Using Data Strategy Design to

Build Data-Driven Products

Martin Szugat at Product Tank Munich on 26.06.2017

datentreiber.de

Driving your business forward.Consulting, workshops and seminars on data strategy design.

1996-2008

Software developer, consultant,

trainer and author

Study & research of bioinformatics

(Data Science)

2001-2008

Managing director & shareholder of

SnipClip GmbH

2008-2013

Program director of Predictive

Analytics World conferences in

Germany

2014-dato

Managing director & owner of

Datentreiber GmbH

2014-dato

Founder and director of

Datengipfel academy

2017-dato

Drivers for AI spring:

Improved methods & open source tools

Processing power (i.e. GPU) & memory

Availability and quality of data

Breakthroughs in AI are mainly driven by data.

Source: http://www.kdnuggets.com/2016/05/datasets-over-algorithms.html

How machine programs work.

Data AlgorithmInfor-

mation

How machine learning works.

Past

DataTraining

Algorithm

Trained

Model

Future

DataTrained

Model

Infor

mation

http://www.r2d3.us/visual-intro-to-machine-learning-part-1/

What makes data valuable?

Quantity (i.e instances)

Density (i.e. features)

Quality Completeness

Currentness

Correctness

Reliableness

Representativity

…

More data means better predictions (in general).

Source: https://medium.com/mmc-writes/the-fourth-industrial-revolution-a-primer-on-artificial-intelligence-ai-ff5e7fffcae1

„Data is the new oil.“

So what?

The startup founder ...

… looking for data.

“Accessing and owning a large, domain-specific dataset to build high

accuracy models can be the single hardest problem that founders need to

solve in the beginning.”Source: https://medium.com/@muellerfreitag/10-data-acquisition-strategies-for-startups-47166580ee48

“Owning a large, domain-specific dataset can therefore become a significant

source of competitive advantage […]”Source: https://medium.com/@muellerfreitag/10-data-acquisition-strategies-for-startups-47166580ee48

The Chief Data Officer …… is drowning in data ...

… but his company is …… thirsty for information.

Most data lakes are …

… data swamps.

Data exploitation

Data refinement

Data utilization

Big Data Ansatz

Big data approach:

finding the needle in the haystack …

… by accumulating more hay.

The alternative:

data strategy design

Data utilization

Data refinement

Data exploitation

Data-driven business is lead by a value-oriented strategy.

Exploitation Refinement Utilization

What‘s a „data product“?

Data AlgorithmInfor-

mation

„Data Product“ [2]:

“A data product is a computer application

that takes data inputs and generates

outputs, feeding them back into the

environment.”

„Data Product“ [1]:

“Customers buy the data 'product' once, and continue to use

it as is.”

„Data Product“ [3]:

“A data product is digital information

that can be purchased.”

What‘s a data-driven product?

Data AlgorithmInfor-

mation

It‘s valueable.It‘s unique.

It‘s an unique value proposition. (model)

It‘s a driven-driven product.

It‘s customer needs.

Predicting blockbusters.

Source: http://dataconomy.com/using-wikipedia-activity-data-forecast-movie-success/

Data Strategy Design Kit by Datentreiber

Data-driven Business Model Generation

https://www.amazon.com/Business-Model-Generation-Visionaries-Challengers/dp/0470876417/ref=sr_1_1

Cinema

Operator

Prediction of

percentage of

seats sold

License cost

reduction

Website

SaaS

Email

Predictive

Modeling

Marketing &

Sales

Data

Scientists

M&S

Manager

HRSoftware

Marketing

Budget

Monthly Pay per

Cinema Hall

???

Prediction of

percentage of

seats sold

Prediction of

percentage of

seats sold

Predictive

Model: Total

Revenue

Predictive

Model: Seats

Sold

Wikipedia

Movie Data Movie Total

Revenue

FiguresSeats Sold

per Movie

Wikipedia

Movie Data

Movie Total

Revenue

Figures

Seats Sold

per Movie

Movie Name

Mapping

Table

???

Data Traps

Wikipedia Movie Data

Movie Total Revenue Figures

Seats Sold per Movie

Movie Name Mapping Table

PredictionGame

Prediction of percentage of

seats sold

Predictive Model: Total

Revenue

Predictive Model: Seats

Sold

Wikipedia Movie Data Movie Total

Revenue Figures

Seats Sold per Movie

Movie Name Mapping Table

PredictionGame

Data WarehouseETL Tool Predictive

Modeling ToolWebsite

Development Tools

Data Engineers

Data Scientists

Web Developers

Seller: Movie Total Revenue

Figures

Cinema Operator

Prediction of percentage of

seats sold

License costreduction

Website

SaaS

Email

Predictive Modeling

Marketing & Sales

Seats Sold per Movie

HRSoftware

Marketing Budget

Monthly Pay per Cinema Hall

PredictionGame

Movie Name Mapping

Table

PredictionGame

Seller: Movie Total Revenue

Figures

Data Network Effects

More Data(SeatsSold)

Smarter Algorithms

BetterProduct

More Clients

Get started.Go to www.datenstrategiedesign.de.

May the data be with you.

datentreiber.deWir treiben Ihr Unternehmen voran.

Martin Szugat

Managing director

Telefon: +49 [0]881 12 88 46 53

E-Mail: ms@datentreiber.de

Web: www.datentreiber.de

Blog: www.datenstrategiedesign.de