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CAN BIG DATA FIND THE NEXT BIG THING?

Tim Sutton Global Head of Innovation October 2014

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HOW MUCH DATA WOULD 40 OF US GENERATE IN 40 MINUTES?

3 SOURCE World Bank

7.125 BILLION HUMANS

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1 BILLION GIGABYES PER DAY

7.125 BILLION HUMANS

SOURCE: http://www-01.ibm.com/software/data/bigdata/what-is-big-data.html

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WE’RE GENERATING 560 MB PER PERSON PER DAY*

*NOTE: In developed countries

6 SOURCE: http://www.computerweekly.com/feature/Apollo-11-The-computers-that-put-man-on-the-moon

NASA NEEDED 6 MB TO PUT A MAN ON THE MOON

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IN 40 MINUTES, WE’LL GENERATE 2,105 NOVELS WORTH OF DATA

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THAT IS A STACK OF BOOKS 23 STORIES HIGH

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“THE WORLD IS MAKING A DIGITAL COPY OF ITSELF” PAUL SONDEREGGER, FORBES 9/9/2013

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HOW CAN WE USE THIS MASSIVE, RAW RESOURCE FOR INNOVATION?

?

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WHAT IS THE BIGGEST PROBLEM WE’RE SEEING IN INNOVATION TODAY?

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THE FALL OF BARRIERS TO ENTRY

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CONSUMERS ARE LOYAL

CONSUMERS SEEK NOVELTY

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LIMITED ACCESS TO PRODUCTION

ALIBABA AND CONTRACT PRODUCERS

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4,000 SKUS IN STORE 40,000 SKUS IN STORE

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SUPER BOWL ADS SOCIAL MEDIA

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THE NEXT BIG IDEA CAN COME FROM ANYWHERE

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NIMBLE TRUMPS BIG We need every advantage we can get

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“BIG DATA CAN GENERATE INSIGHTS THAT RESEARCHERS DIDN’T EVEN THINK TO SEEK.” BIG DATA: SEIZING OPPORTUNITIES, PRESERVING VALUES EXECUTIVE OFFICE OF THE PRESIDENT (MAY 2014)

“SIZE IN ITSELF DOESN'T MATTER – WHAT MATTERS IS HAVING THE DATA TO SOLVE OUR PROBLEM.” RUFUS POLLOCK FOUNDER AND CO-DIRECTOR OF THE OPEN KNOWLEDGE FOUNDATION

“BIG DATA IS A VAGUE TERM, OFTEN THROWN AROUND BY PEOPLE WITH SOMETHING TO SELL.” TIM HARFORD FINANCIAL TIMES, MARCH 28, 2014

“DATA IS THE NEW BASIS OF COMPETITIVE ADVANTAGE.” IBM

“BIG DATA IS THE NEW OIL. THOSE THAT ARE ABLE TO MINE THIS RESOURCE WILL HAVE AN ENORMOUS ADVANTAGE OVER THOSE THAT DON’T.” PUGH RESEARCH, THE FUTURE OF BIG DATA

“ALL DATA MODELS ARE WRONG, BUT SOME ARE USEFUL.” GEORGE BOX

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SHINY OBJECT? GOLD MINE?

21 SOURCE: Google Trends

22 SOURCE: Google Trends

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IS BIG DATA REPLACING INSIGHTS?

A deep understanding of customers is critical to finding unmet needs, but it’s difficult to scale.

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Solving for the next big thing is a highly ambiguous problem.

PAST ≠ FUTURE

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CAN WE DO THIS WITHOUT BIG DATA?

CAN WE DO THIS WITH DATA ALONE?

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BIG DATA = GOBS OF UNTAMED CUSTOMER INFORMATION

It’s data exhaust of credit cards, web searches, and mobile pings, etc., that we’re unconsciously emitting daily

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EXAMPLE: WAZE What could they know? •  Where congestion tends to happen •  Actual average speeds on every road in America •  Where construction is being done •  Where police are and when •  How fast I drive •  Where I am right now •  Places I like to go •  How well I follow directions •  Where I work •  If I have children •  …

What do the give me in exchange for this: •  Directions •  Traffic •  Share my ETA

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WAZE HAS MORE, AND MORE CURRENT, INFORMTION THAN ANY GOV’T AGENCY

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WHAT IF WAZE TELLS US:

People who avoid driving on highways are 5x more likely to stop at bookstores during the day.

WHY?

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WE KNOW DATA CAN FUEL DECISION ANALYTICS.

WHAT ROLE DOES IT PLAY IN DISCOVERY ANALYTICS?

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Question is well framed: Personalization

Forecasting Optimization

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How can we use data to find really profound,

powerful insights

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HOW BIG IS AN INSIGHT?

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A POWERFUL INSIGHT IS ONE PARAGRAPH, OR LESS THAN 1 KILOBYTE

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SIGNAL NOISE

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Deep understanding of customers tells you where to start

looking

Find hidden trends and unexpected

behaviors that are correlated

Flesh out new territories with “Small Data”

DISCOVERY ANALYTICS: WHAT WE DO KNOW

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DISCOVERY ANALYTICS: WHAT WE DO KNOW

NOT USING DATA

OVER-RELIANCE ON DATA

LIK

ELI

HO

OD

TO

FI

ND

A B

IG ID

EA

INFORMED INSPIRATION

WHAT + WHY

“WHY” “WHAT”

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CLEAR DISCOVERY ANALYTICS MODEL

AGGREGATE QUERY COLLABORATE

EXPLORE

PATTERNS OF INTEREST

BEHAVIOR/BELIEF DISSONANCE

EXPOSE EXPRESS

ACTIONABLE INSIGHT

CUSTOMER IMMERSION

EXPLAIN

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UNTAMED DATA HUMAN UNDERSTANDING

CLEAR DISCOVERY ANALYTICS MODEL

AGGREGATE QUERY COLLABORATE

EXPLORE

PATTERNS OF INTEREST

BEHAVIOR/BELIEF DISSONANCE

EXPOSE

CUSTOMER IMMERSION

EXPLAIN EXPRESS

ACTIONABLE INSIGHT

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UNTAMED DATA + HUMAN UNDERSTANDING = X-RAY VISION

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EXAMPLE: CLUSTERING

200 Million Records: •  What they search •  What they bought •  Where they go •  Who they connect with •  What they watch •  What they listen to •  What they read •  Data from their apps •  Images they upload

People who go to church are 3x more

likely to use fast food coupons

WHAT

IDEA: Can we create a Sunday menu of shareable meals

WHY

Fast food an easy, affordable way to

continue the sense of community.

Deep Customer Understanding •  Unmet needs •  Motivations •  Ambitions •  Compensatory

Behaviors •  Attitudes

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BIG DATA, DESPITE ITS THORNS, OPENS UP PROMISING NEW AVENUES TO EXPLORE.

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Based across 3 continents

Part of the global network

W E A R E A G L O B A L G R O W T H S T R A T E G Y C O N S U L T A N C Y

We are 80 strong

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UNLOCKING

“Help us leverage a new capability for maximum return.”

RE-IMAGINING

“Help us see the future of our industry & what that means for us.”

STRETCHING

“Help us identify where & how to stretch our brand into new categories.”

DISRUPTING

“Help us unlock a specific growth opportunity with game changing ideas.”

WE HELP CLIENTS GROW BY:

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C O N T E N T S

Tim Sutton Global Head of Innovation tims@clear-ideas.com

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