Research paper

Umair Afzal

IGlobal University

EXECUTIVE OVERVIEW

Who is our customer? Everyone related to travel industry companies are our customers. Travel agencies travel focused marketing companies, foreign and domestic tourist and travel government agencies. What need will our company fill? Our company will help the customer’s design business strategy by leveraging customer insights, allowing them to personalize their offerings, improving their marketing and pricing strategies, and gaining competitive differentiation. We believe that companies need to understand their customer’s preferences to build business strategies. Our company’s Big data analytics will allow travel companies to understand their consumers patterns, behaviors, and feedback collected from various sources to help our customers design the right business and marketing strategy. Tracking, analyzing and understanding this valuable data will help our customers determine what offerings and services they should offer in the future.

According to our initial research, most travel agencies are either not performing social media analysis or are doing it in house. Most of the research articles outlined that the companies performing big data analysis within the travel industry employ B2C business model, which makes my offering quite unique in the current marketplace. Furthermore, our company will provide analytical report, and consulting and explanatory services regarding our analytics, the tools we use, and our insights gained from these tool and methods.

Our company’s expenses will be divided to three main categories: infrastructure, software and human resources. Estimated cost of $160,000/month for infrastructure, $200,000/month for software, $100,000/month for human resources, and $40,000 as miscellaneous cost are budgeted. The total amount of $500,000 per month is required to run Global Tech smoothly. The initial planning of our project will get started from the month of April 2019. After enhancing all the requirements, the project will be launched in the month of August 2020.

DESCRIPTION OF THE COMPANY

Data challenges today are often categorized as ‘Big’ because they deal with one or more of the following: volume, velocity or variety. While the challenges of analyzing such “big data” are most often discussed, growing volume, velocity and variety of data are produced in social media. The increasing use of social networks, such as Facebook, Twitter, Instagram and Weibo have produced and is producing huge volume of data. Social networks constitute a huge amount of consumer "big data." The average global Internet user spends two and a half hours daily on social media, and their activity reveals a great deal about what makes them tick (Smith, 2014). Now, social networks are making significant investments in putting this data to work. If they achieve a firmer grip on users' relationships, interests, and spending habits, social networks will be able to provide their users with personalized content, and advertisers will be able to hyper-target users. But the kinds of data each social network collects varies dramatically based on what activity is conducted on each network (Smith, 2014).

Analyzing the importance of big data in social network, my company will start performing big data analytics based on the data generated from today’s social network. We will collaborate and cooperate with all the social and non-social organizations or business firms who will be benefited from the data that will be predicted and discovered from those big data. Since, big data perform analysis based on the trends and therefore can be easy for the concerned authority or organizations to plan accordingly. Different organizations are looking for an opportunity and insight in order to enhance their business and make profit. These firms can use these data to learn the social behavior of different kinds of people. There are certain people who can stimulate certain groups and people which can be discovered by big data. My company will perform big data analytics generated from social network and provide insight of how these can be used by the travel industry companies to make profit. Specifically, we will offer predictions about likely increases in vacation, holiday travel, and likely destinations. For example, from a social media, we can access number of posts, mentions, followers, fans, page views, reviews, pins, etc. for different places and types of vacations people are having. There can be thousands of online mentions and tags, but it can be distilled into a single view to see which one have the best reviews and where people wanted to go time and again. This will be a unique approach where the business firms, organizations, groups, and individual themselves will be benefited. As of today, Facebook collects 63 different pieces of data for its API, more than any other social network. So much content is shared on Facebook.

Financial Requirement

Our company ‘Global Tech’ generally have two options when it comes to procuring new equipment, capabilities, and software: we can obtain new capabilities and equipment as a capital expense (CapEx) or we can obtain them as an operating expense (OpEx). As our company is shifting from a model of hardware and software ownership to a SaaS model, IT and Finance departments must reconcile how best to classify cloud costs. IT spending is big business, and the way our company thinks about it may deserve new consideration.

Capital expenditures (CapEx) refers to the money a company spends towards fixed assets, such as the purchase, maintenance, and improvements of buildings, vehicles, equipment, or land. This is also sometimes known as PP&E – property, plant, or equipment. These are major physical goods or services (one-time purchases) intended to benefit the organization for more than one year (Watts & Hertvik, 2018). Under the CapEx, our company will list items which include IBM Power systems, Intel-based Windows servers, and other high-dollar items, as well as many supporting items, such as Universal Power Systems (UPS), line printers, air conditioners, scanners, and generators. Procurement costs will show up on our company’s balance sheet, and the cost will be depreciated or amortized over years, according to the tax code.

Operating expenses (OpEx) are the funds an organization uses to run its day-to-day business (Watts & Hertvik, 2018). Under the OpEx, our company will list items which are generally used up within the year they are purchased. Consumables such as printer cartridges, paper, electricity, and other supplies will also be purchased under the operating expense budget. Contract items such as yearly service or maintenance agreements, Web site hosting, and Web domain registrations will also be purchased as operating expense items, because they are used up within a year.

OpEx purchases will cover pay-as-you-go items that will show up on our company’s profit and loss statement, and later they will be deducted from income as they occur.

Many IT material goods such as servers, generators, or UPS systems will also be purchased as an operating expense item. That is our company can lease the item or sign a hosting contract with a managed services provider (MSP) that provides access to the equipment as a service for a monthly cost, making the purchase an operating expense item. Our company will sign a contract with NapoleanCat as a social media marketing and analytics platform, Amazon Marketplace as cloud service provider and VeloCloud as a network service provider. When material goods or services are purchased as an OpEx item, costs are assigned to the operating expense budget; the expense is tracked in our company’s profit and loss statement; and the equipment’s monthly expenses are tracked and deducted from the bottom line as they are incurred rather than being depreciated over several years.

Our company’s expenses will be divided to three main categories: infrastructure, software and human resources, the latter being the most demanding. The infrastructure of our company consists of data storage, servers, network and monitoring tools. The major software expense is the analytical database. Using 3TB per month as an example, based on leading platform providers, an analytical database is likely to cost more than $160,000. Additional required tools are an ETL (Extraction, Transform and Load), real-time database and visualization tools presenting the data graphically so that it can be shared with our customers.

In our case of 3TB per month, infrastructure and software amount close to $200,000. Buying an end-to end-solution not only includes this cost, but also saves the time and effort invested in evaluating, testing, deploying and integrating through a long process of trial and error.

Equally important is that a bought solution allows our staff to keep on doing their job. Building a solution, on the other hand, diverts company personnel to a field of expertise that is not their innate domain. This harms not only the analytics solution, but company’s revenue as well due to time, money and human resources getting diverted away from a core business. This opportunity cost of a built solution must be considered. Estimated amount of $500,000/month will be required to start-up our company and run smoothly as well.

DESCRIPTION OF CLOUD SERVICES

Businesses have a long history of utilizing data analytics to help guide their technique to improve results, and my business will advance this fine tradition. My business, Global Tech, will sell data analytics services and consulting from social media sources to travel industry. In my research I have found several companies offering products based on social media analytics, but to date these potential competitors are in the business to consumer (B2C) market, whereas my strategy is to offer my services to travel focused business (B2B). Global will quite possibly be the first to market in this space.

Ideally data analytics helps eliminate much of the guesswork involved in trying to understand clients, instead systemically tracking data patterns to best construct business tactics and operations to minimize uncertainty (Technology Advice, n.d). Not only does analytics determine what might attract new customers, often analytics recognizes existing patterns in data to help better serve existing customers, which is typically more cost effective than establishing new business. In an ever-changing business world subject to countless variants, analytics gives companies the edge in recognizing changing climates, so they can take initiate appropriate action to stay competitive (Technology Advice, n.d).

Alongside analytics, cloud computing is also helping make business more effective and the consolidation of both clouds and analytics could help businesses store, interpret, and process their big data to better meet their clients’ needs (Technology Advice, n.d). The cloud makes an agile culture more possible than ever (Datameer, 2018).

Probably the most popular definition in business environment, NIST states that cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g. networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction (Mell & Grance, 2009). An organization can utilize cloud computing services from a third-party provider when such resources are required and scale up and down as needed without needing to invest in costly infrastructure. Another major benefit is that applications and data can be accessible at any time through the Internet (Motta, Sfondrini, & Sacco, 2012). In recent years there has been rapid growth in cloud computing and social networking technologies. Cloud computing shifts the computing resources to a third party, eliminating the need to purchase, configure and maintain those resources. With the incentive of lowered operational costs in software, hardware and human effort, many companies are considering the use of cloud services. Likewise, social networks have seen massive growth, with millions of Internet users actively participating across various social networking websites. Even corporations have begun using social networks to market and reach their customers (Ahuja & Moore, 2013).

My firm, ‘Global Tech’ plans to enjoy the advantages of cloud computing by leveraging a subscription to NapoleonCat. NapoleonCat is a software as a service (SaaS) based provider of near real-time feeds of social media data as well as a complete suite of social media analysis tools. Global Tech will couple NapoleonCat’s data feeds with our proprietary data analysis algorithms to gather and analyze social media data based analytical reports and consulting services to several verticals within the travel industry. The scope of our consulting services will be limited to explanatory services regarding our analytics, the tools we use, and our insights gained from these tools and methods. Our analytical tools will provide data driven information allowing our travel industry customers to understand and predict consumers patterns, behaviors, pre and post travel feedback, as well as seasonal and preferred future destination details. This offering will help my customer’s design agile, data driven business strategies by leveraging customer insights garnered from my analytical reports. These insights will allow them to personalize their offerings, improving their marketing and pricing strategies, and gaining competitive differentiation.

NapoleonCat’s cloud computing platform provides an eminently appropriate SaaS solution for our firm. Their cloud-based platform will allow Global Tech significant savings in operational and infrastructure costs, along with the ease of scalability to meet the increasing or decreasing needs.Also, in order to take full advantage of the social web and cloud resources, our firm need to integrate across the social web, cloud, and the enterprise. The key is to connect data and logic from different sources with social tools to facilitate, rather than impede, the collaborative productivity of users and the flow of business processes (MuleSoft, 2018).

NETWORK AND MANAGEMENT OF BIG DATA

Before discussing the benefit to my firm ‘Global Tech’, it is prudent to define cloud-based network services. Cloud based networking is a form of hosting that entirely exists and operates within a remote internet-accessible environment/infrastructure. The infrastructure, resources, cloud network management and other network administrative and operational processes are performed from the cloud (Technology Trends, 2018). The key objective behind cloud-based networking is to provide network connectivity between applications and resources present on a cloud. For example, interconnectivity between virtual machines created within a same cloud environment is achieved through cloud-based networking (Technology Trends, 2018).

Recent development of distributed cloud environments requires advanced network infrastructure to facilitate network automation, virtualization, high performance data transfer, and secured access of end-to-end resources across regional boundaries. In order to meet these innovative cloud networking requirements, software-defined wide area network (SD-WAN) is primarily demanded to converge distributed cloud resources (e.g., virtual machines) in a programmable and intelligent manner over distant networks (Kim, Kim, Kim, & Gill, 2017). Additionally, WAN connectivity is moving to the cloud, and that means that IT and business managers want to ditch hardware devices for the WAN. The new model will be a cloud service that the customer can provision and order on the Web with software, or at the minimum use only a small box managed by the service provider (Raynovich, 2015).

The Cloud WAN virtualizes every network function and delivers it as a service, including core network functions such as packet steering and path selection (VeloCloud, 2018). We can have unparalleled control and visibility over our distributed network. Cloud WAN is a best solution for our startup company, that combines the speed and agility of SD-WAN, the consistency and control of NFV and network orchestration, and enables applications at the edge of our network. We will unleash the power of our business with enhanced speed and service quality, control and security, while reducing cost and complexity (CLOUDWAN, n.d). Also having our SD-WAN delivered by the VeloCloud, we can invigorate our WAN architecture to deliver increased the office agility, orchestration simplicity, and SaaS application performance. When the cloud is the network, we can build and manage a secure WAN over any physical connectivity from any site, with all traditional network functions delivered as cloud services, and without the headache of complex hardware configurations for every site (VeloCloud, 2018).

To innovate faster with our big data generated from social networks, our firm ‘Global Tech’ will cloud-based network services to provide several benefits for our firm. Tourist destinations are increasingly affected by the travel-related information shared through the Web. More and more people first check the previous experiences of other customers before doing their own decision-making. (Gonzalez-Rodriguez, Martinez-Torres, 2014). This behavior makes speed paramount i.e., speed of analysis of the data, and speed of distribution of our analytical results to our perceived customer.

Management of Big Data

With the introduction of social media, massive amount of unstructured data is produced every second on the internet. Social media plays an integral role of today’s sales process which helps to know the prospects and establishing relationships. The travel industry is one that needs the magic of Big Data Analytics the most, to please their customers. While analyzing big data is quite a challenge for many organizations, it is one of the key factors driving the evolution of the travel industry. The travel industry handles an enormous quantity of data. (Saunders, 2017). Social analytics taps and analyzes consumers’ opinions converting them into insights, which helps businesses & marketers in identifying potential leads, areas of customer satisfaction or any customer grievance for a product etc. (Analytics Vidhya, 2017).

To start with the analytics of our Big data, we need primary inputs about the category to get idea about different keywords to be used for data pulling. We will also create a list of noise words so that it will be easier to remove the irrelevant conversation. Once the keyword list is finalized, we will formulate the SQL query in proper manner to capture right content and from the right sources. And then we will convert the qualitative data to quantitative data using text mining as well as Natural Language Processing (NLP) based techniques. The taxonomy will be fine-tuned based on test & learn approach. In order to analyze the purchase intent, we will be creating an initial taxonomy based on some secondary researchers or sample data scan, and then the tonality will be analyzed to understand consumer expectations as well as pain points (Analytics Vidhya, 2017). Since, social media data are more inclined towards neutral content, predictive models alone will not suffice as a classification technique to classify “Positive”, “Negative” and “Neutral” tonality. An ensemble approach comprising of predictive modeling along with custom classification rules based on Naïve Bayes Classifier would help our analytics to achieve higher accuracy, more than 80% (Analytics Vidhya, 2017). Once the Purchase Intent & tonality analysis are over, we will classify the content as: High Probability Lead, Medium Probability Lead, and Low Probability Lead. We can figure out the Author Name corresponds to High Probability Lead & “Medium Probability Lead” and analyze their needs & pain areas based on the conversation and accordingly design the communication strategy to target them (Analytics Vidhya, 2017).

(Image Source: Analytics Vidhya, 2017)

Operating Model of the Big Data Analytics

Every time, there is new data, the data will be automatically classified based on existing rules.

Digital safety and security have never been more prevalent on peoples’ minds than they are today. How to keep a computer and its data safe are important questions to continually ask. Data security has consistently been a major issue in information technology. In the cloud computing environment, it becomes particularly serious because the data is in different places. The use of the cloud computing environment to cater to the demands of users in the internet has made database security a critical issue. Security is a critical issue in cloud computing due to the variety of IT services that can be provided through a cloud environment (Cleveland, 2009). Database security should ensure data confidentiality, integrity and availability on any system. Since our firm ‘Global Tech” is using cloud service, we will develop approaches to ensure data security.

Cloud database systems are subject to many of the same threats that affect cloud technology. Because of the nature of large amounts of potentially sensitive information being stored in databases, however, the impacts can be quite severe if unchecked (Bisk Education, 2018). While not a comprehensive list, these threats give a sense of the types of dangers facing network administrators as our firm will be adopting large-scale cloud database storage systems.

1. Data breaches

Data breaches are perhaps the most common threat to cloud databases. In a data breach, hackers gain access to sensitive information stored in the cloud, such as customer credit card numbers or mailing addresses, and use it for personal gain. As more information is stored online in a centralized location, data breaches become potentially more severe, affecting millions of customers or employees at one time (Bisk Education, 2018). Not only relying on the service that our CSP provides, for reducing data breaches, our firm will institute end user security awareness, craft an encryption policy and enforce it, deploy intrusion detection and prevention, stop drive-by downloads, perform regular vulnerability assessments, apply comprehensive patching, employ insider behavior monitoring, and importantly back up the data.

2. Account hijacking 

In a hijacking attempt, intruders try to gain access to a user’s account by phishing or using holes in software security systems to discover passwords. When a user’s account login information is taken, intruders usually then change the password to lock users out of their accounts. At this point, any files or other information stored in the user’s cloud can be freely accessed, potentially including database information that provides data on many users at once (Bisk Education, 2018). For preventing account hijacking, our firm will apply a boot and braces approach for secure access, enforce encryption, and build a multi-layered defense to ensure that data is protected all the times.

3. APIs 

An Application Programming Interface (API) is the technical means through which a user communicates with a cloud system, governing what permissions he or she has to attach third-party applications to the system. While cloud storage companies and other Internet entities have made great advances in developing secure APIs, such as OAuth, there is always the possibility that an intruder will find vulnerabilities to gain access to administrator API areas (Bisk Education, 2018). For securing our API, our firm will develop secured authentication patterns, access control, and set rate limits for API usage.

4. Data loss 

When an intruder gains access to sensitive information, one possible outcome is for the intruder to delete the information in order to inconvenience its owner. If we do not keep up-to-date backups of files, it is possible that these files could be permanently lost if tampered with. When all files are stored in a single cloud-based server, deletion can trickle down to all user devices causing files to be lost everywhere simultaneously (Bisk Education, 2018). Therefore, our firm will make sure of updating backup files in a timely manner.

5. Cloud servers as malware platforms 

The synchronizing services provided by cloud computing are undeniably useful for keeping database files up-to-date across devices and platforms. However, what happens if an attacker decides to use this same syncing mechanism to distribute viruses to all user devices simultaneously? If attackers are able to harness the power of cloud servers to spread malware across a network, the potential for damage is far greater than if attackers were only able to affect a small, locally stored organization network. In order to reduce the risk of malware attacks, our firm will secure the network data, monitor the network, and utilize security intelligence technologies

Data Backup/Recovery

As our company performs big data analytics from social networks, it collects huge data. We store the company and our customers information in the cloud. These all need to be stored and backed up for future analysis and interpretation. Cloud computing is the technology that is widely used for storing large volume of data in organizations. And as our data grows and diversifies, storing, protecting, and recovering it becomes increasingly challenging. The important issues are data protection and its confidentiality. Storing data at a remote location and restoring the data in case that it’s deleted without requirement of network connectivity are the main concern of our backup/recovery plan. Since our cloud service provider will be AWS market place, we will also coordinate with AWS for backup and restore plan because AWS offers the tools and resources to build scalable, durable, and secure backup & restore solutions (AWS Marketplace, 2018). As our firm environment is cloud-native, AWS will provide us with a design and deploy a data-protection solution that will meet our needs. The cloud-native environment has workloads that exist entirely on AWS, where our firm will have access to virtual servers, databases, applications, monitoring services, and Active Directory. Backup in this environment may require a migration service to move data to the cloud and then leverage integrated AWS cloud-native capabilities for object, block, and file system backups (such as versioning, snapshots or cross-region replication) (AWS Marketplace, 2018). Of course, traditional backup software can also be used to manage data and jobs.

When designing these backup strategies for our firm, we must also identify the disaster situations that can occur, anticipate the potential impacts, and build comprehensive disaster recovery solutions. Doing so is one of the most important steps to ensuring our business continuity during and after events that could negatively impact our operations, financial performance, and brand. To get ahead of disaster events, our company will again be using AWS to enable faster disaster recovery of critical IT systems without incurring the infrastructure expense of a second physical site, as the AWS support many architectures such as pilot light, warm standby, and hot standby environments (AWS Marketplace, 2018).

Project Estimated Timeline

Appeal for Venture Capitalist Funding

Our company ‘Global Tech’ will also be looking for funding from venture capitalist. Taking on venture capitalist investment is taking on a partner, a partner who will want an active say in how we run things. Our company will be prepared to satisfy venture capitalist to invest in our company.

Global Tech is a company that is established to perform big data analytics from social media to travel industry. In his modern era of 21st century, customers are demanding more personalized services. Travel industry basically needs to grow big data analytics for making their service advanced and customers happy. There are several companies who perform analytics but are based in business to consumer model. Most probably we predict that ‘Global Tech’ will be the first company who will be providing service on business to business model. This make our idea unique. We will be collaborating with NapoleanCat, for data collection and analysis. We will allow our customers to understand an predict their consumers pattern, behaviors, feedback, and provide them with likely vacation destinations. Everybody related to travel industry will be our customer. Airlines, travel agents, hotels, government and private tourist agencies will be using our data analytics to flourish their business and make profits. Our idea reflects that there’s a big market for what we’re selling, and big bucks being spent in this market.

We will have a top-notch management team, a team with experience in place for running this idea. All will be engineers who are experienced with Big Data, which is a rather scarce resource nowadays. ETL developers, cloud infra experts, Java developers, database administrators (DBAs), data analysts, and dashboard developers will be the key players to run our company. Our company will use cloud service from VeloCloud who delivers SD-WAN network. Data back-up and security will be considered as 50% responsibility from cloud service provider and 50% from our company’s side. We will collaborate with AWS marketplace for backup and security of our data. The estimated project time will be of 18 months, starting with planning in April 2019, while launching our service in August 2020. We will always gather feedbacks and reviews from our customer in timely manner. Taking about the financial requirement, our company will need estimated $500,000 per month to run our business smoothly. This cost includes all the infrastructure, software, and human resource cost. Since, our business is unique, investors can expect ten folds of profits since the start up period. We believe that ‘Global Tech’ is a good fit for our capitalist funding investment philosophy.

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