Value from Big Data really?
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1 Value from Big Data really? DAMA SA Chapter Meeting: Johannesburg 24 June 2014
2 Let s talk about Big Data! Page 2
3 Is Digital Transformation really happening? Page 3
4 But before we do that; where did it start? 1958 if you can t measure it, you cannot manage it Peter Ferdinand Drucker, Page 4
5 Claims for huge potential Through applying effective and thorough Big Data Analytics the US healthcare system can generate more than $300 billion value per year a retailer could increase its operating margin by more than 60% developed European economies can save more than 100 billion in operational efficiency improvements banks can reduce loan losses by 25% just by using data that they already have McKinsey Global Institute Page 5
6 No really, claims for huge potential Page 6
7 Adding all that value with the most widely used decision making platform today? 88% of spreadsheets proved to contain errors Journal of End User Computing Page 7
8 Why doesn t everything stay the same? 90% off all data in the world has been created in the last 2 years Page 8
9 And the best estimates say that the data will grow to in 2020 Page 9
10 Really...that much data? Per minute Page 10
11 And then this : 9 billion Devices on the internet 2020: 50 billion Devices on the internet Page 11
12 Apparently we want to consume everything through our mobile devices 6 billion mobile subscriptions Mobile data grows at a 78% CAGR 10,8 Exabytes per month in 2016 Page 12
13 So, if there is one thing that you need a strategy on Volume 1000s TB s, Petabytes and more Big Data Velocity Machine generated data, sensors etc. Variety Unstructured data, many formats, different definitions Page 13
14 EY s way of defining Big Data Big Data refers to a collection of data sets that are large, complex and unstructured. It is impossible to structure them with the usual databases and tools Page 14
15 Is this relevant for you: competing on data? Denying the information society is not possible; if you do not think about the value of data your competition will do it for you Different way of processing information; largest part of the data now being created is unstructured data (text, pictures, video, audio) Page 15
16 Where does it come from? Transactional Systems s & Documents Operational Systems CRM, ERP & Financial VOLUME (Data Size) VARIETY (Source of Data) Image Audio External Sources BIG DATA Video Smart Meters & Sensors VELOCITY (Speed of Change) Clickstream / web logs Mobile Devices Social Media Page 16
17 Taking advantage of unstructured data poses a challenge to most organizations Text When considering data analysis, all sources of data should be addressed CRM Databases Accounting Systems Graphics 80% Unstructured Data Presentations & Spreadsheets Studies show that 80% of enterprise data is unstructured in nature Most analysis focuses on the 20% of the structured data 20% 80% Few organizations have the methodologies or technologies to efficiently address unstructured data and gain insight Page 17
18 Big Data is about whole brain analytics Diagnose the business problem or opportunity and create hypotheses Combine rational and emotional analytical models to predict outcomes and understand feasibility Undertake rapid experimentation to test hypotheses Pilot solution and develop implementation plan Page 18
19 There are three rules that you MUST follow for a successful Big Data implementation Unfortunately nobody know what these three rules are Page 19
20 An accelerated start for Big Data analytics Know what you want to know! What data and tools are lacking? Fundamentally understand different data types Data expertise statisticians, modeling, math 5 6 Make prototypes together with end users and decision makers Page 20
21 Sensors Social media Replenishment Smart Grid Page 21
22 Also for you across Africa Page 22
23 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities EYGM Limited. All Rights Reserved. EY refers to the global organization and/or one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organisation can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. ey.com
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