Big data – enabler of fact-based decision making

18 April 2013

Otto Söderlund, Partner

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Big data is high-volume, high-velocity and high-variety information assets that demand cost-effective, innovative forms of information

processing for enhanced insight and decision making.

-Gartner

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Recipe for Big Data Success

Baking time: 1-5 years

Makes: 5-6% increase in profits

Difficulty: Hard

Preparation: Blend own and bought data into a

solid mixture. Stir in rest of the

ingredients and make sure that

management is committed to use

data. Cook on a low heat stirring

continuously until al dente.

Ingredients: •  100 TB structured data

•  80 TB non-structured data

•  50 TB bought data

•  Handful of data analysts

•  Committed management

•  Pinch of effective decision-making

processes

Source: Tata Consulting Services 2013 5

15 % 15 % 13 %

11 % 11 % 8 % 8 % 7 %

5 % 6 %

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

Where companies across industries focused their Big Data investments in 2012 (% of total Big Data investments)

Sources: Tata Consulting Service 2013, Economist Intelligence Unit 2012, Harvard Business Review 2012 6

6%

Improvement in profitability for firms that emphasize decision-

making based on data and analytics

54%

Expected return on Big Data investments across functions

26%

Average improvement in performance over the past three

years for processes where Big Data analytics has been applied

UNCLEAR BIG DATA VISION AND APPROACH

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SEEING TRANSFORMATION PURELY AS A TECHNICAL CHALLENGE

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UNDERESTIMATING RESOURCE AND COMPETENCE NEEDS

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UNDERESTIMATING OPERATIONAL IMPLICATIONS

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Source: Magenta Advisory analysis 7

STARTING TOO BIG

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Past: Decision making was based on HiPPO (Highest Paid Person’s Opinion)

Present: Anyone can submit ideas and real-time experimentation engine chooses best content.

Picture: STEVE BLOOM / BARCROFT MEDIA

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We run the company by questions, not by answers. So in

the strategy process we've so far formulated 30 questions

that we have to answer.

- Eric Schmidt, Executive Chairman of Google

Picture: LA CROIX

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The price of light is less than the cost of darkness

- Arthur C. Nielsen