© 2012 IBM Corporation

Trends in analyticsAnders Quitzau - innovationschef

Findwise seminar 29.2.2012

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What is happening out there?

1770 1875 19201830 20101970

Inno

va.o

n

1st  Wave

2nd  Wave

3rd  Wave

4th  Wave

5th  Wave

6th  Wave

Smarter  Products§ Instrumented,  interconnected,  and  intelligent

§ Building  blocks  for  a  smarter  planet

§ Sustainability

The  Industrial  Revolu2on

Age  of  Steam  

and  Railways

Age  of  Steel,  Electricityand  Heavy  Engineering

Age  of  Oil,  Carsand  Mass  Produc2on

Ageof  IT  &Telecom

*Source:    “Next  Genera2on  Green:  Tomorrow’s  Innova2on  Green  Business  Leaders”,  Business  Week,  Feb  4,  2008

We  are  ushering  in  a  new  wave  of  innova.on

4

© 2012 IBM Corporation

As the planet gets smarter, the information explosion and rapid change create new challenges for CIOs

Projected growth rate for digital data from 2009 to 20201

Size of the world's total digital content in 20101

(1 zettabyte = 1 billion terabytes)

1.2 ZB 44x

Number of devices connected to the Internet by 20202

22 billionThe volume of global Internet traffic expected by 20143

(1 exabyte = 1 million terabytes)

64 EB/mo

Source: 1The Digital Universe - Are You Ready?, John Gantz and David Reinsel, IDC, May 2010 2Internet Connected Devices About to Pass the 5 Billion Milestone, IMS Research press release, August 16, 2010 3Cisco Visual Networking Index (VNI) : Global Mobile Data Traffic Forecast Update, 2009-2014, February 2010

© 2012 IBM Corporation

Predictive analytics, big data, social analytics, virtual assistants on Gartners Hypecycle

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Analytics is a major trend that will impact all business processes and transforming the way decisions are made

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Source: Forrester

From ToOffline / Back office Embedded / Realtime

Detailed Reports Dashboards

Historical Predictive

Structured Unstructured

Behind Firewall Cloud / Mobile

Trends in Analytics

Types of Analytics

© 2012 IBM Corporation

The key will be to leverage information and analytics to enable informed, real-time decisions at the point of impact

Skilled analytics experts

Sense and respond

Instinct and intuition

Back office

Automated

The breakaway approach

Predict and act

Real-time, fact-driven

Everyone

Point of impact

Optimized

Lack of insight

Inefficient access

Inability to predict

Customer relations will require near real-time information and the ability to change on the fly, which will require innovation.

– Energy and Utility CIO

© 2012 IBM Corporation

We are crossing a threshold in our ability to produce information that delivers insight and drives action

Disease treatment Disease prevention

Traffic management Intelligent highways and cars

Financial crime and fraud

Fraud detection and prevention

Speculative oil exploration Informed exploration and targeted drilling

From To

© 2012 IBM Corporation

Big data - analyticsAnders Quitzau - innovationschef

Findwise seminar 29.2.2012

© 2012 IBM Corporation11

Every Smarter Planet Solution has Big Data and Needs Big Analytics

Smarter Planet

Data at RestData in MotionDeep AnalyticsReactive AnalyticsPredictive ModelsReal-time AwarenessDeeper InsightsFaster Decisions

Big Data

© 2011 IBM Corporation

Smarter Computing

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Integrating new approaches such as Big Data will unlock new insights.

Traditional ApproachStructured, analytical, logical

New ApproachCreative, holistic thought, intuition

UnstructuredExploratoryIterativeBrand sentimentProduct strategyMaximum asset utilization

StructuredRepeatable

LinearMonthly sales reports

Profitability analysisCustomer surveys

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How will Content Analytics be like in 2020?

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Up to 10,000 Times larger

Up to 10,000 times faster

Traditional Data Warehouse and Business Intelligence

Dat

a Sc

ale

Dat

a Sc

ale

yr mo wk day hr min sec … ms µs

Exa

Peta

Tera

Giga

Mega

Kilo

Decision FrequencyOccasional Frequent Real-time

Data in Motion

Dat

a at

Res

t

New “Big Data” Brings New Opportunities, Requires New Analytics

Telco Promotions100,000 records/sec, 6B/day10 ms/decision270TB for Deep Analytics

DeepQA 100s GB for Deep Analytics 3 sec/decision

Smart Traffic250K GPS probes/sec630K segments/sec2 ms/decision, 4K vehicles

Homeland Security600,000 records/sec, 50B/day1-2 ms/decision320TB for Deep Analytics

© 2012 IBM Corporation15

Big Data Systems Require a Data-centric Architecture for Performance

Data lives on disk and tapeMove data to CPU as neededDeep Storage Hierarchy

Data lives in persistent memoryMany CPU’s surround and useShallow/Flat Storage Hierarchy

Old Compute-centric Model New Data-centric Model

Massive ParallelismPersistent Memory

Largest change in system architecture since the System 360 Huge impact on hardware, systems software, and application design

Flash Phase Change

Manycore FPGA

inputoutput

© 2011 IBM Corporation

Watson - IBMs DeepQA- den største IT-revolution siden transistoren

© 2012 IBM Corporation

From the final match......

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© 2012 IBM Corporation18

From battling humans at Jeopardy! to transforming business

Tap into a broad, open domain of clues

Do all of that in under three seconds

Be highly precise at finding the answer and put a confidence

behind that answer

Parse complex human language

To compete at Jeopardy!, humans and computers need to:

Watson-like capabilities can now be applied to your business:

Manage massive amounts of data from business operations

and an instrumented world

Do it at the speed of business, in real time

Have a high level of confidence in analytics to make key

business decisions

Deal with structured and unstructured data to gain

meaningful insight into your business

© 2012 IBM Corporation

Watson’s analytics are more than search

§ Web search returns a ranked list of ‘possible’ web pages containing the requested data ‣ Search engine results are based on

popularity and page ranking;‣ User must still analyze results – sift

through a web page -- to find the best answer.

§ Watson’s analytics understand the structure and wording of the question asked‣ Finds a specific answer;‣ Ranks its answer and provides a level of

‘confidence’ that this is correct based on previous experience.

§ Watson answers ‘natural language’ questions‣ May contain puns, slang, jargon and

acronyms that must all be evaluated.

© 2012 IBM Corporation

Announced Aug 18, 2011 - IBM has developed prototype of ‘brainlike’ cognitive chip

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© 2012 IBM Corporation21 60

Future Systems – The Learning Paradigm

Training and Learning Engines To Build Models and Define Insight

Hypothesis Engines To Understand and Plan Actions

Policy Engine Business, Legal

and Ethical Rules

Verification Engines (e.g. Simulations)

Active Learning

(Natural Interfaces)

Outcome Engine Actuation and Validation

Society Nature Institutions Archives

© 2012 IBM Corporation

Year 2020?

© 2012 IBM Corporation23

Prepare yourself and your organisation for 6.th wave!