>  Data  Science  <  

Where  does  a  Physics  degree  fit?  

>  Life  as  a  Data  Scien/st  
§  What  is  it?   §  Data  Science  Examples   §  Why  you  should  think  about  it?   §  About  Datalicious  (my  current  company)  

August  2011  

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>  What  is  it?  
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>  Mixing  the  old  to  produce  new  
Business   Performance   Marke/ng  /   Adver/sing  

IT  /  Coding  

Sta/s/cs  

Data   Science  
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>  By  Defini/on  
Data:  “Facts  and  sta)s)cs  collected  together   for  reference  or  analysis”  
 

Science:  “The  systema)c  study  of  the  structure   and  behaviour  of  the  physical  and  natural   world  through  observa)on  and  experiment”     Hmmm,  so  what?  
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>  Sounds  like  nothing  new  
§  Data,  Science,  ObservaPon,  Hypothesis,   Experiment,  Analysis,  PredicPon  à  are  all   nothing  new.     §  BUT,  the  digital  age  has  created  new   opportuniPes  where  scienPfic  methods  can   be  applied  to  massive,  real  world  digital  data   sets.    
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>  And  Data  is  Exploding  
“Every  2  Days  We  Create  As  Much  Informa)on  As   We  Did  Up  To  2003”  –  Eric  Schmidt.  CEO,  Google     “AdMob  Seeing  2  Billion  Ad  Requests  Per  Day;  Up   300  Percent  Over  Past  Year”  –  TechCrunch     “The  amount  of  digital  informa)on  created   annually  will  grow  by  a  factor  of  44  from  2009  to   2020,  as  all  major  forms  of  media  -­‐  voice,  TV,   radio,  print  -­‐  complete  the  journey  from  analog  to   digital”  
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>  EMC  -­‐  "The  Digital  Universe   Decade  -­‐  Are  You  Ready?"  
“In  2009,  amid  the  "Great  Recession,"  the  amount  of  digital   informa)on  grew  62%  over  2008  to  800  billion  gigabytes   (0.8  Ze\abytes).”       But  how  much  is  that  really?     707  trillion  copies  of  the  more  than  2,000-­‐page  U.S.  PaPent   ProtecPon  and  Affordable  Care  Act  signed  into  Law  in   March  2010.  Stacked  end  to  end,  the  documents  would   stretch  from  Earth  to  Pluto  and  back  16  Pmes  or  cover   every  inch  of  the  United  States  in  paper  3  feet  deep        
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[  Mo/va/on  ]    

Data  =  
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>  Data  Science  Examples  
August  2011   ©  Datalicious  Pty  Ltd   10  

>  Search  and  the  product  lifecycle    
Nokia  N-­‐Series  

Apple  iPhone  
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>  Financial  Predic/on  

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>  Trigger  based  Sales  
User  visits   Site   anonymously   Iden/fies  themself     (e.g.  sale  or   registra/on)   2  years  on     the  beach   User  visits   Site  again   ‘anonymously’   Looks  at  lots  of   ‘widgets’  

Cookie   Web   Analy/cs   Database   Name:  John  Example   Interest:  Widgets   History:     -­‐Last  visit  2  years  ago.   -­‐Purchased  10  blue  widgets   -­‐High  value  band   Loca/on:  2000,  Sydney      

Cookie  

Hi  John,  long   /me  no  talk,  we   have  a  special   on  widgets!  

Business   Intelligence   Database  

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>  The  science  of  Banner  Ads    
Control   Group   (10%)   Normal  Display  Adver/sing  (90%)  

Impressions  =  1  M   Visitors  =  1,000   Sales  =  50   Cost  =  $1,000   $  per  sale  =  $20     Without  display    

adverPsing,  1  in   every  20,000  people   will  convert    

22%  
uplie    

With  display   adverPsing  1  in   every  16,363  people   will  convert    

Impressions  =  9  M   Visitors  =  10,000   Sales  =  550   Cost  =  $9,000   $  per  sale  =  $16    

    -­‐  Banner  Ads  do  influence  sales  despite  what  people  think  
-­‐  Even  if  you  don’t  click  on  them  
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[  Affinity  targe/ng  in  ac/on  ]  
Different  types  of     visitors  respond  to     different  ads.  By   using  category   affinity  targePng,     response  rates  are     lieed  significantly     across  products.  
Message   Blackberry  Bold   5GB  Mobile  Broadband   Blackberry  Storm   12  Month  Caps   Click-­‐Through  Rate  By  Category  Affinity   Postpay   Prepay   Broadb.   Business  

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>  Why  should  you  do  it?  
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>  The  start  of  a  trend…  

August  2011  

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>  Big  Data  also…  

August  2011  

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>  Supply  is  way  behind  demand…  

August  2011  

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IT  needs  more  Scien/sts  

August  2011  

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>  Difficult  to  believe?  
§  Marketers  typically  just  don’t  get  it,  but  their  bosses   now  know  you  can  measure  the  ROI  of  digital  Ads,  so   they’re  screwed  without  the  data  scienPsts       §  The  business  guys  mostly  (not  all)  see  the  value,  but   the  Internet  wasn’t  around  when  they  were  back  in   Harvard,  so  they  can’t  do  it  alone    

August  2011  

§  Developers  are  predominantly  good  at  following  a   spec.  They  rarely  understand  data,  staPsPcs  and  how   to  go  about  sejng  up  and  analysing  an  experiment     ©  Datalicious  Pty  Ltd   22    

>  You  can  work  across  all  industries  

August  2011  

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>  Work  on  wide  ranging  issues…  

August  2011  

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>  Work  from  Anywhere  

August  2011  

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>  About  Datalicious  
August  2011   ©  Datalicious  Pty  Ltd   26  

>  Across  major  data  categories  
Campaign  data   TV,  print,  call  center,  search,   web  analyPcs,  ad  serving,  etc   Campaigns   Customers  
   

Customer  data   Direct  mail,  call  center,  web   analyPcs,  emails,  surveys,  etc  
   

Compe/tors  

Consumers  

Consumer  data   Search,  social  media,  trends,   research,  news,  etc  
   

Compe/tor  data   Search,  social  media,  ad   spend,  news,  offers,  etc    
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>  Defining  data  strategies  
Con/nuous  tes/ng  and  op/miza/on  

AcquisiPon  

Up-­‐Sell  

RetenPon  

Advocacy  

Analy/cs  and  metrics  frameworks  
August  2011   ©  Datalicious  Pty  Ltd   28  

>  Guiding  the  customer  journey  
To  transac/onal  data   To  reten/on  messages  

From  suspect  to  
Time

 

prospect  

To  customer  
Time

 

From  behavioural  data  
August  2011   ©  Datalicious  Pty  Ltd  

From  awareness  messages  
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>  Summary  
§  Do  you:    
1.  Know  how  to  idenPfy  trends  in  numbers  and  to   graph  data   2.  Know  how  to  write  reports  and  validate   experimental  predicPons   3.  Understand  some  business  thinking,  i.e.  cost  of   sales,  maximising  return,  etc   4.  Understand  the  principles  of  wriPng  code  

§  If  yes,  then  Data  Science  may  be  for  you.  
August  2011   ©  Datalicious  Pty  Ltd   30  

hogilvy@datalicious.com     blog.datalicious.com     twiner.com/hamishogilvy   twiner.com/datalicious    
August  2011   ©  Datalicious  Pty  Ltd   31  

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