<!DOCTYPE article PUBLIC "-//NLM//DTD JATS (Z39.96) Journal Archiving and Interchange DTD v1.0 20120330//EN" "JATS-archivearticle1.dtd">
<article xmlns:xlink="http://www.w3.org/1999/xlink">
  <front>
    <journal-meta>
      <journal-title-group>
        <journal-title>CEUR Workshop Proceedings</journal-title>
      </journal-title-group>
    </journal-meta>
    <article-meta>
      <article-id pub-id-type="doi">10.18287/1613</article-id>
      <title-group>
        <article-title>Modern aspects in development of branch applications on the basis of Big Data: possibilities, prospects and limitations</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Ramzaev M.V.</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>International Market Institute</institution>
          ,
          <addr-line>Samara</addr-line>
        </aff>
      </contrib-group>
      <pub-date>
        <year>2015</year>
      </pub-date>
      <volume>1490</volume>
      <fpage>355</fpage>
      <lpage>363</lpage>
      <abstract>
        <p>Storage, processing and intellectual analysis technologies of Big Data receives extended popularity throughout the world. The areas of implementation are also expanding, opening up new possibilities for solution to a variety of problems. However, it is important to consider the risks and limitations in implementation of such technologies and conduct detailed studies into revealing such issues. Therefore, it is necessary to form new analytical algorithms for Big Data, considering combination of wide use possibilities and limitations within rapidly changing conditions. One of the prospective areas for the comprehensive application of Big Data technologies is the State government. Having conducted the study into potentials of such technologies it's possible to formulate generalized methodological approach to working with them, which will allow resolving a number of current problems in real time.</p>
      </abstract>
      <kwd-group>
        <kwd>IT technologies</kwd>
        <kwd>IT innovation</kwd>
        <kwd>database</kwd>
        <kwd>Big Data</kwd>
        <kwd>Big Data analysis</kwd>
        <kwd>Big Data risk</kwd>
        <kwd>data storage</kwd>
        <kwd>data processing</kwd>
        <kwd>forecast</kwd>
        <kwd>competitiveness of the territory</kwd>
        <kwd>data security</kwd>
        <kwd>Big Data competence</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>-</title>
      <p>In today's world more and more spheres of human activity are covered by various
types of information technologies and their various field applications. Despite the fact
that the existing mechanisms of data storage and processing are actively improving,
the relevance of development and innovation in the software sector is one of the most
important challenges for the economies of countries around the world. The most
advanced, discussed and, according to researchers, promising in this field directions
are the processing, storage and intelligent analysis of Big Data using cloud
technology.</p>
      <p>These technologies are already widely used in many fields of science and life. For
example, marketing, energy, industry, oil and gas, public and municipal
administration, housing and utilities (smart city), banking and insurance activities, bio
- and nanotechnology, GIS technology, the aerospace industry, the safety of various
areas of life, health, etc.</p>
      <p>
        The use of Big data technologies in Russia according to the analytical Agency
СNews Analytics and Oracle is gradually increasing [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ]. However, at the moment
there is some skepticism about such trends, which can considerably limit the spread
and application of these technologies. According to the international expert
community, one of the most problematic issues of implementation and spreading of
Big Data Analytics is currently the confidentiality of personal information.
      </p>
      <p>Every year the number of companies which provide access to a variety of
databases, as well as provide services for the analysis increases. For example,
according to the analytical Agency Mind Commerce market size of Big Data in the
U.S. in 2013 amounted to $ 20 billion, and in 2014 already 29 billion, which means
that growth was 45%. This is an important sign of the framing trends and tendencies
in the IT sector.</p>
      <p>You can also give an example of a study made by Terradata on the subject of
practical use of Big Data technologies. The study is based on survey data 316 of
managers engaged in information technologies and data processing in leading
companies. The results showed that the vast majority of respondents stated a high
proportion of their investments in big data analytics, and high rates of return.</p>
      <p>About a fifth (21%) of respondents support the idea that technology is big data
Analytics are a key activity to identify and create specific competitive advantages,
and 38% include these technologies in line of five priorities.</p>
      <p>However, the study showed that Big Data is promising and effective from side of
innovation capacity in three key areas: the creation of new models of business activity
(54%), search and formation of a new product or service (52%), selling data to
thirdparty commercial organizations.</p>
      <p>However, according to the results of the study there are a number of obstacles on
the implementation of IT technologies in the current activities of the company,
behavior models and strategy.</p>
      <p>
        Thus, according to survey, one of the key tasks in the field of corporate culture is
encouraging the use of data and experiments in working with them [
        <xref ref-type="bibr" rid="ref2">2</xref>
        ].
      </p>
      <p>In this regard, due to the lack of a regulatory framework for activities in the field of
storage, transfer to third parties and Big data Analytics, it is logical to assume that
there will be a growing risk of wrong use of arrays of information.</p>
      <p>
        However, the law existing in Russia [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ] imposes a number of limitations and
identifies new opportunities in the BIG DATA analysis.
      </p>
      <p>Although now you can get "personal portraits" of any particular person based on
the mappings of IP addresses. And it's not just bank accounts and property register
list, but also the possibility to calculate the algorithms of the codes needed to control
them.</p>
      <p>However, one of the most soft elements of personal data is personal health
information. The current trend toward cloud storage also provokes risk increase of
information leak.</p>
      <p>On the one hand, the organization of the process of collecting and analyzing all
available and incoming real-time information about the medical data of millions of
patients around the world can have a significant positive impact on the health sector
as a whole. That is true about defining the most effective drugs, schemes and methods
of treatment, species diagnostics and other medical interventions. On the other hand,
the patient is one of the most weak points in this chain. Patients have no influence on
health information processing. He has the right only not to personalize the data and
remain anonymous. However, anonymity in this case is a relative term, the guarantee
of which is impossible to provide to full extent.</p>
      <p>Close to medicine–genetics area recently experiences some difficulties in storing
and processing of information, the volume of which is growing rapidly. According to
rough estimates of experts, the scale of genetic data is comparable to the scale of the
data in astronomy and physics, and in some ways even surpasses them. Therefore, it is
logical to assume that further research in this area will soon need a completely new
analytical and computational tool is capable of delivering results based on such a
large streaming data. Of course, this will require substantial funding, but the scientific
and practical relevance of this topic will allow access to all necessary means and
resources, both financial and intellectual. However, in this scientific field, there are
also certain potential risks from a wider and deeper implementation and application of
Big Data technologies, but they are long-lasting and today represent a much smaller
threat than potential usefulness.</p>
      <p>
        But experts have other concerns too. They are connected primarily with the fact
that almost any analytical agency will be able in real time to segment the society on
different sets of criteria that, on one hand, will allow to predict public reactions within
each segment, on the other hand simplifies the process of manipulating them for
personal gain. Moreover, the prices of all these analytical services in the near future
will only become more accessible because of the growing number of proposals. Due
to the Economist Intelligence Unit agency survey, which surveys have identified the
priorities for the development of Big Data for several years ahead, one of the most
dramatically developing areas is human resource management [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ]. Thus, it is believed
that the mechanisms of active control in society have long been used, for example, in
the United States. The expert community believes that the commercial interest of
companies to this subject over the next three years will increase by almost 2 times in
comparison with 2014.
      </p>
      <p>Another aspect of the complexities of Big data usage, as Professor of Berkeley
University Michael Jordan says, is associated with a qualitative segmentation of
information and its analysis. The increase in the number of data, the increasing
number of data sets and the increasing level of accessibility to them forms specialists
trend of inflated expectations, which shows the history of the development of
scientific disciplines that often leads to contradictions and unreliability of the results
afterwards. In this regard, it is important to pay attention to the study of not only
research and development opportunities of Big Data, but also to the research of the
risks of negative consequences, constraints, and adapting. For example, if the user for
several months studied the information about TV sets and then bought it on-line then
he will no longer be an effective consumer for targeted marketing that will haunt him
for another few months and more in the Internet and mobile devices. Hardly anyone
will buy a TV every time you see an advertising banner in the corner of your screen.</p>
      <p>There is also significant potential from the use of Big Data technologies in
industrial production. Especially it concerns the production of large objects, parts
produced and supplied by many suppliers. We are talking about millions of parts and
thousands of manufacturers. So in Russia and in the world exist and work quite
effectively standards of quality and technological features, on the other hand, the
existing mechanisms do not allow to lead full adaptation of innovative design in real
time in different areas of production and objects.</p>
      <p>However, the development of Big Data technologies and their attendant
widespread adoption of the Internet of things, allows not only to account for all the
standards and requirements in the design of any component or construction, but also
to optimize the production and bring to a new level control over each part, each node
and object in General.</p>
      <p>Such approach makes possible to create new mechanisms of standardization of the
quality of production, which will run in real time. That is, in case of identifying any
inefficient work of a particular piece, which is provided with a sensor, the data will
automatically be transferred to the computer not only of the owner of the object itself,
but to all project agencies and designer.</p>
      <p>Thus, the use and implementation of Big data technologies in industrial production
will reveal the rejection and its causes in the shortest possible time, and will also
make it possible to significantly improve the predicting risks system associated with
quality problems, use and operating characteristics of parts, components and objects
in each case.</p>
      <p>At the same time, technology in the world of Big Data are applied directly in the
production process. Such innovations will allow, for example, to identify the optimal
values of components in compositions of various metals, which, in its turn, will
impact on the economy, on the accuracy of risk calculation and lifetime of the final
products of production.</p>
      <p>In modern terms, such global innovation is possible only in case of effective and
constructive cooperation between large companies and corporations, bringing together
the experience and tools involved in the creation of new technologies that will be
useful to all partners. This also applies to the IT sector, and technologies of collection,
processing and analysis of Big Data, as to extend the scope of their application is
appropriate with the scale of funding and potential profit.</p>
      <p>Another important field of application of Big data technologies is the Banking
sector. On the one hand, existing in large banking institutions, the mechanisms for
collecting, analyzing and processing Big data to solve a wide range of existing
problems, on the other hand, current economic conditions and technology
development of electronic fraud make Big Data a new vector of innovation in the
work of the serious financial structures of the world level. First of all, the Bank needs
to know and understand its customer. And it's not just his average annual income and
the property which he owns. In particular, it its a detailed expenses structure with
regard to the season of year and time of day. The Bank, as a credit institution must not
only guess the possible customer need for money but has to some extent to form this
need in order to be able to offer its products on the terms that will be acceptable here
and now, in real time. These are the conditions of the market today. At the same time,
the Bank should partner with its customer and take care of the security. Widely
implement of Big data technologies will be possible to warn the client at the time of
any transaction, if the payment recipient for example showed himself earlier as unfair.
Or, identifying special features of the movement of any client's funds in his account,
to start negotiations with him about possible difficulties when repaying them next
payment of the loan, for example. That is, to solve the customer's problem with him,
without waiting for the consequences of those difficulties, which could result with
significant debts.</p>
      <p>Overall, it should be noted that the banking and financial sector nowadays are one
of the most interesting directions in the search for practical applications of the use of
Big Data technologies.</p>
      <p>First of all, the reason for such trend is a direct customer economic benefit. It
should be noted that previously the average growth in this sector was about 80% per
year. Now competition among banks is already underway for each client, in addition
to this is the need for a deeper and wider analysis of the current situation for each
existing customer, the decision to change the bank is not a rare thing now.</p>
      <p>Any miscalculation in individual work with consumers can lead to the situation
when within an hour is not understood by the employees of one Bank, the client will
become a client of another Bank. Therefore, the internal Bank study on prediction of
customer care becomes a very urgent and necessary from the point of view of
efficiency and appropriateness of current activities in general.</p>
      <p>To create more definite personal portraits are used social networks, search engines,
existing statistical data and data submitted by the clients themselves. Information
about the state of the financial and banking sector in general is collected from data
provided by the Central Bank and state statistical reports. Although, almost all of the
specialists working with these sources note that the quality and the list of such data
and the speed of changes arthe essential problems in the development of IT
applications innovation in the financial sector in Russia.</p>
      <p>Competition in the banking sector has led to the situation that market participants
are directly interested in the development of new outlets and applications of Big Data
technologies in their work because it depends primarily on their profits. In particular,
technologies of big data analysis help to rebuild the geographic locations of Bank
branches, taking into consideration the passability. This allows to reduce their number
and to calculate the necessary and sufficient space and staff for each object separately.</p>
      <p>Interesting developments on framing personal practical recommendations for
optimizing the client's expenditure, part of which indicates the amount of savings per
month. For sure it can be taken or left behind, but the potential for success lies in
those elements of expenditure that is least painful for each individual client. This
calculation can be particularly effective if the person specifies, for example, the
subject for whose benefit saving are held and ongoing savings. This approach largely
corresponds to the concept of working with clients based primarily on exactly the
formation of a trusting relationship between the Bank and the customer.</p>
      <p>However, now relevant are the issues of innovative projects financing and start-up
companies, particularly in the area of small business. All this is now starting to be
addressed through non-banking technologies on the basis of the Croud and the Croud
Sourcing Funding. Now there are many forms of this kind of financing – from
philanthropy to the acquisition of a stake in the project, indicating a wide distribution
of these phenomena in the world.</p>
      <p>In this area a variety of approaches in handling and use of big data can be used in
identifying the most relevant and popular areas of business to create a startup project
for a specific target audience and on stage to test the idea of its potential popularity
and consumer demand. In this connection it is useful to optimize the search of
potential Internet investors in accordance with their personal content. That is, to
propose to the users mainly the ideas that are most likely to interest them. Thus, we
are talking about target management not only the realization of a particular innovative
project or business idea, but also the process of developing this new product, search
for optimal forms of financing and search of investors.</p>
      <p>However, with the development of computer technology and the widespreading
use of electronic payments, real time data (database, updated in real time) of any
Bank is a threat to all clients, because such information when released into the hands
of fraudsters, makes possible to deal with all customer accounts without their
knowledge. Of course, the security services of major financial institutions are
constantly monitoring these risks and try to prevent them, but without continuous
improvement it is the computer protection mechanisms with the use of Big data
technologies it will be extremely difficult. Don't forget that fraudsters often use
innovative technology and are no less competent than those who protect them.</p>
      <p>In the context of the possible application areas of Big Data technologies is
increasingly seen public administration, including social services, and housing,
security, economics and much more.</p>
      <p>
        As for the security sector one of the most interesting experience is the one of
Pakistan, there was created one of the world's largest database storage and processing
of data of citizens, including their biometrics NADRA (National Database &amp;
Registration Authority), the national Agency for managing databases and registrations
of citizens [
        <xref ref-type="bibr" rid="ref5">5</xref>
        ]. The main strategic goal of establishing such a system and the
organization of the information base is the fight against corruption, combating
terrorism, optimization of the process of reforms, as well as improving the efficiency
of working with natural disasters. In general, the expert community agrees that this
initiative is implemented successfully and today is a unique implementation model of
IT innovation and Big Data technologies in public administration. At the same time,
the NADRA today – is an independent and financially independent organization,
which increased its income by 3 times over the last 5 years.
      </p>
      <p>Considering the peculiarities of application of modern technologies of Big data in
public administration, it seems appropriate to adapt a number of existing models and
mechanisms in this category for new software and hardware capabilities. Information
technology today is one of the prior directions of development in public
administration on the Federal, regional and municipal levels. Thus, it seems logical
the use of the concept of regional competitiveness, as a base for recording and
processing of streaming data. Existing mathematical models for calculating the level
of marketability of the territory is able to show results to quite a sufficient degree of
accuracy in the presence of true meanings of the required performance criteria in real
time.</p>
      <p>
        Developed additively weighed mathematical model of management of
development of competitiveness of the territory has the following form [
        <xref ref-type="bibr" rid="ref6">6</xref>
        ]:
KS  ( * GF   * PRF   * EF   * PPF   * APF   * SF   * FEF  
1 2 3 4 5 6 7 8
* IfF   * RF   * IF   * InF   * DF )  max,
      </p>
      <p>9 10 11 12
where KS - marketability of municipal area; ξ - coefficient of importance of group of
factors (is defined by expert questioning); GF - geography factor; PRF - nature and
resource factor; EF - ecological factor; PPF - industry production factor; APF -
argoindustrial factor; SF - social factor; FEF - economy and finance; IfF - infrastructure
factor; RF - municipal area development factor; IF - innovation factor; InF
investment factor; DF - spiritual factor.</p>
      <p>Each of the factors of this model is a separate function that takes into account a
number of indicators of regional and municipal competitiveness. Factors of
importance in the present formula are constant, which are usually defined by analysis
of the views of the expert community. However, with the use of Big data
technologies, they can be calculated almost in real time.</p>
      <p>To do this we need to create queries criteria in the Internet space to identify the
expert community on this or that factor, and then by personal content to determine the
importance of a necessary factor in the opinion of the user with the desired
characteristics. In this context, it is logical to establish and run the search algorithm of
significant correlations excluding the binding to the experts. Thus, it is possible to
detect a peak of the correlation values of certain ratios of opinions of experts and
Internet content in general. Based on the results of this analysis are generated
coefficients of significance and the calculation of the model. At the same time, while
analyzing the streaming information in real time you can predict the occurrence of
previously unforeseen factors and conditions for change of the model of
competitiveness or the occurrence of critical values of significance of a factor (which
may be indicative of the likelihood other emergency outbreaks of epidemics, the
occurrence of environmental disasters, social disturbances, etc...).</p>
      <p>Thus, on the basis of the study of the potential of Big Data technologies in state
and municipal management, you can generate a generalized methodological approach
in the use and implementation of these IT innovations. This approach consists of four
main blocks, which are characterized by a certain kind of task.</p>
      <p>The first block is the analysis and identification of certain types of relationships of
current indicators of the competitiveness of the territory for now and over past
periods. This will help to identify risk trends and growth of potentials of
socioeconomic modus The second part is the analysis of factors of competitiveness and
identifying those which can be managed in real time. The third block is predicting,
which with use modern software and hardware working with stream data becomes
more accurate and almost continuous. The fourth block is a simulation of possible
situations. In this aspect it is relevant to consider different urgency forecasts and to
rank from the point of view of optimism and dark scenario, as a result getting one
real-time integrated programme for the formation of certain decisions that will be the
most effective in each particular case.</p>
      <p>However, the analysis shows that the widespread adoption and use of Big Data
Analytics in public administration (including real time administration) has a number
of limitations and problems. First, is the difficulty in framing databases themselves or
data sets on socio-economic indicators of particular territories. Second, the problem of
the formation of streaming data: collection and analysis of information in real time,
which reduces any algorithms of risk identification and optimal decisions in specific
situations. Third, an integral part of the use of IT innovation is a competence of the
staff, where there is a need for state service staff but also to form a scientific school,
specializing in this area that it is extremely difficult for countries with low and
medium level of development, as well as having an extensive territory. Number four
is that Big data technologies generally do not give accurate guidance that can be
adapted in a logical algorithm, they give a set of results, connection of which with the
request is not always visible. This means that in reality you can only talk about the
calculation of the probability of occurrence of certain situations or critical values of
certain indicators, which in its turn means that the prediction based on Big Data
Analytics is just about the forecast probabilities.</p>
      <p>However, this does not mean that such approaches to public management are not
effective. On the contrary, this suggests that there must be a more balanced approach
to the means of storing, processing and analyzing Big data in general, taking into
consideration data security issues, and the likelihood of their inaccuracies, as well as
to approach the analysis from the point of view of logical connection. Fifth, the
system of state and municipal management is structurally in legislative frameworks,
and the management of it in real time is difficult. Many of key decisions often require
certain regulatory changes, which take time. However, the application of Big data
technologies in the public sector can increase the accuracy of forecasts in general, so
in some cases there is an opportunity to identify in advance the values that need to be
adjusted in the future and to prepare appropriate legislative framework.</p>
      <p>Now the practitioners and scientists work with the technology for collecting,
analyzing, and processing large amounts of data to active discussions on the subject
of new opportunities and fields of application. Today it becomes clear that the
terminology criterion value of the volume of data goes by the wayside, as almost all
streaming data to date are great. Another issue is that the potential of Big Data gets its
bloom just by investing respective resources. Thus, the main motor of these
technologies today is business that focuses mainly on the profit from the invested
funds. This means that the research in the field of technologies of work with
streaming large amounts of data will be held and already held in the format of
sectional or thematic research aimed at solving specific tasks oriented on obtaining
profit. Success cannot be achieved without considering and analyzing all available
information and all available data, it can be assumed that this area of it innovation
itself can be considered as micro industry, which may find applications in most
sectors of the economy and state institutions in general. This means that the need in
the educational mechanisms and, consequently, highly qualified specialists will grow.
There is a strong likelihood that investments in education on the subject have
practicability and huge potential in terms of payback period as a separate line.
However, the demand for such specialists today has no geographical or linguistic
boundaries throughout the world, and their significance in the promotion and
development of technologies for working with stream data is huge. Obviously, there
are a number of tasks of the global level of significance, which nowadays have not
been resolved partially because of lack of data, information and mechanisms of work.
Environmental issues, and forecasting and prevention of natural disasters, research in
genetics and space and global security concerns are in the list. However, as described
above, you should carefully consider the possible problems and threats when trying
the widespread implementation of Big Data technologies, particularly in the
commercialization of search process for applications.</p>
    </sec>
  </body>
  <back>
    <ref-list>
      <ref id="ref1">
        <mixed-citation>
          1. Research of Oracle и CNews Analytics: Big Data came to Russia: https://www.oracle.com/ru/corporate/pressrelease/study-of
          <article-title>-oracle-and-cnews-analytics20150226</article-title>
          .html/
        </mixed-citation>
      </ref>
      <ref id="ref2">
        <mixed-citation>
          2. http://ko.com.ua/teradata_bolshie_dannye_sozdayut_potencial_rosta_
          <fpage>112145</fpage>
          .
        </mixed-citation>
      </ref>
      <ref id="ref3">
        <mixed-citation>
          3.
          <source>Federal Law from 27.07.2006 N 152-FZ “About personal data” (edited 21.07</source>
          .
          <year>2014</year>
          ).
        </mixed-citation>
      </ref>
      <ref id="ref4">
        <mixed-citation>4. Analytical survey of Big Data market / http://www.eiu.com/home.aspx/</mixed-citation>
      </ref>
      <ref id="ref5">
        <mixed-citation>
          5.
          <string-name>
            <given-names>National</given-names>
            <surname>Database</surname>
          </string-name>
          &amp; Registration Authority / https://www.nadra.gov.pk/
        </mixed-citation>
      </ref>
      <ref id="ref6">
        <mixed-citation>
          6.
          <string-name>
            <surname>Ramzaev</surname>
            <given-names>М</given-names>
          </string-name>
          .
          <article-title>Management of marketability of municipal area development (on the basis of Samara region small towns)</article-title>
          .
          <source>Samara: Economic Science</source>
          ,
          <year>2009</year>
          ;
          <fpage>3</fpage>
          .
        </mixed-citation>
      </ref>
    </ref-list>
  </back>
</article>