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Article 2

BIG DATA: The


Management Revolution

Rizki Andini Puteri


Roi Gusriansyah
Batubara
Satya Wirawan

You cant
manage
what you
dont
measure

Because of big data, managers can measure, and


hence know, radically more about their businesses,
and directly translate that knowledge into improved
decision making and performance.

3 Keys

Volume

Velocity

Variety

More data cross the internet every

Real-time or nearly real-time

Big data takes the form of

second than were stored in the

information makes it possible for

messages, updates, and images

entire internet just 20 years ago.

a company to be much more agile

posted to social networks; readings

This gives companies an

than its competitors.

from sensors; GPS signals from cell

opportunity to work with many

phones, and more. Many of the

petabyes of data in a single data

most important sources of big data

set.

are relatively new.

Idea in Brief

Data-driven decisions are better decisions. its as simple as that.


Using big data enables managers to decide on the basis of evidence
rather than intuition. For that reason it has the potential to
revolutionize management.

Insert an image

Wheres the evidence that using big


data intelligently will improve business
performance?

Improved Airline ETA


(Estimate Time of Arrival)

Speedier, More Personalized Promotions

Expertise from Surprising Sources

Muting the HiPPOs


(Highest Paid Persons Opinion)

A New Culture of Decision Making

01

How decisions are made? Who gets to make


them?

02

A number of senior executives are genuinely


data-driven and willing to override their own
intuition when the data dont agree with it

03

People rely too much on experience and


intuition and not enough on data

04

At 5 point composite scale only 32% of


company had rated 3 for not data driven

A New Culture of Decision


Making

New Role

When it comes to knowing which problems


to tackle, of course, domain expertise
remains critical. They are the ones who
know where the biggest opportunities and
challenges lie.

As the big data movement advances, the


role of domain experts will shift. Theyll be
valued not for their HiPPO-style answers
but because they know what questions to
ask.

Techniques in leading a big


data transition
Ask:
What do the data say?
Where did the data come from?
What kinds of analyses were
conducted? How confident are we in
the results?
Allow themselves to be overruled by the
data.

10

Five Management Challenges in Big Data Transition


Technology
Have the effective tools to handle the volume, velocity, and variety of
big data.

Talent Manager
The need of people who can cleaning,
organizing, visualize and has techniques to
process large data sets.

Leadership
Succeed not simply because better
data, but because have a
leadership teams that set clear
goals, define what success looks
like, and ask the right questions

Decision Making
An effective organization puts information
and the relevant decision rights in the
same location.

Technology
Change from asking What do
we think? to What do we
know?
Breaking a bad habit like
pretending to be more datadriven than they actually are.

11

Getting Started in Big Data

Pick a business unit to be


the testing ground with a
quant-friendly leader
(expert in subject) backed
up by a team of data
scientists.

Challenge each key


function to identify five
business opportunities
based on big data.

Implement a process for


innovation that includes
four steps:
experimentation,
measurement, sharing, and
replication.

Most of the smartest


people work for someone
else. -> Always look for
feedback

12

Thank you!

Any questions?