Australian CIO Summit 2012: A Strategic Approach To BIG DATA Analytics. Separating Hype from Reality...

A Strategic Approach To BIG DATA A Strategic Approach To BIG DATA Analytics. Separating Hype from Reality.

Ian Forrester, Managing Consultant, Inside [email protected]

Make every decision count

Some History...

www.insideinfo.com.au

Some History...


Source: Gartner Hype Cycle 2011

What It’s Not


Source: Gartner Hype Cycle 2011

So what is


& the 3 ‘V’s?

The amount of data is continuing

to increase...

Volume


Business Insight

Variety

Data can be structured or

unstructured


Volume

Business Insight

The speed of change

Velocity


Volume

Variety

Business Insight

Is BIG DATA measuring up to its

promise?

more people have access to more data

creates business value more work

to be done

75%will increase investments in data analysis next year

73%have leveraged data to increase revenues

85%report obstacles in managing & analysing data


Source: Avanade June 2012 Global Big Data Survey

in data analysis next year increase revenues

43% 57%

used data to create entirely new sources of revenue

used data to increase an existing revenue stream

84%report using Big Data has helped them make better business decisions

key trends causing companies to rethink their

data management strategy:

61%

social

65%

cloud

73%

mobile

Through New Business Models

• Data aggregators eg. Klout for influence analysis

Creating Business Value


By Transforming Existing Business Models

Utilities

• Smart metering for mutual benefit (no brownouts, lower consumer cost)

Manufacturing

• Real-time product performance to drive concurrent engineering

Creating Business Value


Financial Services

• Fraud detection

Retail

• Location based tracking & marketing

• Sentiment analysis

Big Data Challenges

Economist Survey

• Extracting value from Big Data remains elusive for many organisations. (53% of respondents only use ½ their available data today).

• Many companies struggle with the most basic aspects of data management such as cleaning, verifying or reconciling data across the organisation. (Nearly 1/3 have insufficient data governance).


• The most common obstacle for companies in extracting value from data is that they have too much data & too few resources.

Harvard Business Review

• Analytic skills are concentrated in too few employees

• Reliable information exists, but hard to locate

• Executives don’t manage information as well as they manage talent, capital & brands.

Source:

The Economist, Big Data Harnessing A Game Changing Asset, 2011

Harvard Business Review, Good Data Won’t Guarantee Good Decisions, March 2012

Some Tips

• More data does not automatically translate

into better decisions

• People have limited capability to

concurrently assimilate an infinite number of

data points


• Identifying the “information sweet spots” is

critical to drive better decisions

• Master small data before getting too

distracted on Big Data

Enablers

A Way Forward


PeopleAlignment TechnologyGovernance &

Data

Enablers


Data

Alignment


• Start with the end in mind

• Align outcome with strategic intent

• Understand the important business questions that need to be answered

Enablers


Data

People


A different set of skills will be required to exploit the Big Data opportunity

• Data-centric business people who can ask the right questions

• Analysts who can analyse & interpret the data to deliver the answers

• Technologists who can build & support the technical infrastructure

Enablers


Data

Governance & Data


• Data is the lifeblood of BI – it needs to be clean, reliable & well understood

• Processes & structures to manage demand & change

Enablers


Data

Technology


Visualisation is Key!

• Drives efficiency by allowing assimilation of vast quantities of data rapidly

• Enables patterns to be identified easily

• Is fun & drives adoption & usage

Visualisation - 7 Deadly Sins

Greed Envy Wrath


Greed Envy Wrath

Sloth Gluttony Lust Pride

Source: Kansas State University Geography/USACE

Big Data has always been around. What has changed is

the ability to make sense of it. Understand the evolutionary

process to get to Big Data – it’s a progression.

Evolution or Revolution

Big


Basic

Tactical

Strategic

Immature

Big

Data

Australian CIO Summit 2012: A Strategic Approach To BIG DATA Analytics. Separating Hype from Reality...

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Transcript of Australian CIO Summit 2012: A Strategic Approach To BIG DATA Analytics. Separating Hype from Reality...