Big Data and IoT Utilization in Japan

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1 Big Data and IoT Utilization in Japan IoT Big Data Dr.Masahiro Ide

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. 2

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 2017 QUNIE CORPORATION. All rights reserved. 3

4 1. Big Data and IoT Basic Theory QUNIE CORPORATION. All rights reserved. 4

5 Data Explosion in the world 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. Reference:The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things April QUNIE CORPORATION. All rights reserved. 5

6 Evolution of computer technology makes it possible to store huge data The cost of data storage became 1/2,000,000 over these past 30 years in Japan s hard drive 2015 hard disc 1gigabyte: Approx 10 million yen 1/2,000,000 1gigabyte: Approx 5 yen *Reference:IBM 3380 direct access storage device 2017 QUNIE CORPORATION. All rights reserved. 6

7 Changes in the usage of data Limited amount of data was used in the company. Daily sales Shop front Demographics Phsychographics Member registration questionnaires Call center (complaints FAQs etc) Point of sales We couldn t know customers opinions in the past due to a limitation of data usage QUNIE CORPORATION. All rights reserved. 7

8 Changes in the usage of data New data can now be obtained that was unattainable before WEB/EC site (view history purchase history) SNS blogs (feedback comments etc) electronic money transaction (payment information) M2M censor (machine generated) We can actively review customer data and opinions Smart phone IC card, etc (GPS station information etc) 2017 QUNIE CORPORATION. All rights reserved. 8

9 We can utilize 3 data for business activities Consumer-generated data Business-generated data Product Service The data generated from products and services given to Consumers by Businesses How effectively can we utilize these 3 data for business activities? 2017 QUNIE CORPORATION. All rights reserved. 9

10 What does Big Data mean to the Internet of Things (IoT)? 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. Sensing Data RFID Transportation of something Various Sensors Machine status And diagnostics Remote Sensing Environmental Hazard HEMS Energy Consumption History GPS Location of a Car or Person Big Data Health Care Device Health condition Pro-traffic IC Card Tracking train rides IB/ATM Account History Lifelog Data EC Product Search Process SNS, Blog Personal Data Comments Data in the Real World Things/Devices (More than 30 billion Devices) People (more than 7 billion people) 2017 QUNIE CORPORATION. All rights reserved. 10

11 Current status of Big Data and IoT utilization in Japan Currently, only about 10 percent of companies are using big data But the need to use big data is very high. Current status and 3 years later of Big Data utilization in Japan (current status/2014 3years later/2016) current status( n=1118) future(3 years later)(n=1111) n is company number 0% 20% 40% 60% 80% 100% utilized in testing considering considering cancellation unreviewed(in need) unreviewed(not in need) Reference:JUAS 2017 QUNIE CORPORATION. All rights reserved. 11

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. 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 first(n=907) Understanding of utilization by management second(n=907) Understanding of utilization by other employees third(n=907) 2017 QUNIE CORPORATION. All rights reserved. 12

13 2. Usage of Big Data and IoT in Japan QUNIE CORPORATION. All rights reserved. 13

14 Changing of Customer Requirements The customer need for Big Data and IoT is changing these days. Customer s Expectations of Big Data, Analytics and IoT Services Before Now 1. Purpose Visualization Prediction 2. Object Select everything Shallow analysis Select one thing Deep analysis 3. Process Batch Real-time 4. Algorithm SI Vendor (Outsourcing) In System (Automatic learning) 2017 QUNIE CORPORATION. All rights reserved. 14

15 Use Cases Map of Big Data and IoT Services for Manufacturing There are variety of Analytics themes throughout the value-chain. Activities of Value-Chain Common Activates Product planning Function Value Quantification Demand analysis & prediction Call Center / Machine Log / Demand extraction from Internet Data Persona derivation (Data Driven) general management HR management capital investment management Design & Dev Yield rate simulation Design quality Monitoring Design quality Simulation Cost Management & Environmental accounting Purchasing Logistics Transportation volume optimization Dispatch Scheduling Resource Optimization Manufacturing Sales & CRM Production planning and inventory Optimization & Simulation Material Traceability Real-time Management of Loading & unloading Global SCM S&OP Corporate Performance Management(CPM) Shift-Scheduling Equipment renewal & Asset Management Yield-Improving Analysis Real-time Prediction of process control Preventive maintenance of equipment predictive Equipment operation management Customer DNA (by personal) demand forecasting Real-time Recommend Prevention of disaffection SNS index Monitoring Internal control (Fraud detection) Labor & productivity management by location data Value calculation by Product use analysis After Service Parts depletion prediction Product Monitoring & failure prediction Recall/design deficiency prediction Optimization of Call Center Real-time In-door locating Patent asset valuation 2017 QUNIE CORPORATION. All rights reserved. 15

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. value-chain Width of utilization data Other company The data Customer data Operation data sensor data Design & Dev 4 th Step Purchasing Manufacturing 5 th Step Logistics 4 3 Sales & CRM use 2 3 th Step 1 1 th Step After Service 2 th Step 2017 QUNIE CORPORATION. All rights reserved. 16

17 Examples of Cases successfully performed by Qunie Analytics Purpose #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 Extract the lifestyle-related diseases wannabees preventing diagnosis and prescription outside the standard pattern The discovery of severe illness from prescription history Scoring risk of lifestyle related diseases prediction of medical cost savings with health promotion Health promotion to adapted to the life pattern of the individual Extract severe process of lifestyle diseases Automobile route information analysis Extraction good customers, prospective customers Detection of error or incorrect application The scoring churn risk from the history and attributes of the customer Driving advice from the accident rate of the route Plan recommendation Product recommendation using personal attributes Pay-easy user trends analysis enable to run efficient campaign Detection Money laundering Extraction of churn risk potential from customer usage scoring churn risk from the history and attributes of the customer predicting the real estate price index EBM(Event Based Marketing) Bottleneck detection of Internet banking when opening Promotion of customer segments Real-time anomaly detection of bridge Crime prediction of dangerous areas Traffic volume prediction based on information in the past Electronic power consumption prediction Products sentiment analysis of POS data and SNS Evaluation of the potential sale of the agency finding signs of the spread of goods and services demand forecast from past sales data Coupon delivery to analyze customer history ordering management analyzing the sales situation Analyzing the process of purchasing from the click stream Monitoring of Production Quality Inventory management optimization Quality evaluation network Marketing Campaign Management System Preventive Maintenance of NW Devices demand forecast from past sales data scored the churn risk from the history and attributes of the customer Telegram demand forecast Clustering of sales revenue per person and recommend Purchase Analysis for EC 2017 QUNIE CORPORATION. All rights reserved. 17

18 3. Big Data and IoT Solution Services In Qunie QUNIE CORPORATION. All rights reserved. 18

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 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. Planning Phase Developing Phase Producing Phase Data Utilization and Analytics Conceptual Planning Detailed Planning Proof of Concept (Trial) Data Utilization (Partly) Data Utilization (Real-time) Agile IT System Basic Functions Add more functions you need Full Functions 2017 QUNIE CORPORATION. All rights reserved. 19

20 Big Data and IoT Solution Services Service Layer Service Menu One Stop Service Strategy Process Human Organization IT (A) Consulting (B) IT (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) (d)training of Data Scientists, Organizing Data Science Teams (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) (C) KPT (g)big Data Analytics / Proof of Concept (PoC) Analytical models development 2017 QUNIE CORPORATION. All rights reserved. 20

21 4. Conclusion QUNIE CORPORATION. All rights reserved. 21

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 Monitors the amount of usage and time 2 zone of machine and carries out the Billing flexibility usage-based billing 3 Operation 4 Wxpansion Classification of value Connect machine to the Internet, collect and monitor data, optimize its function 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 Usage model of value (example) machine optimization and monitoring Predictive maintenance Traffic management Pay-per-use Charging by time zone Convert goods into service Remote control Remote advice / support Remote lock / release / access Digital content distribution Software upgrade 2017 QUNIE CORPORATION. All rights reserved. 22

23 Services with a combination of Big Data and IoT Amazon Go Amazon Go c 2017 QUNIE CORPORATION. All rights reserved. 23

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. QUNIE Consulting (Qunie Labs) University Digital Business Experts Digital Transformation in Indonesia Company Big Data Digital Marketing IoT Connected Car AI 2017 QUNIE CORPORATION. All rights reserved. 24

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