Big Data at Work: Dispelling

the Myths, Uncovering the

Opportunities
Featuring Babson College Professor
Tom Davenport, author of Big Data at
Work: Dispelling the Myths, Uncovering
the Opportunities

MARCH 3, 2014
In collaboration with

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Big Data at Work: Dispelling the Myths,

Uncovering the Opportunities
Thomas Davenport
Presidents Distinguished Professor
Management and Information Technology
Babson College
Author of Big Data at Work: Dispelling the
Myths, Uncovering the Opportunities

MARCH 3, 2014

#HBRwebinar @HBRExchange

Big Data at Work: Dispelling the Myths,

Uncovering the Opportunities
Thomas Davenport
Presidents Distinguished Professor
Management and Information Technology
Babson College
Author of Big Data at Work: Dispelling the
Myths, Uncovering the Opportunities

MARCH 3, 2014

#HBRwebinar @HBRExchange

Big Data @ Work

Thomas H. Davenport
Babson/MIT/International Institute for Analytics

Harvard Business Review Videocast

March 3, 2014

Whats New About Big Data?

My definition
Too big for a single server
Too unstructured for a relational database
Too fast-moving to fit into a warehouse

Need data scientists to manipulate it

A variety of new technologies to
manage it
Requires a new approach to
management and decision-making
Evidence-based, fast, continuous decisions

8 | 2013 Thomas H. Davenport All Rights Reserved

What to Do with All This Stuff?

Global data storage
Exabyte

Global data storage

Exabytes

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2005

06

07

08

09

10

11

12

13

14

2015

About 0.5% of this data is analyzed in any way!

SOURCE: McKinsey Global Institute ; Digital Universe Study, IDC
9

Industries and Their Use of Big Data

Extensive
Data Streams
from
Operations/
Customer
Relationships

Underachieving

Big Data
Competitors

Telecom

Investments

Health Care
Disadvantaged

CPG
Overachieving

Limited

Limited

Extensive

Use of Data for Decision-Making and Products/Services

10

Functions and Their Use of Big Data

Extensive
Data Streams
from
Operations/
Customer
Relationships

Underachieving

Big Data
Competitors

Finance, Sales

Marketing

HR
Disadvantaged

Operations
Overachieving

Limited

Limited

Extensive

Use of Data for Decision-Making and Products/Services

11

What Can You Do with Big Data?

Save money with big data
technologies (Citi)
Make the same decisions faster
(Caesars, UPS)
Make new types of decisions (United
Health, Schneider)
Develop new products and services
(Nest/Google, GE, Monsanto)

12

How to Prospect for Big Data Projects

Big pile of data

Big pile of business/customer problems

13

Where Are Your Big Data Applications?

Discovery

Production

Cost savings
Faster decisions
New decisions
Products/services

14

Whos in Charge?
Discovery

Production

Cost savings

IT innovation

IT operations

Faster decisions

Analytics group

Business unit/function

New decisions

Analytics group

Business unit/function

Products/services

R&D/product devt

Product devt/mgt

15

Building Big Data Capabilities

Data . . . . . . . . big, small, structured, unstructured

Enterprise . . . . . . . .integrated big and small data
analytics
Leadership . . . . . . . . . . . . . . .passion and commitment
Targets . . . . . . . . . . . . . . . . . . where to start?
Technology. . . . . . . . new architectures
Analysts . . . . . data scientists

16

Actions in Each DELTTA Category

Data
More external, all types combined

Enterprise
One analytics leader, one support group

Leadership
Experimentation, deliberation, investment

Targets
Get something going that matters

Technology
Hadoop etc., multiple storage options

Analysts
Different roles and tracks, but everybody together

17

Big Data Technologies

Hadoop, Pig, Hive, etc. for spreading big data
processing across massively parallel servers
In-memory processing, in-database analytics
Machine learning for rapid model generation and
testing
Natural language processing
Visual analytics software
Storage and processing options
Hadoop
Traditional data warehouse or mart
Discovery platform

Cloud-based analytics
18

Who Is Working with Big Data?

Small startups
On West or E. Coasts
In online, media, healthcare
Big data only
Product/service focus

Big firms
Traditional or online businesses
Variety of industries
Big + small data analytics
Need new management model
for the combination

19

Analytics 1.0
Traditional Analytics

1.0

Primarily descriptive analytics

and reporting

Internally sourced, relatively small, structured

data

Back room teams of analysts

Internal decision support focus

Slow models and decisions

20

Analytics 2.0
The Big Data Era

2.0

Complex, large, unstructured data

about customers

New analytical and computational

capabilities

Data Scientists emerge

Online firms create data-based products

and services

Online data tracked relentlessly

21

Analytics 3.0
Fast, Pervasive Analytics at Scale

3.0

A seamless blend of traditional analytics and

big data

Analytics integral to the business, everybodys

job

Rapid, agile insight and model delivery

Analytical tools available at point of decision

Companies use analytics for decisions at scale

and analytics-based products and services

TODAY

22

3.0 Obstacles
Front-line workers who dont want analytics
and big data to tell them how to do their
jobs
Product managers who dont understand
data products
Customers and partners who think they own
the data
Internal managers and customers who dont
understand analytics
Managers who dont like black box
decisions

23

3.0 Companies, Old and New

Centenarians
Procter &
Gamble (177)
Schneider
Electric (171)
GE (121)
JP Morgan
Chase (119)
Ford (111)
UPS (108)

Youngsters
Intuit (31)
Google (16)
LinkedIn (11)
EnerNOC (13)
Facebook (10)
Foundation
Medicine (5)
Zillow (9)

24

25 | 2014 Thomas H. Davenport All Rights Reserved

Questions?
To ask a question
click on the
question icon in
the lower-right
corner of your
screen.

OCTOBER 17, 2012

Thank you for joining us!

This webinar was made possible by the
generous support of SAS.
Learn more at
www.sas.com/bigdata

MARCH 3, 2014
In collaboration with