DATA ANALYTICS: A KEY COMPONENT OF

DIGITAL TRANSFORMATION
Dr. Eka Budiarto, s.T., M.Sc.
Master of information Technology, swiss german university
Eka Budiarto

q Education:
■ Sarjana Teknik at ITB (Engineering Physics), Indonesia
■ M.Sc. at TU Kaiserslautern (Industrial Math), Germany
■ Ph.D at TU Delft (Applied Math), The Netherlands
q Experience:
■ Researcher at Fraunhofer ITWM, Germany
■ Lecturer at Mechatronics Engineering, Swiss German University
■ Head of Master of Information Technology, Swiss German University
Importance of data

Gartner:
■ A company’s ability to compete in the emerging digital economy will require faster-
paced, forward-looking decisions
■ Data and analytics competencies should be incorporated within the highest-level
public-facing enterprise plans
■ Prediction: By 2022 around 90% companies will state that information as a critical
enterprise asset and analytics as an essential competency.
Case study: Disney

■ Disney has been creating magical guest experiences for over 90 years
■ However, in the 2000s, as ticket prices climbed and the customer base increased,
the sparkle on Disney’s customer experience began to fade.
■ In response, Disney created the Next Generation Experience project aimed at
creating personalized experiences for its guests.
■ Disney launched MyMagic+, which allows guests to book ride times, restaurant
reservations, and shows in advance using the website. The mobile app allows guests
to change reservations in real time as needed.
Big
data
Data science and analytics

■ Data science: a method for getting insights from structured and unstructured data
using approaches ranging from statistical analysis to machine learning
■ Goal: transform data into value in the form improved revenue, reduced costs, business
agility, improved customer experience, the development of new products, etc.
■ Data analytics: the discovery and communication of meaningful patterns in data to drive
smart decisions
■ Data science > data analytics:
– Data analytics describes the current state of reality.
– Data science uses that data to predict and/or understand the future
Types of data analytics
Predictive vs prescriptive
■ Predictive Analytics includes techniques that use models created from past data to
predict the future or determine the impact of one variable on another. For instance:
– A company can create a mathematical model for predicting the future sales by
using past data on product sales.
– A food manufacturing company can estimate the measurement and quantity of
unit sales by using the point-of-sale scanner data from retail outlets.
■ Prescriptive Analytics specifies the best course of action for a business activity in
the form of the output of a prescriptive model. Examples:
– The airline industry: Help to fetch the best pricing strategy across flights
through the analysis of revenue management models and past purchasing
data
– Finance: Used to decide the mix of investments through the analysis of
portfolio models that utilize historical investment return data
P
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Data analytics
framework
Data analytics flow
Artificial Intelligence
Digital twin
■ Digital twin refers to a digital replica of potential and actual physical assets (physical twin),
processes, people, places, systems and devices that can be used for various purposes
Digital twin
■ Digital twins are made possible thanks to Internet of Things (IoT) sensors that gather
data from the physical world and send it to machines to reconstruct
■ Goal: To get insights about how to improve operations, increase efficiency or
discover an issue are all possible before it happens
■ Oftentimes artificial intelligence and machine learning are used to analyze the
model of operations represented by the digital twin
■ Gartner: at least half of manufacturers with annual revenues greater than $5 billion
will have at least one digital twin initiative for either products or assets by 2020
■ Example:
– Chevron Corp. is using digital twin to predict maintenance problems in its oil
fields and refineries and aims to have sensors connected to most of its high-
value equipment by 2024
– Chief Information Officer Bill Braun expects that preventing the breakdowns of
its most crucial equipment could save the company millions of dollars each
year.
 More examples of digital twins
■ GE, a leader in virtual twin technology, is using a combination of artificial intelligence-driven
analytics and visual sensors on matchbox-size robots to look for cracks inside working
engines. Recent advances allow cameras to find cracks even on dirty or rusty turbine blades.
Visual sensors on drones can inspect for corrosion on the 200-foot tall stacks that burn off
excess gas at oil and gas production sites.
■ Tesla Motors is another example of a company that is deeply invested in digital twin
technology to provide better service and reliability for car owners. Tesla creates a digital twin
of every car it sells. Tesla then updates software based on individual vehicles’ sensor data,
and uploads updates to its products. This data-driven software development process enables
more efficient resource allocation and a markedly better user experience for the vehicle
owner.
■ At its factories, Bosch is comparing sensor-driven production data to a digital twin of
production lines running at 100 percent efficiency. As a result, production deviations can be
quickly flagged and trends can be more easily identified. These smart, connected production
lines have enabled a 25 percent output improvement in the company’s electronic stability
program and automatic braking systems.
Data
analytics in
digital twin