big data

5月 142019
 

Interested in making business decisions with big data analytics? Our Wiley SAS Business Series book Profit Driven Business Analytics: A Practitioner’s Guide to Transforming Big Data into Added Value by Bart Baesens, Wouter Verbeke, and Cristian Danilo Bravo Roman has just the information you need to learn how to use SAS to make data and analytics decision-making a part of your core business model!

This book combines the authorial team’s worldwide consulting experience and high-quality research to open up a road map to handling data, optimizing data analytics for specific companies, and continuously evaluating and improving the entire process.

In the following excerpt from their book, the authors describe a value-centric strategy for using analytics to heighten the accuracy of your enterprise decisions:

“'Data is the new oil' is a popular quote pinpointing the increasing value of data and — to our liking — accurately characterizes data as raw material. Data are to be seen as an input or basic resource needing further processing before actually being of use.”

Analytics process model

In our book, we introduce the analytics process model that describes the iterative chain of processing steps involved in turning data into information or decisions, which is quite similar actually to an oil refinery process. Note the subtle but significant difference between the words data and information in the sentence above. Whereas data fundamentally can be defined to be a sequence of zeroes and ones, information essentially is the same but implies in addition a certain utility or value to the end user or recipient.

So, whether data are information depends on whether the data have utility to the recipient. Typically, for raw data to be information, the data first need to be processed, aggregated, summarized, and compared. In summary, data typically need to be analyzed, and insight, understanding, or knowledge should be added for data to become useful.

Applying basic operations on a dataset may already provide useful insight and support the end user or recipient in decision making. These basic operations mainly involve selection and aggregation. Both selection and aggregation may be performed in many ways, leading to a plentitude of indicators or statistics that can be distilled from raw data. Providing insight by customized reporting is exactly what the field of business intelligence (BI) is about.

Business intelligence is an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to — and analysis of — information to improve and optimize decisions and performance.

This model defines the subsequent steps in the development, implementation, and operation of analytics within an organization.

    Step 1
    As a first step, a thorough definition of the business problem to be addressed is needed. The objective of applying analytics needs to be unambiguously defined. Some examples are: customer segmentation of a mortgage portfolio, retention modeling for a postpaid Telco subscription, or fraud detection for credit cards. Defining the perimeter of the analytical modeling exercise requires a close collaboration between the data scientists and business experts. Both parties need to agree on a set of key concepts; these may include how we define a customer, transaction, churn, or fraud. Whereas this may seem self-evident, it appears to be a crucial success factor to make sure a common understanding of the goal and some key concepts is agreed on by all involved stakeholders.

    Step 2
    Next, all source data that could be of potential interest need to be identified. The golden rule here is: the more data, the better! The analytical model itself will later decide which data are relevant and which are not for the task at hand. All data will then be gathered and consolidated in a staging area which could be, for example, a data warehouse, data mart, or even a simple spreadsheet file. Some basic exploratory data analysis can then be considered using, for instance, OLAP facilities for multidimensional analysis (e.g., roll-up, drill down, slicing and dicing).

    Step 3
    After we move to the analytics step, an analytical model will be estimated on the preprocessed and transformed data. Depending on the business objective and the exact task at hand, a particular analytical technique will be selected and implemented by the data scientist.

    Step 4
    Finally, once the results are obtained, they will be interpreted and evaluated by the business experts. Results may be clusters, rules, patterns, or relations, among others, all of which will be called analytical models resulting from applying analytics. Trivial patterns (e.g., an association rule is found stating that spaghetti and spaghetti sauce are often purchased together) that may be detected by the analytical model is interesting as they help to validate the model. But of course, the key issue is to find the unknown yet interesting and actionable patterns (sometimes also referred to as knowledge diamonds) that can provide new insights into your data that can then be translated into new profit opportunities!

    Step 5
    Once the analytical model has been appropriately validated and approved, it can be put into production as an analytics application (e.g., decision support system, scoring engine). Important considerations here are how to represent the model output in a user-friendly way, how to integrate it with other applications (e.g., marketing campaign management tools, risk engines), and how to make sure the analytical model can be appropriately monitored and back-tested on an ongoing basis.

Book giveaway!

If you are as excited about business analytics as we are and want a copy of Bart Baesens’ book Profit Driven Business Analytics: A Practitioner’s Guide to Transforming Big Data into Added Value, enter to win a free copy in our book giveaway today! The first 5 commenters to correctly answer the question below get a free copy of Baesens book! Winners will be contacted via email.

Here's the question:
What Free SAS Press e-book did Bart Baesens write the foreword too?

We look forward to your answers!

Further resources

Want to prove your business analytics skills to the world? Check out our Statistical Business Analyst Using SAS 9 certification guide by Joni Shreve and Donna Dea Holland! This certification is designed for SAS professionals who use SAS/STAT software to conduct and interpret complex statistical data analysis.

For more information about the certification and certification prep guide, watch this video from co-author Joni Shreve on their SAS Certification Prep Guide: Statistical Business Analysis Using SAS 9.

Big data in business analytics: Talking about the analytics process model was published on SAS Users.

5月 142019
 

Interested in making business decisions with big data analytics? Our Wiley SAS Business Series book Profit Driven Business Analytics: A Practitioner’s Guide to Transforming Big Data into Added Value by Bart Baesens, Wouter Verbeke, and Cristian Danilo Bravo Roman has just the information you need to learn how to use SAS to make data and analytics decision-making a part of your core business model!

This book combines the authorial team’s worldwide consulting experience and high-quality research to open up a road map to handling data, optimizing data analytics for specific companies, and continuously evaluating and improving the entire process.

In the following excerpt from their book, the authors describe a value-centric strategy for using analytics to heighten the accuracy of your enterprise decisions:

“'Data is the new oil' is a popular quote pinpointing the increasing value of data and — to our liking — accurately characterizes data as raw material. Data are to be seen as an input or basic resource needing further processing before actually being of use.”

Analytics process model

In our book, we introduce the analytics process model that describes the iterative chain of processing steps involved in turning data into information or decisions, which is quite similar actually to an oil refinery process. Note the subtle but significant difference between the words data and information in the sentence above. Whereas data fundamentally can be defined to be a sequence of zeroes and ones, information essentially is the same but implies in addition a certain utility or value to the end user or recipient.

So, whether data are information depends on whether the data have utility to the recipient. Typically, for raw data to be information, the data first need to be processed, aggregated, summarized, and compared. In summary, data typically need to be analyzed, and insight, understanding, or knowledge should be added for data to become useful.

Applying basic operations on a dataset may already provide useful insight and support the end user or recipient in decision making. These basic operations mainly involve selection and aggregation. Both selection and aggregation may be performed in many ways, leading to a plentitude of indicators or statistics that can be distilled from raw data. Providing insight by customized reporting is exactly what the field of business intelligence (BI) is about.

Business intelligence is an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to — and analysis of — information to improve and optimize decisions and performance.

This model defines the subsequent steps in the development, implementation, and operation of analytics within an organization.

    Step 1
    As a first step, a thorough definition of the business problem to be addressed is needed. The objective of applying analytics needs to be unambiguously defined. Some examples are: customer segmentation of a mortgage portfolio, retention modeling for a postpaid Telco subscription, or fraud detection for credit cards. Defining the perimeter of the analytical modeling exercise requires a close collaboration between the data scientists and business experts. Both parties need to agree on a set of key concepts; these may include how we define a customer, transaction, churn, or fraud. Whereas this may seem self-evident, it appears to be a crucial success factor to make sure a common understanding of the goal and some key concepts is agreed on by all involved stakeholders.

    Step 2
    Next, all source data that could be of potential interest need to be identified. The golden rule here is: the more data, the better! The analytical model itself will later decide which data are relevant and which are not for the task at hand. All data will then be gathered and consolidated in a staging area which could be, for example, a data warehouse, data mart, or even a simple spreadsheet file. Some basic exploratory data analysis can then be considered using, for instance, OLAP facilities for multidimensional analysis (e.g., roll-up, drill down, slicing and dicing).

    Step 3
    After we move to the analytics step, an analytical model will be estimated on the preprocessed and transformed data. Depending on the business objective and the exact task at hand, a particular analytical technique will be selected and implemented by the data scientist.

    Step 4
    Finally, once the results are obtained, they will be interpreted and evaluated by the business experts. Results may be clusters, rules, patterns, or relations, among others, all of which will be called analytical models resulting from applying analytics. Trivial patterns (e.g., an association rule is found stating that spaghetti and spaghetti sauce are often purchased together) that may be detected by the analytical model is interesting as they help to validate the model. But of course, the key issue is to find the unknown yet interesting and actionable patterns (sometimes also referred to as knowledge diamonds) that can provide new insights into your data that can then be translated into new profit opportunities!

    Step 5
    Once the analytical model has been appropriately validated and approved, it can be put into production as an analytics application (e.g., decision support system, scoring engine). Important considerations here are how to represent the model output in a user-friendly way, how to integrate it with other applications (e.g., marketing campaign management tools, risk engines), and how to make sure the analytical model can be appropriately monitored and back-tested on an ongoing basis.

Book giveaway!

If you are as excited about business analytics as we are and want a copy of Bart Baesens’ book Profit Driven Business Analytics: A Practitioner’s Guide to Transforming Big Data into Added Value, enter to win a free copy in our book giveaway today! The first 5 commenters to correctly answer the question below get a free copy of Baesens book! Winners will be contacted via email.

Here's the question:
What Free SAS Press e-book did Bart Baesens write the foreword too?

We look forward to your answers!

Further resources

Want to prove your business analytics skills to the world? Check out our Statistical Business Analyst Using SAS 9 certification guide by Joni Shreve and Donna Dea Holland! This certification is designed for SAS professionals who use SAS/STAT software to conduct and interpret complex statistical data analysis.

For more information about the certification and certification prep guide, watch this video from co-author Joni Shreve on their SAS Certification Prep Guide: Statistical Business Analysis Using SAS 9.

Big data in business analytics: Talking about the analytics process model was published on SAS Users.

9月 242018
 

If you were to ask Tricia Wang, PhD, about real business growth, she would tell you that it lies outside the boundaries of the known. Not everything valuable is measurable, she would say. And big data is hiding new customers in the market from you. Wang is more than just [...]

Don't just do digital. Be digital. was published on SAS Voices by Stephanie DiRico

2月 152018
 

How effective is your organization at leveraging data and analytics to power your business models?

This question is surprising hard for many organizations to answer.  Most organizations lack a roadmap against which they can measure their effectiveness for using data and analytics to optimize key business processes, uncover new business opportunities or deliver a differentiated customer experience. They do not understand what’s possible with respect to integrating big data and data science into the organization’s business model (see Figure 1).

the economic value of data

Figure 1: Big Data Business Model Maturity Index

My SAS Global Forum 2018 presentation on Tuesday April 10, 2018 will discuss the transformative potential of big data and advanced analytics, and will leverage the Big Data Business Model Maturity Index as a guide for helping organizations understand where and how they can leverage data and analytics to power their business models.

Digital Twins, Analytics Profiles and the Power of One

We all understand that the volume and variety of data are increasing exponentially.  Your customers are leaving their digital fingerprints across the Internet via their website, social media, and mobile devices usage.  The Internet of Things will unleash an estimated 44 Zettabytes of data across 7 billion connected people by 2020.

However, big data isn’t really about big; it’s about small. It’s about understanding your customer and product behaviors at the level of the individual.  Big Data is about building detailed behavioral or analytic profiles for each individual (see Figure 2).

Figure 2: Building Individual Behavioral or Analytic Profiles

If you want to better serve your customers, you need to understand their tendencies, behaviors, inclinations, preferences, interests and passions at the level of each individual customer.

Customers’ expectations of their vendors are changing due to their personal experiences.  From recommending products, services, movies, music, routes and even spouses, customers are expecting their vendors to understand they well enough that these vendors can provide a hyper-personalized customer experience.

Demystifying Data Science (AI | ML | DL)

Too many organizations are spending too much time confusing too many executives on the capabilities of data science.  The concept of data science is simple; data science is about identifying the variables and metrics that might be better predictors of business and operational performance (see Figure 3).

Figure 3: A Moneyball Definition of Data Science

Whether using basic statistics, predictive analytics, data mining, machine learning, or deep learning, almost all of data science benefits are achieved from the simple formula of: Input (A) → Response (B).

Source: Andrew Ng, “What Artificial Intelligence Can and Can’t Do Right Now”

By collaborating closely with the business subject matter experts to choosing Input (A), those variables and metrics that might be better predictor of performance, the data science team can achieve more accurate, more granular, lower latency Response (B).  And the creative creation and selection of Input (A) creatively has already revolutionized many industries, and is poised to revolutionize more.

Data Monetization and the Economic Value of Data

Data is an unusual asset – it doesn’t deplete, it doesn’t wear out and it can be used across an infinite number of use cases at near zero marginal cost.  Organizations have no other assets with those unique characteristics.  And while traditional accounting methods of valuing assets works well with physical assets, account methods fall horribly – dangerously – short in properly determining the economic value of data.

Instead of using traditional accounting techniques to determine the value of the organization’s data, apply economic and data science concepts to determine the economic value of the data based upon it’s ability to optimize key business and operational processes, reduce compliance and security risks, uncover new revenue opportunities and create a more compelling, differentiated customer experience (see Figure 4).

Figure 4: Data Lake 3.0: Collaborative Value Creation Platform

The data lake, which can house both data and analytic models, is transformed from a simple data repository into a “collaborative value creation platform” that facilities the capture, refinement and sharing of the data and analytic digital assets across the enterprise.

Creating the Intelligent Enterprise

When you add up all of these concepts and advancements – Big Data, Analytic Profiles, Data Science and the Economic Value of Data – organizations are poised for digital transformation (see Figure 5).

Figure 5: Achieving Digital Transformation

And what is Digital Transformation?

Digital Transformation is application of digital capabilities to processes, products, and assets to improve efficiency, enhance customer value, manage risk, and uncover new monetization opportunities.

Looking forward to seeing you at my SAS Global Forum 2018 session and helping your organizations on its digital transformation!

Data monetization and the economic value of data was published on SAS Users.