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Content
Introduction
The opportunity
Health Care
Public Sector
Retail
Manufacturing
Transportation
Utilities
Finance Sector
The challenge
Embracing Innovative Technologies
11
12
Data Governance
12
Development Paradigm
13
Organisational Characteristics
Leveraging our capabilities
13
14
14
14
15
16
Machine to Machine
17
18
19
Contact Information
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This document contains information which is confidential and of value to Logica. It may be used
only for the agreed purpose for which it has been provided. Logicas prior written consent is
required before any part is reproduced. Except where indicated otherwise, all names,
trademarks, and service marks referred to in this document are the property of a company in the
Logica group or its licensors.
Introduction
With this whitepaper Logica introduces the business
opportunities for you to leverage the power of Big Data.
Across sectors and regions, several cross-cutting trends
have fuelled growth in data generation and will continue to
propel the rapidly expanding pools of data. These trends
include growth in traditional transactional databases,
continued expansion of multimedia content, increasing
popularity of social media, and proliferation of applications
of sensors in the Internet of Things.
40
terabytes of data
every second
Wal-Mart is registering
The number of devices capable of automatically gathering
and storing digital data is increasing fast: our mobile
phones, home appliances, digital televisions, cars,
industrial process monitoring systems, email clients, web
browsers, social media applications, traffic and security
cameras, and numerous other sources of digital
information produce vast masses of data all the time.
Global trend setters like Google, Yahoo, Netflix, Amazon
and Autonomy have already shown that it is possible to
transform data to economic value by producing novel,
immensely popular and profitable services based on
intelligent analysis of massive data sets.
As big data and its levers become an increasingly valuable
asset, their intelligent exploitation will be critical for
enterprises to compete effectively. We already see
organizations that understand and embrace the use of big
data pulling ahead of their peers in tangible corporate
performance measures. The use of big data will become a
key basis of competition across sectors, so it is imperative
that organizational leaders begin to incorporate big data
into their business plans.
Digital data is now everywherein every sector, in every
economy, in every organization and user of digital
technology. While this topic might once have concerned
only a few data geeks, big data is now relevant for leaders
across every sector, and consumers of products and
services stand to benefit from its application.
Nevertheless, new user-centric role based approaches and
cooperative organization networks require ever more
intelligent ways to utilize the available data. The content
should be available automatically and be based, on user
role, context requirements and process perspectives. This
2.5
petabytes
database of
35000 queries
every second.
2.700 Exabyte in
2012, growing with
30 billion pieces of
content shared on
Facebook every month
Introduction
40% projected growth
in global data generated
per year vs. 5% growth
in global IT spending
7 billion mobile
phones in use in 2011
Facebook is home to
more than 40 billion
photos
Youtube processes
48
collected by the US
Library of Congress by
April 2011
15 out of 17 sectors in
the United States have
more data stored per
company than the US
Library of Congress
The opportunity
Why you should be interested
There are many ways that big data can be used to create
value across the sectors of the global economy. Key sector
agnostic business opportunities are:
Segmenting populations to customize actions Big data allows organizations to create highly specific
segmentations and to tailor products and services
precisely to meet those needs. This approach is well
known in marketing and risk management but can be
revolutionary elsewherefor example, in the public
sector where an ethos of treating all citizens in the
same way is commonplace.
Replacing/supporting human decision making
with automated algorithms - Sophisticated analytics
can substantially improve decision making, minimize
risks, and unearth valuable insights that would
otherwise remain hidden. In some cases, decisions will
not necessarily be automated but augmented by
analyzing huge, entire datasets using big data
techniques and technologies rather than just smaller
samples that individuals with spreadsheets can handle
and understand.
Equens, a payments
processor, uses a
sophisticated system to
discover and prevent
fraudulent cards
transactions. Every
transaction is compared in
real-time with 1M previous
transactions to detect this
and to block suspicious
transactions and associated
cards.
Leading players in
advanced industries are
already embracing the
collaborative use of BigData
and controlled
experimentation. Toyota,
Fiat, and Nissan have all
cut new-model
development time by 30 to
50 percent; Toyota claims
to have eliminated 80
percent of defects prior to
building the first physical
prototype.
The opportunity
Why you should be interested
Erasmus Academic
Medical Centre uses
sophisticated sequencing
algorithms to process DNA
patterns. In one single test
over 2 Terabyte of
information is processed.
The data storage is
optimised using BigData
techniques, improving
performance of comparison
tests from 11 minutes to
less than a second. A huge
improvement to enable
more efficient and cost
effective cancer research.
Health Care
In the future, emergence of personalised medicine and
particularly personal genome sequencing means that
individuals will want to interpret their data in the context
of data from other people. A huge market is likely to
emerge in producing software solutions for interpreting
personal health related data, aimed at consumers instead
of healthcare professionals.
In the well-being area increasingly more activity and
cooperation is taking place between public and private
sector organizations in services provided for home care. In
this environment intelligent and interoperable data can
support flexible cross-organizational processes with
customer caring services and simultaneously increase the
cost efficiency of operations.
Public Sector
The data produced by organizations in the public sector
will be opened up to all actors as required by legislation
(e.g. EU Inspire Directive). This will bring data sources of
various kinds and different quality to the market; the
challenge will be to find relevant data and information
through processing of these data sources.
The growth in open data and its availability for real-time
use offer new challenges to data processing and to the
design of useful services around the data. The public
sector aims to open up their data sources for service
producers to exploit and commercialize which will promote
new business and help to enhance existing service
business. It will also help to give direction and focus to
well-being services for user groups where this will have
the best impact.
The B2B customers of the private sector have the same
objectives as (again) there is a need to consolidate
services, to develop new services that are introduced by
regulations and the standardization (of also existing)
services brought by EU regulations.
The opportunity
Why you should be interested
Retail
The next marketing-related big data lever is customer
micro-segmentation. Although this is a familiar idea in
retail, big data has enabled tremendous innovation in
recent years. The amount of data available for
segmentation has exploded, and the increasing
sophistication in analytic tools has enabled the division
into ever more granular micro-segmentsto the point at
which some retailers can claim to be engaged in
personalization, rather than simply segmentation.
The opportunity
Why you should be interested
BMWs ConnectedDrive
offers drivers directions
based on real-time traffic
information, automatically
calling for help when
sensors indicate trouble,
alerts drivers of
maintenance needs based
on the actual condition of
the car, and feeds
operation data directly to
service centers.
Sense Networks is
commercializing a machinelearning technology model
that aggregates historical
and real-time mobile phone
location data to show the
overall activity level of the
city, hotspots, and places
with unexpectedly high
activity, all in real time.
Transportation
There are strong motives to promote stable and
sustainable traffic service development. Driving forces are
the consolidation of services, the development of new
services that are introduced by regulations and the
standardization services brought by EU regulations.
Smart routing based on real-time traffic information is one
of the most heavily used applications of personal location
data. The more advanced navigation systems can receive
information about traffic in real time, including accidents,
scheduled roadwork, and congested areas.
Over coming years, an increasing number of automobiles
will be equipped with GPS and telemetries that can enable
a range of personal safety and monitoring services.
Systems such as this can alert drivers to when they need
repairs or software upgrades, or can locate vehicles during
emergencies
The opportunity
Why you should be interested
Utilities
Sustainable energy is our challenge for the future. To
realise this challenge generation of electricity will be more
and more decentralized. Local consumers will use solar
cells and small combined heat and power (CHP) units to
generate electricity.
To enable this local production and to manage a two-way
flow of electricity from producer to consumer we need
intelligent electricity networks with smart meters as part
of smart grids. Smart meters give information on local
consumption and production of electricity at intervals of
15 minutes. Sensors on the smart grids give
instantaneous information on the stability of the electrical
current and the location of possible outages.
Financial Sector
For the finance industry, the volume of the information
now stored in data warehouses is already overwhelming.
In most financial institutions the immediate use of big
data is in containing fraud and complying with rules on
money-laundering and sanctions. Even seemingly simple
tasks, such as checking the names of clients against those
on a sanctions blacklist, become immensely complicated in
the real world, where banks may have thousands of
customers with the same names as those on the blacklist.
The opportunity
Why you should be interested
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The challenge
To harnas the power of Big Data
The challenge we face is that we know we have the
technology to produce more data than we can ever hope
to make sense of. With data becoming a key competitive
asset, leaders must understand the assets that they hold
or to which they could have access. Organizations should
conduct an inventory of their own proprietary data, and
also systematically catalogue other data to which they
could potentially gain access, including publicly available
data, and data that can be purchased. Also a set of
technology challenges will often have to be addressed to
ensure consistent, reliable, and timely access to external
data.
The first challenge is caused by the sheer magnitude of
the data: handling of this type of astronomical data
sources calls for new, more efficient data analytics as
currently available solutions become unfeasible with
terabyte or petabyte level data sets that require
computationally extremely efficient algorithmic solutions,
and in many cases completely new, on-line methods that
can process and model the data sequentially at the time of
collection.
The second challenge is that once the information in the
data has been extracted and compiled into higher-level
models, we need to be able to access quickly the
relevant data or information that is most useful to the
user in the current context. An additional difficulty is
caused by the fact that the data is often not only big, but
it is also parcelled, consisting of potentially several data
sources that may contain heterogeneous data types. The
nature of this type of data makes it very difficult to
retrieve relevant pieces of data or information in a given
context, in particular when the links between the different
data elements in different data sources are not explicit, as
is the case in traditional multi-view learning, but implicit,
and have to inferred with the help of the constructed
models.
The third challenge is that the data is not only big, but it is
often extremely high-dimensional, which makes it very
difficult to understand the underlying phenomena. What is
needed is a rich toolbox of methods for representing the
information extracted from the raw data in such a manner
that the results help the user to understand the domain
better, and support decision-making processes by helping
in drawing conclusions about future events and in
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The challenge
To harnas the power of Big Data
estimating their probabilities. Collaboration of business
and IT in traditional Business Intelligence engagements
has been identified as one of the critical success factors a
long time ago. However this will not be enough to cope
with the challenges of harnessing Big Data. Close
collaboration of various IT disciplines, especially in the
areas of Enterprise Content Management, Data
Management and Business Intelligence is required. On top
of that we need collaboration with technology vendors as
well as data vendors. Key topics to address with the fore
mentioned collaborative teams are; embracing innovative
technologies, improving data governance, development
paradigms and organisational characteristics.
Embracing Innovative Technologies
To capture value from big data, organizations will have to
deploy new technologies and techniques. The range of
technology challenges and the priorities set for tackling
them will differ depending on the data maturity of the
institution. Legacy systems and incompatible standards
and formats too often prevent the integration of data and
the more sophisticated analytics that create value from big
data. New problems and growing computing power will
spur the development of new analytical techniques. There
is also a need for ongoing innovation in technologies and
techniques that will help individuals and organizations to
integrate, analyze, visualize, and consume the growing
torrent of big data.
Data Governance
As an ever larger amount of data is digitized and travels
across organizational boundaries, there is a set of policy
issues that will become increasingly important, including,
but not limited to, privacy, security, intellectual property,
and liability. Big datas increasing economic importance
also raises a number of legal issues, especially when
coupled with the fact that data are fundamentally different
from many other assets. Data can be copied perfectly and
easily combined with other data. The same piece of data
can be used simultaneously by more than one person. All
of these are unique characteristics of data compared with
physical assets. Questions about the intellectual property
rights attached to data will have to be answered: Who
owns a piece of data and what rights come attached with
a dataset? What defines fair use of data?
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The challenge
To harnas the power of Big Data
Development Paradigm
New skill sets, new organizations, new development
paradigms, and new technology will need to be absorbed
by many enterprises, especially those facing the use cases
described in this paper. Even before the arrival of big data
analytics, data warehousing has been transforming itself
to provide more rapid response to new opportunities and
to be more in touch with the business community. Some
of the practices of the agile software development
movement have been successfully adopted by the data
warehouse community, although realistically this has not
been a highly visible transformation. But, in particular, the
agile development approach supports the data warehouse
by being organized around small teams driven by the
business, not typically by IT. With the introduction of Big
Data the need for an agile development approach has
become even more significant.
Organisational Characteristics
Organizational leaders often lack the understanding of the
value in big data as well as how to unlock this value. In
competitive sectors this may prove to be an Achilles heel
for some companies since their established competitors as
well as new entrants are likely to leverage big data to
compete against them. And, as we have discussed, many
organizations do not have the talent in place to derive
insights from big data. In addition, many organizations
today do not structure workflows and incentives in ways
that optimize the use of big data to make better decisions
and take more informed action. At this early stage of the
big data analytics revolution, there is no question that the
analysts must be part of the business organization, both
to understand the microscopic workings of the business,
but also to be able to conduct the kind of rapid turnaround
experiments and investigations we have described in this
paper. As we have described, these analysts must be
heavily supported in a technical sense, with potentially
massive compute power and data transfer bandwidth. So
although the analysts may reside in the business
organizations, this is a great opportunity for IT to gain
credibility and presence with the business.
13
Machine to Machine
Leveraging the oppertunities in the Internet of Things
In this section we elaborate on our abilities to support you
in leveraging the power of Big Data in your organisation.
Starting with our support in overcoming the challenges
challenge
mentioned in the previous section, followed by a selection
of our Big Data offerings.
Big Data Technology Understanding
A growing number of EDW vendors support such key big
data features as shared nothing massively parallel
processing (MPP), petabyte scaling,
s
and in-database
database
analytics. However, the cost, proprietary nature,
inflexibility, and scalability issues of some MPP EDWs have
spawned the development of an emerging open source,
cloud
cloud-oriented
approach known as Hadoop.
We regard Hadoop as the nucleus
nuc
of the next--generation
EDW in the cloud. Hadoop implements the core features
that are at the heart of most modern EDWs: cloud-facing
cloud
architectures, MPP, in-database
in database analytics, mixed workload
management, and a hybrid storage layer.
Logica evaluated by
Gartner, Jan 2012...
Clients looking to utilize
BI services for their
business intelligence
competency center
(BICC) strategy should
look to Logica
Clients should look to
include Logica on RFIs or
RFPs for projects,
particularly in large
organizations, in which
they can utilize and
combine its business,
industry and technology
knowledge for a more
complete solution that
provides business value.
Logica is a good fit for
clients looking for a
provider that can provide
deep industry skills in
one of its focus verticals
comprising the public
sector, transportation,
trade and industrial,
energy and utilities,
financial services,
telecommunications and
media.
Big
ig Data Governance by Value (DGBV)
Logicas Data Governance by Value approach treats data
as an asset: it is recorded in an inventory; it needs to be
valued on a regular basis; it will need maintenance and
improvement and finally, once its economic value has
declined, to be disposed of. The challenge for DGBV is that
data does not have a physical form, can exist
simultaneously in a number of locations within the
systems architecture, and is not seen to have a
marketable value. However, it should have a design; it
should have standards defining its quality and fitness for
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Machine to Machine
Leveraging the oppertunities in the Internet of Things
use; it does have a cost to maintain; it needs to be
protected, all of which should be defined and recorded by
the enterprise. Finally, and most importantly, data does
have a value; there is the benefit arising from good
quality data that enables enterprises to make decisions
quickly, build world class processes, etc. or conversely the
lost opportunity costs of poor quality data, which requires
constant reconciliation and correction, and impedes an
enterprises agility to respond to new market
opportunities. By establishing DGBV, an enterprise
recognises it has a Data Portfolio so that, like any other
assets that the enterprise has, it can ensure that the right
data exists at the right time and in the right systems for
the right person. Most importantly if an enterprises data
is considered as an asset then it can be subjected to the
financial rigour that all assets are treated with, valued,
and reported in performance score-cards against budgeted
targets. Implementing Data Governance by Value is key in
leveraging Big Data opportunities in your organisation.
We support you in establishing the required Data
Governance Framework, Data models and standards, Data
Lifecycle, Data Ownership Lifecycle, Data Value Lifecycle.
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Data Governance:
Establishing a management
structure, with clear roles,
responsibilities, and
ownership for all data
within an enterprise.
By Value: Establishing a
standard data taxonomy,
metrics, and reporting, that
delivers a data portfolio
with a pseudo real-time
cost benefit valuation.
Machine to Machine
Leveraging the oppertunities in the Internet of Things
maturity model, supporting an organisation in each stage
of the BI lifecycle. It provides a comprehensive inventory
of the activities, models and products needed in the full BI
lifecycle. This inventory is based on well-established
principles in the ICT architecture arena and supports
structured and consistent delivery of BI. Also each stage is
supported by standardised evaluation and review
packages. Best Practices from our early engagements in
Big Data type initiatives at our clients as well as our
continuous collaboration within our eco-system of
technology partners are included in the BI Framework.
With that we provide a comprehensive and secure
foundation to build on with your Big Data initiative,
preventing common pitfalls and leveraging tangible
experience in the field.
16
Machine to Machine
Leveraging the oppertunities in the Internet of Things
Industry insight says that: Among traditional players in
the telecom space, Logica has the strongest focus on
M2M (Berg insight 2010). The need to reduce costs
through greater operational efficiency is a common driver
across all sectors. New service offerings are being
created Pay as You Drive Insurance, Smart Metering for
utilities, in-car Infotainment which have not been
possible in the past. These business opportunities offer
added value for consumers and new revenue streams for
Logicas clients. Logicas deep sector knowledge and client
intimacy combined with our technical expertise and
innovation provide us with the ability to deliver the end
to end service clients are seeking.
Logica has a developed service offering which is based
upon careful analysis of the market and solid client
experience. Market analysis tells us that clients are
looking for a single company which can deliver a robust
end to end service. The innovative service offerings which
we have developed and our position in key markets give
us credibility with high profile partners. These partners
include big telco sector companies such as: Alcatel Lucent,
Ericsson, Nokia Siemens, O2, Orange, TeliaSonera,
Telenor, and Vodafone. They also include organisations
such as Intel, Mobistar, Ertico and Landis and Gyr.
Logicas end to end service provides our clients with game
changing business analytics harnessing (near) real time
data from remote devices. This service is built upon
transaction based pricing and a 'pay-as-you- grow'
strategy.
This strategy allows clients to avoid huge up-front costs
and enables them to build a business where their revenue
and cost profiles are aligned.
Our global M2M development environment enables clients
and ecosystem partners to develop and test new M2M
solutions by using a common open source toolset in the
cloud.
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18
19
In just 6 months a
worldwide mobile
operator achieved a
double-digit reduction in
percentage churn and
generated additional
revenues of 1.3 million.
The operator now runs
more than 200 highly
targeted campaigns a year
to stimulate usage and sell
specific bundles. Return on
investment in marketing
campaigns exceeds the
best previous results by
over 230%
Allianz created an
operational and integral
customer view, 360
degrees, including; Unique
Broker and contact data,
unique retail customer
data; in all LoBs and
Allianz NL wide secondary
processes; Centralised and
standardised broker
management and client
management; support and
synchronisation across all
channels.
Contact Information
Who to engage with
We welcome you to contact us to engage with you in exploring your business
opportunities with Big Data in more detail through your regular Logica
contact person or our local contacts on Big Data...
Region
Name
Global
henk.van.roekel@logica.com
Benelux
Thomas Rodenburg
thomas.rodenburg@logica.com
France
Fredrik Ware
fredrik.ware@logica.com
UK
Phil Smith
philip.smith@logica.com
Denmark
Pelle Eiland
pelle.eiland@logica.com
Germany
Markus Kollas
markus.kollas@logica.com
Sweden
Niklas Karlsson
niklas.karlsson@logica.com
Finland
Kari Natunen
kari.natunen@logica.com
Iberia
Pedro Machado
pedro.machado@logica.com
USA
Craig Bauhaus
craig.bauhaus@logica.com
Latin America
Rodrigo Aguiar
rodrigo.aguiar@logica.com
India
Jaganmohan Ramani
jaganmohan.ramani@logica.com
Document
Date
McKinsey
June 2011
productivity
TiViT
June 2011
Kimball Group
Q1 2012
20
Q1 2012
Logica is a business and technology service company, employing 41,000 people. It provides
business consulting, systems integration and outsourcing to clients around the world, including
many of Europe's largest businesses. Logica creates value for clients by successfully integrating
people, business and technology. It is committed to long term collaboration, applying insight to
create innovative answers to clients business needs. Logica is listed on both the London Stock
Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available
at www.logica.com.
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