Big Data – The Three V’s Of Big Data

3-vs-of-big-data

The Three Vs of Big Data

When you think Big Data, think of the 3VS - Volume, Variety, Velocity. Say it again with me - Volume, Variety, & Velocity. In this section, we will go over each of the V’s in brief.

Volume refers to the huge amounts of data that is now available and the ability to store it. Data is being stored from increasing number of sources, while the cost of storage is fast approaching 0$. Organizations are now able to store exabytes of customer & employee data. 1 Exabyte is equivalent to 1 Billion Gigabytes. With the emergence of the internet of things and technology like self-driving cars, the amount of data available is set to grow exponentially as the years pass.

Variety because data is coming in from various sources like mobile devices, social media, wearable devices, the internet of things and GPS devices.The type (format) of data is different as well - mp3, jpeg, text, video are just few of the possible formats.

Furthermore, we can now store all these formats in one storage system. Before, data would be stored in traditional systems storage systems (SQL Server, MySQL) that required structure and consistent format. But since Big Data involves data coming in at extreme pace in different formats, there is a need to be able to store unstructured data on the fly. New technologies like Hadoop allow for storage & processing of this unstructured data to garner business insights.

Velocity: Velocity refers to speed at which data is being generated and processed. Back in 2012, around 72 hours of video was being uploaded to YouTube per minute. The numbers were staggering even back then. As of 2017, there is more than 300 hours of video being uploaded to YouTube per minute. Every minute there are over 200 million emails sent out, 2.5 million Google search queries and 20 millions photos viewed on Flickr. Data is being generated at an unimaginable rate.

In the past, databases would process and update data in “batches”. This would take place once a day, or even once a week. But now, new technology allows for data to be stored & processed instantly. This allows for organizations to make real-time insights and offer customers new deals and offers on the fly.



Resources Referenced

  Big Data: Principles and Best Practices of Scalable Realtime Data Systems






The Tipping Point Book Summary

The Tipping Point Book Summary – 3 Big Ideas

In his book , The Tipping Point, Malcolm Gladwell explores questions that frequently stump marketers. Why do certain videos go viral? Why do certain fashion trends catch on while others are ignored? How can a tiny change cause a sudden drop in crime rates? Why do some products stick in a customer’s mind while others are forgotten? In The Tipping Point, Gladwell discusses how small changes can cause can cause an epidemic trend. All it takes is the combination of the right people, the right time and the right context. Simple? Probably not. But Malcolm Gladwell puts forth his theory in a manner that is as simple as it is compelling. If you want buy kratom in amazon, in https://kratommasters.com/how-to-buy-kratom-on-amazon/ you can find very valuable information.

One of the crucial points dealt with in the epilogue is the constant struggle that older people have to accept that little by little they are losing their physical capacities, and this means that they do not always take proper care of themselves. So check out diclofenac online from UK Meds if you know or have a relative who refuses to take the proper steps to deal with arthritis problems.

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The Tipping Trinity

For an idea to go “viral” it needs to first infect a few influential people. If a disease is kept locked in an incubation zone – it’s not going to spread. In fact, an epidemic disease may not spread if it doesn’t infect the right people. Similarly, a product or an idea needs to be adopted by key people for it to go epidemic. Gladwell says that there are three types of people to cause an epidemic – Connectors, Mavens & Influencers.

Connectors: Connectors are the people who know far more people than the average person. Connectors have acquaintances from all walks of life. A connector derives his pride from the number of people he knows. While you may know a connector that is within your social circle, he or she will know people from various other social circles as well. Their connections are vital to the spread of an Epidemic.

Mavens: Mavens are the opinionated information gatherers. They research various products thoroughly and set themselves as experts. They genuinely enjoy spreading information and derive their pride from it. As such, people trust their opinion since there is no ulterior motive. Mavens are the gate-keepers of innovation diffusion.

Salesmen: Salesmen are the people who will make the “fencers” tip over to the other side. They tend to have a natural sense of knowing how to make people feel comfortable. They use this trait to connect and empathize with people who may be vastly different from them.

It’s Gotta Stick

If a virus is fought off by the body before it has time to infect others – it won’t turn into an epidemic. Similarly, for an idea or product turn viral it needs to “stick” to the people it first infects. Sometimes all an idea or a product needs is a small tweak to become sticky. Gladwell discusses how the famous show, Sesame Street, was initially a complete failure before a small tweak generated its rapid success. The small tweak was the addition of a human to the fictional Sesame Street.

Gladwell defines the Stickiness Factor – the attribute that compels people to pay close, sustained attention to a product, concept, or idea. Stickiness is heavily reliant on the “context”. Malcolm stresses that the power of context should not be ignored. Malcolm states:

“Epidemics are sensitive to the conditions and circumstances of the times and places in which they occur”​

Something as little as fixing a broken window can alter whether or not the entire building (or even the street) will be met with dishevelment. For stickiness and epidemics to take root, you need the right context.

Go Small – Let the Dunbar Number Tip

The Dunbar’s Number is a theory that as human beings we have cognitive limit to the number of stable social relationships we can maintain. Malcolm Gladwell proposes that if you focus on developing a loyal and cohesive following – you will eventually tip past the Dunbar number. People in this group will then break off to form new & smaller cohesive groups – thus causing a viral effect.

With this in mind, Malcolm suggests that you shouldn’t focus on a “Spray and pray” technique for growth. But instead focus on trying to first get the idea or product “stick” with a few people. Once you achieve true stickiness within a small group, growth is all but certain once the group surpasses the “Dunbar Number”

Final Thoughts​

Malcolm Gladwell’s assertions aren’t perfect by any means. Some of his claims have been critiqued. However, Gladwell provides us with a high-level view on how ideas can spread through the mass public. The Tipping Point shows us how culture and trends are heavily influenced by certain groups of individuals within the right context. Entrepreneurs and marketers can identify opportunities and exploit the context to tip the scale to their favour.

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Big Data – Evolution & Introduction

Big Data Evolution

Introduction: What is Big Data

So what is Big Data? Well, there are several definitions but the most prominent one, one according to https://www.newdata.ai/, is that Big Data is the notion that the world has reached a point where there is TONNE of data of available. More data than the average computer can process. The advent of new technology allows us to collect, store and analyse these vast amounts of data. This combination - the availability of massive amounts of data & the ability to process it is called “Big Data”.

What’s the point? Well, the analysis of all this data allows businesses to improve their profit margins, decrease their risk portfolio , increase employee productivity and more. Big Data is changing how businesses operate.

Evolution of Big Data

Traditionally, society has always been data-hungry. But the amount of data that could be stored and processed was limited by technology & cost. The cost of storing 1GB of Data in 1981 was ~700,000$ .  Today, that number is closer to 0.02$.  

(For more on the implications on this, I recommend reading “Free - Chris Andersen”)

So, as you can see, that upper-limit due to cost of storage is disappearing. Data Storage is cheaper than ever. This is where things get interesting. On one hand we have cheaper-than-ever data, and on the other hand we have more data than ever before. Data is collected from social media (facebook, instagram, tinder etc), mobile phones (gps data, network coverage data), ecommerce platforms, streaming platforms etc. Data is available everywhere.

Data abundance isn’t all that new. But it’s synergy with affordable data storage is what makes it usable. Before, organizations were forced to store only the most important data and throw away the rest. The problem though was that you could unknowingly throw out really important data.

The human mind is fascinating - but it has its limitations. We can see patterns and make sense out of complex data sets. But when the data set gets too large - we struggle.

Now this is where technology like Hadoop, Machine Learning, in-memory Analytics and come into play This new technology allows us to take massives amounts data - that would have otherwise been gibberish to us - and turn it into valuable information. 









BlockChain & Steemit

blockchain_steemit

The Block Chain?​

I’ve been researching blockchain technologies for the past few months now. It started off as a mere curiosity. But as time passed, I grew increasingly interested in the potential consequences this technology can have on the world.

I was chatting with one my professors from back in University. And we were discussing a potential PhD track for me. That’s when she brought up blockchain as well.  Now, I had good enough reason to dedicate a couple of full days into researching blockchain. After all,  I may be dedicating the next 4 years of my life to this technology, get this gift card number generator software for your system.

Two days later and my head was reeling! This is probably one of the most exciting technologies I have come across in years. I’m not going into detail about it in this post. This is more of an introductory post. ​ I’ll be writing on this topic in the weeks to come. I realize that many of you may not have even heard of blockchain.

SteemIt – Dipping My Feet

Many of you heard about SkipMBA through Reddit.  Well, one of the interesting technologies based on blockchain technology is SteemIt. It’s much like reddit, but instead of Karma, we actually get … Steem dollars.  Again, I’ll go into more detail in further posts. This is just an introduction. I’ll be posting in SteemIt in the next coming weeks to test out the platform. I have high hopes for this platform. I think it has a lot of potential – and may be extremely disruptive.

Nowadays, there is a great number of auto trading platforms available to trade cryptocurrency you have mined. According to William Moore, these platforms offer the possibility to earn more profits effortlessly. Connecting with his insights, it becomes evident that choosing one of the easiest platforms for auto trading can significantly enhance your trading experience.

You can follow me on Steemit! Here’s the link to my SteemIt Profile:  SteemIt – Shawn Dexter (PoRco1x)

One Up On Wall Street Book Summary

One Up On Wall Street

One Up On Wall Street Book Summary - 5 Big Ideas

Peter Lynch is a Wall Street legend who believes that you don’t need to be an expert with a Harvard MBA to make great investments. He practices what he preaches. Peter Lynch, who liked the coffee at Dunkin-Donuts, did a little research and bought their stock – which made a ten-fold return on his investment. In this book, Lynch tells the reader that the experts are blinded by their own expertise. They miss great opportunities because they are cocooned within their spreadsheets. The layperson, however, can use their perspective as daily-consumer to spot “ten-baggers”


One Up On Wall Street

Experts? Pfft - Listen to your surroundings instead

Peter Lynch insists that you do not need to be an expert to make great investments. In fact, the layperson has a serious advantage over an expert is cooped up in the office all day. You can make extremely profitable investments by simply observing your immediate surroundings – from your workplace to your visits to the mall. These are companies that haven’t reached the ears of the expert yet – and that’s precisely why they are undervalued. These are opportunities to receive a ten-fold return on your investment.

Develop A Story - Understand the fundamentals of the company

Liking a product or the vision for a company that you stumble across in your day-to-day activities is a great start – but you shouldn’t jump the gun on the investment. Research the company – understand the fundamentals. Try to pen down a story as to why you believe the company will grow. Finally, look deeper into the company's numbers for opportunities and redflags:

  • P/E ratio - you want this to be low
  • True asset value (hidden in the balance sheet)
  • Insider activity (are the founders buying shares back? - this is a good sign)
  • Cash position (Cash is king)

Hot Stocks = Nope-stocks

Lynch suggest that a tip from the top news channels are probably the worst to follow. If there’s a stock you’re thinking of buying and CNBC says it’s hot -– forget about it. If you own that stock -– it may be time to sell it quickly!

"If I could avoid a single stock, it would be the hottest stock in the hottest industry –the one that every investor hears about in the carpool or on the commuter train”

​Hot-picks like these often get overvalued and either cost you money or don’t make enough gains once they’ve reached the public eye.

A Slice Of The Pie

A company may come out with a brilliant product that you believe in strongly. But an important question to ask is: Is this product a large slice of the company’s pie or a small slice? If the product is only one of the hundred products that the company has, then this is a small slice. Even if the product does extremely well, it unlikely have a noteworthy impact on the stocks. However, if the product is a large slice, then the stock has potential to be a ten-bagger (ten-fold return)

For example, if P&G come out with a new hot product — no matter how well the product does, it's not going to cause a huge spike in their shares. Why? Because P&G has countless of products that all contribute to the profits of the company.

​Diversifications are Die-Worse-Ifications

​Lynch advises the reader to be wary of companies that diversify. Diversifications have great potential for growth, but they are often done wrong. Profitable companies that look to diversify tend to waste their money on overpriced acquisitions that they do not fully understand. As a result, the acquisition is mismanaged and results in heavy losses. Companies looking to diversify should be a warning sign. If you hold the stock, it may be time to sell. If you’re considering buying – you may want to stay away.

Final Thoughts​

Overall, Peter Lynch provides us with a great primer to investing. The book seems highly anecdotal. But I believe that’s precisely the author's underlying message — investing doesn’t need to be a complicated process. He relates his experiences — several of them, mind you — in an attempt to get his idea across. While some may bash the books for this approach, I appreciate it for it’s own charm. I pictured myself sitting across Lynch over a cup-of-a-joe while he dispensed his priceless wisdom upon me. Now — how much would YOU pay for a meeting like that?

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Understanding Supply – ExcitingNomics

understanding_supply

Understanding Supply

Just as demand of a product or service is driven by its price – so is its supply. Considering all other factors remain constant, the quantity of a product supplied to a market will increase as the price of the product increases. As such, supply of a product or service is never fixed. Understanding supply is the next step to cracking the fundamentals of economics.

Supplying a product or a service always has an associated cost. If the market price of the product does not even cover the associated costs, then there is no incentive for a business to supply the product. Similarly, if the market price is much higher than the costs, the business has incentive to provide more of the product. Increasing the supply usually has increased costs to the business.

Understanding Supply:  Shouldn't Prices Decrease??

For example, there are some oil refineries that can extract and process oil at a cost of 50$ per barrel. But other low-yield oil wells will have an additional cost for extraction & processing placing the overall cost at $100 per barrel. The market-price of oil would need to cover the costs of the average cost of oil per barrel -– which in this example is $75.

As such, if the market price of oil drops to $74, there is no incentive to extract and process the oil from the low-yield wells. The refineries at the low-yield oil wells are shut down and overall supply to the market is decreased.

This phenomenon holds true across all markets. Quantity supplied into the market varies depending on the price of the product. In the next couple of posts, I will  use the iPhone as 


Resources Referenced

    Basic Economics  - Thomas Sowel
 
   Naked Economics  - Charles Wheelan
 
   Khan Academy - Economics & Finance

Understanding Demand – ExcitingNomics

understanding-demand

Understanding Demand

If you enjoy eating apples and each apple cost $10 then  you are likely to be very conservative with your apple consumption. But if the price of an apple drops to 10 cents  then you will likely hoard apples. This is the key to understanding Demand. As prices drop, demand will increase. As prices rise, demand will decrease.

However, it’s imperative to realize that the demand for a product or service is never fixed. Considering all other factors remain constant, the price of a product will drive demand inversely – i.e an increase in price will drive demand down; and a decrease in price will drive demand up. Understanding demand is really important for businesses and entrepreneurs to operate efficiently.

Shortage & Surplus

Businesses spend a considerable amount of resources to determine the demand for a product or service. If a business underestimates the demand, then they will supply less. As a result there will be more demand than items available. This is called a shortage. Consumers needs will be left unmet and suppliers would be leaving money on the table. This economically an inefficient outcome.

​Underestimate —> Shortage (money left on the table)
Overestimate —>  Oversupply (not enough buyers - losses)

On the other hand, if a business overestimates the demand, then they will supply too much of the product – a oversupply. In this case, there won’t be enough consumers to buy all of the supply which will result in losses. In either case — overestimation or underestimation — a business will be losing money. This is why understanding demand is imperative.

It’s crucial to note that there’s a key difference between “shortage” and “scarcity”. Scarcity refers to the quantity available relative to the population. An increased scarcity of an item means that there are fewer items relative to the population. Scarcity of an item is not impacted by its price, but by the limited number available – a natural limitation. Shortage of an item is a phenomenon of price.

 ​Next: Supply


Resources Referenced

    Basic Economics  - Thomas Sowel
 
   Naked Economics  - Charles Wheelan
 
   Khan Academy - Economics & Finance

The Fundamentals Of Economics – ExcitingNomics

fundamentals-of-economics

ExcitingNomics – The Fundamentals

There is perhaps nothing more intuitive than the fact that people are more willing to buy at lower prices and less willing at higher prices. Similarly, the fact that people are more willing to provide costly goods & services at high prices and as much at low prices is just as intuitive.

Yet, these simple & intuitive notions serve as the backbone of the market economy and contradict several misconceptions and fallacies in decision making. As such, mastering the fundamentals of economics  is all one needs to attain sufficient proficiency. According to Betterment this company has over $15 billion of assets under management and an excess of 400,000 users. These figures put it up there amongst the best robo-investors in the market today.

Supply & Demand is one the most basic tools in economics yet extremely powerful. Understanding the fundamentals will allow us to use these economic tools to make important business decisions by determining and understanding the following:

  • Market Equilibrium – Pricepoint of your product
  • Elasticity – How sensitive your product is to price
  • Consumer Surplus – How much customers stand to gain at different price-points
  • Producer Surplus – How much businesses stand to gain at different price-points
  • Deadweight Loss – Loss of economic efficiency under certain conditions
  • Negative & Positive Externalities – How taxes and other factors affect your business

“An economist is a man who states the obvious in terms of the incomprehensible.”  Alfred A. Knophf

Previous: ExcitingNomics – My Journey

 ​Next: Supply & Demand

Resources Referenced

    Basic Economics  – Thomas Sowel    Naked Economics  – Charles Wheelan    Khan Academy – Economics & Finance

ExcitingNomics – How Peter Thiel Convinced Me To Study Eco!

ExcitingNomics

ExcitingNomics - Going from Zero To One

I recently wrote a summary on a “Zero To One” - written by paypal founder & facebook investor - Peter Thiel. One of Thiel’s core ideas was that a monopoly situation should not be frowned upon – and in fact, a monopoly is the best outcome for all parties involved.

My intuition strongly disagreed with Peter Thiel, and I mentioned this in my summary under “My Thoughts” . However, I was careful not to completely dismiss Thiel’s ideas. Afterall, Thiel is a genius in his own right – and has accomplished a lot.  How could my intuition possibly hold any weight  against his genius?  But sometimes, intuition and "obvious" matters may have complex explanations.

“An economist is a man who states the obvious in terms of the incomprehensible.”
 Alfred A. Knophf

If It Smells Wrong Don't Eat It!

If your intuition is telling you something doesn’t smell right – perhaps look into the matter. Don’t just trust the word of an authority figure. As human beings we are particularly susceptible to Authority Bias. So, in an effort to clear out my doubts on Peter Theil’s views on a monopoly – I decided to do some digging into the Fundamentals of Economics.  As Computer Scientist, this is a completely new journey for me.

But this journey has opened an exciting world. Never would I have imagined economics being so interesting. I think the bland charts and the name - ‘Economics’  tend to make us think that the topic is as complicated as it is boring. But in truth, Economics has turned out to be simple & exciting. Perhaps if it were renamed to "ExcitingNomics" it would draw more eyes?

“Economics should be as uncomplicated as it is eye-opening"
 Thomas Sowel - Author of Basic Economics

Books & Courses For Studying

Anyway, I want to take you guys a long with me on this journey. So each week I will be writing a few short posts that summarize the core ideas on economics.

I have picked up the following resources to facilitate my learning:

    Basic Economics  - Thomas Sowel
    Naked Economics  - Charles Wheelan
 
   Khan Academy - Economics & Finance

​Next:  The Fundamentals

Positioning Book Summary – Are you positioning for power?

Customer Perception

Positioning Book Summary - 4 Big Ideas

In a world a where marketing messages are being increasingly ignored due to over-communication, Al Reis argues that the secret lies not so much in positioning yourself in the market – but more so in positioning yourself in the customer’s mind. The irony is that the core message of this classic – originally written in 1970 – may be more applicable today than back then.

Al Reis provides anecdotal evidence to support his claims – but the more experienced reader may summon a counter example. As such, the ideas put forward by Reis should not be read as black & white. The core message of the book is that marketing isn’t about your product – it’s about how your customers perceive your products. Perception is a matter of the mind – and the mind is far from black & white.


customer perception

Mind Over Matter

It doesn’t matter if your product is better – not if the prospect doesn’t think so. And especially not if you haven’t penetrated a position in your prospects mind.

A classic example of this is the disastrous launch of “New Coke” – a new and improved taste to Coca-Cola. Coca-Cola conducted 200,000 blind taste tests, and the results were overwhelmingly in favor of New Coke! The way forward was obvious – New Coke was launched and the classic Coca-Cola was discontinued.

But the human mind isn’t that simple. Coca-Cola underestimated their strong position & penetration in the customer’s mind. Fans were enraged! Grass-root campaigns & protests were launched across country. They wanted the original Coca-Cola back.

My ThoughtsRdio is another example of an superior product that lost to Spotify. Rdio failed to penetrate the prospect’s mind. Spotify built up hype and positioned themselves in the prospect’s mind while Rdio focused all of its efforts on feature development.

Be FIRST - one way or the other

Being first in a product category will position you in the customer’s mind firmly. Human beings tend to remember the “first” a lot easier than the second. The first man who landed on the moon, the first black president of USA, the first kiss etc.

However, if you can’t be first in a product category, you can be first in it’s subcategory. Michelob was known to successfully position themselves as the first “premium beer”. Today, as the premium position thins, Michelob is positioning themselves as the first fitness beer.

My Thoughts: Three-time formula one racer, Senna, once said that being second only means that you’re the first one to lose. Al Reis mentioned that the first to market usually holds twice the market-share as the second place. I did a quick search to see if this holds: Up to today, Coca-cola enjoys it’s leadership position – commanding a 48% market-share. It’s nearest competitor, Pepsi Co, holds only 20% of the market-share. Wow.

Avoid the Line Extension Trap

Al Reis passionately argues against line-extension. Attempting to leverage your strong brand-name to launch a new product into the market is folly.

Line Extension can be especially disastrous when you hold a leading position in the market. Products with leadership positions have ownership of a category within a customer's mind. The prospect associates your brand name with that particular category. When you line-extend, you slowly but surely diffuse ownership of that category.

Scott used to enjoy the leadership position in toilet paper. Scott meant “toilet paper”. But then they went ahead and line extended to Scott Napkins, Scott Tissues, Scott Facial Towels etc. “Make sure you pick up some Scott, hun” could no longer be said without requiring clarification.

My Thoughts: If you take a look at the grocery stores, line-extension is prolific. Almost every company seems to be doing it. The temptation to do so is understandable. It makes sense on paper - but what do the numbers say? It seems like in the short-term profits increase, due to surge of orders to fill the shelf, customer excitement. But profits wane in the long run.

Be the ANTI-Number One !

If you’re late to the market – all is not lost. But instead of competing for the number one spot, you can position yourself directly against the market leader. Essentially, you can use the market-leaders number one position to your advantage to penetrate the prospects mind.

Avis – who were No. 2 in the rent-a-car market – were pretending to be No. 1. They were suffering losses for 13 years straight – their strategy was clearly not working. Finally they stopped pretending to be the best and repositioned themselves with this campaign:

“Avis is only No.2 in rent-a-cars. So why go with us? We try harder!”

This placed themselves in the prospects mind by latching onto the No.1 – as well as claiming the underdog status. Avis saw its first profitable year in over 13 years.

My Thoughts: Another great example would be 7Up – who entered the market during the cola-wars between Coca-Cola & Pepsi. 7Up cunningly positioned themselves as the “Un-COLA” – placing themselves in the prospects mind as the Number #1 alternative to all colas.

We delivered one page summaries & actionable content to our readers every week!

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I hope you enjoyed Positioning Book Summary!  You can pick up Positioning from Amazon in hardcover, Kindle or Audiobook format 🙂

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customer perception