THE NEXT PHASE IN THE EVOLUTION OF BIG DATA ANALYTICS
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1 THE NEXT PHASE IN THE EVOLUTION OF BIG DATA ANALYTICS Professor Dineli Mather Head, School of Information & Business Analytics Faculty of Business & Law
2 AGENDA Big Data Analytics: The Dawn of a New Discipline or a new spin on Business Statistics? Where is Big Data Analytics currently at? Not so big data and not so cutting edge analytics? Where to from here? The next phase of the evolution of Big Data Analytics
3 BIG DATA A by-product of the Information Age Technological advances of recent years combined with the mass adoption of social media and digital devices have resulted in a world that creates 2.5 quintillion bytes of data each day. Organisations that have the skills and tools to capture and use information strategically are gaining a competitive advantage.
4 What is Big Data? It s all about the V s! Big data is high volume, high velocity, high variety information assets that require new forms of processing to enable enhanced decision making, insight discovery and process optimization. Gartner (2012) (i.e. data sets that are too large and complex to manipulate or interrogate with standard methods or tools.)
5 THE RISE & RISE OF BUSINESS ANALYTICS Competing on Analytics: the New Science of Winning by Thomas Davenport (2007) McKinsey Global Institute Report on Analytics skills shortage (2011) Bloomberg Businessweek: The current state of Business Analytics (2011) IBM Tech Trends Report (2011) Gartner Business Intelligence (BI) Summit (2011) IBM/IBISWorld A Snapshot of Australia s Digital Future to 2050 (2012) Harvard Business Review Data Scientist: The Sexiest Job of the 21st Century (2012) Making Advanced Analytics Work For You (2012): Competing on Talent Analytics (2010) The Management Revolution (2013) Keep Up with Your Quants (2013) The New Patterns of Innovation (2014) CIO Magazine: CIO s overcome Shortage of Business Analytics Talent (2012) McKinsey Quarterly: Mobilizing your C-suite for big-data analytics (2013)
6 OOPS not so quick HBR (2013) Why IT Fumbles Analytics Big spending on Analytics tools and Data Scientists doesn t achieve a worthwhile ROI BizEd (2013) Firms Still Baffled by Big Data Most analytics projects limited to use of internal data (IBM & Said Business School report) Accenture (2013) - Analytics in Action: Breakthroughs and Barriers on the Journey to ROI Majority of organisations are only using Analytics in specific functional areas rather than at an enterprise wide scale Need better strategy on what is being measured and the metrics used to measure the ROI on analytics investments just leaving it to the Quants wont work!
7 Most organisations BIG DATA ANALYTICS THE CURRENT STATE Use only a fraction of the data they capture Have very limited analytics skills Use mostly Excel for Analytics Don t capture or mine external data, particularly unstructured data from social media Have not worked through the challenges of off-site data storage Use Analytics on a project-by-project basis usually in specific functional areas rather than at an enterprise level Don t have metrics to measure the ROI on analytics investments
8 DATA ANALYSIS TO BIG DATA ANALYTICS From Capturing and storing internal and/or structured data The quants providing a back-office service Project-by-project reactive analysis in functional areas To An Analytics-enabled organisation that transforms information into a business asset Enterprise Information Management strategy that includes external data and off-site storage Real-time Analytics, reporting and decision making
9 TAPPING INTO THE ANALYTICS VALUE CHAIN Data Analytics Skills & Tools Insights Data Capture Data cleansing and storage Information Management Tools & Technologies Decisions Analytics Data-savvy Managers to drive Outcomes
10 THE (RECENT) FUTURE Cognitive Analytics: Brain inspired learning to processes information, make inferences, and bring in instincts and experience into learning. Industrialisation of Analytics: Automating and replicating analytics to reduce case-by-case intervention.
11 LAST WORD It s not really about the (Big) Data or the Analytics! It s the use of information by Decision Makers that turns information into a business asset
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