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Big Data Architectural Series: 
Creating a Business Case for Big Data 
facebook.com/perficient linkedin.com/company/perfic...
About Perficient 
Perficient is a leading information technology consulting firm serving clients throughout 
North America...
• Founded in 1997 
• Public, NASDAQ: PRFT 
• 2013 revenue ~$373 million 
Perficient Profile 
• Major market locations thro...
BUSINESS SOLUTIONS 
Business Intelligence 
Business Process Management 
Customer Experience and CRM 
Enterprise Performanc...
Our Speaker 
Bill Busch 
Sr. Solutions Architect, Enterprise Information Solutions, Perficient 
• Leads Perficient's enter...
Agenda 
Two Perspectives 
Big Data Business Case 
Challenges 
Four Keys To Big Data 
Business Case Building 
Do’s and ...
Big Data Business Case 
Two Perspectives 
7 
Big Data 
Information 
Technology 
Infrastructure 
 Data Integration 
 Data...
8 
Optimizing 
Single 
Process 
Traditional Analytics 
Business Big Data Focus 
Business Case Challenge 
Optimizing 
Busin...
Which business 
process should I 
use for the business 
case? 
9 
Business Big Data Focus 
Business Case Challenge 
Custom...
10 
Big Data 
Analytics 
Business Big Data Focus 
Business Case Challenge 
Decision 
Making 
Brand 
Management 
New Produc...
IT Big Data Focus 
Business Case Challenge 
11 
Infrastructure modernization projects 
can be expensive 
Re-platform legac...
Address 
the Who 
Layer the 
Benefits 
Link to 
Strategy 
Determine 
the 
Approach 
12 
Four Keys 
Building a Data Busines...
Address 
the Who 
Layer the 
Benefits 
Link to 
Strategy 
Determine 
the 
Approach 
13 
Four Keys 
Determine the Approach
Business or IT Focus? 
14 
 Executive Summary 
 Introduction 
 Background 
 Business Drivers 
 Scope 
 Key Financial...
Determine Your Approach 
Direct Evidence 
Initiative 
Optimization 
Business 
Outcome 
Corporate Asset 
15
Direct Evidence 
Positives 
Challenges Description 
Big Data Application 
16 
Proof from an 
experiment or actual 
impleme...
Positives 
Challenges Description 
Initiative Optimization 
Big Data Application 
17 
This business case type 
leverages a...
Positives 
Challenges Description 
Business Process Improvement 
Big Data Application 
18 
Leverages improvement 
in one o...
Positives 
Challenges Description 
Corporate Asset 
Big Data Application 
19 
Approaches the 
business case that the 
comp...
Corporate Asset 
Bottom-Line Business Case 
20 
On average, 6 Data 
Scientists will generate 
$10M/year ROI from 
analyzin...
Address 
the Who 
Layer the 
Benefits 
Link to 
Strategy 
Determine 
the 
Approach 
21 
Four Keys 
Link to Strategy
22 
Big Data 
Analytics 
Decision 
Making 
Business Case 
Quick Review 
Brand 
Management 
New Products 
& Services 
Custo...
Linking to Corporate Strategy 
23 
Chose benefits that relate to the corporate strategy. 
Consider using combination of Fi...
24 
Linking to Corporate Strategy 
Strategic Imperatives Actions Requiring Decisions 
Increase Gross Margin 
Reduce Fuel E...
Tell the Story 
Data Scientists in the 
Network Operations 
Department will use the Big 
Data Analytics capability to 
ana...
Quantifying Benefits 
26 
Most challenging 
portion of developing 
business case 
Not all benefits are 
quantifiable 
Both...
27 
Current Value 
(CVal) 
Coefficient of 
Improvement 
(Cof) 
Quantifying Benefits 
Simplified Model 
Future State 
Benef...
28 
Quantifying Benefits 
Sum of Decisions 
Current Value 
(CVal) 
Coefficient of 
Improvement 
(Cof) 
Future State 
Benef...
Quantifying Benefits 
Determining Coefficients 
• What: Leveraging Industry research to establish coefficients 
required t...
Business Case 
Solving the “Which Business Case” Problem 
Which business 
process should I 
use for the business 
case? 
3...
31 
Big Data 
Analytics 
Business Big Data Focus 
Business Case Challenge 
Decision 
Making 
Which 
Business 
Process 
How...
) 
32 
Quantifying Benefits 
Average Benefits of Many Use Cases 
Current Value 
(CVal) 
Coefficient of 
Improvement 
(Cof)...
Address 
the Who 
Layer the 
Benefits 
Link to 
Strategy 
Determine 
the 
Approach 
33 
Four Keys 
Layer the Benefits
Layering Benefits 
Increasing Business Case Impact 
34 
Use 
Additional 
Approaches 
Evaluate 
Additional 
Use-Cases 
Incl...
Different Approach 
Direct Evidence 
Initiative 
Optimization 
Business 
Outcome 
Corporate Asset 
35
36 
Additional Use Cases 
Sum of Benefits 
Current Value 
(CVal) 
Coefficient of 
Improvement 
(Cof) 
Future State 
Benefi...
Tell the Story 
Example 
Data Scientists in the Network 
Operations Department will 
use the Big Data Analytics 
capabilit...
Four Keys 
Address the Who 
Address 
the Who 
Layer the 
Benefits 
Link to 
Strategy 
Determine 
the 
Approach 
38
Bottom-Line Corporate Asset 
39 
On average, 6 Data 
Scientists will generate 
$10M/year ROI from 
analyzing Big Data* 
*I...
Addressing the Who 
 Leveraging Big Data 
Analytics requires Data 
Scientists to use the 
system 
 Companies may not hav...
Final Thoughts 
Do’s 
• Chose the appropriate approach(s) 
• Tell how solution supports the corporate 
strategy 
• Quantif...
42
As a reminder, please submit your 
questions in the chat box. 
We will get to as many as possible. 
11/5/2014
Daily unique content 
about content 
management, user 
experience, portals 
and other enterprise 
information technology 
...
Thank you for your participation today. 
Please fill out the survey at the close of this session.
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Creating a Business Case for Big Data

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Although Big Data is changing enterprise data architecture models, support for Big Data extends beyond the walls of IT. The most successful companies are focused on building strong business cases for Big Data to drive support, adoption and funding though the enterprise.

This webinar investigated the two perspectives in constructing a business case for Big Data as well as how to create a compelling business case for Big Data success.

During this webinar, we covered:

-Challenges Creating Business Cases for Big Data
-Two perspectives for building Big Data business-cases
-Building the business-focused case and getting to monetized benefits
-Fortifying your business case with IT-benefits

Published in: Technology
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Creating a Business Case for Big Data

  1. 1. Big Data Architectural Series: Creating a Business Case for Big Data facebook.com/perficient linkedin.com/company/perficient twitter.com/Perficient
  2. 2. About Perficient Perficient is a leading information technology consulting firm serving clients throughout North America. We help clients implement business-driven technology solutions that integrate business processes, improve worker productivity, increase customer loyalty and create a more agile enterprise to better respond to new business opportunities.
  3. 3. • Founded in 1997 • Public, NASDAQ: PRFT • 2013 revenue ~$373 million Perficient Profile • Major market locations throughout North America • Allentown, Atlanta, Boston, Charlotte, Chicago, Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Minneapolis, New York City, Northern California, Oxford (UK), Philadelphia, Southern California, St. Louis, Toronto, Washington, D.C. • Global delivery centers in China, Europe and India • >2,200 colleagues • Dedicated solution practices • ~85% repeat business rate • Alliance partnerships with major technology vendors • Multiple vendor/industry technology and growth awards
  4. 4. BUSINESS SOLUTIONS Business Intelligence Business Process Management Customer Experience and CRM Enterprise Performance Management Enterprise Resource Planning Experience Design (XD) Management Consulting Our Solutions Expertise TECHNOLOGY SOLUTIONS Business Integration/SOA Cloud Services Commerce Content Management Custom Application Development Education Information Management Mobile Platforms Platform Integration Portal & Social
  5. 5. Our Speaker Bill Busch Sr. Solutions Architect, Enterprise Information Solutions, Perficient • Leads Perficient's enterprise data practice • Specializes in business-enabling BI solutions that enable the agile enterprise • Responsible for executive data strategy, roadmap development, and the delivery of high-impact solutions that enable organizations to leverage enterprise data • Bill has over 15 years of experience in executive leadership, business intelligence, data warehousing, data governance, master data management, information/data architecture and analytics 5
  6. 6. Agenda Two Perspectives Big Data Business Case Challenges Four Keys To Big Data Business Case Building Do’s and Don’ts 6
  7. 7. Big Data Business Case Two Perspectives 7 Big Data Information Technology Infrastructure  Data Integration  Data Hub  Data Lake  Appliances  Clusters  Data Warehouse Cost Out Business Stakeholders Analytics  New Product Design  Customer Experience  Operations Optimization  Reduce Fraud  Data Monetization Increased Profitability
  8. 8. 8 Optimizing Single Process Traditional Analytics Business Big Data Focus Business Case Challenge Optimizing Business Outcomes Big Data Analytics
  9. 9. Which business process should I use for the business case? 9 Business Big Data Focus Business Case Challenge Customer Experience Cycle
  10. 10. 10 Big Data Analytics Business Big Data Focus Business Case Challenge Decision Making Brand Management New Products & Services Customer Experience Reducing Operating Costs Optimize Supply Operations Pricing Optimization
  11. 11. IT Big Data Focus Business Case Challenge 11 Infrastructure modernization projects can be expensive Re-platform legacy systems Adjunct systems add to Op-Ex Support an additional system
  12. 12. Address the Who Layer the Benefits Link to Strategy Determine the Approach 12 Four Keys Building a Data Business Case
  13. 13. Address the Who Layer the Benefits Link to Strategy Determine the Approach 13 Four Keys Determine the Approach
  14. 14. Business or IT Focus? 14  Executive Summary  Introduction  Background  Business Drivers  Scope  Key Financial Metrics  Analysis  Assumptions  Business Process Changes  Costs  Benefits  Financial  Non-Financial  Cash Flow Statement (NPV)  Risk  Strategic Options  Opportunity Costs  Conclusion & Recommendation, and Next Steps  Appendix – Supporting Information Business Focused -Quantify Benefits IT Focus -Quantify Costs and Compare Options
  15. 15. Determine Your Approach Direct Evidence Initiative Optimization Business Outcome Corporate Asset 15
  16. 16. Direct Evidence Positives Challenges Description Big Data Application 16 Proof from an experiment or actual implementation resulting in the claimed benefit Typically pilot or test & learn project With Big Data, direct evidence is the result of a business-focused proof-of-concept o Most convincing o Opportunity to become familiarly with Big Data Technologies o Can be used to “test” which business cases to pursue o May need a business case to get to a pilot o If the business case is not proven, program may be at risk
  17. 17. Positives Challenges Description Initiative Optimization Big Data Application 17 This business case type leverages a transformational program to fund optimization activities driven by analytics. Most common funding mechanism. Include description how the analytical capability supports the program’s goals. Consider presenting Big Data as an option compared to traditional solutions. o Easiest to create o Does not require a separate benefits analysis o Good way to fund architecture modernization o May require a business case if added to scope o Internal competition for funding o Corporate culture will determine the success of this approach
  18. 18. Positives Challenges Description Business Process Improvement Big Data Application 18 Leverages improvement in one or more business process without the benefit of piggy-backing on a transformational project Can require significant work since more than one business case will need to be analyzed o Best used to support the Big Data Analytics initiative o Information is readily available o May require a business case if added to scope after program commences o Funding may be put at risk if program goes over budget
  19. 19. Positives Challenges Description Corporate Asset Big Data Application 19 Approaches the business case that the company requires Big Data Analytics as a means to either remain competitive or lead its industry. Numerous industry benchmarks exist on the value of analytics. These can be used to build a financial business case for Big Data. o Best used to support the Big Data Analytics initiative o Information is readily available o Generally the hardest to defend o Can result in un-realistic numbers o Requires executive support or directive
  20. 20. Corporate Asset Bottom-Line Business Case 20 On average, 6 Data Scientists will generate $10M/year ROI from analyzing Big Data* *Intel Corporation
  21. 21. Address the Who Layer the Benefits Link to Strategy Determine the Approach 21 Four Keys Link to Strategy
  22. 22. 22 Big Data Analytics Decision Making Business Case Quick Review Brand Management New Products & Services Customer Experience Reducing Operating Costs Optimize Supply Operations Pricing Optimization
  23. 23. Linking to Corporate Strategy 23 Chose benefits that relate to the corporate strategy. Consider using combination of Financial and Non-Financial metrics. Strategic Imperatives
  24. 24. 24 Linking to Corporate Strategy Strategic Imperatives Actions Requiring Decisions Increase Gross Margin Reduce Fuel Expense Meet Website SLAs Improve Customer Satisfaction Resolve Customer Complaints more Quickly Run Maintenance cycle on Diesel Generators Frequency & Length of idle cycle Analytical Contribution  Identify and prioritize actions  Prescribe prioritized corrective actions  Model asset optimization capability  System-wide understanding of causal factors  Performance / health within time period  Assign a confidence factor to predictions  Identify casual factors impacting equipment life  Early detection of equipment failure  Supply-chain optimization  Better root-cause identification  Minimize decision time
  25. 25. Tell the Story Data Scientists in the Network Operations Department will use the Big Data Analytics capability to analyze generator run logs, weather data, fuel costs to identify, prioritize actions to reduce diesel generator idle time. These actions will reduce fuel costs and increasing gross margin. Furthermore, this will reduce our carbon footprint and enhance our brand image as a socially responsible company. 25
  26. 26. Quantifying Benefits 26 Most challenging portion of developing business case Not all benefits are quantifiable Both financial and non-financial can be quantified PoC may be required to either quantify or validate benefits
  27. 27. 27 Current Value (CVal) Coefficient of Improvement (Cof) Quantifying Benefits Simplified Model Future State Benefit (FVal)
  28. 28. 28 Quantifying Benefits Sum of Decisions Current Value (CVal) Coefficient of Improvement (Cof) Future State Benefit (FVal) n(CVal)(Cof) = FVal (CValn)(Cofn) = FVal Same Coefficient Different Coefficients
  29. 29. Quantifying Benefits Determining Coefficients • What: Leveraging Industry research to establish coefficients required to calculate a financial benefit • Most common and easiest to understand Industry Research • What: Leveraging the opinion of subject matter experts with unique knowledge to provide the coefficients required to calculate a benefit • A Delphi method can be used to utilize the opinion of many experts for a more accurate/substantiated result 29 Expert Estimation • What: Evaluating a group of like decisions before and after a process change and identifying the standard error before the and after a process change. The reduction of the standard deviation is then quantified to arrive at a financial benefit. • Hardest to understand Decision Risk Valuation
  30. 30. Business Case Solving the “Which Business Case” Problem Which business process should I use for the business case? 30 Customer Experience Cycle
  31. 31. 31 Big Data Analytics Business Big Data Focus Business Case Challenge Decision Making Which Business Process How to Optimize
  32. 32. ) 32 Quantifying Benefits Average Benefits of Many Use Cases Current Value (CVal) Coefficient of Improvement (Cof) Future State Benefit (FVal) AVG ((CValn)(Cofn) = FVal
  33. 33. Address the Who Layer the Benefits Link to Strategy Determine the Approach 33 Four Keys Layer the Benefits
  34. 34. Layering Benefits Increasing Business Case Impact 34 Use Additional Approaches Evaluate Additional Use-Cases Include Additional Benefits
  35. 35. Different Approach Direct Evidence Initiative Optimization Business Outcome Corporate Asset 35
  36. 36. 36 Additional Use Cases Sum of Benefits Current Value (CVal) Coefficient of Improvement (Cof) Future State Benefit (FVal) (CValn)(Cofn) = FVal
  37. 37. Tell the Story Example Data Scientists in the Network Operations Department will use the Big Data Analytics capability to analyze generator run logs, weather data, fuel costs to identify, prioritize actions to reduce diesel generator idle time. These actions will reduce fuel costs and increasing gross margin. Furthermore, this will reduce our carbon footprint and enhance our brand image as a socially responsible company. 37
  38. 38. Four Keys Address the Who Address the Who Layer the Benefits Link to Strategy Determine the Approach 38
  39. 39. Bottom-Line Corporate Asset 39 On average, 6 Data Scientists will generate $10M/year ROI from analyzing Big Data* *Intel Corporation
  40. 40. Addressing the Who  Leveraging Big Data Analytics requires Data Scientists to use the system  Companies may not have enough Data Scientists on staff to obtain the purported benefits  Include staffing and training Data Scientist in the business case Each Data Scientist can generate $1.6Million in annualized ROI. If a business case has a $20Million annual ROI this suggests that 12 Data Scientists are required. 40
  41. 41. Final Thoughts Do’s • Chose the appropriate approach(s) • Tell how solution supports the corporate strategy • Quantify benefits in dollars where possible • Use the business case to setup the PoC • Include Data Scientist staffing and training in business case costs Don’ts • Select an infrastructure only use case • Create a build it and they will approach • Single-use case business case • Use an inappropriate level of detail for the company culture 41
  42. 42. 42
  43. 43. As a reminder, please submit your questions in the chat box. We will get to as many as possible. 11/5/2014
  44. 44. Daily unique content about content management, user experience, portals and other enterprise information technology solutions across a variety of industries. Perficient.com/SocialMedia Facebook.com/Perficient Twitter.com/Perficient For more information contact: (Phone Number and Email Here)
  45. 45. Thank you for your participation today. Please fill out the survey at the close of this session.

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