Australian CIO Summit 2012: A Strategic Approach To BIG DATA Analytics. Separating Hype from Reality by Ian Forrester, Managing Consultant, Inside Info

1. A Strategic Approach To BIG DATA
Analytics. Separating Hype from Reality.
Ian Forrester, Managing Consultant, Inside Info
ian.forrester@insideinfo.com.au
Make every decision count

2. Some History...
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3. Some History...
Source: Gartner Hype Cycle 2011
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4. What It’s Not
Source: Gartner Hype Cycle 2011
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5. So what is
& the 3 ‘V’s?
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6. The amount of data is continuing
to increase...
Volume
Business Insight
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7. Data can be structured or
unstructured
Variety
Volume
Business Insight
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8. The speed of change
Velocity
Variety
Volume
Business Insight
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9. Is BIG DATA measuring up to its
promise?
creates
more people business value more work
have access to to be done
more data
85%
75% 73% report obstacles in
managing & analysing data
will increase investments have leveraged data to
in data analysis next year increase revenues
key trends causing
companies to rethink their
43% 57% data management
strategy:
used data to used data to
create entirely increase an
new sources existing 61%
social
of revenue revenue stream
84% 73%
mobile
65%
cloud
report using Big Data has
helped them make better
business decisions
Source: Avanade June 2012
Global Big Data Survey
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10. Creating Business Value
Through New Business Models
• Data aggregators eg. Klout for influence analysis
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11. Creating Business Value
By Transforming Existing Business Models
Utilities
• Smart metering for mutual benefit (no brownouts, lower consumer cost)
Manufacturing
• Real-time product performance to drive concurrent engineering
Financial Services
• Fraud detection
Retail
• Location based tracking & marketing
• Sentiment analysis
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12. Big Data Challenges
Economist Survey
• Extracting value from Big Data remains elusive for many organisations. (53% of
respondents only use ½ their available data today).
• Many companies struggle with the most basic aspects of data management such as
cleaning, verifying or reconciling data across the organisation. (Nearly 1/3 have
insufficient data governance).
• The most common obstacle for companies in extracting value from data is that they have
too much data & too few resources.
Harvard Business Review
• Analytic skills are concentrated in too few employees
• Reliable information exists, but hard to locate
• Executives don’t manage information as well as they manage talent, capital & brands.
Source:
The Economist, Big Data Harnessing A Game Changing Asset, 2011
Harvard Business Review, Good Data Won’t Guarantee Good Decisions, March 2012
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13. Some Tips
• More data does not automatically translate
into better decisions
• People have limited capability to
concurrently assimilate an infinite number of
data points
• Identifying the “information sweet spots” is
critical to drive better decisions
• Master small data before getting too
distracted on Big Data
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14. A Way Forward
Enablers
Governance &
Alignment People Technology
Data
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15. Alignment
Enablers
Governance &
Alignment People Technology
Data
• Start with the end in mind
• Align outcome with strategic intent
• Understand the important business questions that need to be answered
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16. People
Enablers
Governance &
Alignment People Technology
Data
A different set of skills will be required to exploit the Big Data opportunity
• Data-centric business people who can ask the right questions
• Analysts who can analyse & interpret the data to deliver the answers
• Technologists who can build & support the technical infrastructure
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17. Governance & Data
Enablers
Governance &
Alignment People Technology
Data
• Data is the lifeblood of BI – it needs to be clean, reliable & well understood
• Processes & structures to manage demand & change
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18. Technology
Enablers
Governance &
Alignment People Technology
Data
Visualisation is Key!
• Drives efficiency by allowing assimilation of vast quantities of data rapidly
• Enables patterns to be identified easily
• Is fun & drives adoption & usage
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19. Visualisation - 7 Deadly Sins
Greed Envy Wrath
Sloth Gluttony Lust Pride
Source: Kansas State University Geography/USACE
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20. Evolution or Revolution
Big Data has always been around. What has changed is
the ability to make sense of it. Understand the evolutionary
process to get to Big Data – it’s a progression.
Big
Data
Strategic
Tactical
Basic
Immature
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