Cycle time trumps scale: big data as the organizational nervous system

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Cycle time trumps scale Big data as the organizational nervous system Photo by Echiner on Flickr. Used under a creative commons license. https:// www.flickr.com/photos/decadence/249922560

description

Presentation to kick off Montreal Big Data Week 2014. What is Big Data really about? It's not new. But it is a significant change, because the cost of getting "big", "fast" and "varied" cheaply has dropped precipitously—and when this happens, we find new ways of using it, which triggers an economic shift.

Transcript of Cycle time trumps scale: big data as the organizational nervous system

Page 1: Cycle time trumps scale: big data as the organizational nervous system

Cycle timetrumps scale

Big data as theorganizational nervous system

Photo by Echiner on Flickr. Used under a creative commons license. https://www.flickr.com/photos/decadence/249922560

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Big Data is the Third Age of computing

(Jim Stodgill of O’Reilly Radar said this.)

Computing

Automatethings

Networking

Interconnectthings

Big Data

Predict & change things

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Volume(the “lots”)

Velocity(the “fast”)

Variety(the

“different”)

Pickanytwo

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Big and varied,but not fast.

Photo by cybrgrrl (http://www.flickr.com/photos/cybrgrl/1295482521/) on Flickr

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Big and fast, but not varied.

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BIG * FAST * VARIED = K

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None of this is new.

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Eventual consistency made social networks possible.

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“End of Day Balance will only appear for dates previous to the last 2 business days.”“Transactions from today are reflected in your balance, but may not be displayed on this page if you recently updated your bankbook, if a paper statement was recently issued, or if a transaction is backdated. These transactions will appear in your history the following business day.”

Banks, too.

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What’s new is

limK ➝ 0

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Moore’s Law unlocked the triangle.

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Big, fast, and varied got cheap.

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This is about the unintended effects of abundance.

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Uses 75% less coal.

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WTF?

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Shouldn’t more efficiency mean less consumption?

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more consumption.

Efficiency means

lower costs means

new uses means

more demand means

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This is about dramatically changing economic fundamentals.

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When you’re a startupyour goal is to find a sustainable,

repeatable business model.

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When you’re a big company, your goal is to perpetuate one.

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How to perpetuate something.

Photo by Kamal Hamid. Used under a creative commons license. https://www.flickr.com/photos/evergreenkamal/395448039

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Traditionally, get to a scale others can’t compete with.

(say Michael Porter and others.)

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Daniel Craig McCallum.

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F500 lifespan history

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Fortune 500Life Expectancy(http://csinvesting.org/2012/01/06/fortune-500-extinction/)

1950 2010...

75years

15years

Growth by entering a new business

Corporate Strategy Board

95% fail

99% fail

Clay Christensen

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How’s that working out for you?

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The innovation problem isn’t new.

Picture by James Whatley on Flickr. Used under a Creative Commons license.https://www.flickr.com/photos/whatleydude/6202872135

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This is about embracingthe harsh light of data.

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0

15

30

2007 2012

EVERY 4h EVERY 55m

Times a “heavy rotation” song is played daily

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This is about designing interruptions and producing outcomes.

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“Design is the human capacity to plan and produce desired outcomes.”

- Bruce Mau

“The right information in the right place just changes your life.”

- Stewart Brand

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http://theappslab.com/2012/08/14/some-light-testing-of-google-now/

Google Now, Siri, and Cortana are the prosthetic brain of homo connectus.

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Really?Homo connectus?

Shark, jumped.

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This is about avoiding the trap of the local maximum.

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YOU ARE HERE

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YOU ARE HERE

LOCALMAXIMUM

OPTIMIZATIONOF CURRENT

METRICS

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YOU ARE HERE

GLOBALMAXIMUMINNOVATION

WITH NEWRULES

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YOU ARE HERE

SHORT-TERMINVESTORSHATE GOINGDOWNHILL

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This is about small batches.

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3D printing.

Photo by Keith Kissel on Flickr. Used under a creative commons license. https://www.flickr.com/photos/kakissel/6165114664

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Cloud computing and shared services.

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Social platforms.

Photo by Michael-Davis Burchat on Flickr. Used under a creative commons license. https://www.flickr.com/photos/curious_e/10473440064

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Crowdfunding.

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Digitalchannels.

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What happenswhen the prototype costswhat the product does?

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This is about reducing organizational cycle time.

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Iteration wins.

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This is about ninjas instead of standing armies.

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A standing army in times of peace

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John Boydcan shootyou down.

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The OODA loop.

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Collectdata

Human exploration

Machine learning & mining

Platforms

Infrastructure

StoreIngest & clean Share

Measure results& create feedback

Business users & data modelers

Corporate governance & policy

Data scientists & analysts

Change

the

model?

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In a small-batch, digital-channel world, cycle time trumps scale.

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And big data is about building the central nervous system by which

organizations learn.Art by the Flaming Lotus Girls. Used under a Creative Commons license. https://www.flickr.com/photos/sanfranannie/3993231378

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www.tiltthewindmill.comAlistair [email protected]@acroll

Windmill by Eric Bennett on Flickr. Used under a Creative Commons license.

Thanks!