelligence - Hadoop  Extracting information from raw data  Hadoop MapReduce - Developed by Google - Divide & Conquer algorithm Cassandra  noSQL, column-based DBMS  More flexible than RDBMS - Developed by facebook - e.g.: columns can store columns 5

B What does Big Data provide? Challenges for management and IT Integration What do you expect? Business value Quality and Validity Talent management Legal aspects Culture 6

B What does Big Data provide? How Wal-Mart learns about their customers Hadoop Social genome  Connect public & social data  What do people talk about?  Shelve-management  Self-made by Wal-Mart thorax  In-store navigation-app!  Get mobile data from the customer  Self-made by Wal-Mart  Stores incoming data 245 Million customers worldwide – weekly* Largest retailer worldwide*> retail units* * Wal-Mart 2013 “If you’re Wal-Mart, you have to understand what is happening in that customer’s life.” (Lee Scott, CEO, Diekmann 2013) 7

C Quo Vadis Big Data? “Big Data” is not a new era of business administration, but it provides ways of managing data with the goal to identify new patterns explaining both: our life as well as natural conditions! New challenges and opportunities Decisions based on data, analyzed in real-time Increase profit, performance, reputation Also important for government and research But: It is neither a new Kondratieff nor a revolution of Business. 8

D Literature Bollier, David (2010): The Promise and Peril of Big Data, Aspen Institute, Washington Bughin, Jacques/Chui, Michael/Manyika, James (2010): Clouds, big data, and smart assets: Ten tech-enabled business trends to watch, in: McKinsey Quarterly August 2010 Diekmann 2013: Walmart CEO Scott Shares Views On Big Data And More. By: Diekmann, Frank J., Credit Union Journal, , 11/11/2013, Vol. 17, Issue 44 Smolan, R./Erwitt, J. (2012) : The Human Face of Big Data (last view , 17:39, Walmart 2013: Walmart Annual Report 2013 For further references just ask ;-) 9

Thank you for your attention! Any questions? Feel free to ask! 10