how to successfully exploit big data for business advantage

1 © Copyright 2011 EMC Corporation. All rights reserved.

How to Successfully Exploit Big Data for Business Advantage Bill Schmarzo, CTO EMC Consulting Julie Lockner, Senior Analyst and VP of Data Management Enterprise Strategy Group


Agenda

• EMC Consulting – It’s a Whole New Big Data World – The Big Data Opportunity

• Enterprise Strategy Group – 2011 Data Analytics Research – Priorities – Challenges – Drivers

• Take Action

• Q&A


It’s a Whole New Big Data World …

EMC Consulting


Big data analytics provides potential for more timely, more complete, more actionable business insights

Less than 10% of available enterprise data

Vast majority of available data, including external sources

“Rearview mirror” reports, dashboards, and analysis

“Forward looking” predictions with recommendations

Weeks, months, or even quarters old Real-time or near real-time

Incomplete, inaccurate, and disjointed data

Correlated, high confidence, governed data

Architectures and methods that take 6 to 18 months to exploit

Vastly accelerated time to market

Today’s Situation Big Data Analytics Ramifications


Deliver to any device at any time

Gain new insights on customers, products, and

operations

More than just data volume, smart big data strategies also consider the velocity, variety, and complexity of information

Smart Grid

Images

Audio Video Text

Documents

Transactional: ERP, CRM, SCM,

POS

Social media

Sensor/ location-based

Industry-specific

Web traffic


“Through 2015, organizations integrating high value, diverse new information sources and types into a coherent information management infrastructure will outperform industry peers financially by more than 20%”

The impacts to both the Business and IT are significant, and early adopters will fundamentally change their industries

• More agile, more real-time, more accurate decision-making

• Predict and spot changes in dynamic and volatile markets

• Deeper understanding of customer preferences and behavior

• Greater fidelity in risk assessment and compliance enforcement

Source: "The New Value Integrator," Insights from the Global Chief Financial Officers Study

Business Impacts IT Impacts

• Enhanced user experience that delivers insights to any device

• Operationalization of data scientists and analytic insights

• Tools and processes for data quality, governance, and security

• Cloud for self-service, collaboration, agility, and cost reduction


The Big Data Opportunity


With big data, leading companies are making forward-looking decisions about customers, products, and operations using all available data in real time with complete data confidence

Social Media Site Telco Insurance Healthcare Payer

• Capture and analyze PBs of unstructured and structured data

• Time to market new features reduced from weekly to daily

• A/B testing changed UEX which increased time spent on site 50% and increased game revenue 3x

• Analysis across entire customer set generated a social network graph based on calling patterns

• Within 2 weeks identified customers who were 7x more likely to change providers

• Integrate and analyze patient demographics and treatment data to consolidate data silos and detect potential fraud in real-time vs. 2-3 weeks after claim authorization

• Enabled faster decisions in fraud detection for evidence-based specialty care

• Calculate catastrophic risk at household vs. zip code level

• Optimize hurricane policy pricing and renewal decisions for specific coastal area households at the policy level to reduce book of business risk

©2011 Enterprise Strategy Group

Enterprise Strategy Group | Getting to the bigger truth. T M

ESG Research 2011 Data Analytics Research Data

October 2011

Julie Lockner, Senior Analyst and VP of Data Management

Enterprise Strategy Group

Data Growth Is the Top Database Challenge

© 2011 Enterprise Strategy Group 10

1%

14%

27%

21%

27%

34%

36%

31%

28%

31%

51%

52%

51%

1%

1%

3%

4%

4%

4%

6%

7%

9%

11%

15%

15%

19%

0% 10% 20% 30% 40% 50% 60%

Other

Provisioning servers

Provisioning storage

Application data model knowledge transfer

Creating test/development environments

Keeping up with current version of supported database release

Patch & maintenance processes

Supporting databases in virtualized environments

Lack of skilled staff

Deploying new database technology platforms

Maintaining security/compliance

Keeping up with database performance requirements

Managing data growth and database size

In general, which of the following challenges does your organization have with its current database environment and supporting infrastructure? Which would you characterize as the

primary challenge for your organization? (Percent of respondents, N=270)

Primary database challenge

All database challenges

Which Industries Have the Most Database Data?

© 2011 Enterprise Strategy Group

20%

33%

40%

43%

46%

52%

44%

30%

33%

25%

28%

23%

30%

24%

29%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Health Care (N=25)

Manufacturing (N=61)

Communications & Media (N=20)

Financial (N=46)

Retail/Wholesale (N=24)

Total amount of database data, by industry. (Percent of respondents)

100 TB or more 10 TB to 99 TB Less than 10 TB

11

Data Analytics Is a Top IT Priority for Many Organizations


Our most important IT priority, 6%

One of our top 5 IT priorities, 45%



Not among our top 20 IT priorities, 5%

Don’t know, 2%

Relative to all of your organization’s IT priorities over the next 12-18 months, how would you rate the importance of enhancing data analytics activities? (Percent of

respondents, N=270)

Similar Challenges Plague Data Analytics Projects


21%

21%

25%

28%

29%

34%

47%

0% 10% 20% 30% 40% 50%

Storage requirements are too expensive

Current data analytics license costs are too expensive

Current database license costs are too expensive

Unable to complete analytics in a reasonable period of time

Data set sizes limit our ability to perform analytics

Lack of skills necessary to properly manage large data sets and derive value from them

Data integration is complex

Which of the following data analytics challenges has your organization experienced? (Percent of respondents, N=270, multiple responses accepted)

What about Data Integration Challenges?


4%

18%

20%

21%

27%

28%

29%

35%

39%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

We do not have data integration issues

Lack of adequate technology

Lack of adequate skills

Integrating data from cloud-based (i.e., SaaS) applications

Poor data quality inhibits proper data integration

Lack of process ownership due to disparate applications

It is difficult to add or integrate new data sources

Data volumes are too large

Integration processes take too long

Which of the following data integration challenges are currently facing your organization? (Percent of respondents, N=240, multiple responses accepted)

14

While Key Skills Are Sorely Lacking


13%

15%

17%

17%

21%

24%

28%

31%

45%

45%

0% 10% 20% 30% 40% 50%

Data analyst

Server virtualization administrator

Application administrator

Data scientist

Business analyst

Enterprise architect

IT infrastructure (i.e., servers, storage, etc.) administrator

Application developer

Data architect

Database administrator

In which of the following areas of your database/data management environment does your organization have a shortage of skills? (Percent of respondents, N=75,

multiple responses accepted)

15

23%

17% 17% 17%

7% 7%

3%

1%

10%

0%

5%

10%

15%

20%

25%

Less than 250 GB

250 GB to 499 GB

500 GB to 999 GB

1 TB to 5 TB 6 TB to 10 TB

11 TB to 25 TB

26 TB to 50 TB

More than 50 TB

Don’t know

On average, approximately how much data is processed as part of a typical data analytics exercise? (Percent of respondents, N=270)

More than Half Are Processing at least ½ TB at a Time!


Big Data Volume Zone

16

12%

38%

20% 17%

8% 5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

We typically integrate from 2

unique data sources


unique data sources


unique data sources


unique data sources

We typically integrate from more than 5 unique data

sources

Don’t know

On average, how many data sources does your organization need to integrate in order to support data analytics activities (i.e., feeds to a data warehouse, business

intelligence system, etc.)? (Percent of respondents, N=252)

Nearly Half Are Integrating Data from at least 4 Sources


Big Data Variety Zone

17

15%

38% 36%

6%

3% 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Real-time Near real-time (within a day)

Batch – daily Batch – weekly Batch – monthly Batch – intermittently

How frequently is data typically added and/or updated during the integration process? (Percent of respondents, N=240)

More than Half Update Data in Real-time or Near Real-time


Big Data Velocity Zone

18

Top Five Drivers for Evaluating New Data Analytics Solutions


23%

25%

25%

26%

27%

21% 22% 23% 24% 25% 26% 27% 28%

New business processes have generated new data that needs to be analyzed

New application deployments and/or upgrades placed a new strain on current data management solutions

Organization is moving towards more real-time analytics

Current data analytics solution(s) does not meet requirements/needs

Cost reduction of existing platforms

What requirements are driving your organization to evaluate new data analytics solutions? (Percent of respondents, N=102, three responses accepted)

Expected Benefits of Big Data Analytics


22%

26%

26%

30%

34%

34%

43%

44%

55%

0% 10% 20% 30% 40% 50% 60%

Ability to accommodate new data types

Simplified data integration

Reduced infrastructure costs

Ability to leverage existing resources (i.e., staff)

Reduced deployment time and cost

Ability to complete analytics on larger data sets

Easier to manage

Ability to complete analytics in a shorter period of time

Improved business agility

Which of the following benefits does your organization expect to derive from deploying a new data analytics solution? (Percent of respondents, N=102, multiple

responses accepted)

20

ESG Recommends Learning from Experienced Experts


• Data analytics is a top IT priority

Challenges are only compounded by more data volumes and demand for faster results, as well as more data variety and complex integration challenges

• Leverage hired experts to augment your team

Big Data requires new techniques and technologies to harness value

Incorporate a train-the-trainer regiment in the methodology

• Build a plan that can accommodate future change

Leverage experience to look beyond today’s challenges


Take Purposeful Action on the Big Data Imperative

© Copyright 2011 EMC Corporation. All rights reserved. 23

Pick the best-fit, priority business opportunity

Big Data Advisory Service: find the right big data business opportunity and build a comprehensive plan/roadmap

1



Build use cases that drive next generation BI and analytics

Develop a vision for applying cloud capabilities

Create a conceptual architecture for a more agile data platform

Assess readiness of data quality, governance, and security


3

4

2

5

1



Build use cases that drive next generation BI and analytics

Develop a vision for applying cloud capabilities

Create a conceptual architecture for a more agile data platform

Assess readiness of data quality, governance, and security


Integrate findings into a phased roadmap

3

4

2

5

6 1


Q&A


Next Steps • Contact us today for a follow up call or visit

– Bill Schmarzo [email protected] – Julie Lockner 508.377.3410 [email protected]

• Read our blogs – http://www.enterprisestrategygroup.com/bigger-data/ – http://infocus.emc.com

• Download our white papers – Big Data Analytics: Gain Competitive Advantage from the Combination of

Big Data and Advanced Analytics http://www.emc.com/collateral/emc-perspective/h8668-ep-cloud-big-data-analytics.pdf

– ESG Big Data Advisory http://www.emc.com/collateral/analyst-reports/esg-emc-consulting-big-data-advisory.pdf

mailto:[email protected]





http://www.enterprisestrategygroup.com/bigger-data/





http://infocus.emc.com

http://www.emc.com/collateral/emc-perspective/h8668-ep-cloud-big-data-analytics.pdf













http://www.emc.com/collateral/analyst-reports/esg-emc-consulting-big-data-advisory.pdf














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how to successfully exploit big data for business advantage

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