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“Innovation through Prediction” - Hybrid Cloud Big Data Platform Learn. Predict. Influence. John Andrew Oracle Enterprise Architect [email protected] 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 Oracle’s products remains at the sole discretion of Oracle. Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 2 Agenda 1 Innovation Business Drivers 2 Use Case Context 3 Reference Architecture Context 4 Hybrid Cloud Solution Context 5 Q&A Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 3 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 proactively before they become issues? and finally…. 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. 4 What does it mean for Business… Increased Customer Drastically Reduced Satisfaction and Business Risk Revenue Copyright © 2015 Oracle and/or its affiliates. All rights reserved. Increased Efficiency and Productivity 5 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. 6 Google Trend Analysis as of Oct 2015 Prediction Predictive Analytics Model Big Data Accuracy Foundation Economy Cloud Of scale Deployment Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 7 Hindsight -> Insight -> Foresight Descriptive Analytics Predictive Analytics Prescriptive Analytics Business • Reports Expectation • Alerts • Discovery • Forecasting • Trends • Relationships • Prediction • Next Best Action • Influencing Architecture • RDBMS / SQL Pattern • (x)OLAP • Warehouse • Analytics • Models • Semantics • Machine learning • Decision Hub • Optimization Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 8 More Data + Variety Data -> Better Predictive Models 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 • Increasing sources of relevant data can boost model accuracy 100% 100% Naïve Guess or Random Model with 20 variables Model with 75 variables Model with 250 variables 0% Population Size Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 9 Agenda 1 Innovation Business Drivers 2 Use Case Context 3 Reference Architecture Context 4 Hybrid Cloud Solution Context 5 Q&A Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 10 Predictive Analytics Use Cases Predictive Pricing (Competitive, Dynamic, and Demand) Fraud Prevention (Box tops) Predicting Influence (Product and Customer) Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 11 Collecting All Pricing related Data… “Data Wrangling” Enterprise Data Non Enterprise Data Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 12 “Training” Pricing model … Machine Learning Customer Preference 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 Clustering Attribute Importance Logistic Regression Hierarchical k-Means Minimum Description Length Decision Trees Hierarchical O-Cluster Principal Components Analysis Naïve Bayes Support Vector Machines Regression Expectation-Maximization Anomaly Detection One-Class SVM Feature Extraction Nonnegative Matrix Fact(NMF) Singular Value Decomposition(SVD) Linear Regression Support Vector Machines Multi-Layer Neural Networks Text Mining Collaborative Filtering (LMF) Tokenization Theme Extraction Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 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 2 Use Case Context 3 Reference Architecture Context 4 Hybrid Cloud Solution Context 5 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 Unify Secure Resilient • Any data size • Enterprise (All) Data • Control Access • Reliable • Any data variety • Analytical Models • Protect • Timely • Any platform • User Interaction • Integrity • Elastic Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 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 ❶ ❷ Data Ingestion Service Big Data Service ❸ Big Data Discovery Service Big Data SQL xls csv Enterprise Data Warehouse ❹ ❺ Client R Engine Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 20 Cloud Architecture Pattern – Ingestion to Analytics ❶ Data Preparation Cloud Service xls csv ❸ Big Data Discovery Cloud Service ❷ Big Data Cloud Service Big data SQL 3rd Party Data Cloud Service ❹ Database Cloud Service ❺ 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 ❶ Big Data Preparation Cloud Service xls csv ❷ Big Data Cloud Service Enterprise Data Warehouse ❹ ❸ Big Data Discovery Cloud Service ❺ 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 3 2 Foundational Analytical Services 1 4 Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 23 Reference Architecture Data Flow … Data Sources Data Ingestion Oracle Sales & Inventory Data Reservoir (Semi and Unstructured) Structured Continuous Data Warehouse Orchestration, Integration, Lineage, and Preparation IBM Competitors Data Discovery Lab Analytical Lab Enterprise Business Users Development Analytics Data Discovery Structured Daily Updates Archive Mainframe Meta data Spark Teradata Data Consumption Data Storage and Management Unstructured Hadoop (HDFS) NoSQL Data Warehouse (Structured) On-demand Outside Data • Public Sources (Free) • 3rd Party Sources (Pay) • • • • • • Import and Ingest Cleanse and Normalize Repair and Standardize Classify and Extract Augment and Enrich Visualization Enterprise Data Search Visualize Transform Share/Subset Analytical Models Analytic Engine • Data Movement • Data Access Structured • • • • Unified Secure Access Data Mining Analytic Engine In-memory Processing Copyright © 2015 Oracle and/or its affiliates. All rights reserved. • Regression & classification • Anomaly detection • Segment analysis BI and Analytics • Unified models • Sense and respond • Mobile interaction 24 Agenda 1 Innovation Business Drivers 2 Use Case Context 3 Reference Architecture Context 4 Hybrid Cloud Solution Context 5 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 Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 26 Predictive Pricing Hybrid Cloud Solution realization Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 27 Unified Analytical Model Execution Client R Engine R Functions ORE packages Oracle Database In-db stats/dm User tables Database Server Machine Big SQL Services B Data Mining Oracle R Advanced Analytics for Hadoop Enterprise R Oracle DB Advanced Analytics Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 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 Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 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 Performance Integration Availability Elasticity Copyright © 2015 Oracle and/or its affiliates. All rights reserved. Manageability 30 Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 31 Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 32 33