Choosing R for business – What to consider?

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Additional features in R over other analytical packages-

1) Source Code is given to ensure complete custom solution and embedding for a particular application. Open source code has an advantage that is extensively peer- reviewed in Journals and Scientific Literature.  This means bugs will found, shared and corrected transparently.

2) Wide literature of training material in the form of books is available for the R analytical platform.

3) Extensively the best data visualization tools in analytical software (apart from Tableau Software ‘s latest version). The extensive data visualization available in R is of the form a variety of customizable graphs, as well as animation. The principal reason third-party software initially started creating interfaces to R is because the graphical library of packages in R is more advanced as well as rapidly getting more features by the day.

4) Free in upfront license cost for academics and thus budget friendly for small and large analytical teams.

5) Flexible programming for your data environment. This includes having packages that ensure compatibility with Java, Python and C++.

 

6) Easy migration from other analytical platforms to R Platform. It is relatively easy for a non R platform user to migrate to R platform and there is no danger of vendor lock-in due to the GPL nature of source code and open community.

Statistics are numbers that tell (descriptive), advise ( prescriptive) or forecast (predictive). Analytics is a decision-making help tool. Analytics on which no decision is to be made or is being considered can be classified as purely statistical and non analytical. Thus ease of making a correct decision separates a good analytical platform from a not so good analytical platform. The distinction is likely to be disputed by people of either background- and business analysis requires more emphasis on how practical or actionable the results are and less emphasis on the statistical metrics in a particular data analysis task. I believe one clear reason between business analytics is different from statistical analysis is the cost of perfect information (data costs in real world) and the opportunity cost of delayed and distorted decision-making.

Specific to the following domains R has the following costs and benefits

  • Business Analytics
    • R is free per license and for download
    • It is one of the few analytical platforms that work on Mac OS
    • It’s results are credibly established in both journals like Journal of Statistical Software and in the work at LinkedIn, Google and Facebook’s analytical teams.
    • It has open source code for customization as per GPL
    • It also has a flexible option for commercial vendors like Revolution Analytics (who support 64 bit windows) as well as bigger datasets
    • It has interfaces from almost all other analytical software including SAS,SPSS, JMP, Oracle Data Mining, Rapid Miner. Existing license holders can thus invoke and use R from within these software
    • Huge library of packages for regression, time series, finance and modeling
    • High quality data visualization packages
    • Data Mining
      • R as a computing platform is better suited to the needs of data mining as it has a vast array of packages covering standard regression, decision trees, association rules, cluster analysis, machine learning, neural networks as well as exotic specialized algorithms like those based on chaos models.
      • Flexibility in tweaking a standard algorithm by seeing the source code
      • The RATTLE GUI remains the standard GUI for Data Miners using R. It was created and developed in Australia.
      • Business Dashboards and Reporting
      • Business Dashboards and Reporting are an essential piece of Business Intelligence and Decision making systems in organizations. R offers data visualization through GGPLOT, and GUI like Deducer and Red-R can help even non R users create a metrics dashboard
        • For online Dashboards- R has packages like RWeb, RServe and R Apache- which in combination with data visualization packages offer powerful dashboard capabilities.
        • R can be combined with MS Excel using the R Excel package – to enable R capabilities to be imported within Excel. Thus a MS Excel user with no knowledge of R can use the GUI within the R Excel plug-in to use powerful graphical and statistical capabilities.

Additional factors to consider in your R installation-

There are some more choices awaiting you now-
1) Licensing Choices-Academic Version or Free Version or Enterprise Version of R

2) Operating System Choices-Which Operating System to choose from? Unix, Windows or Mac OS.

3) Operating system sub choice- 32- bit or 64 bit.

4) Hardware choices-Cost -benefit trade-offs for additional hardware for R. Choices between local ,cluster and cloud computing.

5) Interface choices-Command Line versus GUI? Which GUI to choose as the default start-up option?

6) Software component choice- Which packages to install? There are almost 3000 packages, some of them are complimentary, some are dependent on each other, and almost all are free.

7) Additional Software choices- Which additional software do you need to achieve maximum accuracy, robustness and speed of computing- and how to use existing legacy software and hardware for best complementary results with R.

1) Licensing Choices-
You can choose between two kinds of R installations – one is free and open source from http://r-project.org The other R installation is commercial and is offered by many vendors including Revolution Analytics. However there are other commercial vendors too.

Commercial Vendors of R Language Products-
1) Revolution Analytics http://www.revolutionanalytics.com/
2) XL Solutions- http://www.experience-rplus.com/
3) Information Builder – Webfocus RStat -Rattle GUI http://www.informationbuilders.com/products/webfocus/PredictiveModeling.html
4) Blue Reference- Inference for R http://inferenceforr.com/default.aspx

  1. Choosing Operating System
      1. Windows

 

Windows remains the most widely used operating system on this planet. If you are experienced in Windows based computing and are active on analytical projects- it would not make sense for you to move to other operating systems. This is also based on the fact that compatibility problems are minimum for Microsoft Windows and the help is extensively documented. However there may be some R packages that would not function well under Windows- if that happens a multiple operating system is your next option.

        1. Enterprise R from Revolution Analytics- Enterprise R from Revolution Analytics has a complete R Development environment for Windows including the use of code snippets to make programming faster. Revolution is also expected to make a GUI available by 2011. Revolution Analytics claims several enhancements for it’s version of R including the use of optimized libraries for faster performance.
      1. MacOS

 

Reasons for choosing MacOS remains its considerable appeal in aesthetically designed software- but MacOS is not a standard Operating system for enterprise systems as well as statistical computing. However open source R claims to be quite optimized and it can be used for existing Mac users. However there seem to be no commercially available versions of R available as of now for this operating system.

      1. Linux

 

        1. Ubuntu
        2. Red Hat Enterprise Linux
        3. Other versions of Linux

 

Linux is considered a preferred operating system by R users due to it having the same open source credentials-much better fit for all R packages and it’s customizability for big data analytics.

Ubuntu Linux is recommended for people making the transition to Linux for the first time. Ubuntu Linux had an marketing agreement with revolution Analytics for an earlier version of Ubuntu- and many R packages can  installed in a straightforward way as Ubuntu/Debian packages are available. Red Hat Enterprise Linux is officially supported by Revolution Analytics for it’s enterprise module. Other versions of Linux popular are Open SUSE.

      1. Multiple operating systems-
        1. Virtualization vs Dual Boot-

 

You can also choose between having a VMware VM Player for a virtual partition on your computers that is dedicated to R based computing or having operating system choice at the startup or booting of your computer. A software program called wubi helps with the dual installation of Linux and Windows.

  1. 64 bit vs 32 bit – Given a choice between 32 bit versus 64 bit versions of the same operating system like Linux Ubuntu, the 64 bit version would speed up processing by an approximate factor of 2. However you need to check whether your current hardware can support 64 bit operating systems and if so- you may want to ask your Information Technology manager to upgrade atleast some operating systems in your analytics work environment to 64 bit operating systems.

 

  1. Hardware choices- At the time of writing this book, the dominant computing paradigm is workstation computing followed by server-client computing. However with the introduction of cloud computing, netbooks, tablet PCs, hardware choices are much more flexible in 2011 than just a couple of years back.

Hardware costs are a significant cost to an analytics environment and are also  remarkably depreciated over a short period of time. You may thus examine your legacy hardware, and your future analytical computing needs- and accordingly decide between the various hardware options available for R.
Unlike other analytical software which can charge by number of processors, or server pricing being higher than workstation pricing and grid computing pricing extremely high if available- R is well suited for all kinds of hardware environment with flexible costs. Given the fact that R is memory intensive (it limits the size of data analyzed to the RAM size of the machine unless special formats and /or chunking is used)- it depends on size of datasets used and number of concurrent users analyzing the dataset. Thus the defining issue is not R but size of the data being analyzed.

    1. Local Computing- This is meant to denote when the software is installed locally. For big data the data to be analyzed would be stored in the form of databases.
      1. Server version- Revolution Analytics has differential pricing for server -client versions but for the open source version it is free and the same for Server or Workstation versions.
      2. Workstation
    2. Cloud Computing- Cloud computing is defined as the delivery of data, processing, systems via remote computers. It is similar to server-client computing but the remote server (also called cloud) has flexible computing in terms of number of processors, memory, and data storage. Cloud computing in the form of public cloud enables people to do analytical tasks on massive datasets without investing in permanent hardware or software as most public clouds are priced on pay per usage. The biggest cloud computing provider is Amazon and many other vendors provide services on top of it. Google is also coming for data storage in the form of clouds (Google Storage), as well as using machine learning in the form of API (Google Prediction API)
      1. Amazon
      2. Google
      3. Cluster-Grid Computing/Parallel processing- In order to build a cluster, you would need the RMpi and the SNOW packages, among other packages that help with parallel processing.
    3. How much resources
      1. RAM-Hard Disk-Processors- for workstation computing
      2. Instances or API calls for cloud computing
  1. Interface Choices
    1. Command Line
    2. GUI
    3. Web Interfaces
  2. Software Component Choices
    1. R dependencies
    2. Packages to install
    3. Recommended Packages
  3. Additional software choices
    1. Additional legacy software
    2. Optimizing your R based computing
    3. Code Editors
      1. Code Analyzers
      2. Libraries to speed up R

citation-  R Development Core Team (2010). R: A language and environment for statistical computing. R Foundation for Statistical Computing,Vienna, Austria. ISBN 3-900051-07-0, URL http://www.R-project.org.

(Note- this is a draft in progress)

2011 Forecast-ying

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I had recently asked some friends from my Twitter lists for their take on 2011, atleast 3 of them responded back with the answer, 1 said they were still on it, and 1 claimed a recent office event.

Anyways- I take note of the view of forecasting from

http://www.uiah.fi/projekti/metodi/190.htm

The most primitive method of forecasting is guessing. The result may be rated acceptable if the person making the guess is an expert in the matter.

Ajay- people will forecast in end 2010 and 2011. many of them will get forecasts wrong, some very wrong, but by Dec 2011 most of them would be writing forecasts on 2012. almost no one will get called on by irate users-readers- (hey you got 4 out of 7 wrong last years forecast!) just wont happen. people thrive on hope. so does marketing. in 2011- and before

and some forecasts from Tom Davenport’s The International Institute for Analytics (IIA) at

http://iianalytics.com/2010/12/2011-predictions-for-the-analytics-industry/

Regulatory and privacy constraints will continue to hamper growth of marketing analytics.

(I wonder how privacy and analytics can co exist in peace forever- one view is that model building can use anonymized data suppose your IP address was anonymized using a standard secret Coco-Cola formula- then whatever model does get built would not be of concern to you individually as your privacy is protected by the anonymization formula)

Anyway- back to the question I asked-

What are the top 5 events in your industry (events as in things that occured not conferences) and what are the top 3 trends in 2011.

I define my industry as being online technology writing- research (with a heavy skew on stat computing)

My top 5 events for 2010 were-

1) Consolidation- Big 5 software providers in BI and Analytics bought more, sued more, and consolidated more.  The valuations rose. and rose. leading to even more smaller players entering. Thus consolidation proved an oxy moron as total number of influential AND disruptive players grew.

 

2) Cloudy Computing- Computing shifted from the desktop but to the mobile and more to the tablet than to the cloud. Ipad front end with Amazon Ec2 backend- yup it happened.

3) Open Source grew louder- yes it got more clients. and more revenue. did it get more market share. depends on if you define market share by revenues or by users.

Both Open Source and Closed Source had a good year- the pie grew faster and bigger so no one minded as long their slices grew bigger.

4) We didnt see that coming –

Technology continued to surprise with events (thats what we love! the surprises)

Revolution Analytics broke through R’s Big Data Barrier, Tableau Software created a big Buzz,  Wikileaks and Chinese FireWalls gave technology an entire new dimension (though not universally popular one).

people fought wars on emails and servers and social media- unfortunately the ones fighting real wars in 2009 continued to fight them in 2010 too

5) Money-

SAP,SAS,IBM,Oracle,Google,Microsoft made more money than ever before. Only Facebook got a movie named on itself. Venture Capitalists pumped in money in promising startups- really as if in a hurry to park money before tax cuts expired in some countries.

 

2011 Top Three Forecasts

1) Surprises- Expect to get surprised atleast 10 % of the time in business events. As internet grows the communication cycle shortens, the hype cycle amplifies buzz-

more unstructured data  is created (esp for marketing analytics) leading to enhanced volatility

2) Growth- Yes we predict technology will grow faster than the automobile industry. Game changers may happen in the form of Chrome OS- really its Linux guys-and customer adaptability to new USER INTERFACES. Design will matter much more in technology on your phone, on your desktop and on your internet. Packaging sells.

False Top Trend 3) I will write a book on business analytics in 2011. yes it is true and I am working with A publisher. No it is not really going to be a top 3 event for anyone except me,publisher and lucky guys who read it.

3) Creating technology and technically enabling creativity will converge at an accelerated rate. use of widgets, guis, snippets, ide will ensure creative left brains can code easier. and right brains can design faster and better due to a global supply chain of techie and artsy professionals.

 

 

An Introduction to Data Mining-online book

I was reading David Smith’s blog http://blog.revolutionanalytics.com/

where he mentioned this interview of Norman Nie, at TDWI

http://tdwi.org/Articles/2010/11/17/R-101.aspx?Page=2

where I saw this link (its great if you want to study Data Mining btw)

http://www.kdnuggets.com/education/usa-canada.html

and I c/liked the U Toronto link

http://chem-eng.utoronto.ca/~datamining/

Best of All- I really liked this online book created by Professor S. Sayad

Its succinct and beautiful and describes all of the Data Mining you want to read in one Map (actually 4 images painstakingly assembled with perfection)

The best thing is- in the original map- even the sub items are click-able for specifics like Pie Chart and Stacked Column chart are not in one simple drop down like Charts- but rather by nature of the kind of variables that lead to these charts. For doing that- you would need to go to the site itself- ( see http://chem-eng.utoronto.ca/~datamining/dmc/categorical_variables.htm

vs

http://chem-eng.utoronto.ca/~datamining/dmc/categorical_numerical.htm

Again- there is no mention of the data visualization software used to create the images but I think I can take a hint from the Software Page which says software used are-

Software

See it on your own-online book (c)Professor S. Sayad

Really good DIY tutorial

http://chem-eng.utoronto.ca/~datamining/dmc/data_mining_map.htm

RWui :Creating R Web Interfaces on the go

Here is a great R application created by http://sysbio.mrc-bsu.cam.ac.uk

R Wui for creating R Web Interfaces

its been there for some time now- but presumably R Apache is more well known.

From-

http://sysbio.mrc-bsu.cam.ac.uk/Rwui/tutorial/Rwui_Rnews_final.pdf

The web application Rwui is used to create web interfaces  for running R scripts. All the code is generated automatically so that a fully functional web interface for an R script can be downloaded and up and running in a matter of minutes.

Rwui is aimed at R script writers who have scripts that they want people unversed in R to use. The script writer uses Rwui to create a web application that will run their R script. Rwui allows the script writer to do this without them having to do any web application programming, because Rwui generates all the code for them.

The script writer designs the web application to run their R script by entering information on a sequence of web pages. The script writer then downloads the application they have created and installs it on their own server.

http://sysbio.mrc-bsu.cam.ac.uk/Rwui/tutorial/Technical_Report.pdf

Features of web applications created by Rwui

  1. Whole range of input items available if required – text boxes, checkboxes, file upload etc.
  2. Facility for uploading of an arbitrary number of files (for example, microarray replicates).
  3. Facility for grouping uploaded files (for example, into ‘Diseased’ and ‘Control’ microarray data files).
  4. Results files displayed on results page and available for download.
  5. Results files can be e-mailed to the user.
  6. Interactive results files using image maps.
  7. Repeat analyses with different parameters and data files – new results added to results list, as a link to the corresponding results page.
  8. Real time progress information (text or graphical) displayed when running the application.

Requirements

In order to use the completed web applications created by Rwui you will need:

  1. A Java webserver such as Tomcat version 5.5 or later.
  2. Java version 1.5
  3. R – a version compatible with your R script(s).

Using Rwui

Using Rwui to create a web application for an R script simply involves:

  1. Entering details about your Rscript on a sequence of web pages.
  2. Rwui is quite flexible so you can backtrack, edit and insert, as you design your application.
  3. Rwui then generates the web application, which is Java based and platform independent.
  4. The application can be downloaded either as a .zip or .tgz file.
  5. Unpacked, the download contains all the source code and a .war file.
  6. Once the .war file is copied to the Tomcat webapps directory, the application is ready to use.
  7. Application details are saved in an ‘application definition file’ for reuse and modification.
Interested-
go click and check out a new web app from http://sysbio.mrc-bsu.cam.ac.uk/Rwui/ in a matter of minutes
Also see

EU files anti trust against Google to reduce budget deficit

From the Old Lady-

http://www.nytimes.com/2010/12/01/technology/01google.html?_r=1&hpw

Google’s dominance on the Internet has been a sore point in Europe, where it controls more than 80 percent of the online search market, compared with about 66 percent in the United States, according to comScore, a research firm.

and

If Google is found in violation of European competition law, the commission has the power to fine it up to 10 percent of its annual revenue, which totaled more than $23 billion last year.

Before settling last year, Microsoft had paid fines of about $2.4 billion over the past decade in a long-running antitrust case in Brussels that focused on the Windows operating system.

In another case, the commission fined Intel about $1.45 billion for abusing its dominance in the computer chip market.


——————————————————————————————

Maybe Google should ask the European Union to buy a groupon for anti trust cases.

Related

11 Ways to Beat Google

 

 

Complex Event Processing- SASE Language

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Complex Event Processing (CEP- not to be confused by Circular Probability Error) is defined processing many events happening across all the layers of an organization, identifying the most meaningful events within the event cloud, analyzing their impact, and taking subsequent action in real time.

Software supporting CEP are-

Oracle http://www.oracle.com/us/technologies/soa/service-oriented-architecture-066455.html

Oracle CEP is a Java application server for the development and deployment of high-performance event driven applications. It can detect patterns in the flow of events and message payloads, often based on filtering, correlation, and aggregation across event sources, and includes industry leading temporal and ordering capabilities. It supports ultra-high throughput (1 million/sec++) and microsecond latency.

Tibco is also trying to get into this market (it claims to have a 40 % market share in the public CEP market 😉 though probably they have not measured the DoE and DoD as worthy of market share yet

– see webcast by TIBCO ‘s head here http://www.tibco.com/products/business-optimization/complex-event-processing/default.jsp

and product info here-http://www.tibco.com/products/business-optimization/complex-event-processing/businessevents/default.jsp

TIBCO is the undisputed leader in complex event processing (CEP) software with over 40 percent market share, according to a recent IDC Study.

A good explanation of how social media itself can be used as an analogy for CEP is given in this SAS Global Paper

http://support.sas.com/resources/papers/proceedings10/040-2010.pdf

You can see a report on Predictive Analytics and Data Mining  in q1 2010 also from SAS’s website  at –http://www.sas.com/news/analysts/forresterwave-predictive-analytics-dm-104388-0210.pdf

A very good explanation on architecture involved is given by SAS CTO Keith Collins here on SAS’s Knowledge Exchange site,

http://www.sas.com/knowledge-exchange/risk/four-ways-divide-conquer.html

What it is: Methods 1 through 3 look at historical data and traditional architectures with information stored in the warehouse. In this environment, it often takes months of data cleansing and preparation to get the data ready to analyze. Now, what if you want to make a decision or determine the effect of an action in real time, as a sale is made, for instance, or at a specific step in the manufacturing process. With streaming data architectures, you can look at data in the present and make immediate decisions. The larger flood of data coming from smart phones, online transactions and smart-grid houses will continue to increase the amount of data that you might want to analyze but not keep. Real-time streaming, complex event processing (CEP) and analytics will all come together here to let you decide on the fly which data is worth keeping and which data to analyze in real time and then discard.

When you use it: Radio-frequency identification (RFID) offers a good user case for this type of architecture. RFID tags provide a lot of information, but unless the state of the item changes, you don’t need to keep warehousing the data about that object every day. You only keep data when it moves through the door and out of the warehouse.

The same concept applies to a customer who does the same thing over and over. You don’t need to keep storing data for analysis on a regular pattern, but if they change that pattern, you might want to start paying attention.

Figure  4: Traditional architecture vs. streaming architecture

Figure 4: Traditional architecture vs. streaming architecture

 

In academia  here is something called SASE Language

  • A rich declarative event language
  • Formal semantics of the event language
  • Theorectical underpinnings of CEP
  • An efficient automata-based implementation

http://sase.cs.umass.edu/

and

http://avid.cs.umass.edu/sase/index.php?page=navleft_1col

Financial Services

The query below retrieves the total trading volume of Google stocks in the 4 hour period after some bad news occurred.

PATTERN SEQ(News a, Stock+ b[ ])WHERE   [symbol]    AND	a.type = 'bad'    AND	b[i].symbol = 'GOOG' WITHIN  4 hoursHAVING  b[b.LEN].volume < 80%*b[1].volumeRETURN  sum(b[ ].volume)

The next query reports a one-hour period in which the price of a stock increased from 10 to 20 and its trading volume stayed relatively stable.

PATTERN	SEQ(Stock+ a[])WHERE 	 [symbol]   AND	  a[1].price = 10   AND	  a[i].price > a[i-1].price   AND	  a[a.LEN].price = 20            WITHIN  1 hourHAVING	avg(a[].volume) ≥ a[1].volumeRETURN	a[1].symbol, a[].price

The third query detects a more complex trend: in an hour, the volume of a stock started high, but after a period of price increasing or staying relatively stable, the volume plummeted.

PATTERN SEQ(Stock+ a[], Stock b)WHERE 	 [symbol]   AND	  a[1].volume > 1000   AND	  a[i].price > avg(a[…i-1].price))   AND	  b.volume < 80% * a[a.LEN].volume           WITHIN  1 hourRETURN	a[1].symbol, a[].(price,volume), b.(price,volume)

(note from Ajay-

 

I was not really happy about the depth of resources on CEP available online- there seem to be missing bits and pieces in both open source, academic and corporate information- one reason for this is the obvious military dual use of this technology- like feeds from Satellite, Audio Scans, etc)

Predictive Analytics World March2011 SF

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Message from PAWCON-

 

Predictive Analytics World, Mar 14-15 2011, San Francisco, CA

More info: pawcon.com/sanfrancisco

Agenda at-a-glance: pawcon.com/sanfrancisco/2011/agenda_overview.php

PAW’s San Francisco 2011 program is the richest and most diverse yet, including over 30 sessions across two tracks – an “All Audiences” and an “Expert/Practitioner” track — so you can witness how predictive analytics is applied at Bank of America, Bank of the West, Best Buy, CA State Automobile Association, Cerebellum Capital, Chessmetrics, Fidelity, Gaia Interactive, GE Capital, Google, HealthMedia, Hewlett Packard, ICICI Bank (India), MetLife, Monster.com, Orbitz, PayPal/eBay, Richmond, VA Police Dept, U. of Melbourne, Yahoo!, YMCA, and a major N. American telecom, plus insights from projects for Anheiser-Busch, the SSA, and Netflix.

PAW’s agenda covers hot topics and advanced methods such as uplift modeling (net lift), ensemble models, social data (6 sessions on this), search marketing, crowdsourcing, blackbox trading, fraud detection, risk management, survey analysis, and other innovative applications that benefit organizations in new and creative ways.

Predictive Analytics World is the only conference of its kind, delivering vendor-neutral sessions across verticals such as banking, financial services, e-commerce, education, government, healthcare, high technology, insurance, non-profits, publishing, social gaming, retail and telecommunications

And PAW covers the gamut of commercial applications of predictive analytics, including response modeling, customer retention with churn modeling, product recommendations, fraud detection, online marketing optimization, human resource decision-making, law enforcement, sales forecasting, and credit scoring.

WORKSHOPS. PAW also features pre- and post-conference workshops that complement the core conference program. Workshop agendas include advanced predictive modeling methods, hands-on training and enterprise decision management.

More info: pawcon.com/sanfrancisco

Agenda at-a-glance: pawcon.com/sanfrancisco/2011/agenda_overview.php

Be sure to register by Dec 7 for the Super Early Bird rate (save $400):
pawcon.com/sanfrancisco/register.php

If you’d like our informative event updates, sign up at:
pawcon.com/signup-us.php