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Big Data and IoT Utilization in Japan
IoT Big Data 2017.2.7
Dr.Masahiro Ide
© 2017 QUNIE CORPORATION. All rights reserved. 2
Who am I? (Profile)
Dr. Masahiro IDE
Business Experience • Engaged in analytics/big data, IoT
utilization of consulting • Management of Qunie's Digital Business
Laboratory and conduct research on digital business
• Part-time lecturer in Tokyo University of Agriculture and Technology
Area of expertise/Key Skills • Big Data Analytics, IoT, AI utilization • Business model design • Software Engineering/Requirements
Engineering
Qualifications • Ph.D in Mathematics and Information
Science
© 2017 QUNIE CORPORATION. All rights reserved. 3
Agenda
1. Big Data Basic Theory
2. Usage of Big Data and IoT in Japan
3. Big Data and IoT Solution services in Qunie
4. Conclusion
© 2015 QUNIE CORPORATION. All rights reserved. 4 © 2017 QUNIE CORPORATION. All rights reserved. 4
1. Big Data and IoT Basic Theory
© 2017 QUNIE CORPORATION. All rights reserved. 5
Data Explosion in the world
Reference:The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things April 2014
The digital universe – the data we create and copy annually –is growing 40% a year into the next decade. Internet of Things(IoT) is unleashing a new wave of opportunities for businesses and people around the world.
© 2017 QUNIE CORPORATION. All rights reserved. 6
Evolution of computer technology makes it possible to store huge data
1980‘s hard drive 2015 hard disc
*Reference:IBM 3380 direct access storage device
1/2,000,000 1gigabyte: Approx 5 yen
1gigabyte: Approx 10 million yen
The cost of data storage became 1/2,000,000 over these past 30 years in Japan.
© 2017 QUNIE CORPORATION. All rights reserved. 7
Changes in the usage of data
Limited amount of data was used in the company.
We couldn’t know customers opinions in the past due to a limitation of data usage.
Point of sales Shop front
Daily sales Call center
(complaints、FAQs、etc) Demographics
Phsychographics Member registration
questionnaires
© 2017 QUNIE CORPORATION. All rights reserved. 8
Changes in the usage of data
New data can now be obtained that was unattainable before
We can actively review customer data and opinions
WEB/EC site (view history・
purchase history)
electronic money transaction(payment information)
Smart phone、IC card, etc
(GPS、station information、etc)
M2M、censor (machine generated)
SNS、blogs (feedback、comments、
etc)
© 2017 QUNIE CORPORATION. All rights reserved. 9
We can utilize 3 data for business activities
Consumer-generated data Business-generated data
The data generated from products and services
given to Consumers by Businesses
Product Service
How effectively can we utilize these 3 data for business activities?
© 2017 QUNIE CORPORATION. All rights reserved. 10
What does Big Data mean to the Internet of Things (IoT) ?
People (more than 7 billion people)
Things/Devices (More than 30 billion Devices)
Data in the Real World
Sensing Data Lifelog Data RFID Transportation of something
Various Sensors Machine status And diagnostics
Remote Sensing Environmental Hazard
HEMS Energy Consumption History
SNS, Blog Personal Data Comments
EC Product Search Process
Pro-traffic IC Card Tracking train rides
GPS Location of a Car or Person
IB/ATM Account History
Health Care Device Health condition
Big Data
Big Data is utilized as a valuable resource to enhance values for business management and operation. One of the ways for data utilization is IoT.
© 2017 QUNIE CORPORATION. All rights reserved. 11
Current status of Big Data and IoT utilization in Japan
Reference:JUAS
Current status and 3 years later of Big Data utilization in Japan (current status/2014 3years later/2016)
0% 20% 40% 60% 80% 100%
future(3 years later)(n=1111)
current status(n=1118)
13.7
4.6
12.9
6.4
21.3
17.7
0.9
2.5
14.9
19.5
36.4
49.3
utilized in testing considering
considering cancellation unreviewed(in need) unreviewed(not in need)
※n is company number
Currently, only about 10 percent of companies are using big data But the need to use big data is very high.
© 2017 QUNIE CORPORATION. All rights reserved. 12
The problems with Big Data and IoT utilization
The biggest problem with big data utilization is not having a clear purpose of usage. Once the objectives have been clarified, the next step is to find human resources to analyze the data.
0.0 10.0 20.0 30.0 40.0 50.0
0.8
3.4
4.2
5.1
5.4
10.7
13.2
10.9
27.3
2.2
7.5
7.2
11.2
9.6
9.5
5.7
14.6
12.0
2.5
7.2
10.3
6.7
11.5
7.1
8.4
12.0
6.3
first(n=907)
second(n=907)
third(n=907)
The problems with Big Data utilization
Clarify the objectives for utilization
Development of organizational framework for Analytics
How to obtain skills and knowledge for technology
Human resources development (data scientist)
Appeal of Cost-effectiveness
Find subject for analysis
Data collection
Understanding of utilization by management
Understanding of utilization by other employees
© 2015 QUNIE CORPORATION. All rights reserved. 13 © 2017 QUNIE CORPORATION. All rights reserved. 13
2. Usage of Big Data and IoT in Japan
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Changing of Customer Requirements
Visualization Prediction
Batch Real-time
SI Vendor (Outsourcing)
In System (Automatic learning)
Before Now
1. Purpose
4. Algorithm
3. Process
Customer’s Expectations of Big Data, Analytics and IoT Services
The customer need for Big Data and IoT is changing these days.
2. Object Select everything Shallow analysis
Select one thing Deep analysis
© 2017 QUNIE CORPORATION. All rights reserved. 15
Use Cases Map of Big Data and IoT Services for Manufacturing
There are variety of Analytics themes throughout the value-chain.
Com
mon
Activates Activities of Value-C
hain
Purchasing Logistics Manufacturing Sales & CRM After Service
Parts depletion prediction Product
Monitoring & failure prediction Customer DNA
(by personal) demand
forecasting
Transportation volume
optimization
predictive Equipment operation
management
Real-time Prediction of
process control
Yield-Improving Analysis
Dispatch Scheduling Resource
Optimization
Production planning and inventory Optimization & Simulation
Shift-Scheduling
Internal control (Fraud detection)
Cost Management & Environmental
accounting
Preventive maintenance of
equipment
Labor & productivity management by
location data
Corporate Performance
Management(CPM)
Value calculation by Product use analysis
Patent asset valuation
Equipment renewal & Asset Management
Material Traceability Real-time Management of Loading & unloading
Global SCM S&OP
Design & Dev
Yield rate simulation
Design quality Monitoring
Function Value Quantification
Product planning
Real-time Recommend Prevention of disaffection
Demand analysis & prediction
Call Center / Machine Log /
Demand extraction from Internet Data
Recall/design deficiency prediction
SNS index Monitoring
Optimization of Call Center
Design quality Simulation
Persona derivation
(Data Driven) Real-time In-door locating
general management
HR management
capital investment management
© 2017 QUNIE CORPORATION. All rights reserved. 16
Case study of Big Data and IoT
There are many examples of use support (Remote monitoring and state visualization) based on sensor data in case of Big Data and IoT utilization.
Design & Dev
Purchasing Manufacturing Logistics Sales &
CRM use After Service
Customer data
sensor data
Operation data
Other company The data
Width of utilization data
4th Step
1th Step
2th Step 3th Step 1
2
3
5th Step
4
value-chain
© 2017 QUNIE CORPORATION. All rights reserved. 17
Examples of Cases successfully performed by Qunie
#1 Evaluation and Important factor
Analysis
#2 Targeting
#3 Anomaly Detection
#4 Portent
#5 Risk scoring
#6 Prediction and Control
#7 Context Awareness
#8 Merchandising
#9 Process Trace
Healthcare Insurance Banking Utilities Retail Manufacture Telco
demand forecast from past sales
data
Monitoring of Production Quality
preventing diagnosis and prescription outside the
standard pattern
Detection of error or incorrect application
Detection Money laundering
Real-time anomaly detection
of bridge
Preventive Maintenance of
NW Devices
Extract the lifestyle-related
diseases wannabees
Extraction good customers, prospective customers
enable to run efficient campaign
Promotion of customer segments
Evaluation of the potential sale of
the agency
Automobile route information
analysis Pay-easy user trends analysis
Products sentiment analysis of POS data and
SNS
Quality evaluation network
Inventory management optimization
prediction of medical cost savings with
health promotion
Driving advice from the accident rate of the route
predicting the real estate price index
Traffic volume prediction based on information in
the past
demand forecast from past sales
data Telegram demand
forecast
Scoring risk of lifestyle related
diseases
The scoring churn risk from the history and attributes of the
customer
scoring churn risk from the history and attributes of
the customer
scored the churn risk from the history and
attributes of the customer
Extract severe process of lifestyle
diseases
Product recommendation using personal
attributes
Bottleneck detection of
Internet banking when opening
Analyzing the process of
purchasing from the click stream
Electronic power consumption
prediction
ordering management analyzing the sales situation
Purchase Analysis for EC
Health promotion to adapted to the life pattern of the
individual
Plan recommendation
EBM(Event Based Marketing)
Coupon delivery to analyze
customer history
Clustering of sales revenue per person and recommend
The discovery of severe illness
from prescription history
Extraction of churn risk
potential from customer usage
Crime prediction of dangerous
areas
finding signs of the spread of
goods and services
Marketing Campaign
Management System
Analytics Purpose
© 2015 QUNIE CORPORATION. All rights reserved. 18 © 2017 QUNIE CORPORATION. All rights reserved. 18
3. Big Data and IoT Solution Services In Qunie
© 2017 QUNIE CORPORATION. All rights reserved. 19
Qunie’s Approach of Big Data and IoT Service Delivery
Begin with small start to save the cost Develop your business with our stage-based support Apply our methods from QUNIE Consulting
Data Utilization
and Analytics
IT System
Planning Phase
Conceptual Planning
Detailed Planning
Proof of Concept (Trial)
Basic Functions
Data Utilization (Partly)
Add more functions you need
Developing Phase
Data Utilization (Real-time)
Full Functions
Producing Phase
Agile
•We recommend to start Big Data Analytics with small cost based on the extensive experience/knowledge with NTT DATA group.
•In the planning phase, we clarify the CONCEPT of Data Utilization (for what/what to do) and minimize the base system for data analytics.
•We implement the required functions based on the cost-effectiveness to realize a waste-free investment with minimal risks.
1
2
3
© 2017 QUNIE CORPORATION. All rights reserved. 20
Big Data and IoT Solution Services
One Stop Service
Strategy
Process
Human Organization
IT
Service Layer
(a)Planning strategy of Big Data and IoT, Design Big Data and IoT Business model and Service
(b)Design how to use Big Data and IoT (Design a Business Process Analytics Using a Big Data)
(c)Big Data and IoT Risk Management Services (Design a Big Data Governance)
(g)Big Data Analytics / Proof of Concept (PoC) Analytical models development
(e)Design a Big Data and IoT Platform Architecture
(f)Implement a Big Data and IoT Platform, Big Data and IoT Cloud Service (Big Data as a Service)
(A) Con-
sulting
(B) IT
(C) KPT
Service Menu
(d)Training of Data Scientists, Organizing Data Science Teams
© 2015 QUNIE CORPORATION. All rights reserved. 21 © 2017 QUNIE CORPORATION. All rights reserved. 21
4. Conclusion
© 2017 QUNIE CORPORATION. All rights reserved. 22
Conclusions Four values that Big Data and IoT use bring The value obtained by utilizing Big Data and IoT has four major values of optimization, billing flexibility, operation, expansion. Business model design incorporating these four values is important.
① Optimization
② Billing flexibility
③ Operation
④ Wxpansion
Connect machine to the Internet, collect and monitor data, optimize its function
Monitors the amount of usage and time zone of machine and carries out the usage-based billing
Provide services that can be remotely controlled by connecting machine and facilities to the Internet
Implement upgrade via the Internet when machine needs new software
Classification of value
• Digital content distribution • Software upgrade
• Remote control • Remote advice / support • Remote lock / release /
access
• Pay-per-use • Charging by time zone • Convert goods into service
• machine optimization and monitoring
• Predictive maintenance • Traffic management
Usage model of value (example)
×
×
×
© 2017 QUNIE CORPORATION. All rights reserved. 23
Services with a combination of Big Data and IoT Amazon Go
https://www.youtube.com/watch?v=NrmMk1Myrxc
Amazon Go
© 2017 QUNIE CORPORATION. All rights reserved. 24
Conclusions The world will be filled with a substantial amount of data. Therefore, Big Data and IoT utilization has become much more popular than ever before in Japan. Qunie provides consulting services specializing in Big Data Utilization, IoT for Japanese companies. We are also planning to expand our services in countries around Asia.
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