Innovation through Prediction

- Hybrid Cloud Big Data Platform

dict. Influence.
John Andrew
Oracle Enterprise Architect
John.andrew@oracle.com

Safe Harbor Statement

The following is intended to outline our general product direction. It is
intended for information purposes only, and may not be incorporated
into any contract. It is not a commitment to deliver any material, code,
or functionality, and should not be relied upon in making purchasing
decisions. The development, release, and timing of any features or
functionality described for Oracles products remains at the sole
discretion of Oracle.

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Agenda
1

Innovation Business Drivers

Use Case Context

Reference Architecture Context

Hybrid Cloud Solution Context

Q&A

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

What if
1. You knew what products your customers would
be the most likely to buy in advance?
2. You could maximize your profits by determining
the highest price a customer will pay for a
product?
3. You could optimize customer service to resolve
concerns
and
finally.proactively before they become issues?
4. Political parties had a way of determining and
influencing the voters to vote for them?
Copyright 2015 Oracle and/or its affiliates. All rights reserved.

What does it mean for Business

Increased Customer Drastically Reduced

Satisfaction and
Business Risk
Revenue

Increased
Efficiency and
Productivity

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Core business themes and building blocks

Predicting and
Influencing

Model Accuracy
Anytime & Anywhere
availability

Time to Value and

Economy of Scale

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Google Trend Analysis as of Oct 2015

Predictive
Prediction
Analytics

Model Big Data

Accuracy
Foundation
Economy
Cloud
Of scale
Deployment
Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Hindsight -> Insight -> Foresight

Descriptive
Analytics

Predictive
Analytics

Prescriptive
Analytics

Business
Expectation

Reports
Alerts
Discovery

Forecasting
Trends
Relationships

Prediction
Next Best Action
Influencing

Architecture
Pattern

RDBMS / SQL
(x)OLAP
Warehouse

Analytics
Models
Semantics

Machine learning
Decision Hub
Optimization

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

More Data + Variety Data -> Better

Predictive Models
Increasing sources of
relevant data can
boost model accuracy
Model with Big Data
and hundreds -thousands of input
variables including:
Customer sentient data
Competitors data
Environmental data
Spatial location data
Long term vs. recent
historical behavior
Sensor data
etc.

Failure Prediction Accuracy

100%

0%

100%

Nave Guess
or Random
Model with 20
variables
Model with 75
variables
Model with 250
variables

Population Size
Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Agenda
1

Innovation Business Drivers

Use Case Context

Reference Architecture Context

Hybrid Cloud Solution Context

Q&A

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

10

Predictive Analytics Use Cases

Predictive Pricing Fraud PreventionPredicting Influence

(Competitive, Dynamic, (Box tops) (Product and Customer)
and Demand)
Copyright 2015 Oracle and/or its affiliates. All rights reserved.

11

Collecting All Pricing related Data Data

Wrangling
Enterprise Data

Non Enterprise Data

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12

Training Pricing model Machine Learning

Customer
Preferenc
e

Consumer
Price
Index

Historical
Pricing
Avg

Inventory
Turnover

Segment
ID

Customer
Segment

Producer
Price
Index

Yes

80%

.12

.60

FM

HV

78%

No

60%

.34

.15

ANP

MV

65%

No

65%

.12

.30

FR

LV

60%

No

50%

.18

.35

PUR

MV

55%

Yes

78%

.16

.70

NUTR

HV

80%

No

95%

.53

.40

RB

LV

90%

No

74%

.45

.25

CGF

HV

75%

No

70%

.66

.38

SFI

MV

65%

Have an algorithm determine what is different and the

importance of the differences in the green and gray
metrics to figuring out preference
Copyright 2015 Oracle and/or its affiliates. All rights reserved.

13

Advanced Analytics Algorithms

More than just linear regression to help predict the future and discovery
relationships

Algorithms works across data sets (Relational and Non-Relational)

Classification
Logistic Regression
Decision Trees
Nave Bayes
Support Vector Machines
Regression
Linear Regression
Support Vector Machines
Multi-Layer Neural Networks

Clustering

Attribute Importance

Hierarchical k-Means

Minimum Description Length

Hierarchical O-Cluster
Expectation-Maximization
Anomaly Detection
One-Class SVM
Text Mining

Principal Components Analysis

Feature Extraction
Nonnegative Matrix Fact(NMF)
Singular Value Decomposition(SVD)
Collaborative Filtering (LMF)

Tokenization
Theme Extraction
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14

Current State Constraints and Gaps

1. Analytical Challenges

Misspecification and using a sample to estimate the model

Resource (memory) constraints of analytical scripts (R scripts)

Analyze data without help from IT

2. Data Management Challenges

Complexity and Cost issues resulted using smaller data sets for
analytics

Smaller the data sets, less accurate analytical outcomes

Data latency issues increased as the result of data exists in

multiple places

3. Deployment Challenges

Up front large CapEx to build and deploy the Platform

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

15

Agenda
1

Innovation Business Drivers

Use Case Context

Reference Architecture Context

Hybrid Cloud Solution Context

Q&A

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

16

f(predictive analytics) = ( unified data +

predictive models +
@scale)

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

17

Architecture Vision
Creating an Unified Data + Advanced Analytic
Platform
for the Era of Big Data and the Cloud
Simple
Any data size
Any data
variety
Any platform

Unify

Secure

Enterprise (All)
Control Access
Data
Protect
Analytical
Integrity
Models
User Interaction

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Resilient
Reliable
Timely
Elastic
18

Architecture Themes

Architecture Fit

Financial Fit

Operational Fit

As-is Data Discovery

At-source Data Analytics
At scale and Performance

Reduced $ per Model

CapEx to OpEx Transition
Lower TCO

Automated Infrastructure
Unified Management
Simplified Support Model

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

19

On-Premises Architecture Pattern Ingestion to

Analytics
3rd Party
Data Cloud
Service

Data
Ingestion
Service

Big Data
Service

Big Data
Discovery
Service

Big Data SQL

xl
s

cs
v

Enterprise
Data
Warehouse

Client R
Engine

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

20

Cloud Architecture Pattern Ingestion to

Analytics

Data
Preparation
Cloud
Service

xl
s

cs
v

Big Data

Discovery
Cloud
Service

Big Data
Cloud
Service

Big data SQL

3rd Party
Data Cloud
Service

Database
Cloud
Service

Client R
Engine

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

21

Hybrid Architecture Pattern Ingestion to

Analytics
3rd Party
Data Cloud
Service

Big Data

Preparation
Cloud
Service

xl
s

cs
v

Big Data
Cloud
Service

Enterprise
Data
Warehouse

Big Data

Discovery
Cloud
Service

Client R
Engine

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

22

Analytic Reference Architecture

Built it once and use it multiple times

Functional
Analytical
Services

Foundational
Analytical
Services

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23

Reference Architecture Data Flow

Data Sources

Data
Ingestion

Oracle

Sales &
Inventory

Data Reservoir
(Semi and
Unstructured)
Meta
Spark
data

Structured

Continuous

Teradata

Data
Warehouse

Structured

Daily Updates

IBM

Archive
Mainframe Unstructured

Competitors
Data
Structured

Orchestrati
on,
Integration
,
Lineage,
and
Preparatio
n

Outside
Data

Public Sources (Free)

3rd Party Sources (Pay)

Hadoop
(HDFS)
NoSQL

Import and Ingest

Cleanse and Normalize
Repair and Standardize
Classify and Extract
Augment and Enrich
Visualization

Data Movement
Data Access

Enterprise
Data

Discovery Lab
Business Users

Data
Discove
ry

Analy
tic
Engin
e

Data Warehouse
(Structured)

On-demand

Data Consumption

Data Storage and

Management

Analytical Lab
Development

Search
Visualize
Transform
Share/Subse
t
Analytic

al
Models

Unifi
ed
Secu
re
Acce
ss

Data
Mining
Analytic
Engine
Inmemory
Processi
ng

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Enterprise
Analytics

Regression &
classification
Anomaly detection
Segment analysis

BI and
Analytic
s

Unified models
Sense and respond
Mobile interaction

24

Agenda
1

Innovation Business Drivers

Use Case Context

Reference Architecture Context

Hybrid Cloud Solution Context

Q&A

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

25

Oracle Analytics as a Service Platform

Private, Public and Hybrid Cloud deployment options

Graph Analytics

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26

Predictive Pricing Hybrid Cloud Solution

realization

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27

Unified Analytical Model Execution

Client R Engine
R Functions

ORE packages

Oracle Database Database

In-db
Server
stats/dm

User tables

Machine

Big SQL Services

Data Mining

Oracle R Advanced Analytics for Hadoop

Enterprise R

Oracle DB Advanced Analytics

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28

Kick Start Your Hybrid Cloud Big Data Strategy

1. Guiding Success Factors
Integrate business and technology vision (Identify stockholders
that will carry over to implementation). Focus on the next 12
months
Identify your target architecture
Avoid tunneling on one use case
Keep in mind Big Data is not a cure-all
Hadoop is a complementary to your existing EDW. It could
very well be your System of truth but most likely not your
System of record
2. Jump start your Innovation with
Oracle proven reference architecture
Oracle proven Analytical platform
Oracle proven hybrid cloud deployment
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29

Why Oracle Hybrid Cloud Analytical Platform?

Discover and
Predict Fast

Simplify
Access to All
Data

Govern and
Secure All
Data

Enterprise-Grade Cloud Capabilities

Performanc
e

Integration

Availability

Elasticity

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Manageabil
ity

30

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