Welcome!

Cloud Security Authors: Zakia Bouachraoui, Elizabeth White, Liz McMillan, Pat Romanski, Yeshim Deniz

Related Topics: @DXWorldExpo, Artificial Intelligence, @ThingsExpo

@DXWorldExpo: Blog Feed Post

A Vacation Lesson: Mastering Logistics with Analytics | @ThingsExpo #IoT #M2M #BigData

Our logistics foray started by watching the artsy-fartsy movie 'The Lunchbox'

Okay, so my vacations don’t necessary seem like other folks’ vacations. Yes, we relax. Yes, we spend too much money. Yes, we eat too much food. But for some reason, unusual learning opportunities pop up during our vacations, and this year’s vacation was no different. This year’s vacation theme was… logistics.

Our logistics foray started by watching the artsy-fartsy movie “The Lunchbox.” I hate artsy-fartsy movies, but my wife insists on watching them on vacation. The movie was excellent. However, I was totally mesmerized by the lunchbox delivery system that was a featured part of the movie. The lunchbox delivery system, called dabbawalas, delivers hot lunches from homes and restaurants to people at work in Mumbai, India. The lunchboxes are picked up mid morning, delivered to husbands at noon using bicycles and railway trains, and returned to the originating source in the afternoon.

The dabbawallahs are extremely efficient; delivering up to 250,000 lunches daily and they rarely make a mistake. The delivery system is a very complicated dance of many elements, including the railway system in Mumbai. And it’s all done without the services of computers, iPhones or even an operating manual! Every step of the process, even the return address for each lunchbox, is memorized by the dabbawallahs.

But watching the movie “The Lunchbox” wasn’t enough. Next we made a journey to Sarasota, FL to check out the Ringling Bros Museum. My favorite part was the “Day in the Life of the Circus.” This amazing display showed all of the logistical complexities of setting up and taking down the circus…done in miniature (see Figure 1).

Figure 1: Complete Reproduction of the Ringling Bros Circus in Miniatures

The Ringling Bros Circus traveled with 1,300 workers and performers, and over 800 animals. In less than four hours time (starting when the first of three trains arrived at 3am), the workers would have set up the Big Top’s six center poles, 74 quarter poles, 122 sidewall polls, 550 stakes, 26,000 yards of canvas, three rings, four stages, a hippodrome track, and seats for 15,000 people. The first tent that went up was the mess tent, so that the battery of cooks could start cooking the 3 meals necessary to feed the workers and performers!

In a single season, the circus performed in 150 towns and cities. Fewer than 20 of the venues were more than a single day which meant setting up AND tearing down the enormous circus in a single day!

Big Data and Logistics
Logistics optimization has historically separated winners from losers in the world of commerce. Just like Ringling Bros mastered the art of logistics to bring “The Greatest Show On Earth” to cities across the United States, companies in industries such as retail, travel, entertainment, healthcare, consumer goods, manufacturing and hospitality must master logistics to:

  • Improve the predictability of on-time delivery of goods and services, while
  • Reducing operational costs and eliminating operational inefficiencies, in order to
  • Provide a differentiated, “delightful” customer experience

Think of the strategic role that logistics plays in Amazon’s business model (i.e., free two-day delivery and even same-day delivery in select zip codes). Amazon has mastered logistics in order to fulfill their customer promise to get make the delivery of products easier than driving to the store! Select what you want to buy on the Amazon website or mobile app, pay with [1-Click] and your order magically appears within two days or less at your doorstep. Or better yet, just yell at Amazon Alexa what you want and the user experience is even more seamless.

To master logistics, Amazon isn’t afraid to try new things. For example, the stocking in Amazon’s Prime Now locations looks random…because it is random! The items are stocked wherever is closest and fastest, and the location of the items is captured so that the analytic algorithms can optimize the picking process. The random stocking actually accelerates the picking process…with the help of analytics. Amazon couples the real-time, detailed stocking data with advanced analytics to get items out the door almost immediately after an order is placed in their Amazon Prime Now locations. And Amazon still isn’t satisfied, as they hope that drone delivery can actually reduce the delivery process to 30 minutes or less.

Monetizing Your Logistics Data
Tomorrow’s logistics battleground will likely be waged in how logistics organizations leverage the “commerce of the world” data to create new revenue or monetization opportunities.

“Information about the package is as important as the package itself.” -Frederick “Fred” W. Smith, Founder and CEO of Federal Express

Fred Smith said it well – back in 1978 – that the data about the package might be more valuable than the package itself. There is a bounty of analytic insights that can be gathered from the detailed logistics data of moving products from manufacturer and retailer to the end consumer, including:

  • Economic growth by geography and industry
  • Rapidly developing (and declining) markets and geographies
  • Financial health of a company
  • Market share changes by product category and geography
  • Promotional effectiveness
  • Product problems (by the number of returns)
  • Real-time changes in traffic patterns
  • Real-time weather conditions
  • Road surface conditions (potholes, missing lines, bumpy surfaces)

For example, logistics companies like DoorDash and GrubHub know as much about the success of a restaurant as anyone, as they can track not only what was ordered and by whom, but can also track re-orders by customers (which is the best measure of customer satisfaction). They know what types of foods what types of customers like, and when (time and dates) they prefer to place orders.

Monetizing Your Organization’s Data
Opportunities to exploit an organization’s data are only limited by the organization’s imagination, and willingness to experiment, fail and learn! However the real “monetization” event won’t be centered on selling one’s data. Instead the “monetization” event will likely be driven by monetizing the insights derived from the data; insights that can be monetized by 1) understanding the decisions that key market players are trying to make and 2) creating and packaging analytic insights to help those market players make better and more timely decisions.

As we discuss in our Big Data Business Model Maturity Model (see Figure 2), organizations should not focus on monetizing their data by selling their data (“value in exchange” to quote Adam Smith). Instead, organizations should focus on monetizing the insights gleaned from that data to improve today’s and tomorrow’s key operational, customer and market decisions (“value in use” to again quote Adam Smith).

Figure 2: Big Data Business Model Maturity Index

Identifying, validating and focusing on the most important decisions that customers (and prospects) are trying to make to optimize their business models can identify monetization opportunities for new products, new services, new markets, new audiences, new channels and new partnerships.

Sources:

“What Harvard learned by studying India’s lunchbox delivery system”
https://www.pri.org/stories/2014-04-16/what-harvard-learned-studying-indias-lunchbox-delivery-system

Stupendous! Amazing! Ringling Museum In Sarasota Does Circus Tradition Proud
http://travelwritersmagazine.com/stupendous-amazing-ringling-museum-in-sarasota-does-circus-tradition-proud/

The Howard Bros. Circus
https://en.wikipedia.org/wiki/The_Howard_Bros._Circus

How Amazon Delivers Packages in Less Than an Hour
http://time.com/4159144/amazon-prime-warehouse-new-york-city-deliveries-christmas/

The post A Vacation Lesson: Mastering Logistics with Analytics appeared first on InFocus Blog | Dell EMC Services.

Read the original blog entry...

More Stories By William Schmarzo

Bill Schmarzo, author of “Big Data: Understanding How Data Powers Big Business” and “Big Data MBA: Driving Business Strategies with Data Science”, is responsible for setting strategy and defining the Big Data service offerings for Hitachi Vantara as CTO, IoT and Analytics.

Previously, as a CTO within Dell EMC’s 2,000+ person consulting organization, he works with organizations to identify where and how to start their big data journeys. He’s written white papers, is an avid blogger and is a frequent speaker on the use of Big Data and data science to power an organization’s key business initiatives. He is a University of San Francisco School of Management (SOM) Executive Fellow where he teaches the “Big Data MBA” course. Bill also just completed a research paper on “Determining The Economic Value of Data”. Onalytica recently ranked Bill as #4 Big Data Influencer worldwide.

Bill has over three decades of experience in data warehousing, BI and analytics. Bill authored the Vision Workshop methodology that links an organization’s strategic business initiatives with their supporting data and analytic requirements. Bill serves on the City of San Jose’s Technology Innovation Board, and on the faculties of The Data Warehouse Institute and Strata.

Previously, Bill was vice president of Analytics at Yahoo where he was responsible for the development of Yahoo’s Advertiser and Website analytics products, including the delivery of “actionable insights” through a holistic user experience. Before that, Bill oversaw the Analytic Applications business unit at Business Objects, including the development, marketing and sales of their industry-defining analytic applications.

Bill holds a Masters Business Administration from University of Iowa and a Bachelor of Science degree in Mathematics, Computer Science and Business Administration from Coe College.

IoT & Smart Cities Stories
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...