Strata Data is Not a Business Model 2.25.13


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Big data does not necessarily lead to big business outcomes. It is a rare business leader who even asks the biggest questions of what big data can do.

Everyone is looking for ways to define data as an asset that can be monetized. But data itself will never move the needle for the Fortune 1000. Data is a means to an end. The end is not just insight, or knowledge, or brief moments of wisdom (when marveling at gorgeous data visualizations). The end we seek is wise action.

Looking at examples from health care, advertising, open government, publishing, and financial services, I will contrast the current approaches of big data business models with a more innovative, scalable, and effective action-oriented approach.

I will outline the key pitfalls data geeks fall prey to, and how you are most certainly too smart for your own good when talking to us MBAs. I will show how your service can deliver evidence-based decision-making to the people that matter on the front lines, and at the highest levels of the organization. I will also show you how to design data services that get people to care about their jobs, and their contribution to their company goals.

This talk will help anyone who is tasked with determining how to get more business action out of data.

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Strata Data is Not a Business Model 2.25.13

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  3. 3. CIRCA 1993 February 11, 2014 3
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  5. 5. Results from a recent customer discovery exercise from a big data software company in the health care space. N = 24. *Over cocktails. February 11, 2014 5
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  14. 14. February 11, 2014 @gothamgal 14
  15. 15. Get luminary website here…. February 11, 2014 15
  16. 16. Whoops Idea not breakthrough, addressable market too small Great potential idea, uncertain or unlikely business models Great idea, identified business model potential
  17. 17. The single biggest error new companies make in estimating their potential growth: overvaluing the value of the data itself. ―We have a consumer based model and we’ll sell data to small businesses to tell them how we’re doing.‖ ―We know how to find patterns in unstructured data and we can sell this to data brokers and to developer APIs.‖ ―We collect lots of interesting social data about how people interact with brands at the store level and we’ll sell that data back to CPG brands that have no direct touchpoint.‖ ―We have a novel data source triangulating accelerometer data with GPS and loyalty points, which is a unique and proprietary algorithm that will measure behavior change…‖ February 11, 2014 17
  18. 18. Action Wisdom Knowledge Information Value to drive Revs up, Cost down ―Alas, how terrible is wisdom when it brings no profit to the man that's wise!‖ – Sophocles Data February 11, 2014 18
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  20. 20. Company descriptions for innovative big data companies: Score _____ indexes and makes searchable data from any app, server or network device in real time including logs, config files, messages, alerts, scripts and metrics. ______ makes sense of the world's public data to help your company answer billion dollar questions. To solve technology challenges, identify target companies, and detect disruptive trends. ______ is an innovative solution for statistical/analytics outsourcing. We are the leading platform for predictive modeling competitions. Companies, governments and researchers present datasets and problems - the world's best data scientists then compete to produce the best solutions. _______ is the single application for big data analytics. Data integration, data analytics and data visualization with the Business Infographic™ designer. From Fast Co: THE WORLD'S TOP 10 MOST INNOVATIVE COMPANIES IN BIG DATA 20
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  22. 22. “I’m using insights from big data to see if I’m reaching my target segment, and then richly understanding these segments in new ways.” February 11, 2014 22
  23. 23. “We need to get customer insight to the front lines to reduce customer churn, not just in some exec’s inbox in a PDF report, or worse on a never-seen real time dashboard.” February 11, 2014 23
  24. 24. “We’re trying to get a moneyball way of looking at the business. But we’re facing fierce resistance from the marketing and front office teams. Big data hasn’t left IT.” 24
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  31. 31. • All types of researchers in various disciplines—including basic science, drug discovery, clinical and translational, epidemiologic, and patient behavior—will have access to the requisite data to advance their research. • Clinicians will have immediate access to cross-sectional, trending, and performance data that may facilitate improved clinical decision making. • Patients will have real-time access to information for finding reliable sources pertinent to their particular condition and in finding expertise tailored to their individual needs. • Product innovators will have the ability to query large amounts of phenotypic and molecular data, and rapidly scan patient populations for recruitment into clinical trials. DRAFT: Achieving Data Liquidity in the Cancer Community: Proposal for a Coalition of All Stakeholders. Members of the IOM National Cancer Policy Forum’s Workshop on Informatics Needs and Challenges in Cancer Research Planning Committee. Author’s views, not nec. IOM views. February 11, 2014 31
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  36. 36. The goal is really to spur the emergence of an ecosystem of innovators that leverage this open data in magical ways to improve health and healthcare in ways that no one organization, no ten organizations, could even think up let alone execute. .- Todd Park,
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