Fast data: Gaining business impetus and customer value from big data

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FAST DATA: GAINING BUSINESS IMPETUS AND CUSTOMER VALUE FROM BIG DATA
- Richard Edwards, Principal Analyst, Ovum

Global Directions 2013

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Fast data: Gaining business impetus and customer value from big data

  1. 1. MP4 version of presentation, 15.2MB. © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc. 1
  2. 2. Fast Data Gaining business impetus and customer value from Big Data Richard Edwards, Principal Analyst, Ovum IT. @redwards | richard.edwards@ovum.com 2© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  3. 3. Agenda • Catalysts • The customer-adaptive enterprise • What is Fast Data? • New technologies to solve tomorrow’s decision-making challenges • The application and consumption of Fast Data • Actions 3© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  4. 4. Catalysts • Accelerated disruptive change and margin-eroding commoditization are now the norm. • Power has shifted to the digitally connected consumer. • Old business models are fast becoming outmoded. • An enterprise-wide need for a deeper and broader perspective of the customer. 4© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  5. 5. Fundamentals • Getting the right information to the right people at the right time on the right device is the goal of every business. • Organizations want information fast and on demand. • Intelligent information management unites analytics, collaboration, enterprise content management, and information governance. © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc. 5
  6. 6. Adapting at speed is essential for survival • 87% of the Fortune 500 companies that made the list in 1955 have gone bankrupt. • Life expectancy of a firm has reduced from 75 years to just 15 Source: S.Denning, Forbes Magazine • Average CEO tenure has dropped to 6.6 years from 8.1 10 years ago Source: Booz & Co 6© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  7. 7. The customer-adaptive enterprise • Today’s environment presents major opportunities for enterprises that have the vision to raise their sights, and their game, to become customer-adaptive. • A customer-adaptive enterprise (CAE) has highly acute 360° vision and is driven by a desire and strategic intent to create and deliver value and be persistently relevant to its customers. • Continued market relevance is achieved not only by delivering a superior customer experience, but also through continuous innovation born of deep insight into the customer’s context. 7© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  8. 8. The number of channels consumers use to interact 8© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  9. 9. The proliferation of customer channels • Understanding the customer’s interaction history requires a high degree of cross-channel connectivity and intelligence. • While some organizations may limit their customer experience management efforts to customer support, more advanced organizations will provide a deeper level of insight to all departments. • Organizations that reach this stage will have laid a very firm foundation on which to build the customer- adaptive enterprise. 9© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  10. 10. Evolutionary journey to the customer-adaptive model © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc. 10
  11. 11. Closing the loop on value creation and delivery • The customer-adaptive enterprise is an evolution grounded in a mature understanding of CRM as a strategy to acquire, retain, and develop customers. • The key difference between CEM and the customer- adaptive enterprise is that the former is often a response to commoditization. • CAE seeks to avoid commoditization through a far deeper insight into the customer’s changing context; converting it into more relevant innovation. 11© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  12. 12. Attributes of the customer-adaptive enterprise 12© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc. • Visionary and ethical leadership • Fully engaged workforce • Highly collaborative • Highly developed sensing capabilities • Delivering a superior customer experience • Continuously create relevant value • Optimized enough, connected processes • An adaptive architecture
  13. 13. Powerful closed-loop sensing capabilities • “Knowing earlier” requires a powerful set of business and customer-intelligence tools that act in concert like a central nervous system: enter analytics and Big Data. • Being able to read the signals of change in the context of a customer demands more than simply harvesting social- network chatter or transactional history, i.e. Big Data, it demands Fast Data! – Live customer data – all interactions with the organization – Adjacent data – factors that might impact customer behavior, such as technology disruptors – Ecosystem data – factors that might impact behavior in the future 13© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  14. 14. What is “Fast Data” • Most of the attention from early successes with Big Data has focused on analyzing huge volumes of highly variable data. • Hadoop emerged as a batch-driven system capable of widening the scope of analytics to all, not just some, of the data. • Used to optimize Internet search, build personal profiles of customers, and analyse the “digital exhaust” from social networks or point-of-sale terminal transactions. • What if…these analyses could be delivered in realtime? 14© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  15. 15. Fast Data: Why now? What’s new? • Proprietary technologies for processing huge torrents of data have been around for a while… • …but specialized technology, specialized applications; unaffordable outside of an exclusive niche. • Taking Fast Data into the enterprise mainstream: – Moore’s Law for processing – Dropping price of silicon is impacting Dynamic Random Access Memory and Solid State Disk (aka SSD or flash disk) – The growth and extension of high-bandwidth communication backbones 15© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  16. 16. Long-term storage pricing declines ($) Source: Abhay Paliwal, In-Memory Enterprise Data Management: Future Trends in Data Processing; Kajashi.com (March 2012) 16
  17. 17. The growing demand for Fast Data • Big Data: a challenge that requires powerful alternatives beyond traditional SQL database technology. • Most of the early implementations of Big Data, especially with NoSQL platforms such as Hadoop, have focused more on volume and variety, with results delivered through batch processing. • The four FIVE faces of Big Data: Volume, Variety, Veracity, Velocity, and Value. • The need for speed; making existing applications more accurate, responsive, and effective. 17© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  18. 18. Ovum’s definition of Fast Data • Fast Data is the subset of Big Data implementations that require speed: “The power of now!” • It enables instant analytics or closed-loop operational support with data that is either not persisted, or is persisted in a manner optimized for instant, ad hoc access. • Fast Data applications are typically driven by rules or complex logic or algorithms. • Connectivity is also critical and optimizing connectivity through high-speed internal buses is essential for computation of large blocks of data. 18© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  19. 19. What Fast Data is not: • “Fast” transaction systems that can be updated interactively but don’t automatically close the loop on how an organization responds to events. • Conventional OLTP databases, typically designed with some nominal degree of optimization, such as locating “hot” data on the most accessible parts of disk, more elaborate indexes, and/or table designs to reduce the need for joins, etc. • Video, voice, or imaging. 19© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  20. 20. The application of Fast Data • Enable more complex queries that could take advantage of approaches such as regression analyses. • Increase the granularity (level of detail that can be computed) of existing query and analytics applications. • Generate different views of the data (for example, dynamically generate MOLAP cubes) on demand, allowing more flexibility in running analytics. • Provide the opportunity to run more ad hoc What-if queries that could in turn be enhanced with data mining. 20© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  21. 21. Examples of Fast Data applications • Sensory applications that provide snapshots of phenomena or events from a variety of data points that are aggregated and processed in real time or near real time. • Stream-processing applications that process high-speed data feeds with embedded, rules-driven logic to either alert people to make decisions, or to trigger automated closed-loop operational responses. • Realtime or near realtime analytics. • Realtime transactional or interactive processing applications involving large, multi-terabyte, Internet-scale data sets. 21© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  22. 22. Solving tomorrow’s decision-making challenges • Fast Data is not a single application or platform type. • There are a wide variety of platforms and approaches for delivering realtime or near-realtime response for complex analytics accommodating widely diverse sources of data. • In turn, core SQL technology is being reinvented for a new breed of Internet-scale transaction processing. • Analytic database vendors now offering either all- flash or all in-memory (RAM) models. 22© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  23. 23. The application and consumption of Fast Data • Employees need to focus on what matters, and for customer-adaptive enterprises this means putting the enterprise social network to work. • The employee “console” replaces the corporate email Inbox as the primary tool. • Imagine A Google Now, Apple Siri, or Microsoft Cortana for the workplace - The right personalized information at the right time on the available device(s): – Next appointment → Next activity or task – Sports → Thecompetition – News → Market insights – Restaurant reservations → Resourcescheduling – Flights → Dispatch& Delivery information – Nearby attractions → Nearby skills, expertise, and opportunities – Public transportation → Market trends and opportunities – Traffic → Personal dashboard – Weather → Problems ahead 23© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  24. 24. Actions: • Take part in Ovum’s customer-adaptive research program! • Continue to focus on CEM initiatives – a solid foundation for a customer-adaptive enterprise capability! • Fast Data approaches are suited to high-value business processes that are highly volatile – identify them! • Consider Fast Data as part of a spectrum of approaches that will complement, not replace, traditional interactive or batch analytics or OLTP. 24© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.
  25. 25. www.ovum.com 25© Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.

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