ERepublic Hawaii DGS 14 Presentation - Big Data and Analytics - Michael Stevens

Transforming Government
with Big Data & Analytics

Hawaii Digital Government Summit
December 16, 2014
Michael D Stevens Government Solutions Manager
IBM Big Data & Analytics
2013 IBM Corporation
1. What are analytics? Why are they important?

2. What is Big Data? How can it improve analytics?
3. A Big Data & Analytics Platform
4. Whos using it?
Big Data & Analytics is Transforming Government
What are analytics?

Why are they important?
Different Types of Business Analytics

Be more right,
more often.
Descriptive
What is
happening?
Discovery and
exploration
Diagnostic
What action
should I take?
Decision
management
Prescriptive
What did
I learn,
whats best?
Cognitive
What could
happen?
Predictive
analytics
and modeling
Why did it
happen?
Reporting,
analysis, content
analytics
Predictive
Descriptive Analytics
What is
happening?
Discovery and
exploration
Where are we today?

Arrests, Budget, Potholes
Exploring Metrics and KPIs against targets
Diagnostic Analytics
Why did it
happen?
Reporting,
Analysis
Root cause of event,

Trend analysis, What if scenarios; text analytics
Predictive Analytics
What could
happen?
and
modeling
Predict occurrences of events

Stated as probabilities
Build models, use past history to

determine what might happen given
specific scenarios and contributing factors
Prescriptive Analytics
What action
should I take?
Decision
management
Deliver high-volume, optimized decisions to

both systems and front-line workers
Cognitive Analytics
What is
happening?
Discovery and
exploration
What action
should I take?
Decision
management
What did
I learn,
whats best?
Cognitive
What could
happen?
Predictive
analytics
and modeling
Why did it
happen?
Reporting,
analysis, content
analytics
Learning and improving over time

Natural Language
What is Big Data?
Data
Its growing at massive scale and is the key to

improving analytics
1 trillion
By 2017 there will be more than

connected objects and devices on the planet
generating data.
80% of all data is unstructured and growing

15 times the rate of structured data
There are
2.5 billion gigabytes of data

generated every day
Over 500 billion tweets are

sent every day (Twitter)
12
Big Data is All Data
13
Volume
Variety
Velocity
Veracity
Data at Scale
Data in Many Forms
Data in Motion
Data Uncertainty
Non-Traditional
Data Sources
Large Variety of
Data
Challenge in Government:
Data is Diverse, Structured, Unstructured and Growing
14
Claims
Tax
Crime
Intelligence
Social Programs
Environmental
Emergency
Traffic
Logistics
Finance
Sensors
Imagery
Video
Geospatial
Social Media
Paradigm shifts enabled by big data & analytics

TRADITIONAL APPROACH
All
available
information
Small amount of
carefully organized
information
Analyzed
information
Analyze small subsets

of information
Hypothesis
Carefully cleanse information

before any analysis
Question
Data
Answer
Analysis
Insight
Data
Start with hypothesis and

test against selected data
15
Repository
Analyze data after its been processed

and landed in a warehouse or mart
Paradigm shifts enabled by big data & analytics

BIG DATA & ANALYTICS APPROACH
All
available
information
analyzed
Analyze
all information
Leverage more of the data being captured

Large
amount
of messy
information
Analyze information as is,

cleanse as needed
Reduce effort required to leverage data

Data
Data
Exploration
Analysis
Insight
Correlation
Explore all data and

identify correlations
16
Data leads the wayand sometimes

correlations are good enough
Insight
Analyze data in motion as its

generated, in real-time
Leverage data as it is captured

What do these shifts enable us to do?
What will happen and what should you do
Predict and decide the best action
Learn to sense and predict using

all types of information
Cognitive computing
17
embedded in everything
Intuitive analytics for everyone
Real-time
Analytics as and when you need it

How Decision-Making is Changing
Quality and value of decisions
Decisions from Intuition

Instinct
Hunches
Based on experience
18
Automated Decision-Making
Knowledge, policies and practices

embodied in business rules
Decisions made efficiently and
consistently
Objective
Predictive Decision-Making
Accurate predictions based on

historic patterns
Leverage all available data
Flexible, evidence-based decisions
Robust in volatile environments
models re-generated from latest
data to reflects changing fashions,
trends, etc.
A Word About Predictive Analytics
19
Its Tough to make predictions, especially about the future

-- Yogi Berra
20
What is Predictive Analytics?
Predictive Analytics helps

connect data to effective action
by drawing reliable conclusions
about current conditions and
future events
Gareth Herschel, Research Director, Gartner
Group
Techniques:
Statistics
Game Theory
Data Mining
21
Predictive Analytics in Our Daily Lives
22
Credit Score
Portfolio Mgt.
Netflix
Health Care
Pandora
Fraud Detection
Google
Underwriting
Amazon
Risk Management
Traffic
Customer Retention
Preemptive Government A New York Story

Problem: family died in a fire in a building that had
been illegally subdivided; 10s of thousands of complaints
Strategy: Assessing Fire Risk through Predictive Analytics.
Identify most dangerous of illegally subdivided housing units
Metrics:
Owners in financial distress
Multiple illegal-conversion complaints
Multiple family dwellings built before 1938 (code revision)
Low income/high-immigrant/low-employment neighborhoods
Data: agency reports, real-estate filings, finance & tax information
Findings: dwellings with all four risk categories 40 times more likely
to have a fire
Targeted 225 of hightest risk buildings
23
Moral: targeting all conversions captures many properties, but

fails to
focus on those at most risk
A Platform for Big Data & Analytics
24
A New Architecture to Manage Big Data
Transaction and
application data
Machine,
sensor data
Real-time Data Processing

& Analytics
Enterprise
content
Image,
geospatial, video
Social data
Operational
data zone
Landing,
Exploration
and Archive
data zone
Deep
Analytics
data zone
EDW and
data mart
zone
Data at rest and

data in motion
Structured and
unstructured
Inside and outside
the enterprise
Third-party data
Information Integration & Governance
25
and improve analytics

New/Enhanced
Applications
All Data
Real-time Data Processing &

Analytics
Operatio
nal data
zone
Landing,
Exploration
and
Archive
data zone
Deep
Analytics
data
zone
EDW
and data
mart
zone
What is
happening?
Discovery and
exploration
What action
should I take?
Decision
management
What did
I learn,
whats best?
Cognitive
Why did it
happen?
Reporting and
analysis
What could
happen?
Predictive
analytics and
modeling

Systems
Security
Storage
On premise, Cloud, As a service
26
and improve analytics

New/Enhanced
Applications
All Data

& Analytics Deep
Deep
Analyti
Analytics
Operati
cs
data
EDW
Operational
onal
Landing,
zone
data
data
zone
Exploration
and
data
zone
and Archive
data
zone
data zone
mart
zone
What is
happening?
Discovery and
exploration
What action
should I take?
Decision
management
What did
I learn,
whats best?
Cognitive
Why
diditit
Why did
happen?
happen?
Reporting
and
Reporting
analysis
and analysis
What could
happen?
Predictive
analytics and
modeling

Systems
Security
Storage
27
A new
architecture is required
New/Enhanced
Applications
All Data

& Analytics Deep
Analyti
Operati
cs
EDW
Landing,
onal
Landing,
data
Exploration
and
data
zone
and Archive
data
zone
data
data zone
zone
mart
zone
What is
What is
happening?
happening?
Discovery
Discovery
and
and
exploration
exploration
What action
should I take?
Decision
management
What did
I learn,
whats best?
Cognitive
Why did it
happen?
Reporting and
analysis
What could
happen?
Predictive
analytics and
modeling

Systems
Security
Storage
28
A new
architecture is required
New/Enhanced
Applications
All Data
Real-time
DataProcessing
Processing
Real-time Data
&
Analytics
& Analytics Deep
Analyti
Operati
cs
EDW
onal
Landing,
data
Exploration
and
data
zone
and Archive
data
zone
data zone
mart
zone
What is
happening?
Discovery and
exploration
What action
What
action
should
I
should I take?
take?
Decision
Decision
management
management
What did
I learn,
whats best?
Cognitive
Why did it
happen?
Reporting and
analysis
What could
happen?
Predictive
analytics and
modeling

Systems
Security
Storage
29
Big Data & Analytics Platform

All Data
Big Data & Analytics Strategy, Integration & Managed Services
New / Enhanced
Applications
Big Data & Analytics Platform

Claims
Outcome-based
Program Mgt.
What is
happening?
Real-time Data Processing & Analytics

Tax & Income
Discovery and
exploration
Threat & Crime
Case Worker
Social Media
Operational
data zone
Landing,
Exploration
and Archive
data zone
Deep
Analytics
data zone
EDW and
data mart
zone
Sensor

Images &
Video
30
What action
should I
take?
Decision
management
What did
I learn,
whats
best?
Cognitive
Risk Determination
Why did it
happen?
Reporting and
analysis
What could
happen?
Predictive
analytics and
modeling
Case Management
Real-time
Fraud Detection
Real-time Threat
& Crime Detection
Patrol Deployment
Big Data & Analytics Infrastructure
Audit & Tax

Compliance
Budget & Finance

Optimization
Technologies in a Big Data & Analytics Platform

Big Data Navigation
Streaming Platform
Big Data & Analytics Strategy, Integration & Managed Services
All Data
Tax & Income
Discovery and
exploration
Hadoop
Threat & Crime
Case Worker
Operational
data zone
Landing,
Exploration
and Archive
data zone
Social Media
Deep
Analytics
data zone

Data Integration
Master Data Management
Entity Analytics Big
Data Security & Privacy
What action
should I
take?
Decision
management
EDW and
data mart
Case Management
zone
Sensor
Images &
Video
Outcome-based
Program Mgt.
What is
happening?
Real-time Data Processing & Analytics
31
Decision Management
Big Data Data

& Analytics
Platform
Warehouse Appliance
Claims
New / Enhanced
Applications
What did
I learn,
whats
best?
Cognitive
What could
happen?
Predictive
analytics and
modeling
Risk Determination
Why did it
happen?
Reporting and
analysis
Case Management
Real-time
Fraud Detection
Business Analytics
Real-time Threat
& Crime Detection
Patrol Deployment
Predictive Analyics
Data & Analytics Infrastructure
Audit & Tax

Compliance
Budget & Finance

Optimization
How are Government Agencies using Big Data &

Analytics?
32
Memphis PD Lowers Crime Rate Through Real-time

30%
Reduction in serious crime
overall
4 x increase
In share of cases solved in the
felony assault unit from 16% to
70%
Overall
Improvement
in ability to allocate police
resources in a budgetconstrained environment
33
Business problem: Tradtional practices and tight budgets

were no match against rising tide of criminal activity
Solution: Predictive enforcement tool gives precinct
commanders the ability to change tactics and redirect patrol
resources that both thwarts crime before it happens and
catches more criminals in the act
A state health agency optimizes use of tax dollars by using

pattern analysis to crack down on Medicaid fraud
99% reduction
in potentially fraudulent claims,
from USD19.2 million to
USD138,000
USD49 million
recovered through 22 criminal
convictions and 18 civil
settlements
USD200 million
in questionable claims
identified within first 12 months
34
Business Challenge: Rising Medicaid costs and a growing

sense that too many inappropriate payments are being made
The Smarter Solution: Powerful analytical models flag
claims and providers that dont follow the typical patterns
exhibited by their peer groups. By finding obscure
connections among doctors, pharmacists, labs and medical
supply companies, the solution also helps uncover extended
fraud networks.
Medway Youth Trust Identifies At-risk Youth

> 50% success rate
with intervention cases by
accurate and early identification
250% improvement
in accuracy of identification of
those at risk
Accurately predict
whether individual youths have a
high (>60%) of needing help in
the future
Business Challenge: Fragmented, incomplete data from a

variety of state and local agencies hindered the goal of finding
permanency for at-risk youths.
The Smarter Solution: Sophisticated modeling and predictive
analytics on high volumes of text and data enable
caseworkers can uncover hidden patterns and relationships
and that might otherwise go unnoticed and use the insight to
determine just the right combination of services for each child
35
City Event Monitoring

Background and resource
information displayed geospatially
to quickly respond to incidents
Social media analytics to proactively
identify and monitor potential
incidents
Intelligent Video Analytics to identify
and correlate incidents
36
TechAmerica Big Data Report Findings

1. Understand the Art of the Possible
2. Identify 2-4 key business or mission requirements that develop
underpinning use cases that would create value for both the agency
and the public.
3.Take inventory of your data assets. Explore the data available both
within the agency enterprise and across the government ecosystem
within the context of use cases.
4.Assess your current capabilities and architecture against what is
required to support your goals
5.Explore which data assets can be made open and available to the
public to help spur innovation outside the agency.
http://www.techamericafoundation.org/bigdata
37

Links & Contact Information
Ibm.com/bigdata
IBM Big Data & Analytics Hub
http://www.ibmbigdatahub.com/
IBM Watson Video
http://www.youtube.com/watch?v=_Xcmh1LQB9I
Michael D. Stevens
Government Solutions
IBM Big Data & Analytics
Ph: 720.395.3951
mstevens@us.ibm.com
Twitter @stevens_m_d
38
Thank You
39

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Transforming Government

with Big Data & Analytics

2013 IBM Corporation

1. What are analytics? Why are they important?

4. Whos using it?

2014 IBM Corporation

Big Data & Analytics is Transforming Government

2014 IBM Corporation

What are analytics?

2014 IBM Corporation

Different Types of Business Analytics

Where are we today?

2014 IBM Corporation

Root cause of event,

2014 IBM Corporation

Predict occurrences of events

Build models, use past history to

Deliver high-volume, optimized decisions to

Learning and improving over time

What is Big Data?

2014 IBM Corporation

Its growing at massive scale and is the key to

By 2017 there will be more than

80% of all data is unstructured and growing

2.5 billion gigabytes of data

Over 500 billion tweets are

2014 IBM Corporation

Big Data is All Data

Data in Many Forms

2014 IBM Corporation

2014 IBM Corporation

Paradigm shifts enabled by big data & analytics

Analyze small subsets

Carefully cleanse information

Start with hypothesis and

Analyze data after its been processed

2014 IBM Corporation

Paradigm shifts enabled by big data & analytics

Leverage more of the data being captured

BIG DATA & ANALYTICS APPROACH

Analyze information as is,

Reduce effort required to leverage data

Explore all data and

Data leads the wayand sometimes

Analyze data in motion as its

Leverage data as it is captured

BIG DATA & ANALYTICS APPROACH

What do these shifts enable us to do?

What will happen and what should you do

Predict and decide the best action

Learn to sense and predict using

Intuitive analytics for everyone

Analytics as and when you need it

How Decision-Making is Changing

Quality and value of decisions

Decisions from Intuition

Knowledge, policies and practices

Accurate predictions based on

2014 IBM Corporation

A Word About Predictive Analytics

2014 IBM Corporation

Its Tough to make predictions, especially about the future

2014 IBM Corporation