Big Data Analytics:

Visualizing the Future in the Aftermarket

Justin O. Holman, Ph.D.

September 21, 2015

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What is Analytics?

What is Big Data?

What does the Future hold?

Agenda

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What is Analytics?

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Analytics is a Hot Topic

Google Analytics = Web Traffic Reports

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Analytics is a Hot Topic

IBM analytics for connected cars

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Analytics is a Hot Topic

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In Sports and in the Movies

Analytics is a Hot Topic

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So, what is Analytics?

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  • Web traffic tracking system?
  • Dashboard?
  • Reporting tool?
  • Buzzword?
  • Temporary Craze?

Analytics Defined

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Analytics is a set of data analysis categories

Data Analysis Categories

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  • Descriptive
  • Exploratory
  • Inferential
  • Experimental
  • Predictive
  • Prescriptive

Analytics Categories

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  • Descriptive >
  • Exploratory
  • Inferential
  • Experimental
  • Predictive
  • Prescriptive
  • Reporting
  • Summarizing
  • Measuring

Analytics Categories

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  • Descriptive
  • Exploratory >
  • Inferential
  • Experimental
  • Predictive
  • Prescriptive

Looking for ...

  • Patterns
  • Opportunities
  • Vulnerabilities
  • Relationships

Analytics Categories

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  • Descriptive
  • Exploratory
  • Inferential >
  • Experimental
  • Predictive
  • Prescriptive

Estimate

population parameters

based on

sample statistics

  • Surveys
  • Customer Loyalty Program

Analytics Categories

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  • Descriptive
  • Exploratory
  • Inferential
  • Experimental >
  • Predictive
  • Prescriptive

Testing for ...

  • Significance
  • Confidence Level
  • Quality Control

Analytics Categories

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  • Descriptive
  • Exploratory
  • Inferential
  • Experimental
  • Predictive >
  • Prescriptive

  • Forecasting
  • Simulation

Analytics Categories

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  • Descriptive
  • Exploratory
  • Inferential
  • Experimental
  • Predictive
  • Prescriptive >

  • Optimization

Aftermarket Applications

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  • Descriptive - Category Management Metrics
  • Exploratory - Visualization of VIO
  • Inferential - Consumer Surveys
  • Experimental - Quality Control testing
  • Predictive - Repair/Demand Forecasting
  • Prescriptive - Inventory Optimization

What is Big Data?

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Big Data: In the news

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Take #1: Lots of Data

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Fills up your servers, crashes hard drives, difficult to manage

Sensor collection, streaming data, Twitter feed: coming at you fast

Numerical,

Graphical,

Social Media, Text.

Etc

Variety

Velocity

Volume

Sources: Gartner, IBM, Opex Analytics

Take #2: Overwhelming

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In his book, Bill Franks defines Big Data as an amount of data that overwhelms existing systems

This definition recognizes new technology will be developed, but data volume will continue to grow.

Take #3: Buzzword

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My Take:

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Big Data = Too Much for Excel

  • Relational Databases. Not flat files!

  • Programming & SQL. Not V-Lookups!

  • Data Scientists. Not Excel Jockeys!

Aftermarket Impact

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Opportunities for Competitive Advantage:

  • Change IT culture
    • From gatekeepers
    • To innovators
  • Investment in Personnel
    • From Server/PC Technicians
    • To Data Scientists
  • Migrate to the cloud
    • Outsource your data farm
    • Safer, more accessible in the cloud

What does the Future hold?

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Big Data Analytics Outlook

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  • Data Volume will continue to grow
  • Computing Power will continue to improve
  • Software will improve also, but lag behind
  • Cloud Migration will accelerate
  • Excel use will slowly decrease
  • Data Visualization will grow in importance

Big Data Analytics Focus

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  • Data Volume will continue to grow
  • Computing Power will continue to improve
  • Software will improve also, but lag behind
  • Cloud Migration will accelerate
  • Excel use will slowly decrease
  • Data Visualization will grow in importance

Why Visualization?

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Why Visualization?

  • Patterns
  • Participation

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John Snow: Broad Street cholera outbreak of 1854

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  • Map of cholera cases helped identify the water source

  • Pattern was only detectable with a map

  • Would Dr. Snow have found the source with a spreadsheet?

John Snow: Broad Street cholera outbreak of 1854

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Businesses try to find the source of problems with spreadsheets

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See any patterns here?

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Would the US Military plan for war with spreadsheets?

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Could the US Military collaborate effectively with spreadsheets?

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The table map allows everyone to participate in the decision process

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  • Participants:
    • Branch Management
    • Finance Team
    • CEO

  • Problem:
    • Strong revenue but low profit margins

The power of visualization:

an example

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  • Finance Presentation

    • Revenue and Profit by branch location
    • Lots of acronyms like EBITDA, IRR
    • Rows and Rows of data in Excel

The power of visualization:

an example

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The projector looked like this:

no patterns

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  • Limited Progress
    • CEO can see Branch Managers are frustrated
    • But they’re not participating
    • CEO wants input from boots on the ground
    • But they don’t speak finance

The meeting moves on to analysis of outbound delivery and transportation costs...

The power of visualization:

participation

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Another Example

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Another Example

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  • Lively Discussion

    • Clearly branches delivering all over the market, in Atlanta traffic.
    • Branch Managers now on their feet.
    • Pointing at the screen
    • Participating the analysis

The power of visualization:

participation

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  • Problem Identified
    • New compensation program rewarded revenue growth, not profit
    • Branch Managers had no incentive to share delivery responsibility.
    • CEO marching orders:
      • Branch Managers to coordinate delivery
      • Finance to revamp compensation program

The power of visualization:

seeing is believing

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Wrap Up

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  • Analytics: Ask “what type” of data analysis?

  • Big Data: Too big for Excel

  • Future: More data, more analysis, more pressure to compete using analytics

  • Visualization: Why? Patterns and Participation

Thank you!

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  • Email: justin.holman@gmail.com

  • Twitter: @justinholman

  • Phone/Text: (719) 582-6555

  • Blog: justinholman.com

AASA-TechConference-09212015 - Google Slides