Intelligent CIO Middle East Issue 05 | Page 42

FEATURE: BIG DATA SINCE ITS DEPLOYMENT IN 2009, SIMS HAS PROVED A HUGE ASSET TO FORD, DYNAMICALLY RECOMMENDING THE OPTIMAL NUMBER AND TYPES OF MODELS DEALERSHIPS SHOULD ORDER unprecedented move, Netflix ordered two seasons upfront, something unheard of in the TV industry. Despite Hollywood executives openly questioning the logic as a pilot episode hadn’t even been filmed at the time of purchase, Netflix was convinced it was making a shrewd investment. Why? Because it had analysed user behaviour. Armed with the knowledge that House of Cards would be a political drama directed by David Fincher and starring Kevin Spacey, Netflix drilled down through its data to see whether subscribers would be receptive to such a show. Predictive analytics gave a high probability that the drama would be a hit with customers based on the following: • David Fincher directed film The Social Network was a popular choice on Netflix and was watched from beginning to end. • The British version of House of Cards had a strong viewership. • Those who viewed the British version also watched Kevin Spacey films and/ or films directed by Fincher. The predictive analytics turned out to be correct. House of Cards was a critical and commercial hit when it debuted in 2013. The show attracted three million new subscribers to the streaming service and was nominated for 14 awards after its first season, winning four of the categories. Such was the ROI, that this jump-started Netflix’s original programming strategy. The company currently has over 30 shows in production including other acclaimed hits such as Orange is the New Black and Daredevil. Growth has continued with the service doubling its subscriber base from 36.3 million at the beginning of 2013 to over 69 million in 2015. Recently, Netflix decided to make an even bolder move based on data. The firm decided not to renew its $1bn deal with movie distributor Epix, determining that user demand for 42 INTELLIGENTCIO mainstream films such as The Hunger Games and Transformers did not justify investment over the creation of original content. Netflix has not only leveraged the power of Big Data to drive decisions about the creation of original programming, it’s also deployed machine learning to provide every user with a personalised homepage. “To algorithmically create a good personalised homepage means assembling one page per member profile and device from thousands of videos that may be relevant for a member and from easily tens of thousands of potential rows, each with a variable number of videos. On top of that, we need to balance several factors that often compete for precious screen real estate. Our approach to personalisation and recommendation largely focuses on helping our members find something new to watch, which we call discovery,” Justin Basilico, Research and Engineering Manager noted on the Netflix Blog. “To do this, we can use a machine learning approach to create the scoring function by training it using historical information of which homepages we have created for our members, what they actually see, how they interact, and what they play.” The above examples demonstrate the power of analytics and Intel believes it can provide businesses with the compute power, visualisation tools and infrastructure to apply these principles across verticals from financial through to healthcare industry. Businesses can draw on the experience Intel has had working within multiple partners including CERN, which has been tackling one of the biggest data projects on the planet. Collecting data at the research facility has provided significant challenges as the Large Hadron Collider used during experimentations has produced up to 1PB of data per second. www.intelligentcio.com