Met Big data bezig? BIG data: BIG challenge, BIG threat, BIG value or. BIG hype?
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1 BIG data: BIG challenge, BIG threat, BIG value or. BIG hype? Objectives Objectives/Agenda 1) BIG data What is different? 2) Why is BIG data relevant? 3) How can big data drive business model innovation? 4) Inspire: examples of data driven business innovation. 5)? STOHA congres: De civiele ingenieur in 'The Matrix 19 mei 2016 INTRO INTRO Prof. Dr. J.F.M. (Frans) Feldberg Professor Data Driven Business Innovation Faculty of Economics & Business Administration VU University Amsterdam Department: Information, Logistics and Innovation Business Consultant. FransFeldberg Knowledge, Information and Innovation ( Research/Education: Business Intelligence & Analytics/BIG data Data driven business model innovation Online decision making (DSS & GDSS) Online (buying) behavior(emerging technologies) Business Administration & Mathematics & Computer Sciences&. Bachelor and Master Business Analytics Multidisciplinary Research Center Eco System: Businesses & Science One stop shop: Access to all relevant academic Expertise Post Graduate Education: Business Analytics & Data Science ( opleidingen/business analytics/index.aspx ) (BIG) Data What is going on? (BIG) Data What is going on? Met Big data bezig? 1
2 (BIG) Data What is going on? (BIG) Data What is going on? BIG Data Hype, kans of bedreiging? (BIG) Data What is going on? Some quotes:.bedrijven gaan er heel veel mee doen en aan verdienen...voor een kennisland als Nederland geeft dit enorme mogelijkheden..je kunt een bedrijf starten die de bestaande informatie gaat vergaren, je kunt een service starten die informatie bij elkaar verzamelt en beschikbaar maakt..je kunt technologie ontwikkelen die dit ondersteunt, of je kunt er diensten in verkopen, er zijn verschillende mogelijkheden om er heel snel iets mee te doen..ondernemers ruiken hun kansen met nieuwe diensten en nieuwe producten ( VOLUME 4 times different: 4V We ve reached a tipping point in history: today more data is being manufactured by machines, servers, and cell phones, than by people Today a street stall in Mumbai can access more information, maps, statistics, academic papers, price trends, futures markets, and data than a U.S. president could only a few decades ago VOLUME VARIETY VELOCITY VERACITY Michael E. Dricoll (CTO and co founder at Metamarkets) Juan Enriquez (founding director of the Life Sciences Project at HBS ) 2
3 VOLUME VOLUME How data is changing the car game for Ford. Generates up to 25 GB of data per hour. 90% (McKinsey Global Institute, 2011) Last 2 Years BIG data VARIETY VELOCITY Structured data Unstructured data Three aspects: Speed of data creation Speed of data processing Speed of data analysis (delivery) VERACITY Granular. Unintentional (Expert based versus lay cultures). Unmanageable. Constant renewal/updating. Single Version of the truth.. 1 in 3 business leaders don t trust the information they use to make decisions. ( 01.ibm.com/software/data/bigdata/) (Constantiou & Kallinikos, 2014) 3
4 BIG data is more than simply a matter of size: it is also about creating insights! Discovering what you don t know you don t know New measurement tools give us new insights. Microscope marked a change in era (in an era of change) GOLDEN AGE (Courtesy: Andrew McAfee) Rene Penning de Vries (Boegbeeld ICT MinvEz) Moore s Law Onze toekomst in 6Ds 1. Digitized 2. Demonetized 3. Democratized 4. Delocalized 5. Deceptive 6. Disruptive Additional D added: 7. Datafied Imagine this will happen for a technology that is fundamental for businesses. Second Half of the Chessboard Erik Brynjolfsson & Andrew McAfee 4
5 In technology strategy, the second half of the chessboard is a phrase, coined by Ray Kurzweil in reference to the point where an exponentially growing factor begins to have a significant economic impact on an organization's overall business strategy. ( Andrew McAfee: When do we enter the second half of the chessboard? US Bureau of Economic Analysis starts tracking IT Moore s Law doubling period * 1,5 = 2006 At some point a difference in degree becomes a difference in kind. (Jan Rotmans) We leven niet in een tijdperk van veranderingen maar in een verandering van tijdperken. Planets2013.jpg 5
6 Not only data, but also: Internet as a Service Cloud Computing High Performance Computing Crowd Sourcing Powerful Software (Open Source!) High Performance Analytics The question is: To be disruptor or disrupted Producten/Diensten Bestaand Nieuw Markten Bestaand Nieuw Ontregelaar: wij of zij? Ontregelaar: wij of zij? Ontregelaar: wij of zij? Ontregelaar: wij!! 6
7 We view big data and big data analytics as the mother lode of disruptive change in a networked business environment. (Baesens, Bapna, Marsden, Vanthienen, Zhao, 2014) Strategy making: New Games, New Rules! Nature of data and information Standard Strategy Context Big data digital ecosystem Relatively Homogeneous Heterogeneous Structured Unstructured or Semi structured Purposeful, Theory driven Agnostic, Haphazard ( sorting in the way in ) ( sorting in the way out ) Mono semiotic, Alphanumerical Trans semiotic (Text, Image, Sound) Deductive, Top Down Inductive, Bottom Up Long Term Horizon Short Term Horizon Forecasting Nowcasting (Constantiou & Kallinikos, 2014) How can Big Data drive Business Model Innovation? The use of big data to craft strategy and business models: How can Big Data drive Business Model Innovation? The use of big data to craft strategy and business models: IMPROVE the business model : New Data IMPROVE the business model New Data New Insights New Actions Manufacturer INNOVATE the business model Data Monetization Digital Transformation Trade Partners Data Aggregators Markets (source: Woerner & Wixom (2015)) (source: Woerner & Wixom (2015)) How can Big Data drive Business Model Innovation? How can Big Data drive Business Model Innovation? The use of big data to craft strategy and business models: IMPROVE the business model : New Insights The use of big data to craft strategy and business models: IMPROVE the business model : New Actions PRESCRIPTIVE (how to achieve the best outcome?) New Data + New Insights => New Actions Prescriptive PREDICTIVE (Davenport & Harris, 2006) DESCRIPTIVE 7
8 How can Big Data drive Business Model Innovation? The use of big data to craft strategy and business models: Data Monetization Exchange of data based products and services for something of perceived value. INNOVATE the business model Digital Transformation Emergence of business ecosystems, coordinated networks of companies, devices, and consumers that create value. Data Monetization & Digital Transformation: some examples. Selling Barter Wrapping (source: Woerner & Wixom (2015)) Competition not defined by traditional industry offerings but by shared customers. 10 Top Apps For Eating Healthy ( Myfitnesspal.com Myfitnesspal.com 8
9 Data Monetization: selling. Data Monetization: selling (aggregator) en fitnessverkopen lifestyle apps jouw informatie Data Monetization: barter Data Monetization: wrapping (Source : nu.nl) Digital Transformation: new ecosystem. Digital Transformation: new ecosystem. Retailer > Insurances (source: Woerner & Wixom (2015)) 9
10 Digital Transformation: new ecosystem. Digital Twins Data driven business innovation Impact business model. (Source: twin technology changed formula 1 online ads planes trains power next/) (Source: BIG data: Challenges, Risks Big data: Big Change. What must be taken out of our head and left behind? Data Privacy and Ethics: BIG Dilemma s! Data Obsession ( the dictatorship of data ) Data Quality: new paradigms? Skills: Data Scientists Energy Question: What are we going to do with the new thing, must be changed in: How are we going to change the old idea! Big data: big change. Deceptive, Disruptive.. Journey 10
11 Data Science Alkmaar Wat Data Science Alkmaar is een kennis en innovatiecentrum waar regionale organisaties, overheden en wetenschap samenkomen om de kansen die big data en data science bieden te benutten ten behoeve van economische groei en ontwikkeling in Noord Holland Noord ( Hoe Effect Door de interactie versterken onderzoek, onderwijs, overheid en ondernemerschap elkaar en zo ontstaat er een sterke basis voor economische groei en ontwikkeling voor de regio Noord Holland Noord. Laagdrempelig Verbinden! Resultaten Ondersteunt bedrijven en overheden (gezamenlijke projectagenda, ondersteuning datagedreven struring) Stimuleert regionale bedrijvigheid Creëert zo een ondernemende broedplaats Ontwikkelt, stimuleert en voegt kennis en talent samen Biedt zo een laagdrempelig platform voor verbinding Dank voor uw aandacht! 11
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