Why Blockchain?

There has been a lot of buzz on blockchain taking it to Gartners Hype Cycle for Emerging Technologies, 2016. It has been envisioned that blockchain will do for transactions what the Internet did for information. So in this blog, lets discuss the need for blockchain?

Why Blockchain?

MultipleLedgers
Complex Transactions

If you’ve ever bought a house, you probably had to sign a huge stack of papers from a variety of different stakeholders to make that transaction happen. It is a complex transaction involving banks, attorneys, title companies, insurers, regulators, tax agencies and inspectors. They all maintain separate records, and it’s costly to verify and record each step. That’s why the average closing takes several days. Same holds good if you are registering a vehicle. In these two examples, what you are doing is ‘Establishing ownership of the asset’ and the problem is that there are several ledgers (or databases) where the information resides and all of them have to have the same version of truth. So the problem are many fold:

  • Multiple ledger(s) which are updated to represent business transactions as they occur.
  • This is EXPENSIVE due to duplication of effort and intermediaries adding margin for services.
  • It is clearly INEFFICIENT, as the business conditions – the contract – is duplicated by every network participant and we need to rely on intermediaries through this paper laden process.
  • It is also VULNERABLE because if a central system (e.g. Bank) is compromised due to an incidents this affects the whole business network.  Incidents can include fraud, cyber attack or a simple mistake.

Solution:

What if there existed a common ledger (or a distrubuted database) that everyone had an access to and everyone trust? This is what blockchain does to the business!

Why now?

There are three reasons why blockchain is starting to take a foothold now.
  • Industries are merging and interacting like never before. The growth of ecommerce, online banking, and in-app purchases, and the increasing mobility of people around the world have fueled the growth of transaction volumes. And transaction volumes will explode with the rise of Internet of Things (IoT) — autonomous objects, such as refrigerators that buy groceries when supplies are running low and cars that deliver themselves to your door, stopping for fuel along the way. These partnerships require more trust and transparency to succeed.
  • There is increasing regulation, cybercrime and fraud that is inhibiting business growth. The last 10 years have seen the growth of global, cross-industry regulations, including HIPA, Sarbanes -Oxley Act, anti-money laundering and more. And to keep pace with regulatory changes, companies are rapidly increasing compliance staff and budgets.
  • Advancement in technologies like cloud (offering compute power to track billions of transactions) and cryptography (securing both networks and transactions) are also enablers for blockchain.

In my future blog I will discuss how blockchain makes things better and how it works. So stay tuned.

Data Science Vs BI & Predictive Analytics

Business intelligence (BI) has been evolving for decades as data has become cheaper, easier to access, and easier to share. BI analysts take historical data, perform queries, and summarize findings in static reports that often include charts. The outputs of business intelligence are “known knowns” that are manifested in stand-alone reports examined by a single business analyst or shared among a few managers. For example, who are the probable high-net-worth clients to sell them a premium bank account. There can be some consideration like the average account balance etc.

Predictive analytics has been unfolding on a parallel track to business intelligence. With predictive analytics, numerous tools allow analysts to gain insight into “known unknowns”. These tools track trends and make predictions, but are often limited to specialized programs. In the previous example, the probable high-net-worth client could also be the spouse of an existing high-net-worth client that can be figured out using predictive analytics.

Data Science on the other hand is an interdisciplinary field that combines machine learning, statistics, advanced analysis, high-performance computing and visualizations. It is a new form of art that draws out hidden insights and puts data to work in the cognitive era. The tools of data science originated in the scientific community, where researchers used them to test and verify hypotheses that include “unknown unknowns”. Here are some of the examples:

  • Uncover totally unanticipated relationships and changes in markets or other patterns. For example the price of a house based on nearness to high voltage power lines or based on brick exterior.
  • Handle streams of data—in fact, some embedded intelligent services make decisions and carry out those decisions automatically in microseconds. For example analyzing the users click pattern to dynamically propose a product or promotion to attract the customer.

As discussed, Data Science different from from traditional business intelligence and predictive analytics in the following way.

  • It brings in data that is orders of magnitude larger than what previous generations of data warehouses could store, and it even works on streaming data sources.
  • The analytical tools used in data science are also increasingly powerful, using artificial intelligence techniques to identify hidden patterns in data and pull new insights out of it.
  • The visualization tools used in data science leverage modern web technologies to deliver interactive browser-based applications. Not only are these applications visually stunning, they also provide rich context and relevance to their consumers.

Data science enriches the value of data, going beyond what the data says to what it means for your organization—in other words, it turns raw data into intelligence that empowers everyone in your organization to discover new innovations, increase sales, and become more cost-efficient. Data science is not just about the algorithm, but about deriving value.

 

Disclaimer: The postings on this site are my own and don’t necessarily represent IBM’s positions, strategies or opinions.

 

Need for Governance in Self-Service Analytics

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Analytics Offering without Self-Service

Self-Service Analytics is a form of business intelligence in which line-of-business professionals or data scientists are enabled and encouraged to perform queries and generate reports on their own, with nominal IT support. This empowers everyone in the organization to discover new insights and enable them for informed decision-making. Capitalizing on the data lake, or modernized data warehouse, they can do full data set analysis (no more sampling), gain insight from non-relational data, support individuals in their desire for exploratory analysis and discovery with 360o view of all their business. At this stage, the organization can truly be data-savvy and insight-driven leading to better decisions, more effective actions, and improved outcomes. Insight is being used to make risk-aware decisions, or fight fraud and counter threats, optimize operations or most often focused on attract, grow and retain customers.

Any self service analytics, regardless of persona, has to involve data governance. Here are three examples of how any serious analytics work would be impossible without support for a proper data governance practice in the analytics technology:

  1. Fine-grained authorization controls: Most industries feature data sets where data access needs to be controlled so that sensitive data is protected. As data moves from one store to another, gets transformed, and aggregated, the authorization information needs to move with that data. Without the transfer of authorization controls as data changes state or location, self-service analytics would not be permitted under the applicable regulatory policies.
  2. Data lineage information: As data moves between different data storage layers and changes state, it’s important for the lineage of the data to be captured and stored. This helps analysts understand what goes into their analytic results, but it is also often a policy requirement for many regulatory frameworks. An example of where this is important is the right to be forgotten, which is a legislative initiative we are seeing in some Western countries. With this, any trace of information about a citizen would have to be tracked down and deleted from all of an organization’s data stores. Without a comprehensive data lineage framework, adherence to a right to be forgotten policy would be impossible.
  3. Business glossary: A current and complete business glossary acts as a roadmap for analysts to understand the nature of an organization’s data. Specifically, a business glossary maps an organization’s business concepts to the data schemas. One common problem with Hadoop data lakes is a lack of business glossary information as Hadoop has no proper set of metadata and governance tooling.

Summary:
A core design point of any self service analytics offering (like the IBM DataWorks) is that data governance capabilities should be baked in. This enables self-service data analysis where analysts only see data they’re entitled to see, where data movement and transformation is automatically tracked for a complete lineage story, and as users search for data, business glossary information is used.

The Best Data Science Platform

Data science platforms are engines for creating machine-learning solutions. Innovation in this market focuses on Cloud, Apache Spark, automation, collaboration and artificial-intelligence capabilities.When choosing the best one, organizations often trust on The Gartner Magic Quadrants which aims to provide a qualitative analysis into a market and its direction, maturity and participants. Gartner previously called these platforms “advanced analytics platforms”. But since this platform is primarily used by data scientists so from this year the Quadrant has been renamed to Magic Quadrant for Data Science Platforms. 

This Magic Quadrant evaluates vendors of data science platforms. These are products that organizations use to build machine-learning solutions themselves, as opposed to outsourcing their creation or buying ready-made solution. These platforms are used by data scientists for  demand prediction, failure prediction, determination of customers’ propensity to buy or churn, and fraud detection.

The report aims to rank the BI platforms on the ability to execute and the completeness of vision. The Magic Quadrant is divided in 4 parts:

  • Niche Players
  • Challengers
  • Visionaries
  • Leaders

    gartnerdatascienceplatform
    Source: Gartner (Feburary 2017)

Adoption of open-source platforms and Diversity of tools is an important characteristic of this market. IBM’s mission is to make data simple and accessible to the world and commitment to open source and numerous open-source ecosystem providers made it most attractive platform for Data Science.  A data scientist needs the following to be more successful, which is provided by IBM Data Scientist Experience

  • Community: A data scientist needs to be updated with the latest news from the Data Science Community. There are plenty of new Open Source packages, libraries, techniques and tutorials available every day. A good data scientist follows the most important sources and shares their opinion and experiments with the community. IBM brings this into the UI of the DSX.
  • Open Source: Today there are companies that rely on open source for data science. Open source has become so mature that is directly competing with commercial offerings. IBM provide the best of open source within DSX, such as RStudio and Jupyter.
  • IBM Value Add: DSX improve open source by adding some capabilities from IBM. Data Shaping for example takes 80% of the data scientist time. IBM tools with visual GUI to help users better perform this task. You can execute Spark jobs on  managed Spark Service in Bluemix from within the DSX.

Watson Analytics

Need for Watson Analytics
If an organization is good at analyzing data and extracting relevant insights from it then decision makers can make more informed and thus more optimal decisions. But the decision makers are forced to make decisions with incomplete information. The reason?  Decisions makers/ Citizen Analysts, for the most part, tend to be mainly consumers of analytics and they rely on more skilled resources (Like Data Engineer, Data Scientist, Application developer) in the organization to provide the data driven answers to their questions. Moreover the answer to one question is just the start of another. Think of a detective interrogating a suspect. The consumer/builder model is hardly conducive to the iterative nature of data analysis. Therefore, the time it takes for these answers to be delivered to the decision makers is far from optimal – and many questions go unanswered every day.

watsonlogoWatson Analytics
So a logical solution is to provide an easier to use analytics offerings. Watson Analytics provides that value add so that more people will be able to leverage data to drive better decision making using analytics.

When we think of Watson, we think about Cognitive. And when we think about Analytics, we think  about traditional analytics (querying, dashboarding), along with some more advanced analytic capabilities (data mining, and social media analytics). So Watson Analytics is a Cloud based offering which can make analytics a child’s play even for a non-skilled user.

Watson Analytics helps users understand their data in a guided way using a natural language interface to ask a series of business questions. Example, a user can ask “What is the trend of revenue over years?” and get a visualization in response. So, Instead of having to first choose a visualization and working backwards to try answer the business question, Watson Analytics allows you to describe your intent in natural language, and it chooses the best visualization for you. Even better, Watson Analytics gives you some initial set of questions which you can keep refining.

Watson Analytics for Social Media
Watson Analytics can work on Social Media data to take the pulse of an audience by spotting trends and identifying new insights and relationships across multiple social channels allowing greater visibility into a given topic or market. It combines structured and unstructured self-service analysis to enrich your social media analytics experience for exceptionally insightful discoveries. All on the cloud!

Summary of Steps:
Watson Analytics does the following to provide insights hidden in your Big data. Mouse-over the below images to get the details of the steps.

  • Import data from a robust set of data source (on Cloud and on premise) options, with the option to prepare and cleanse via IBM Bluemix Data Connect.
  • Answering What: Identifying issues, early problem detection, finding anomalies or exceptions, challenging conventional wisdom or the status quo.
  • Understanding or explaining outcomes, Why something happened.
  • Dashboarding to share results

Match and Manage your Data on Cloud

We left the last blog with two questions.

A few weeks back I wrote on IBM Bluemix Data Connect. If you missed it, then watch this video on how you can put data to work with IBM Bluemix Data Connect.

Now, Business Analysts will be able to leverage Entity Matching technology using Data Connect. The Match and Manage (BETA) operation on Data Connect identifies possible matches and relationships (in plethora of data sets, including master data and non-master data sets) to create a unified view of your data. It also provides a visualization of the relationships between entities in the unified data set.

For example, you have two sets of data : One containing customer profile information and the other containing a list of prospects. A Business Analyst can now use intuitive UI to do the Match and Manage operation to match these two data sets and provide insights to questions such as:

  •  Are there duplicates in the prospect list?
  • How many of the prospects are already existing customers?
  • Are there non-obvious relationships among prospects and customers that can be explored?
  • Are there other sources of information within that could provide better insights if brought together?

The two data set are matched using Cognitive capabilities which allows the MDM– matching technology to be auto-configured and tuned to intelligently match across different data sets:

dataconnect

Business Analyst can understand the de-duplicated datasets by navigating through a relationship graph of the data to understand how the entities are related across the entire dataset. Now they can discover new non-obvious relationships within the data that were previously undiscoverable. The following generated canvas enables them to interactively explore relationships between entities.

dataconnect1

In the above example it was illustrated as how clients can now easily understand the data they hold within their MDM repositories and how now they can match their MDM data with other data sources not included within the MDM system. This simplifies the Analytical MDM experience where MDM technologies are accessible to everyone without the need to wait for Data Engineers to transform the data into a format that can be matched and rely on MDM Ninja’s to configure matching algorithms.

Summary:

IBM Bluemix Data Connect provides a seamless integrated self-service experience for data preparation. With addition of entity analytics capability, business users are empowered to gain insight from data that wasn’t previously available to them. Now organizations can extract further value from their MDM data by ensuring it is used across the organization to provide accurate analytics. Entity analytics within Data Connect is now available in beta. Go ahead and experience the next evolution of MDM.

24th Year of Patent Leadership

IBM broke the U.S. patent record with 8,088 patents granted to its inventors in 2016, marking the 24th consecutive year of innovation leadership. IBM passed the milestone as the first organization to deliver more than 8,000 U.S. patents in a year. When you do the math, that’s more than 22 patents granted to IBM inventors per day in 2016. IBM’s 2016 patents output covers a diverse range of inventions in artificial intelligence and cognitive computing, cognitive health, cloud, cybersecurity , IoT and other strategic growth areas for the company.

INNOVATION has been a focus at IBM since day one, and it is at the core of IBM’s values. IBM’s patent leadership is key in demonstrating it’s strategic commitment to the fundamental R&D necessary to drive progress in business and society, and an important barometer of innovation. Inventions are a great source of value to IBM, to clients, to business partners and society as a whole.

The Top Ten list of 2016 U.S. patent recipients* includes:

  1. IBM – 8,088
  2. Samsung Electronics – 5,518
  3. Canon – 3,665
  4. Qualcomm – 2,897
  5. Google – 2,835
  6. Intel – 2,784
  7. LG Electronics – 2,428
  8. Microsoft – 2,398
  9. Taiwan Semiconductor Manufacturing Co. – 2,288
  10. Sony – 2,181

*Data provided by IFI CLAIMS Patent Services

In the area of cognitive computing and artificial intelligence, IBM inventors patented more than 1,100 inventions that help machines learn, reason, and efficiently process diverse data types while interacting with people in natural and familiar ways. Here is sample of some of the Patents filed in 2016:

  • Machine learning to secure the best answers: Providing accurate answers to questions that are posed by users. (US Patent #9,384,450)
  • Planning the best route for a traveler’s cognitive state: IBM inventors have developed a method for planning a trip route based on the state of travelers that affects driving risk the most: their state-of-mind. Had a long day or easily overwhelmed? This system will help you navigate a less stressful route home. (US Patent #9,384,661)
  • Using images to better gauge heart health: IBM researchers have developed a method for categorizing human heart disease states by using cardiac images to characterize the shape and motion of the heart.  (US Patent #9,311,703)
  • Using drones to clean microbes in hospitals and agricultural fields: In this patent, surveying, testing and measuring contamination is controlled by a cognitive facility that manages drones. The drones could enter a contaminated area, collect specimens then confirm and map and sterilize contamination.  (US Patent #9,447,448)
  • Measurement and Integrated Reporting of Public Cloud Usage in a Hybrid Cloud Environment:  This innovation enables enterprises to monitor and measure employee and application usage and reduce information technology costs. (US Patent #9,336,061)
  • Pre-emptively detecting and isolating cloud application network intrusions:  When network breaches are detected, networking between applications – or their subcomponents – can be locked down to minimize the impact of an attack. (US Patent #9,361,455)
  • Managing incoming communications to prevent phishing and the spread of malicious content: IBMers invented a system to create levels of permission and trust for inbound communications such as e-mails and text messages. This system determines a level of trustworthiness to assign to an inbound communication, and how much of that communication to forward on to a user. (US Patent #9,460,269)