Five Hot Trends for 2018

Business outcomes and technology priorities in data and analytics

Jake Freivald
Product Marketing
December, 2017
The Promise of 2018

The Internet of Things Takes Off

The Enhanced Power of Embedded Analytics

Predictions, not “Predictive”

Real Artificial Intelligence

Data Monetization for a Happy CFO

2
Internet of Things
Five Hot Trends for 2018

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Internet of Things
Smarter devices in the IoT are increasing Health Care
the need to centralize, contextualize, The IoT can provide data that can
predict, prevent, and help prosecute
and manage data to improve decisions fraud, theft, and inefficiencies that
and business processes. affect patient outcomes.

Manufacturing
Sharing smart device
data can differentiate
Government and Smart Cities
commodity products.
Sensors can help central
planners decide how to best
deploy resources and regulate
requirements.

Logistics and Supply Chain

The IoT can bring an aircraft,
replacement parts, and a
skilled tech to the same place
at the same time.
Internet of Things
Computing power at the edge drives
autonomous action closer to the device
In humans, this is called the reflex arc...
location to improve response times and
reduce traffic to the central processor

...the greatest strength and weakness of

which is that it doesn’t involve the brain.

Photo credit: bit.ly/2AiDXeX

Internet of Things

A dirty little secret

Just like “Big Data” is becoming “data”
...the “Internet of Things” is already mostly just the Internet
Needs communication, context, integration, mastering, analytics,
data discovery, information delivery, reporting, scoring, and presentation

2018 trends to watch: “ Cloud to the edge ”

More IoT deployments go cloud-based
Embedded BI and Analytics
Five Hot Trends for 2018

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Embedded BI and Analytics

Your brain
It’s always with you, and always on.
...and you don’t need to tap into all of it at once.

You don’t need to do anything special

to interact with it.
...though you may need to focus it sometimes.

Why shouldn’t analytics be the same?

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Embedded BI and Analytics

Issues driving 2018 changes

Pendulum swing: Centralized to
decentralized and back again
Embedded is generally not an area
for standalone analytical tools
Analytics adoption has hit a wall
Right information, right time is a
mantra, but hasn’t been fulfilled
SaaS application adoption
Embedded BI and Analytics

Swivel-chair analytics Import all the data Embedded

Physically load – and pay for –

any needed data Use data as needed

legacy data other legacy data other

warehouse cloud warehouse cloud
Predictions, not “Predictive”
Five Hot Trends for 2018

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Predictions, Not “Predictive”

First, the answer: Always switch.

Second, it doesn’t matter whether you
agree with me or not: Every statistician
knows that’s the right answer.
Third, most ordinary people will go round
and round (and round) with this problem.
The analytics? Hard.
The prediction? Easy.
Lesson: Give the prediction.
The Monty Hall Problem
1. You pick a door (say, #1).
2. Monty shows you another
door, empty (say, #2).
3. He offers to let you switch
to #3, or stay with #1.
What do you choose?
Predictions, Not “Predictive”

Use predictive analytics Or... go there!

Weather patterns
Typical crime levels per type
Concerts and events
School days and weekdays
Holidays and weekends
Paydays
Shift / time of day
....
Predictions, Not “Predictive”

Market watch
Despite the need for predictions,
vendors will tout predictive analytics
“for the businessperson”

Predictive analytics suddenly becomes AI or machine learning

(For that matter, lots of things do. More on that in a moment.)

Prescriptive analytics goes the same route

Predictions, Not “Predictive”

2018 areas we’ll see growth in “predictive analytics” (or shrink-wrapped predictions)
Healthcare: better treatment outcomes
Supply chain management: automated supplier, routing choices
Financial services: though with skepticism / throttling
Customer relationships: e.g., best-offer optimization
Real Artificial Intelligence
Five Hot Trends for 2018

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Real Artificial Intelligence

What is it?
To some extent, who cares?
 Self-directing vacuum?
 Autonomous farming vehicle?
“
the
Transform
nature of work
and the structure

”
...okay, fine, some terms of the workplace
 Algorithms
 Machine learning
Real Artificial Intelligence

What is it?
To some extent, who cares?
 Self-directing vacuum?
 Autonomous farming vehicle?
“ highly scoped
machine-learning
solutions that target

”
...okay, fine, some terms a specific task
 Algorithms
 Machine learning
Real Artificial Intelligence

Specific tasks such as...?

Anomaly detection
 Repeated data quality issues
 Match/merge assistance
 False positives or negatives
 Identifying patterns slightly
above the noise floor for
humans to investigate
Pattern matching across
heterogeneous data sets, e.g.,
 Metadata
 Data
 Analytical objects

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Real Artificial Intelligence
Real Artificial Intelligence

Is there anything new? ...and where will we see failures in 2018?

“Cheap gas” “AI helps with unbiased decision-making”
 Storage “Take humans out of the equation”
 Computing power
 Bandwidth To do it right
Help humans, don’t replace them
AI swarms Create advanced user experiences
Sometimes called “augmented intelligence”
Data Monetization for a Happy CFO
Five Hot Trends for 2018

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 saturating
Current,

Data Monetization

McKinsey, 12/17
 Data Monetization
Areas for
growth

McKinsey, 12/17
 The changes are new and
continuing

Across industries, most

respondents agree that the
primary objective of their
data-and-analytics activities is
to generate new revenue.... Of
the 41 percent of respondents
whose companies have begun
to monetize data, a majority
say they began doing so just in
the past two years.

McKinsey, 12/17
Monetizing Data

Defining Your Data Monetization Strategy

Step 1 – Which Information Will Deliver the Most Value?

Step 2 – Where is the Data Coming From?

Step 3 – Is the Data Ready to Be Monetized?

Step 4 – Can All Stakeholders Participate in Data Monetization?

Data Monetization

Our experience: externally facing BI applications will yield more measurable returns
Enhance customer “stickiness.” Customers spend more time with
you, which gives you more opportunities to interact with them
Competitive advantage. It can give you a leg up on competitors as
you offer more value-added services
Process improvement. Reduce cost and eliminate bottlenecks
Increase market share. New data-and-analytics products can open
doors you once had a problem opening

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Data Monetization

Possible types of monetization

Benchmarking!
Offering analytics on top of
commodity products
Unify your data with external data
(e.g., weather, economy)
for additional insights
Interactive e-statements
Data Monetization

Considerations
Make sure your house is in order:
mastered and suitable quality data
Customer-facing applications need
high-quality data – they know
themselves better than you do
Data products often need more than
just what you get natively; you might
end up reselling data
Recap

The Internet of Things Takes Off

The Enhanced Power of Embedded Analytics

Predictions, not “Predictive”

Real Artificial Intelligence

Data Monetization for a Happy CFO

30
Questions?

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