The Rise of Big Dataand the Chief Data Officer
The “Minority Report©” Mall:
Step 1 on the Journey to Deliver Customer’s “REKAL©” Experience in each Business “Matrix©”
1 Copyright © 2014 GTC Technology Consulting, Inc. All rights reserved.
GTC Technology Consulting, Inc.Gerald T. Charles, Jr.
[email protected] 2014
Agenda
What is Big Data and Why is it ImportantBusiness relevancy and desired performance outcomesThe opportunityThe technical architecture behind it
Landmarks During the JourneyInfluencers: Secure Mobility, Social media, and Sensor NetworksCrystal ball, newspaper, and/or black holeLinking business strategy vs. creating tactical construction projects
Evolution: Achieving Insight, Differentiation, and ProfitsEmergence of the Chief Data OfficerA Roadmap to Capitalize
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Why Is This So Cool Today?(Knowledge is Power and Profit)
• “Minority Report©” mall is real and growing
Loyalty cards helping companies provide what you want, when you want – maybe even before you know you want it
Social media trends, traffic, weather, web search trends, and store sale data help companies manage their inventory and personalize the services they deliver
Phones, watches, and other wearable sensors and devices help track and manage our health, sports performance, medical research, and in-store/venue experience
Part big brother, part advisor, part prophet
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According to Analytics IQ’s
Business Imperative, studies show that
organizations competing on
analytics substantially outperform their
peers by 220%
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Today’s Digital World Captures Data Everywhere
Traditional data has been captured in enterprise data warehouses Relational Data (Tables and Transactions) Text Data (Web and traditional printed documents) Semi-structured and/or tagged Data (XML) that we search
Graphical and Image Data Parts of Social media (e.g. Instagram, Facebook, Pinterest) Video (e.g. YouTube)
Surveillance footage you can only scan once Streaming Data
Sensorial, data from embedded devices and applications Sensors in the road, clothes, medical devices, manufacturing, etc. GPS and mobile - Geo-tagging applications (e.g. Foursquare, Google Maps, etc.) Internet of Things Systems data (e.g. log, event, and error files)
Social Mining the wisdom of crowds (twitter, vine) Crowdsourcing5
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Social
Media
Website
Mobile & location
Docs
Store
(online, bricks & mortar)
Transactions
User profiles
Historical
Sensors
iTunes and apps
Gesture technology
Internet/network
Data has Become the Latest IT Utility
Compute & Storage Commodization accelerating
Network & Communications Internet of Things (IoT) is at hand
Cisco estimates by 2015 7.2B people will have 25B devices connected
Data As of 2012, 2.5 Exabyte's (2.5×1018) of data
were created every day1
Mobile devices and apps will generate seven exabytes of data by 2015
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Gartner's Hype Cycles forEmerging Technologies, 2011-2013
1 Big Data, Wikipedia
Big Data is Rising to the Top
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Gartner's Hype Cycles forEmerging Technologies, 2011-2013
Gartner's Hype Cyclesfor
Emerging Technologies,2011-2013
… And Growing at an Exponential, Viral Rate
The volume of data is growing at a freighting rate.Google’s executive chairman Eric Schmidt brings itto a point: “From the dawn of civilization until2003, humankind generated five exabytes of data.Now we produce five exabytes every two days…andthe pace is accelerating.”
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Mashable.com
From Text-centric to Video-centric
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The Vectors of Big Data –Volume, Variety, Velocity, and Veracity
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Volume
Variety
Velocity
Veracity
Mixture of raw, structured and unstructured data,text, audio, video, web pages, logs, click-stream data, search indexes, social media forums, email, and sensor data
Rate which data is generated, analyzed, and decided upon
Confidentiality, integrity, and availability of the data
Sheer amount of data
What to do (and not do)with all this data?
Capture, Organize, and Manage it HADOOP Platform for handling all the various forms of data Aggregation and Statistics - Data warehouse and OLAP Indexing, Searching, and Querying Pattern matching (XML/RDF)
Discover Insight from the useful parts Data Mining, Collaborative Filtering, and Statistical Modeling Apply visualization tools to discover patterns According to IDC and EMC, only some 33 percent of 2020's 40,000EB (13,200EB) total might be
valuable if analyzed
Apply knowledge gained to drive goals, value, and profits Map to processes that drive performance and business differentiation Apply to decision making and strategic planning Integrate feedback (monitor, measure, and analyses) into ongoing innovation
and strategy processes
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$$
The Opportunity toAccelerate Performance
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Data-driven decision-making includes predictive analytics(using historic and real-time data to make
future decisions), improving:
Revenue
Companies using sentiment analysis ofFacebook and Twitter posts to determineand predict sales volume and brand equity
Supermarkets are combining their loyaltycard data with social media information todetect and leverage changing buyingpatterns
Profit (cost improvements)
Manufacturers are monitoring minutevibration data from their equipment,which changes slightly as it wears down,to predict the optimal time to replace ormaintain
Transportation companies optimize theirroutes and fuel usage based on sensordata from vehicles, weather, onlinedestination queries, etc.
Quality
Netflix mined its subscriber data to put the essential ingredientstogether for its recent hit House of Cards
Video analytics and sensor data of Baseball or Football games is used toimprove performance of players and teams. For example, you can nowbuy a baseball with over 200 sensors in it that will give you detailedfeedback on how to improve your game
Customer/Citizen satisfaction
Politicians are using social media analytics to determine where theyhave to campaign the hardest to win the next election
Artists like Lady Gaga are using data of our listening preferences andsequences to determine the most popular playlist for her live gigs
Productivity/time savings
GPS information on where our phone is and how fast it is moving isnow used to provide live traffic up-dates
Google’s autocomplete and translate are based on comprehensive datacollection and real time analysis
Public service and safety
The FBI is combining data from social media, CCTV cameras, phone callsand texts to track down criminals and predict the next terrorist attack
The quality of your Information Management (IM) infrastructuredrives your strategy, performance, and outcomes
Agenda
What is Big Data and Why is it ImportantBusiness relevancy and desired performance outcomesThe opportunityThe technical architecture behind it
Landmarks During the JourneyInfluencers: Secure Mobility, Social media, and Sensor NetworksCrystal ball, newspaper, and/or black holeLinking business strategy vs. creating tactical construction projects
Evolution: Achieving Insight, Differentiation, and ProfitsEmergence of the Chief Data OfficerA Roadmap to Capitalize
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Shaping Influencers: Secure Mobility, Social Media, and Sensor Networks
Secure mobility – The constant generation of real-time, personalized data everywhere from everything drives services anywhere, anytime, on any screen
Fueled by the integration of Wi-Fi, Bluetooth, QR Codes, and NFC into mobile devices, the benefits of mobile—location-aware (ubiquitous), real-time (immediate), and context-aware (relevant) – marry context and personalization for real-time services and solutions
Social media verse – Tweets, FB updates, blogs (text, audio, and video), and our digital footprints (e.g. logs from all devices and transactions) provide insight on the crowd
Sensors and streaming data - exponential set of digital data sources to process, analyze, and react to in real time. Data from vehicles, “wearable's”, buildings, etc. to impact and dictate our decision making and experiences
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Creating a new perspective on context-aware computing - Gartner VP and Distinguished AnalystCarl Claunch refers to this as the mix of location awareness, identity management, the availability of a phone camera and microphone, and the user's social network,
all coming together to augment the computing experience.
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Creating the Crystal Ball (vs. reading yesterday’s news)
In business, predictive models exploit patterns found in historical and transactional data to identify risks and opportunities. Models capture
relationships among many factors to allow assessment of growth potential (or risk) for various scenarios, guiding decision making
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1. Look for the patterns, look for things that cause the “What if?” and “If only we could” questions (it’s why the Data Visualization tool market is exploding)
2. Determine the predictive metrics — also known as "leading indicators" — rather than just historical metrics (aka "lagging indicators") associated with the patterns
3. Build models that link these metrics to your desired performance outcomes
Driving Strategy and Profits(not local construction projects)
Data and research projects already going on in individual departments
So, its not about the individual projects to capture each data source, its about collectively harnessing it all together in a context that drives exponential value. What’s needed is:
Single source of truth for common overlapping data (cost and efficiency savings)
Attention, skills, expertise to capture new data sources of insight (mobile, social, and sensorial)
Holistic view to capture (and find) opportunities that cut across data sources and departments
Process of “patterns to predictive metrics to models driving desired outcomes”
Capturing larger short and long term revenues and profits due to opportunities “bigger” than individual departments
Attention, Governance, and re-direction of investment for bigger payday 17
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Agenda
What is Big Data and Why is it ImportantBusiness relevancy and desired performance outcomes
The opportunity
The technical architecture behind it
Landmarks During the JourneyInfluencers: Secure Mobility, Social media, and Sensor Networks
Crystal ball, newspaper, and/or black hole
Linking business strategy vs. creating tactical construction projects
Evolution: Achieving Insight, Differentiation, and ProfitsEmergence of the Chief Data Officer
A Roadmap to Capitalize
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Who/How Do We Make This Happen?A Champion is Needed to Lead it
1. Siloed information (and ownership) impairs enterprise level resourcing, reporting, decision-making, and performance
2. Getting to the “single source of truth” (i.e. data quality)
3. Aggregated and analyzed information is required by certain business functions, but not readily available. Knowledgeable decision-making happen in the right “context” of information.
4. Business and IT functions, though measured and goaled differently (speaking different languages), must be synchronized to drive top level performance
5. The “necktie” to meet and manage regulatory compliance
6. Information-centric enterprises need a singular focus to analyze, develop, and implement today’s enterprise corporate strategy
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The Chief Data Officer (CDO) Role
Knowledge harvesting for the enterprise from the organization’s information assets – business, technology, and control
Combine different data sources within the organization with each other, and represent this as a strategic business asset at board level
Deliver information strategy and architecture as a shared service (e.g. BI function, IM SWAT teams)
Enabling/setting standards for regulatory compliance, data policy, data security, privacy, and data retention
Operationalize a consistent data governance and stewardship program, including data quality and IM tools, standard data operating procedures, data accountability policies
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The Chief Data Officer (CDO)
CDO isn’t an IT role, says Richard Wang, director of the MIT Chief Data Officer Research Program. Wang believes placing the CDO alongside the CIO and CTO on the org chart is a best practice, one that reduces almost inevitable conflict and assures CEO attention to data projects. CDO is a business role with strong technology skills.
CIO’s top responsibility – making sure core applications, critical systems, and IT infrastructure are secure and safely operating –leaves little time to ponder Big Data questions
Making enterprise data benefit the organization as an asset while assuring the quality of information being gathered and used
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CDO -Architect & Oracle of Business
Business’ crystal ball to be guided by predictive data and insights
Spend more time on answering “What ifs” and “tomorrow they need…” then deliver those outcomes
Help build tomorrow’s world today
No more Monday morning quarterbacking, rather decision making and strategies center on delivering the “ReKal©” experience – in each business’ Matrix©22
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Today’s Business Organizations…
Push tons of personalized content, based on user-provided preferences, TO their customers:
NFL Now – video clips, game day highlights NBA All-Access, Fantasy, and newslettersMarvel Unlimited (paid subscription) suite of appsGovernment agencies: historical data and records
Are increasingly using social media information(tweets, Facebook® posts, likes) to determine audience/citizen sentiment
But still struggle to integrate channels – TV & Movies, Web, Venues, Mobile Apps, VR and real-life experiences -- let alone drive deeper, engagement and loyalty
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Tomorrow’sCDO-led Evolution
The CDO’s emergence is driving revenue, brand equity, and profits to include:Integration of omni-channels and data silosGreater Insight – faster understanding of customer sentiment, trends, and
tomorrow’s desired services; increase responsiveness to optimize TV ratingsExponential increase in Customer interactivity -- Evolve from push
dominated to push and pullImproving Player health, safety, and performance - sensor-best services
and appsIncreasing Differentiation – greater focus and delivery of core value
propositionImproving Customer loyalty and deeper experiences – new data-based
services; from couch-gate to tailgate, improving game-day parking and traffic, concession sales24
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Consider the CDO’s Impacton a Big Data Strategy;What if…
the NFL, NBA, and Marvel could increase and accelerate:Their Digital CommerceUse actionable customer insight for greater Customer
engagement, experience, and loyaltyOptimize their licensing merchandiseMaximize ticketing and licensing products (dynamic pricing)Improve response and yields on promotions (localized on the
shelves, in the theatres, and at stadiums)
our public sector agencies could better predict surges and demands for responding to:
Permits, applications, cases, etc.Event and Emergency responsePolitical, Social, and economic trendsHealthcare response, patient outcomesTransportation, including border/container management
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A New CDO’s Roadmap
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1. Clarify critical, strategic objectives, performance measures, and business outcomes -- then identify what data impacts them. Know the differentiation that’s the heart of your business
2. Holistically organize your various data sources. Governance of various data silos, architecture, analytical tools, information storage, access, and delivery
3. Structure and resource your organization to manage “Single Source of Truth” and secure data exchange Strategic business analyses (use cases) – where insight and
inspiration happens Communication, coordination, and support across existing/new
business processes Decision making
4. Coordinate across the organization to drive strategic business interests; It’s not a greenfield situation, so evolution must be managed
AcknowledgementsBig Data Spurs New Role: the Chief Data Officer, By David Coursey | Apr 7, 2014
The Role of the Chief Data Officer in Financial Services, Capgemini
Mobility and Big Data: Why They Need Each Other to Thrive, Scott Snyder, Xconomy
Gartner: Mobility, Big Data on the Rise; Cloud Not so Much, Dian Schaffhauser, 06/21/12
Its Time for a Big Data to improve Customer Experience, RazorFish
Big Data: The Mega-Trend That Will Impact All Our Lives, Bernard Marr, Aug 27, 2013
InfoSecurity Professional Magazine Issue 23, 2013 Vol 3
Analytics: Turning insights into action, Deloitte, November 2013
Big Data Analytics: Future architectures, Skills and Roadmaps for the CIO, Philip Carter, Sep 2011
Big Data, from Wikipedia
What Big Data Needs to Do to Grow Up, Mahesh S. Kumar, HBR Blog Network, June 6, 2014
Images from posts at The Celestial Convergence Blogspot, Ford’s Blueprint for Mobility, and SeedSpark Blog
How to Choose Your Social Business Intelligence Solution, Gianluigi Cuccureddu, April 15, 2013
Social Business Intelligence: Positioning a Strategic Lens on Opportunity, Dion Hinchcliffe, Aug 2011
The Big Deal About Big Data, Paul Paul Zikopoulos (IBM), June 2014
Dr. Dong Wang, Dept. of Computer Science and Engineering, iCeNSA, University of Notre Dame
Meet the Chief Data Officer, Brad Peters, The Economist Group, February, 2014
Post: Does data analytics need a c-suite champion?, Andrew Birmingham, May 2014
Steven Speilberg, (Director); (June 21, 2002). Minority Report. United States; 20th Century Fox, DreamWorks Studios
Larry and Andy Wachowski (Director); (September 21, 1999). The Matrix. United States: Warner Bros. Pictures.
Paul Verhoeven, (Director); (June 1, 1990). Total Recall. United States; TriStar Pictures, Inc.
Len Wiseman, (Director); (August 3, 2012). Total Recall. United States; Columbia Pictures27
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