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Vol.1 Business Analytics Utilizing Big Data(PDF: 4Pages ... - NTT Data

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<strong>NTT</strong> DATA Technology Foresights 2012<br />

<strong>Business</strong> <strong>Analytics</strong> <strong>Utilizing</strong> <strong>Big</strong> <strong>Data</strong><br />

Every two years, the amount of data in the world doubles, and by 2015, it is estimated that the total data on Earth will<br />

amount to 7.9 zettabytes. Unstructured data, such as text and images accounts for 90% of this amount. From here on, it is<br />

highly anticipated that this massive amount of data will be used in business analytics to improve operations and offer<br />

innovative services. This document will introduce business analytics that use big data and the technological trends surrounding<br />

it, as well as <strong>NTT</strong> DATA’s approach.<br />

Technological trends of business analytics<br />

Until now, businesses were limited to utilizing customer<br />

and business information contained within an<br />

extremely small units of time for acquisition, such as<br />

every second, or several hundred milliseconds. Management<br />

or processing of data which has these characteristics<br />

in-house system.<br />

will inevitably present problems for current database and<br />

However, performance improvements<br />

in hardware and the emergence of new services in<br />

recent years have shown an explosive growth in the<br />

types of information available for use. Typical examples<br />

are sensing data and lifelog data (Figure 1). Use of sensors<br />

and smart devices are expanding, and more detailed<br />

data about people and things are becoming easier<br />

to acquire. We are also seeing a rapid increase of individuals<br />

disseminating information via social networking<br />

services and blogs.<br />

With big data, it is necessary to keep an eye on not only<br />

the volume, but also the variety and velocity of the data.<br />

Rather than just single source numerical data, it is necessary<br />

to process unstructured data such as text and image<br />

acquired from multiple sources. <strong>Data</strong> that was previously<br />

acquired within a number of minutes or hours now use<br />

processing technology.<br />

How should we utilize such a big data? <strong>Business</strong> intelligence<br />

(BI) has developed along with visualization in<br />

the business environment; however, to utilize big data,<br />

visualization is not enough. Incorporating business analytics<br />

(BA) which includes prediction and optimization<br />

is the key to success.<br />

There are three major types of business analytics.<br />

Type 1 is to find the relationship and regularity between<br />

data sets. For example, good customers can be determined<br />

based on an analysis of the causal relationship<br />

between their attributes and purchasing history. Type 2<br />

is to find an optimal solution under a specified set of<br />

constraints. This type is valid for problems where limited<br />

resources are used effectively, for instance, when<br />

optimizing order quantity or scheduling shift workers.<br />

Type 3 is to anticipate future trends by understanding<br />

customer behaviors. Attentive services and functions<br />

that are ahead of the curve can be offered by this type.<br />

Examples include financial services detecting fraud or<br />

anomaly, and offering recommendations.<br />

In order to realize BA, many IT service providers already<br />

offer solutions for large-scale distributed processing<br />

(Hadoop), and streaming data processing (CEP:<br />

Figure 1: Expectations for big data use<br />

Complex Event Processing). Some providers have even<br />

established specialized teams for analytics in-company,<br />

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and continue to advance in these types of activities.<br />

assist with identifying revolutionary changes and other<br />

important social incidents. Although it is currently in<br />

Advancements in technology<br />

How far is big data and business analytics related<br />

the research stage, it may help prevent terrorism and<br />

large-scale crimes in the near future.<br />

technology actually advancing? We believe that the advancement<br />

in the axis of growth and diversity of information<br />

(big data aspects), and axis of analytic sophistication<br />

(analytic aspects), are each progressing (Figure 2).<br />

Use and analysis of large amounts of numerical data<br />

from sensors continue to progress. From here on, in aspects<br />

of big data, progression of diversified data such as<br />

unstructured data will lead toward data fusion where<br />

data is fused from multiple sources. For example, in the<br />

field of transportation, there is currently an effort to<br />

integrate traffic information as text expressions, and<br />

weather information as graphical expressions to analyze<br />

traffic congestion. The important technical point is how<br />

to supplement and overlay data which differ in spatial<br />

granularity and acquired timing.<br />

From an analytical aspect, analytical technology for<br />

diverse data continues to progress, leading toward even<br />

more accurate future predictions and control of the real<br />

world. For example, a retailer anticipates demand based<br />

on sales, and by automatically calculating the appropriate<br />

order for number of products, the retailer determines<br />

the actual order amount. For retailers, the need for optimization<br />

of order amount is large because opportunity<br />

loss resulting from inventory shortages and excess inventory<br />

is a risk too large to be ignored.<br />

Five to ten years down the line, with an integration of<br />

these technologies, comprehensive decision making,<br />

which currently only possible for humans, will partially<br />

be done by machines. A predecessor to this is the Open<br />

Source Indicators project at Intelligence Advanced Research<br />

Projects Activity (IARPA) of the U.S. Department<br />

of Defense. This initiative uses Twitter posts, search engine<br />

queries, and street corner surveillance webcams,<br />

integrating all kinds of data for automatic analysis to<br />

Figure 2: Steps in advancement<br />

<strong>NTT</strong> DATA’s approach<br />

At <strong>NTT</strong> DATA, we perceive the extensive use of big<br />

data as an extension of business intelligence.<br />

Traditional business intelligence was based on aggregate<br />

analysis, and stopped at the point of visualization.<br />

However, visualization alone has limits to how high a<br />

degree of knowledge can be derived from data. <strong>NTT</strong><br />

DATA perceives a wider application of business intelligence<br />

including visualization and business analytics,<br />

and categorizes BI into four categories based on our data<br />

analysis consulting experience in various fields of business.<br />

Aggregate Analysis BI immediately aggregates and<br />

analyzes all data. Discovery BI analyzes variations to<br />

match data granularity and discovers rules. WHAT-IF BI<br />

uses simulations and searches for optimal solutions to<br />

optimize business operations. And Proactive BI analyzes<br />

data in real time to offer future services that are ahead of<br />

the curve. Of these abovementioned categories, Discovery<br />

BI, WHAT-IF BI, and Proactive BI are analogs of<br />

business analytics, and these are equivalent to the previously<br />

described Type 1, Type2, and Type 3, respectively.<br />

At <strong>NTT</strong> DATA, the data analysis methodology<br />

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Table 1: Types of analysis scenarios<br />

related to business analytics<br />

tailed in a separate document.)<br />

(2) Optimized supply chain management for CPFR<br />

[Prediction and control]<br />

CPFR (Collaborative Planning, Forecasting, and Replenishment)<br />

is a cooperative initiative between manufacturers<br />

and retailers to create sales plans, prevent defects,<br />

and reduce inventory. This effort attempts to<br />

predict demand for products over the short term, and<br />

mid/long term, and then create an ordering model based<br />

BICLAVIS ® has been developed around the axis of the<br />

previously mentioned four classes. At the core of this<br />

lies analysis scenarios classified into analysis patterns by<br />

objective (Table 1). Based on these scenarios, <strong>NTT</strong> DATA<br />

uses a template for efficient analysis.<br />

At the <strong>Data</strong> Warehouse/<strong>Business</strong> Intelligence Lab ® ,<br />

initial process assistance is offered in the form of support<br />

in proof-of-concept design and selecting tools for<br />

core products, and development of demo systems tailored<br />

to customer requirements.<br />

Global initiatives are also gaining speed. In addition<br />

to efforts to provide high-level ITS in Asia, and efforts<br />

toward a smart community in Europe, a large amount of<br />

knowledge is concentrated in the BI Global One Team<br />

consisting of the Europe/Americas and Asian <strong>NTT</strong> DA-<br />

TA group companies. In this way, we are able to offer<br />

full support business analytics services to customers<br />

with locations around the globe.<br />

Examples of initiatives<br />

This section will introduce some examples of <strong>NTT</strong><br />

DATA initiatives.<br />

(1) Bridge monitoring [Anomaly Detection]<br />

Bridge deterioration detection involves large maintenance<br />

costs. We have built a demonstration system to<br />

detect anomalies denoting distortion in the sent data<br />

from installed sensors on a bridge. (This test case is de-<br />

on that information (how much to order at what timing).<br />

Additionally, to evaluate the effectiveness of this effort,<br />

simulations are used that include realistic constraints<br />

such as defective items and delivery dates. Usually, real<br />

changes in inventory ordering formats involve great risk,<br />

and pre-evaluation through simulations is of great value.<br />

<strong>NTT</strong> DATA already offers business services based on<br />

this method.<br />

(3) Shift scheduling for PO [Prediction and control]<br />

BPO (<strong>Business</strong> Process Outsourcing) involves outsourcing<br />

all but core aspects of a business, radically revising<br />

business processes and resources. For this initiative,<br />

we execute shift scheduling for offices that process<br />

multiple types of duties, along with estimating work<br />

volume of each task, considering the necessary time<br />

limit for completing a task, as well as the personnel skill<br />

needed, and other real constraints in the workplace.<br />

With this system, we can automatically generate an optimum<br />

schedule, maximizing BPO effectiveness.<br />

(4) Medical cost reduction policy for health insurance<br />

organizations [Targeting]<br />

The increase in insured persons who become seriously<br />

ill due to lifestyle diseases has caused a problem in increased<br />

costs for health insurance organizations. From<br />

insured persons’ current state of health, we identified<br />

who are at high risk for serious diseases and gave health<br />

3


counseling at an early stage to prevent such increase<br />

cost. By looking at past insurance claims, data mining<br />

can help identify patterns that lead toward lifestyle diseases<br />

or complications, allowing organizations to make<br />

a list of high-risk patients and to provide health counseling.<br />

The result can lead to prevention of health risks<br />

in insured persons, and curtailing extra costs for the<br />

health insurance organization overall.<br />

Future vision<br />

At the beginning of the paper, we pointed out the<br />

trend for business analytics advancement. These advancements<br />

will be made possible by progression of the<br />

previously described four types of business intelligence.<br />

<strong>NTT</strong> DATA is already undertaking efforts to realize<br />

comprehensive decision making in 5 to 10 years from<br />

now.<br />

Implementation architecture<br />

As architecture for business analytics utilizing big data,<br />

<strong>NTT</strong> DATA defines three layers (Figure 3). The first is<br />

big data infrastructure layer, which is an engine for<br />

processing ultra high amounts of data in diverse formats.<br />

Hadoop and in-memory databases serve as such platform<br />

solutions. The second layer is business analytics<br />

infrastructure, which is equal to libraries equipped with<br />

high-level data analysis functions and data mining<br />

packages. The third layer consists of analysis templates<br />

and applications to offer analysis templates for each task<br />

or field, and analysis scenarios tailored to each type.<br />

In addition to total support for each layer, <strong>NTT</strong> DATA<br />

puts extra effort into added value services particularly<br />

for the third layer. Using the previously-described BI-<br />

CLAVIS ® , we will accumulate knowledge in a wide variety<br />

of fields in order to offer even more sophisticated<br />

analytics services.<br />

For example, in the field of traffic control, by executing<br />

a large-scale, multi-agent simulation with data input<br />

from beacons, probe sensor data, and traffic information,<br />

we are researching ways to forecast traffic conditions,<br />

and control signals and lane usage.<br />

Additionally, in the field of marine transportation logistics,<br />

there are needs of anticipating specific marine<br />

areas that are unable to pass through due to incidents<br />

occurring throughout the world using predictive incident<br />

detection, and securing port slots for ships traveling<br />

numerous countries (Figure 4). Quickly identifying<br />

trends which could affect economic activity is becoming<br />

extremely important in order to avoid risks.<br />

<strong>Business</strong> analytics that utilize big data is the key<br />

technology that will be used to optimize business and<br />

society adjusting to the environmental change. <strong>NTT</strong><br />

DATA has a wealth of experience in analytics, and with<br />

its neutral stand toward IT infrastructure and tools,<br />

along with a strong global business intelligence solu-<br />

Analysis template, analysis AP<br />

<strong>NTT</strong> DATA’s <strong>Data</strong>’s own data analysis technique<br />

<strong>Business</strong> <strong>Business</strong> <strong>Analytics</strong> <strong>Analytics</strong> Infrastructure foundation<br />

Mathematical Systems Inc’s own analysis PKG group<br />

<strong>Big</strong> <strong>Big</strong> <strong>Data</strong> <strong>Data</strong> Infrastructure foundationIn-memory DB<br />

Hadoop<br />

DWH appliance<br />

CEP<br />

<strong>Data</strong> Warehouse/<strong>Business</strong> Intelligence Lab ®<br />

Services offered<br />

<strong>Big</strong> <strong>Data</strong> analysis<br />

consulting<br />

Xrosscloud<br />

(M2M (M2M PF PFservice)<br />

BizXaaS Biz XaaS<br />

(Cloud solutions)<br />

tions’ development and deployment capability, we are in<br />

an excellent position to provide a new type of reform<br />

through strategic use of information for our customers.<br />

Total support from the foundation to analysis<br />

Figure: 3 Implementation architecture<br />

Figure 4: Marine transportation logistics<br />

example<br />

4<br />

2012.10.18

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