Sand Hill Big Data Report - 140128


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Still new and disruptive, Big Data technology can be complex to implement and use. The cultural and process implications can be daunting.

Sand Hill Group conducted in-depth interviews with executives responsible for Big Data initiatives at 25 large enterprises with combined annual revenues exceeding $1.4 trillion, in addition to surveying 160 real-world practitioners, to understand their successes and setbacks in the adoption of Big Data. Their insights and recommendations are the basis for the Sand Hill Group’s prescription for implementing and using Big Data solutions.

This presentation shares some of Sand Hill Group’s research findings. The full 54-page report is available for purchase from

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Sand Hill Big Data Report - 140128

  1. 1. Mindset over Data Set Big Data Prescription for Setting the Market Pace January 2014 Bradley Graham M. R. Rangaswami © 2014 Sand Hill Group. All rights reserved.
  2. 2. "Using the status quo approaches, tools and applications moving forward is like bringing a knife to a gun fight." - CIO, Financial Services Company 2 © 2014 Sand Hill Group. All rights reserved.
  3. 3. The Situation • The market conversation is split – Lofty strategic-level opportunities and impact (consultants) – Detailed product-specific capabilities and applications (vendors) • Resulted in a challenging situation for corporate management – Given the hype, noise, confusion, cost, etc. how do we move forward in a thoughtful and responsible way? • Created a need for a practical, lightweight and scalable prescription for implementing Big Data – Based on the experiences and insights of those who have successfully navigated the complexities 3 © 2014 Sand Hill Group. All rights reserved.
  4. 4. Research Methodology Panel Executive Panel Technology Panel Membership • 25 • 135 Company Size • Global 1000-class • Range of sizes (small to large) Titles • Vice president and above (80%) • Director (20%) • Mix of titles (from analytic developer to CEO) Roles • Big Data thought leaders and practitioners • Big Data practitioners and business sponsors/users Focus • Successes and setbacks in the adoption and use • Current/future uses • Satisfaction Methodology • Confidential 1:1 interviews • Questionnaire (completed by 23) • Electronic survey • Panel encompassed technology and non-technology, consumer and industrial, and regulated and unregulated businesses • Enabled the identification of common and transferable practices 4 © 2014 Sand Hill Group. All rights reserved.
  5. 5. A Strategic Priority • The preponderance of companies view Big Data as a strategic priority – Few explicitly reference Big Data in their strategic plan 24% Big Data as a Strategic Priority 76% – Primarily an enabler to attaining a strategic objective • Those that don't fall into three distinct categories of companies: – De rigueur – Early adopter – Limited applicability Yes No or Not Sure All agree that getting started is critical 5 © 2014 Sand Hill Group. All rights reserved.
  6. 6. The Transformative Potential Transformation Operational Enhance the way the business operates today Tactical Enhance customer relationships and competitive agility Strategic Enhance the long-term business potential Type of Results • • • • • • • Improved customer service Improved quality More efficient processes Increased productivity and effectiveness Reduced downtime Improved inventory management (reduced outages and excesses) Reduced fraud rates • • • • • • Better customer segmentation and more targeted offers Increased revenue per sale Improved customer loyalty (reduced churn) Improved products Development of new products Development of new applications for existing products • • • • Identify new lines of business Identify new product categories within existing lines of business Access new customer segments Access new geographical markets Accomplishing 2 or 3 of these can be market changing 6 © 2014 Sand Hill Group. All rights reserved.
  7. 7. "Big Data is more than just about databases and tools. If we as a company don't change, we'll never be able to harness the value of the data." - CIO, Consumer Products Company 7 © 2014 Sand Hill Group. All rights reserved.
  8. 8. The Big Data Mindset • Big Data requires a cultural shift: – A new view of the company – Exploration with a clear purpose and a fail early approach – Willingness to change perspectives – Act based on causation rather than correlation • Must be driven from the top level of the company The Big Data mindset is critical to uncovering and exploiting the latent potential of data 8 © 2014 Sand Hill Group. All rights reserved.
  9. 9. Data Fusion Continuum Data Aware Lower Data Driven Data Derived Data Fusion Higher "You don't need to be Google. You just need to think like Google. Constantly explore, learn and adapt." - Director, Technology Company 9 © 2014 Sand Hill Group. All rights reserved.
  10. 10. Applying Big Data Application Area Targeting Using Marketing 61% 39% Product/Service Development 61% 30% Internet Presence 52% 35% • The business impact depends on the question posed (i.e., what Big Data solutions are intended to illuminate) • Initial use: Well-contained yet addresses a meaningful need • Follow-on applications: Opportunities that flow directly from the strategy are a prudent place to start 10 © 2014 Sand Hill Group. All rights reserved.
  11. 11. Solid Progress with More to Come • Significant progress in both panels Initiative Status (by Panel) 48% Using multiple analytics 11% 22% Deployed first solution 10% – Results are justifying continued investment – Implemented a systematic approach 13% 19% Developing first solution 9% Planning/Prioritizing 16% 9% Exploring and educating 44% 0% 10% 20% 30% 40% 50% 60% Percent of Panel Executive Panel 11 © 2014 Sand Hill Group. All rights reserved. • Executive panel has progressed further in its adoption of Big Data solutions Technology Panel • Use of multiple analytics can encompass both basic and advanced solutions • Expect a significant move toward advanced analytics over the next 12 - 18 months
  12. 12. Satisfaction is Driving Continued Investment • Higher overall satisfaction among business sponsors and users relates to: Satisfaction with Big Data (By Role) – More profound insights – More effective actions 10% Business sponsor/user 61% 29% • Technology panel's higher than expected satisfaction is likely attributed to: 49% 35% 0% 20% 40% 60% Percent of Role Better Than 12 – Success with the technology – Producing results that satisfied the business stakeholders 16% Technology/Analytics professional Meets © 2014 Sand Hill Group. All rights reserved. Less Than 80% • Technology panel was frustrated by: – Skills and resource shortage – Evolving nature of the technology
  13. 13. The Impact of Big Data Industry Use Case Distribution Health Care Reservoir management Retail © 2014 Sand Hill Group. All rights reserved. Patient readmission Oil and Gas 13 Inventory management Seasonal promotions
  14. 14. The Big Data Realities • Big Data can generate substantial benefits • It is a still new and disruptive technology that can be complex to implement and use • The cultural, organizational and process implications can be daunting • The learning curve can be long and expensive 14 © 2014 Sand Hill Group. All rights reserved.
  15. 15. The Prescriptive Answer • People – Cultivating the Big Data mindset and building the organizational capabilities • Approach – Implementing a collaborative process to ensure a portfolio-level view when assessing, making and tracking Big Data investments • Core platform – Establishing the necessary competencies, functions and assets • Ecosystem partners – Building a critical group of product and service providers that augment and edify internal resources 15 © 2014 Sand Hill Group. All rights reserved.
  16. 16. Big Data Research from Sand Hill Group • Mindset over Data Set: A Big Data Prescription for Setting the Market Pace – Presents powerful learnings of some of the most successful implementers of enterprise Big Data – Provides prescriptive executive-level guidance for adopting and using Big Data – Use as a planning guide or benchmarking tool – Purchase at • Do You Hadoop? A Survey of Big Data Practitioners – Clarifies Big Data (Hadoop-based) initiative status – Identifies pain points and barriers to adoption – Illuminates usage changes over the next 12-18 months – Use as a benchmarking tool – Download at 16 © 2014 Sand Hill Group. All rights reserved.
  17. 17. Thank you! Bradley Graham Executive Director, Carpe Datum Rx 17 © 2014 Sand Hill Group. All rights reserved.