Cloud computing, big data and mobile enhancing innovation through busine...

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Technology is integrated into the DNA of business and of society itself. Some of the most recent entrants are Cloud Computing, Big Data, and Mobile. By putting these technologies together, we arrive at an intersection that creates a “sweet spot” where innovation can be enhanced within your organization. This session will put those pieces together and give you tools to move your organization toward that sweet spot.

Speaker: Michael Gendron, Professor, Central CT State University

Published in: Technology, Business
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Cloud computing, big data and mobile enhancing innovation through busine...

  1. 1. Central Connecticut State University School of Business Spring 2014 Spring 2013 © 2013-2014 Michael Gendron 1 Cloud Computing, Big Data and Mobile: Enhancing Innovation Through Business Intelligence Michael Gendron 6/4/2014
  2. 2. Central Connecticut State University School of Business Enabling Innovation at the BI Sweet Spot THE BI ECOSYSTEM 6/4/2014 © 2013-2014 Michael Gendron 2
  3. 3. Central Connecticut State University School of Business Agenda • Background – The Cloud Ecosystem – Big Data – Mobile • Innovation – The business cycle – CAPEX, OPEX • Business Intelligence – The BI Sweet Spot 6/4/2014 © 2013-2014 Michael Gendron 3
  4. 4. Central Connecticut State University School of Business Industry? Healthcare Manufacturing Education Insurance, Banking Or Other Financial Services Other How would you categorize yourself? Senior Staff (VP and Above) Middle Manager Staff Consultant 6/4/2014 © 2013-2014 Michael Gendron 4
  5. 5. Central Connecticut State University School of Business Setting the Stage With Some Definitions Cloud Big Data Mobility 6/4/2014 © 2013-2014 Michael Gendron 5
  6. 6. Central Connecticut State University School of Business THE CLOUD COMPUTING ECOSYSTEM 6/4/2014 © 2013-2014 Michael Gendron 6
  7. 7. Central Connecticut State University School of Business 6/4/2014 © 2013-2014 Michael Gendron 7 What Cloud Computing Isn’t • The Cloud vs. Cloud Computing – We use the term cloud to mean anything connected to the Internet… – Cloud Computing requires Internet connection…But… • Not everything Internet connected is Cloud Computing • E.G., Email might be offered on a cloud computing platform but may not be either. • E.G., A USB hard drive accessible over the Internet is not cloud computing THE CLOUD COMPUTING ECOSYSTEM
  8. 8. Central Connecticut State University School of Business What is Cloud Computing 6/4/2014 © 2013-2014 Michael Gendron 8 THE CLOUD COMPUTING ECOSYSTEM
  9. 9. Central Connecticut State University School of Business Best Practices • Understand the difference between Cloud and Cloud Computing • Have a firm grasp on how you are going to deploy a cloud computing environment: IaaS, PaaS, SaaS, Private, Public, Hybrid, Community • Make sure your employee’s have the right skills • Know who the actors are in your cloud computing project as they drive the project including cost and availability 6/4/2014 © 2013-2014 Michael Gendron 9 THE CLOUD COMPUTING ECOSYSTEM
  10. 10. Central Connecticut State University School of Business BIG DATA 6/4/2014 © 2013-2014 Michael 10
  11. 11. Central Connecticut State University School of Business • A phenomena not just large data bases • Ubiquity of transactions: – Cloud Data Providers – Mobile Computing – Online transaction processing systems – Anything else you can imagine • High Volume, Velocity, Variety • Technologies are associated with Big Data but is a phenomena: E.G. , Hadoop, SAS, NoSQL 6/4/2014 © 2013-2014 Michael Gendron 11 Big Data
  12. 12. Central Connecticut State University School of Business 6/4/2014 © 2013-2014 Michael Gendron 12 Database and DBMS, OLTP etc. Data Model Defines Database Data Aggregation Layer Data Warehouse Created by Aggregating Sources Business Intelligence Business Analytics Application Cloud Data Provider Cloud Data Provider BIG DATA – BI IN THE CLOUD ERA
  13. 13. Central Connecticut State University School of Business 6/4/2014 © 2013-2014 Michael Gendron 13 Data Stored In House Data Stored at a Cloud Provider BI Applications In House BI Applications At Cloud Provider Decide Where Data and BI Applications are located Any combination is possible based on organizational needs and objectives BIG DATA – WHERE TO STORE DATA AND APPLICATIONS
  14. 14. Central Connecticut State University School of Business 6/4/2014 © 2013-2014 Michael Gendron 14 BIG DATA BIG DATA BIG DATA BIG DATA Big Data Big Data Big Data Big Data High Volume High Velocity High Variety BIG DATA – HIGH VOLUME, VELOCITY, VARIETY
  15. 15. Central Connecticut State University School of Business 6/4/2014 © 2013-2014 Michael Gendron 15 Predictive Analytic Accuracy Volume,Velocity,VarietyofData Small Large Complexity of Analytics Descriptive Predictive As the volume, velocity, and variety of data increases so does the ability to create more accurate and complex BI; small amounts of data can be used for descriptive analytics while larger amounts of data can be suitable for more predictive analytics BIG DATA – IMPACT ON ANALYTICS
  16. 16. Central Connecticut State University School of Business Best Practices • Know your data sources and what they add to the BI project • Know the concept of Big Data as a phenomena rather than just technologies and understand what that means for your organization • Determine the best location for your data and applications • Know what BI you need and what data that requires (within and outside your organization) 6/4/2014 © 2013-2014 Michael Gendron 16 BIG DATA
  17. 17. Central Connecticut State University School of Business MOBILITY 6/4/2014 © 2013-2014 Michael Gendron 17
  18. 18. Central Connecticut State University School of Business Definition of a Mobile Device • Communicate over Mobile Networks • Voice or Gesture Driven Interface • Allow Apps • Recognition of Geographic or Physical Context • Computing Power 6/4/2014 © 2013-2014 Michael Gendron 18 Mobility
  19. 19. Central Connecticut State University School of Business Innovation In the Enterprise • Changes the way we do business – Healthcare Delivery • Patient interactions – Manufacturing • Supervisory Interactions – Retail • Remote Cash Registers – Warehouse • Inventory Control – Employee and Consumer Interactions • Bank Account Access, Insurance Cards, Collect data (e.g., Customer Sentiments), Self-Service Business Intelligence, etc. 6/4/2014 © 2013-2014 Michael Gendron 19 Mobility
  20. 20. Central Connecticut State University School of Business Best Practices • Understand what a mobile device is – Smart phone, laptop, tablet…. • Know the limitations and advantages of mobile devices – Reach vs. Richness – Type of interface, amount of data, security, etc. • Coordinate desktop and mobile BI – Tethered and untethered – Collection and dissemination 6/4/2014 © 2013-2014 Michael Gendron 20 Mobility
  21. 21. Central Connecticut State University School of Business INNOVATION 6/4/2014 © 2013-2014 Michael Gendron 21
  22. 22. Central Connecticut State University School of Business How Cloud Computing, Big Data and Mobility Come Together 6/4/2014 © 2013-2014 Michael Gendron 22 Innovation
  23. 23. Central Connecticut State University School of Business Build VS Buy  How CAPEX/OPEX is impacted • The choices – Build a BI infrastructure in house – Buy a smaller in house infrastructure and use cloud providers for data, processing and self- service BI 6/4/2014 © 2013-2014 Michael Gendron 23 Innovation
  24. 24. Central Connecticut State University School of Business CAPEX vs. OPEX • Capital Expense (CAPEX) – Purchase equipment and depreciate it over time – Attempt to match costs of asset with income it generates – Example: Purchase IT infrastructure • Operating Expense (OPEX) – Buy Products/Services and Expense it during the period used – Example: Services of a Cloud Provider 6/4/2014 © 2013-2014 Michael Gendron 24 Innovation
  25. 25. Central Connecticut State University School of Business Scenario One: In House Infrastructure Budget YEAR STARTUP COSTS ONE TWO THREE FOUR FIVE CAPITAL EXPENSES Initial In-House ICT 350,000 70,000 70,000 70,000 70,000 70,000 In-House Setup 65,000 13,000 13,000 13,000 13,000 13,000 Annual Capital Expenses (CAPEX) 43,000 43,000 43,000 43,000 43,000 Total 5 year CAPEX 215,000 OPERATING EXPENSES In-House Personnel 160,000 168,000 176,400 185,220 194,481 In-House ICT Maintenance 59,500 62,475 65,599 68,879 72,323 Annual Operating Expenses (OPEX) 219,500 230,475 241,999 254,099 266,804 Total 5 Year OPEX 1,212,876 EXPENSES TO THE PROFIT AND LOSS STATEMENT Annual Expenses 262,500 273,475 284,999 297,099 309,804 Total Five Year Expenses --> 1,427,876 Example – Build In house 6/4/2014 © 2013-2014 Michael Gendron 25 Innovation
  26. 26. Central Connecticut State University School of Business Example – Use Cloud Providers 6/4/2014 © 2013-2014 Michael Gendron 26 Scenario Two: External Cloud YEAR STARTUP COSTS ONE TWO THREE FOUR FIVE CAPITAL EXPENSES Initial In-House ICT 75,000 15,000 15,000 15,000 15,000 15,000 In-House Setup 15,000 3,000 3,000 3,000 3,000 3,000 Annual Capital Expenses (CAPEX) 18,000 18,000 18,000 18,000 18,000 Total 5 year CAPEX 90,000 OPERATING EXPENSES In-House Personnel 75,000 78,750 82,688 86,822 91,163 In-House ICT Maintenance 5,400 5,670 5,954 6,251 6,564 Cloud Computing Service 210,000 220,500 231,525 243,101 255,256 Annual Operating Expenses (OPEX) 290,400 304,920 320,166 336,174 352,983 Total 5 Year OPEX 1,604,643 EXPENSES TO THE PROFIT AND LOSS STATEMENT Annual Expenses 308,400 322,920 338,166 354,174 370,983 Total Five Year Expenses --> 1,694,643 Innovation
  27. 27. Central Connecticut State University School of Business CAPEX/OPEX Summary 6/4/2014 © 2013-2014 Michael Gendron 27 SUMMARY Scenario One In House Scenario Two External Cloud Total 5 Year CAPEX 215,000 90,000 Total 5 Year OPEX 1,061,261 1,314,243 Total 5 Year Expenses to P&L 1,510,761 1,694,643 Year One Cash Needs 649,500 380,400 Five Year Expenses 1,510,761 1,694,643 Innovation
  28. 28. Central Connecticut State University School of Business Business/Innovation Cycle New Innovation Business Growth Causing Increased Assets Builds Small Infrastructure Uses Cloud Providers Greater Emphasis On OPEX Moves to Hybrid Infrastructure Greater Emphasis On CAPEX Change OPEX/CAPEX Over Time 6/4/2014 © 2013-2014 Michael Gendron 28 Innovation
  29. 29. Central Connecticut State University School of Business Zynga’s Business Cycle and IT Deployment 6/4/2014 © 2013-2014 Michael Gendron 29 HybridCloud PrivateCloud(NormalTraffic) AWS(PeakLoads) Level Out PublicCloud MovedOperationstoAWS Initial Growth BuiltInHouseInfrastructure Startup Innovation
  30. 30. Central Connecticut State University School of Business PUTTING IT ALL TOGETHER 6/4/2014 © 2013-2014 Michael Gendron 30
  31. 31. Central Connecticut State University School of Business An Example: TripAdvisor • Monetized via division that sells BI to the travel industry • Mobile to connect users • Cloud for processing and access • Big Data to customer sentiments, reservation data from trips, social networking, etc. 6/4/2014 © 2013-2014 Michael Gendron 31 Putting It All Together
  32. 32. Central Connecticut State University School of Business How Implemented • Applications – Wisdom of Friends – integration with Facebook – City Guides – mobile application – Maps – cloud geo-locater service – Check Rates – cloud, big data – TripWatch – email alerts • All of these come together to create BI and the Sweet Spot for TripAdvisor 6/4/2014 © 2013-2014 Michael Gendron 32 Putting It All Together
  33. 33. Central Connecticut State University School of Business Trip Advisor and the BI Sweet Spot 6/4/2014 © 2013-2014 Michael Gendron 33 Customer and Industry Access Self Service BI SAAS Services Consumers and Travel Industry Customer Reviews Hotel and Other Travel Data Putting It All Together
  34. 34. Central Connecticut State University School of Business Contact • Personal Webpage: www.gendron.info • LinkedIn • Twitter: @BIAGendron • Email: – gendronm@ccsu.edu and dr.g@gendron.info • Amazon Author Page – http://amazon.com/author/gendron • Blog www.allanalytics.com • Current Book: Business Intelligence and the Cloud • I will be at @BigDataExpo in June 2014 6/4/2014 © 2013-2014 Michael Gendron 34
  35. 35. Central Connecticut State University School of Business • Raffle off two copies of my latest book • Forming a workgroup – Build business value in cloud and native applications – Limited to 10 people and One year – Develop best practices – Please contact me if interested 6/4/2014 © 2013-2014 Michael Gendron 35

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