From insight to impact unlocking opportunities in big. data and data analytics. Houston May 17, 2016

Transcription

1 From insight to impact unlocking opportunities in big data and data analytics Houston May 17, 2016

2 What we will cover today Overview What exactly is big data? Technology trends, tools and technologies Looking into the future Global survey Views from our members in industry Case studies Examples of how companies are leveraging data Is this all hype? What experts have to say Role of the finance organization Who owns data analytics? Data visualization A picture is worth a thousand words Implementation Some thoughts on approaches 2

3 Overview

4 Top performing organizations use analytics 5 times more than lower performers (MIT Sloan Management Review research) 4

5 How does your team rank? espn.go.com 5

6 What is Big Data? Big data refers to datasets whose size is beyond the ability of typical database software tools to capture, store, manage, and analyze. (Big data: The next frontier for innovation, competition, and productivity, McKinsey Global Institute) 6

7 Volume Velocity Variety Veracity Four Dimensions of Big Data (Source: IBM) 7

8 The Universe of Data 8

9 Levels of data analysis Source: The Data Warehousing Institute (TDWI), tdwi.org 9

10 Megabytes, Gigabytes, Terabytes? Source: whatsabyte.com 10

11 Vendor landscape

12 Vendor Landscape Magic Quadrant for Business Intelligence and Analytics Platforms Source: Gartner (February 2016) 12

13 Two sources for additional research The Forrester Wave : Enterprise Business Intelligence Platforms Ventana Research Value Index: Analytics and Business Intelligence 13

14 Business intelligence vs. new data discovery market American Institute of CPAs

15 Business analytics vs. advanced analytics (Little data vs. big data) American Institute of CPAs

16 Trends

17 Forrester Research: Top Technology Trends to Watch: 2014 to Digital convergence erodes boundaries 2. Digital experience delivery makes (or breaks) firms 3. APIs become digital glue 4. The business takes ownership of process and intelligence 5. Firms shed yesterday s data limitations 6. Sensors and devices draw ecosystems together 7. Trust and identity get a rethink 8. Infrastructure takes on engagement 9. Firms learn from the cloud and mobile 10.IT becomes an agile service broker (or fades away) 17

18 Daniel Burrus Top Technology Trends 1. Big data gets bigger and use of high speed analytics expands 2. Cloud computing grows with advance cloud services 3. Virtualization of storage, desktops, applications and networking 4. Virtualization of processes and services (on demand services) 5. Wearables and applications go mainstream 6. Consumerization of IT Increases 7. Gamification of training and education 8. Online learning gains momentum 9. ebooks, enewspapers, emagazines and interactive multimedia etextbooks use is rapidly growing 10. Social business applications diversify Source: Burrus Research, Burrus.com

19 Analytics Trends

20 Top 5 functions driving business intelligence 1.Executive management 2.Finance 3.Operations 4.Information technology 5.Sales Wisdom of Crowds Business Intelligence Market Study, Dresner Advisory Services, LLC,

21 Platforms and technologies

22 Sources of Big Data Google searches databases Social media CRM systems Health records Forums RFID tags GPS enabled devices Smart meters You Tube Government databases Amazon.com Cross selling Cell towers Smart grid sensors Automotive sensors Building systems Wearables 22

23 Applications and Insights Customer analytics Manufacturing Research & development Distribution & logistics Marketing Operational analysis Human resources Accounting Government Competition Media & telecommunications Stock market analysis Healthcare and life sciences 23

24 Techniques and technologies for analyzing Big Data Nice summary available from McKinsey & Company: Examples of techniques: A/B Testing Associate rule learning Cluster analysis Predictive modeling Regression Sentiment analysis 24

25 Key terms Business intelligence Structured, unstructured, semi-structured data Relational, non-relational database SQL, NoSQL Distributed systems Hadoop MapReduce Cassandra Predictive, prescriptive analytics 25

26 Selecting a Big Data Platform: Building a Data Foundation for the Future 26

27 Recently released self-study CPE 27

28 Global Survey CIMA and the AICPA asked over 2000 finance professionals around the world about the role of finance in turning data into insight to maximize commercial opportunities.

29 The challenge for business 29

30 The opportunity for finance 30

31 Skills enhance career and employability 31

32 Weak points in extracting insight 32

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34 What are the most vexing barriers to improving FP&A s value to the business? Source: Financial Planning and Analysis: Influencing Corporate Performance with Steller Processes, People and Technology, Grant Thornton and APQC,

35 Big Data s competitive significance 89% Agree Big data will revolutionize the way we do business to a degree similar to the advent of the Internet in the 1990s 79% Agree Companies that do not embrace big data will lose their competitive position and may even face extinction Big Success with Big Data Survey, Accenture American Institute of CPAs

36 Middle Market Companies 41% Have one or more big data projects already in place 55% Another 55% are starting one Competitive Edge Research Reports, Midmarket Companies See Early Success with Big Data, 2014 American Institute of CPAs

37 Middle Market Executives Is your company using business analytics? 80% % 2014 Disruption in the mid-market: How technology is fueling growth, Deloitte American Institute of CPAs

38 Big Data s mixed picture Joining the dots: Decision making for a new era, CGMA.org 38

39 Predictive analytics & examples

40 Predictive Analytics Becoming mainstream No longer realm of mathematicians Uses: Predicting trends, understanding customers and predicting behavior Business users best positioned to drive value Software is becoming easier to use 40

41 How companies are using predictive analytics Source: Predictive Analytics for Business Advantage, By Fern 41 Halper, TDWI Research Best Practices Report

42 Amazon obtains patent for anticipatory shipping Your next package could be on its way before you know you want it 42

43 Location analytics drive targeted marketing Customers will drive up to 2 hours to purchase a car, passing more conveniently located dealers to save $

44 Use of predictive analytics by Nissan Nissan posts 9.3% increase in production, compared with a 9.3% decrease across the industry in wake of Japan earthquake and tsunami 44

45 Analytics to drive efficiency, cost reduction UPS has a history of monitoring and standardizing even the smallest issues, from drivers keeping keys hooked on a finger instead of in their pockets and making only right turns, to increase efficiency and reduce costs. UPS Crunches Data to Make Routes More Efficient, Save Gas By Mary Schlangenstein, Bloomberg.com, Oct 30,

46 Web traffic analytics provide insights. Search activity analysis leads to targeted international promotions 46

47 Insight drives measurable ROI Cincinnati Zoo estimates 411% ROI on analytics initiative, with annual benefits of $738,000 The Business Case for Business Analytics in Midsize Firms, IBM 47

48 Blue Crush Memphis police department uses big data to reduce crime by 28% It s Not Quite the Future Crimes Unit... Yet: Using Big Data to Solve Crimes, criminalelement.com 48

49 If you are applying for a job, which web browser should you use? (Cornerstone OnDemand) 49

50 Hiring in the age of big data Courtesy Knack by Aki Ito, Bloomberg News 50

51 What solar panels tell us about their owners HaystaqDNA 51

52 Using analytics to detect fraud 52

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55 Big Data: All hype?

56 The hype and the promise Where is Big Data in Gartner s hype cycle? 56

57 Data and analytics aren t overhyped but they re oversimplified Views from the front lines of the data-analytics revolution, McKinsey Quarterly, March 2014, by Brad Brown, David Court and Tim McGuire 57

58 Role of the finance organization

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62 Strong demand for analytical skills McKinsey Global Institute predicts a shortage of people with analytical expertise between 140,000 to 190,000 In addition, there will be a shortage of up to 1.5 million managers and analysts with the skills to understand and make decisions based on analysis of big data 62

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65 Power of being a business partner

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67 Visualization

68 Three types of visualization 1. Display/snapshot reporting (including scorecards, infographics) 2. Operational alerting 3. Visual discovery and analysis Data Visualization and Discovery for Better Business Decisions, TDWI Research 68

69 Exploredata.utsystem.edu 69

70 Earnings by major 70

71 Earnings for Business Majors 71

72 Earnings by Graduate Program 72

73 Safety dashboard Source: Dundas Data Visualization, Inc., Dundas.com 73

74 Sales dashboard Source: Dundas Data Visualization, Inc., Dundas.com 74

75 Implementation

76 Implementation approaches Pilot Scaled phase-in Enterprise-wide American Institute of CPAs Source: IFAC International Good Practice Guidance (IGPG), Predictive Business Analytics: Improving Business Performance With Forward-Looking Measures

77 Free/Moderately Priced Tools Tableau Software SizeUp SumAll Roambi Analytics QlickView Visualize Free Google Charts Visualization tools help you sift through your business data and see it with new eyes. AmericanExpress.com, Open Forum, by Bruna Martinuzzi 77

78 Final thoughts

79 Thank you! Paul Parks