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These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Kaggle’s Crowd Sourcing Service for Data Analytics. Kaggle connects data scientists with organizations who have problems related to data analysis. Kaggle helps organizations define their data analytic problems, present them to data scientists, and organize and evaluate competitions between data analytic solutions. Its data ensemble technique also evaluates the effectiveness of the various solutions. These slides describe the specific value proposition for organizations and data scientists and other aspects of the business model such as the method of value capture, scope of activities, and method of strategic control.
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MT5016 – BUSINESS MODELS FOR HI-TECH PRODUCTS
A STUDY BY,
Jeffray Jayaraj Michael (A0119246E)
Niha Agarwalla (A0119230U)
Nivethan Santhan (A0121887X)
Sathishkumar Murugesan (A0133745E)
CONTENTS
Introduction
Scope of Activities
Value Proposition
Customer Selection & Market
Value Capture
Competitor Analysis
Strategic Control
1
2
3
4
5
6
7
INTRODUCTION
Kaggle, the medium where companies with data and require someone to work on it to connect
with people who wants to use their data solving skills.
Crowdsourcing
platform
What is Data Science?
The newly emerging field that is dedicated to analysing and manipulating unstructured/structured raw data to derive insights and build process, products and alter or develop new business model.
Necessary skill-sets ranges from computer science, to mathematics, to knowledge in relevant field.
INTRODUCTION
Data
science
How Kaggle addresses Data Science?
It is almost never the case that any single organization has access to the advanced machine learning
and statistical techniques that would allow them to extract maximum value from their data.
Meanwhile, data scientists crave real-world data to develop and refine their techniques.
Kaggle corrects this mismatch by offering companies a cost effective way to harness the ‘cognitive
surplus’ of the world's best data scientists.
What does Kaggle use to correct the mismatch?
Crowdsourcing – It shares the real time data to specific group of users (data scientists) to come up
with the predictive models to solve the problems.
INTRODUCTION
WHY DATA SCIENCE AND ANALYTICS?
Organization's are
spending an average of
21% of their
marketing budget on
analytics
http://blogs.osc-ib.com/2014/02/ib-student-blogs/data-is-the-new-oil/
DATA IS THE NEW OIL
http://blogs.osc-ib.com/2014/02/ib-student-blogs/data-is-the-new-oil/
HOW KAGGLE WORKS?
The competition host prepares the
data and a description of the
problem. He announced the prize
pool for a proper solution together
with a deadline for the challenge.
Participants experiment with
different techniques and compete
against each other to find the best
models. After the deadline passes,
the competition host pays the prize
money to the winner.
Kaggle Connect is the consulting
part of the platform, which
connects companies to the elite of
the Kaggle community, whom serve
solutions for different data science
problems.
HOW THE COMPETITIONS WORK?
4. Understand
(Data Scientist &
Kaggle)
5. Collect
(Data Scientist
& Kaggle)
6. Data exploration
(Data Scientist & Kaggle)
7. Plausibility check
(Data Scientist & Kaggle)
8. Model
(Data Scientist)
9. Validate
(Kaggle – Ensemble
approach)
1. Company
(customer
with problems)2. Kaggle 3. Organize data
(Kaggle) Data scientist
Registration
10. Communicating
Results
Deploy
Best solution
WHICH MODEL TO USE?
Countless possible approaches to any data prediction problem.
Which to choose?
HOW KAGGLE SELECTS THE BEST?
Competitions are judged based on predictive
accuracy and objective criteria set by the
competition host/company.
Kaggle compare techniques on a uniform dataset
with a uniform evaluation algorithm that assigns
points to each solution and the results are
categorized.
Kaggle uses an Ensemble approach which is proven
to be better to assess predictive modelling
solutions.
Ensemble approach
HOW COMPETITIONS ARE CATEGORISED?
Categories
Recruiting
Confused?
HOW COMPETITIONS ARE CATEGORISED?
Getting Started : Public competitions for beginners to participate and involves no cash prize.
Customers are mostly non-profit organizations.
Playground : Public competitions set-up to be more fun, quirky and idea-driven, rather than to solve
any business or research problems.
Kaggle Prospect : Public competitions that doesn’t use the leader board to determine the winner,
and where the goal is not a predictive model. The goals of Prospect competitions include data
exploration, analyses, and data visualizations.
Research : Public competitions where the competition goals are research/ scientific in nature or
serve a public good. These competitions tend to focus on ambitious machine learning problems at the
forefront of technology, or problems with a significant social-good aspect.
Recruiting : Public competitions where the sponsors are looking to hire data scientists and use the
competition to find and test potential talent. There are no teams, and each user must showcase their
individual work.
Masters : Competitions open to only a select tier of elite Kagglers, or a subset of these by invitation-
only or special eligibility criteria. These competitions have significant commercial value or sensitive
data.
Featured : Public competitions with significant prize money meant to solve commercial problems.
Prize winners grant the sponsor a non-exclusive license to their work, and will present their results
via a detailed write-up
HOW COMPETITIONS ARE CATEGORISED?
SAMPLE COMPETITION
Intel gathered the data of previous NCAA
tournament results and fixtures match-up, players
data and home and away wins over a period of two
decades.
First stage is to generate a predictive model to and
compare it with the previous tournaments.
Target is to use the model to predict the winners of
the 2014 NCAA tournaments.
Prize money : $15,000
id pred1 pred2 name.x name.y
S_507_509
0.24530923428
8291
0.70899929953
0187ALBANY NY
AMERICAN
UNIV
S_507_511
0.01524540814
7597
0.08396557425
6572ALBANY NY ARIZONA
S_509_511
0.04476173292
3018
0.04177913184
0498
AMERICAN
UNIV ARIZONA
S_509_512
0.28228121328
2214
0.18569021549
2044
AMERICAN
UNIV ARIZONA ST
S_507_512
0.114997411223
728
0.32404878668
6369ALBANY NY ARIZONA ST
S_511_521
0.84695278868
2282
0.83506008008
3856ARIZONA BAYLOR
S_507_521
0.07761586504
1407
0.28593300082
739ALBANY NY BAYLOR
S_509_536
0.30457632400
6342
0.18732429402
6667
AMERICAN
UNIV BYU
S_507_536
0.12640714011
8714
0.32641237116
6609ALBANY NY BYU
Predictions :
TOP COMPANIES INVOLVED
In kaggle thousand of competition are hosted
Competition varieties range from Biology to Finance.
Various companies such as Nasa, Microsoft etc and medium sized enterprise host competition.
Universities such as Stanford and Harvard even host the competition.
KAGGLE COMMUNITY
Kaggle community is the place where various datascientists and experts stand on a single platform toshare thoughts.
Kaggle runs a blog “no free hunch” where everyactivity happening in kaggle, best practices, conferencesand updates on recent developments are constantlyposted.
The community also has the top data scientists in theworld, with whom the companies could discuss on thecurrent model and the effects of the predictive modelsdeveloped.
The Jobs Board is the new feature wherecompany/customer in need of Data Scientist couldpost an ad with their requirements
CONTENTS
Introduction
Scope of Activities
Value Proposition
Customer Selection & Market
Value Capture
Competitor Analysis
Strategic Control
1
2
3
4
5
6
7
SCOPE OF ACTIVITIES
Kaggle Open source Investors &
support
Companies Data
Scientist
Competition hosts x
Data providers x
Content development x
Software x x
Algorithm x x x
Evaluation x
Data Storage x
Marketing x x
Licensing x x
Reading material x x x
Search x
Terms x x x
CONTENTS
Introduction
Scope of Activities
Value Proposition
Customer Selection & Market
Value Capture
Competitor Analysis
Strategic Control
1
2
3
4
5
6
7
VALUE PROPOSITION – KAGGLE
KAGGLE has two types of Customer:
1.Data Scientist (who works for the problem)
2.Company/Organizations.(who gives the problem)
Participation by worlds leading data scientist
Many data scientist participate
Different minds gives different solutions
Kaggleplatform<<< data scientist
Ensemble approach
Signing of NDA, Background check, Exclusive sets of data scientists
VALUE PROPOSITION- COMPANIES
VALUE PROPOSITION FOR DATASCIENTIST
To Big companies such as NASA, Facebook, Microsoft
Highly paid jobs in big organizations.
Signature track : Data Scientist in Kaggle leader board which gives them recognition in the field of predictive modelling.
CONTENTS
Introduction
Scope of Activities
Value Proposition
Customer Selection & Market
Value Capture
Competitor Analysis
Strategic Control
1
2
3
4
5
6
7
CUSTOMER SELECTION - MARKET SEGMENTS
Companies &
Research
Organization
Data
Scientists
END USERS
Corporations and Research
Organizations
People
Kaggle
Trend Analytics on
Stock Prices
Users Subscribe to
services based on
Kaggle Solutions
Direct
Indirect
TARGETED INDUSTRIES
Companies & Research Organization
Life Sciences EnergyFinancial Services
IT Retail
COMPANIES OF FOCUS
TARGETED USERS
100,000
Data
Scientists
Job
SeekersFreelancers
DATA SCIENTISTS
https://gigaom.com/2013/07/11/kaggle-now-has-100k-data-scientists-but-whats-a-data-scientist/
KAGGLE : NUMBER OF DATA SCIENTIST
100,000 as of 2013
KAGGLE’S MARKET
Sales ForecastingStock Forecasting
Risk Modelling &
Pricing
Logistic
optimisation
Best Process
Prediction
Inventory
Management
Traffic Forecasting
Energy demand Crime Prediction
Tax Social fraud
detection
Hospital Casualty
Demand
Private Sectors Public Sectors
MARKET DRIVERS
IT offers a definitive source of competitive advantage across all industries and will offer significant future value.
Data is being considered to be the future commodity.
Individuals create 70% of data, Enterprises store 80% of the data
MARKET OPPORTUNITY
http://marketing555.wordpress.com/2012/10/02/the-big-and-small-of-data/
Overall
$107 Billion
Outsourced
$43 Billion in 2017
CONTENTS
Introduction
Scope of Activities
Value Proposition
Customer Selection & Market
Value Capture
Competitor Analysis
Strategic Control
1
2
3
4
5
6
7
Kaggle Competition
Community
Access
% from prize
money
Company-Open DataData ScientistsSolution
Prize Money
CURRENT REVENUE STREAM - BUSINESS
Kaggle ConnectTop Data Scientist Access
Connect
Fee
Company- Sensitive Data
Top 0.5% Data Scientists
Money
Solution
CURRENT REVENUE STREAM - BUSINESS
CURRENT REVENUE STREAM - EDUCATION
Kaggle corp
Assignments % Revenue
Results in order of
marks obtained
Student enrolled
in the university
Question &
Data
Data model
Top universities
PROPOSED REVENUE STREAM – EDUCATION
Contract with online courseware websites like Coursera, edx
could be signed and provide data for students enrolled in specific
courses.
Singapore government has proposed to introduce data science in
high schools as a part of co-curriculum. Kaggle could enter the
market to provide a tool for schools.
PROPOSED REVENUE STREAM – GOVERNMENT ALIASES
Kaggle corp
Kaggle competition
Kaggle connect
Government/
Customer Local Data
scientist
Data available
online
Job offer
Brand value gained as a government recognised platform/organisation for Analytics
Prize money
% of Prize
money
Job
Data model Has knowledge
about the local
market
Data model
+
Trust/Privacy
Human
Resource
PROPOSED REVENUE STREAM – KAGGLE CONSULTANCY
Kaggle
corp
Kaggle connect
Oil & Gas
industries/
Customer
Raw Data +
ChallengeFee for
consultancy
Top 0.5% of Data
Scientist in
relevant field
Work
Kaggle consultancy
Job offer
Structured
dataOwnershipData model
With good Brand value, trust and adequate human resource availability, Kaggle could enter the field of analytics
as a consulting firm.
The major field of interest could be Oil & Gas as the data is large, unstructured and sensitive.
VALUE CAPTURE - KAGGLE PRODUCTS
Kaggle Public Competitions
Competitions allow organizations to
post their data and a specific prediction
problem to be answered
competitively by the world's best
Kaggle Masters Competitions
Kaggle provides the same platform as
with its public competitions,
except that access is limited only to an
elite group of Kaggle players
Kaggle-in-Class
Kaggle-in-Class allows instructors
to host data prediction
competitions for their students.
KAGGLE IN LONG TAIL
CONTENTS
Introduction
Scope of Activities
Value Proposition
Customer Selection & Market
Value Capture
Competitor Analysis
Strategic Control
1
2
3
4
5
6
7
Kaggle Innocentive
For users Career Choice with enough
competitions
Rewarding hobby
platform Crowdsourcing, Open
innovation, Predictive
modelling
Open innovation, Research and
Development
Scope Problems involving Data
analytics
R&D in various industries
Registered Members 100,000 in 3 years 300,000 in 12 years
Max Prize money 3 million 1 million
Number of Competitions 311(107/year) 1650 ( 138/year)
https://www.kaggle.com/competitions
KAGGLE VS INNOCENTIVE
Kaggle focuses on problems that
are related to data analytics.
Kaggle’s data scientist use
machine leaning as a
methodology to solve these
problems.
Problems posted in Innocentive
are related to R&D, product
development generic issues.
Ususally coding stands as the
major part of the development.
These 2 are different
organizations with a different
value proposition.
CONTENTS
Introduction
Scope of Activities
Value Proposition
Competitor Analysis
Customer Selection
Value Capture
Strategic Control
1
2
3
4
5
6
7
More Data scientists attracts more Clients
NETWORK EFFECT
First mover advantages of internet platforms
ClientsData
Scientist
More Clients attracts more data scientists
STRATEGIC PARTNERSHIP & COLLABORATION
Strong collaboration with big data companies And Institutions – GE, Google,
Facebook, Amazon, Walmart
Secure
PlatformSecure
Platform
BARRIER FOR ENTRY
Strengthen and establish exclusive
relationships with Big data companies and
World class Institutions will create a
barrier for other competitors to enter in
the business
Patent/trade secret of business model shall
be made
IP MANAGEMENT
Kaggle has a strong IP management
IP protected ranking software which is used to choose the best model
Ranking software is the key for Appropriability
Between the parties, Kaggle is the owner of all Intellectual Property Rights in and to the Website
Winner entry will be governed by a separate contract between the winner and the Competition Host
All text, graphics, user interfaces, photographs, trademarks, logos and artwork, including the design,
structure… licensed by or to Kaggle and is protected by applicable copyright, patent and trademark
laws and various other intellectual property rights and unfair competition laws.
COMPLEMENTARY ASSETS
Job Opportunities
Data analysis courses and online support
Certificate/Credit System: Kaggle can establish a credit system as like the
leader board that can leverage a Student to join in a school
Complementary Products like T-Shirts for Non-Profit competitions
Transforming the inefficient market for
technical talent into the world’s largest meritocracy.
1. INTRODUCTION“I keep saying the sexy job in the next ten years will be statisticians.”Hal Varian
Google Chief Economist
2009
“Aim to make Data Science a Sport.”Anthony Goldbloom
Kaggle Founder
2012
THANK YOU