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Big Data Analytics

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Th e Wiley & SAS Bu sin ess Series presen ts books th at h elp sen ior-level m an agers with
th eir critical m an agemen t decision s.
Titles in th e Wiley an d SAS Bu sin ess Series in clu de:
Activity-Based Management for Financial Institutions: Driving Bottom-Line Results by Bren t Bah n u b
Advanced Business Analytics: Creating Business Value from Your Data by Jean Pau l Isson an d Jesse
Harriott
Branded! How Retailers Engage Consumers with Social Media and Mobility by Bern ie Bren n an an d
Lori Sch afer
Business Analytics for Customer Intelligence by Gert Lau rsen
Business Analytics for Managers: Taking Business Intelligence beyond Reporting by Gert Lau rsen an d
Jesper Th orlu n d
The Business Forecasting Deal: Exposing Bad Practices and Providing Practical Solutions by Mich ael
Gillilan d
Business Intelligence Success Factors: Tools for Aligning Your Business in the Global Economy by Olivia
Parr Ru d
CIO Best Practices: Enabling Strategic Value with Information Technology, Second Edition by Joe
Sten zel
Connecting Organizational Silos: Taking Knowledge Flow Management to the Next Level with Social
Media by Fran k Leistn er
Credit Risk Assessment: The New Lending System for Borrowers, Lenders, and Investors by Clark
Abrah am s an d Min gyu an Zh an g
Credit Risk Scorecards: Developing and Implementing Intelligent Credit Scoring by Naeem Siddiqi
The Data Asset: How Smart Companies Govern Their Data for Business Success by Ton y Fish er
Demand-Driven Forecasting: A Structured Approach to Forecasting by Ch arles Ch ase
Executive s Guide to Solvency II by David Bu ckh am , Jason Wah l, an d Stu art Rose
The Executive s Guide to Enterprise Social Media Strategy: How Social Networks Are Radically Trans-
forming Your Business by David Th om as an d Mike Barlow
Fair Lending Compliance: Intelligence and Implications for Credit Risk Management by Clark
R. Abrah am s an d Min gyu an Zh an g
Foreign Currency Financial Reporting from Euros to Yen to Yuan: A Guide to Fundamental Concepts
and Practical Applications by Robert Rowan
Human Capital Analytics: How to Harness the Potential of Your Organization s Greatest Asset by Gen e
Pease, Boyce Byerly, an d Jac Fitz-en z
Information Revolution: Using the Information Evolution Model to Grow Your Business by Jim Davis,
Gloria J. Miller, an d Allan Ru ssell
Manufacturing Best Practices: Optimizing Productivity and Product Quality by Bobby Hu ll
Marketing Automation: Practical Steps to More Effective Direct Marketing by Jeff LeSu eu r
Mastering Organizational Knowledge Flow: How to Make Knowledge Sharing Work by Fran k Leistn er
The New Know: Innovation Powered by Analytics by Th orn ton May
Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics by Gary
Cokin s
Retail Analytics: The Secret Weapon by Em m ett Cox
Social Network Analysis in Telecommunications by Carlos An dre Reis Pin h eiro
Statistical Thinking: Improving Business Performance, Second Edition by Roger W. Hoerl an d Ron ald
D. Sn ee
Taming the Big Data Tidal Wave: Finding Opportunities in Huge Data Streams with Advanced Analytics
by Bill Fran ks
The Value of Business Analytics: Identifying the Path to Profitability by Evan Stu bbs
Visual Six Sigma: Making Data Analysis Lean by Ian Cox, Marie A. Gau dard, Ph ilip J. Ram sey,
Mia L. Steph en s, an d Leo Wrigh t
For m ore in form ation on an y of th e above titles, please visit www.wiley.com .

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Big Data
Analytics
Turning Big Data into Big Money

Fr an k O h lh o r st

Joh n Wiley & Son s, In c.

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Cover im age: @lian gpv/ iStockph oto
Cover design : Mich ael Ru tkowski

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Oh lh orst, Fran k, 1964


Big data an alytics : tu rn in g big data in to big m on ey / Fran k Oh lh orst.
p. cm . (Wiley & SAS bu sin ess series)
In clu des in dex.
ISBN 978-1-118-14759-7 (cloth ) ISBN 978-1-118-22582-0 (ePDF)
ISBN 978-1-118-26380-8 (Mobi) ISBN 978-1-118-23904-9 (ePu b)
1. Bu sin ess in telligen ce. 2. Data m in in g. I. Title.
HD38.7.O36 2013
658.4'72 dc23
2012030191
Prin ted in th e Un ited States of Am erica
10 9 8 7 6 5 4 3 2 1

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Contents

Preface ix

Acknow ledgm ents xiii

Chapter 1 What Is Big Data? ......................................................1

The A rrival of A nalytics 2


Where Is the Value? 3
More to Big Data Than Meets the Eye 5
Dealing w ith the Nuances of Big Data 6
A n Open Source Brings Forth Tools 7
Caution: Obstacles A head 8

Chapter 2 Why Big Data Matters.............................................11

Big Data Reaches Deep 12


Obstacles Remain 13
Data Continue to Evolve 15
Data and Data A nalysis A re Getting More Complex 17
The Future Is Now 18

Chapter 3 Big Data and the Business Case.............................21


Realizing Value 22
The Case for Big Data 22
The Rise of Big Data Options 25
Beyond Hadoop 27
With Choice Come Decisions 28

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vi CONTENTS

Chapter 4 Building the Big Data Team ....................................29


The Data Scientist 29
The Team Challenge 30
Different Teams, Different Goals 31
Don t Forget the Data 32
Challenges Remain 32
Teams versus Culture 34
Gauging Success 35

Chapter 5 Big Data Sources .....................................................37

Hunting for Data 38


Setting the Goal 39
Big Data Sources Grow ing 40
Diving Deeper into Big Data Sources 42
A Wealth of Public Information 43
Getting Started w ith Big Data A cquisition 44
Ongoing Grow th, No End in Sight 46

Chapter 6 The Nuts and Bolts of Big Data ..............................47

The Storage Dilemma 47


Building a Platform 52
Bringing Structure to Unstructured Data 57
Processing Pow er 59
Choosing among In- house, Outsourced, or Hybrid A pproaches 61

Chapter 7 Security, Com pliance, Auditing,


and Protection .........................................................63
Pragmatic Steps to Securing Big Data 64
Classifying Data 65
Protecting Big Data A nalytics 66
Big Data and Compliance 67
The Intellectual Property Challenge 72

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CONTENTS vii

Chapter 8 The Evolution of Big Data .......................................77


Big Data: The Modern Era 80
Today, Tomorrow , and the Next Day 84
Changing A lgorithms 90

Chapter 9 Best Practices for Big Data Analytics ....................93

Start Small w ith Big Data 94


Thinking Big 95
A voiding Worst Practices 96
Baby Steps 98
The Value of A nomalies 101
Expediency versus A ccuracy 103
In- Memory Processing 104

Chapter 10 Bringing It All Together .......................................111

The Path to Big Data 112


The Realities of Thinking Big Data 113
Hands- on Big Data 115
The Big Data Pipeline in Depth 116
Big Data Visualization 121
Big Data Privacy 122

Appendix Supporting Data .....................................................125

The MapR Distribution for A pache Hadoop 126


High A vailability: No Single Points of Failure 142

About the Author 151

Index 153

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Preface

Wh at are data? Th is seem s like a sim ple en ou gh qu estion ; h owever,


depen din g on th e in terpretation , th e defin ition of data can be an yth in g
from som eth in g recorded to everyth in g u n der th e su n . Data can be
su m m ed u p as everyth in g th at is experien ced, wh eth er it is a m ach in e
recordin g in form ation from sen sors, an in dividu al takin g pictu res, or a
cosm ic even t recorded by a scien tist. In oth er words, everyth in g is
data. However, recordin g an d preservin g th at data h as always been
th e ch allen ge, an d tech n ology h as lim ited th e ability to captu re an d
preserve data.
Th e h u m an brain s m em ory storage capacity is su pposed to be
arou n d 2.5 petabytes (or 1 m illion gigabytes). Th in k of it th is way:
If you r brain worked like a digital video recorder in a television , 2.5
petabytes wou ld be en ou gh to h old 3 m illion h ou rs of TV sh ows. You
wou ld h ave to leave th e TV ru n n in g con tin u ou sly for m ore th an 300
years to u se u p all of th at storage space. Th e available tech n ology for
storin g data fails in com parison , creatin g a tech n ology segm en t called
Big Data th at is growin g expon en tially.
Today, bu sin esses are recordin g m ore an d m ore in form ation , an d
th at in form ation (or data) is growin g, con su m in g m ore an d m ore
storage space an d becom in g h arder to m an age, th u s creatin g Big Data.
Th e reason s vary for th e n eed to record su ch m assive am ou n ts of
in form ation . Som etim es th e reason is adh eren ce to com plian ce reg-
u lation s, at oth er tim es it is th e n eed to preserve tran saction s, an d in
m an y cases it is sim ply part of a backu p strategy.
Neverth eless, it costs tim e an d m on ey to save data, even if it s on ly
for posterity. Th erein lies th e biggest ch allen ge: How can bu sin esses
con tin u e to afford to save m assive am ou n ts of data? Fortu n ately, th ose
wh o h ave com e u p with th e tech n ologies to m itigate th ese storage

ix

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x PREFACE

con cern s h ave also com e u p with a way to derive valu e from wh at
m an y see as a bu rden . It is a process called Big Data analytics.
Th e con cepts beh in d Big Data an alytics are actu ally n oth in g n ew.
Bu sin esses h ave been u sin g bu sin ess in telligen ce tools for m an y dec-
ades, an d scien tists h ave been stu dyin g data sets to u n cover th e secrets
of th e u n iverse for m an y years. However, th e scale of data collection is
ch an gin g, an d th e m ore data you h ave available, th e m ore in form ation
you can extrapolate from th em .
Th e ch allen ge today is to fin d th e valu e of th e data an d to explore
data sou rces in m ore in terestin g an d applicable ways to develop
in telligen ce th at can drive decision s, fin d relation sh ips, solve problem s,
an d in crease profits, produ ctivity, an d even th e qu ality of life.
Th e key is to th in k big, an d th at m ean s Big Data an alytics.
Th is book will explore th e con cepts beh in d Big Data, h ow to
an alyze th at data, an d th e payoff from in terpretin g th e an alyzed data.

Ch apter 1 deals with th e origin s of Big Data an alytics, explores th e


evolu tion of th e associated tech n ology, an d explain s th e basic
con cepts beh in d derivin g valu e.
Ch apter 2 delves in to th e differen t types of data sou rces an d
explain s wh y th ose sou rces are im portan t to bu sin esses th at
are seekin g to fin d valu e in data sets.
Ch apter 3 h elps th ose wh o are lookin g to leverage data an alytics to
bu ild a bu sin ess case to spu r in vestm en t in th e tech n ologies
an d to develop th e skill sets n eeded to su ccessfu lly extract
in telligen ce an d valu e ou t of data sets.
Ch apter 4 brin gs th e con cepts of th e an alytics team togeth er,
describes th e n ecessary skill sets, an d explain s h ow to in tegrate
Big Data in to a corporate cu ltu re.
Ch apter 5 assists in th e h u n t for data sou rces to feed Big Data an a-
lytics, covers th e variou s pu blic an d private sou rces for data, an d
iden tifies th e differen t types of data u sable for an alytics.
Ch apter 6 deals with storage, processin g power, an d platform s by
describin g th e elem en ts th at m ake u p a Big Data an alytics
system .

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PREFACE xi

Ch apter 7 describes th e im portan ce of secu rity, com plian ce, an d


au ditin g th e tools an d tech n iqu es th at keep large data sou rces
secu re yet available for an alytics.
Ch apter 8 delves in to th e evolu tion of Big Data an d discu sses th e
sh ort-term an d lon g-term ch an ges th at will m aterialize as Big
Data evolves an d is adopted by m ore an d m ore organ ization s.
Ch apter 9 discu sses best practices for data an alysis, covers som e of
th e key con cepts th at m ake Big Data an alytics easier to deliver,
an d warn s of th e poten tial pitfalls an d h ow to avoid th em .
Ch apter 10 explores th e con cept of th e data pipelin e an d h ow
Big Data m oves th rou gh th e an alysis process an d is th en
tran sform ed in to u sable in form ation th at delivers valu e.

Som etim es th e best in form ation on a particu lar tech n ology com es
from th ose wh o are prom otin g th at tech n ology for profit an d grow th ,
h en ce th e birth of th e wh ite paper. Wh ite papers are m ean t to edu -
cate an d in form poten tial cu stom ers abou t a particu lar tech n ology
segm en t wh ile gen tly goadin g th ose poten tial cu stom ers toward th e
ven dor s produ ct.
That said, it is always best to take white papers with a grain of
salt. Nevertheless, white papers prove to be an excellent sou rce for
researching technology and have significan t education al valu e. With
that in m ind, I h ave included the following white papers in the appendix
of th is book, and each offers additional knowledge for those who are
lookin g to leverage Big Data solu tions: The MapR Distribu tion for
Apach e Hadoop and High Availability: No Sin gle Points of Failure,
both from MapR Techn ologies.

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Acknow ledgm ents

Take it from m e, writin g a book takes tim e, patien ce, an d m otivation in


equ al m easu res. At tim es th e ch allen ges can be overwh elm in g, an d it
becom es very easy to lose focu s. However, an alytics, pattern s, an d
u n coverin g th e h idden m ean in g beh in d data h ave always attracted
m e. Wh en on e con siders th e possibilities offered by com preh en sive
an alytics an d th e in clu sion of wh at m ay seem to be u n related data sets,
th e effort in volved seem s alm ost in con sequ en tial.
Th e idea for th is book cam e from a brief con versation with Joh n
Wiley & Son s editor Tim oth y Bu rgard, wh o con tacted m e ou t of th e
blu e with a proposition to bu ild on som e articles I h ad written on Big
Data. Tim explain ed th at com preh en sive in form ation th at cou ld be
con su m ed by C-level execu tives an d th ose en terin g th e data an alytics
aren a was sorely lackin g, an d h e th ou gh t th at I was u p to th e ch allen ge
of creatin g th at in form ation . So it was with Tim s en cou ragem en t th at I
started down th e path to create a book on Big Data.
I wou ld be rem iss if I didn t m en tion th e excellen t advice an d
addition al m otivation th at I received from Joh n Wiley & Son s devel-
opm en t editor Stacey Rivera, wh o was faced with th e ch allen ge of
keepin g m e on track an d m ovin g m e alon g in th e process a ch ore
th at I wou ld n ot wish on an yon e!
Pu ttin g togeth er a book like th is is a lon g jou rn ey th at in trodu ced
m e to m an y experts, m en tors, an d acqu ain tan ces wh o h elped m e to
sh ape m y ideology on h ow large data sets can be brou gh t togeth er for
processin g to u n cover tren ds an d oth er valu able bits of in form ation .
I also h ave to ackn owledge th e m an y ven dors in th e Big Data
aren a wh o in adverten tly h elped m e alon g m y jou rn ey to expose th e
valu e con tain ed in data. Th ose ven dors, wh o n u m ber in th e dozen s,
h ave m ade con cen trated efforts to edu cate th e pu blic abou t th e valu e
beh in d Big Data, an d th e even ts th ey h ave spon sored as well as th e

xiii

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xiv ACKNOWL EDGM ENTS

in form ation th ey h ave dissem in ated h ave h elped to fu rth er defin e th e


m arket an d give rise to con versation s th at en cou raged m e to pu rsu e
m y u ltim ate goal of writin g a book.
Writin g takes a great deal of en ergy an d can qu ickly con su m e all
of th e h ou rs in a day. With th at in m in d, I h ave to th an k th e n u m erou s
editors wh om I h ave worked with on freelan ce projects wh ile con cu r-
ren tly writin g th is book. With ou t th eir u n derstan din g an d flexibility,
I cou ld n ever h ave written th is book, or an y oth er. Special th an ks
go ou t to Mike Vizard, Ed Scan n ell, Mike Fratto, Mark Fon tecch io,
Jam es Allen Miller, an d Cam eron Stu rdevan t.
Wh en it com es to providin g th e u ltim ate in en cou ragem en t an d
su pport, n o on e can com pare with m y wife, Carol, wh o u n derstood
th e toll th at writin g a book wou ld take on fam ily tim e an d was still
willin g to provide m e with wh atever I n eeded to su ccessfu lly com plete
th is book. I also h ave to th an k m y ch ildren , Con n or, Tyler, Sarah , an d
Katelyn , for u n derstan din g th at Daddy h ad to work an d was n ot
always available. I am very th an kfu l to h ave su ch a won derfu l an d
su pportive fam ily.

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