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

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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 Global data storage

Exabyte 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 Underachieving Big Data

Competitors
Data Streams
from Telecom Investments
Operations/
Customer
Relationships Health Care CPG
Disadvantaged Overachieving
Limited

Limited Extensive
Use of Data for Decision-Making and Products/Services
10
 Functions and Their Use of Big Data

Extensive Underachieving Big Data

Competitors
Data Streams
from Finance, Sales Marketing
Operations/
Customer
Relationships HR Operations
Disadvantaged 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

Primarily descriptive analytics

and reporting
Internally sourced, relatively small, structured
1.0
data
Back room teams of analysts
Internal decision support focus
Slow models and decisions

20
Analytics 2.0
The Big Data Era
Complex, large, unstructured data
about customers
New analytical and computational
capabilities
Data Scientists emerge
2.0 Online firms create data-based products
and services
Online data tracked relentlessly

21
Analytics 3.0
Fast, Pervasive Analytics at Scale
A seamless blend of traditional analytics and
big data
Analytics integral to the business, everybodys
job

3.0

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 Youngsters
Procter & Intuit (31)
Gamble (177)
Google (16)
Schneider
LinkedIn (11)
Electric (171)
EnerNOC (13)
GE (121)
Facebook (10)
JP Morgan
Chase (119) Foundation
Medicine (5)
Ford (111)
Zillow (9)
UPS (108)

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