Welcome!

@BigDataExpo Authors: Pat Romanski, Elizabeth White, Yeshim Deniz, Liz McMillan, William Schmarzo

Related Topics: @BigDataExpo, @CloudExpo, @ThingsExpo

@BigDataExpo: Blog Feed Post

Data Lake: Save Me More Money vs. Make Me More Money By @Schmarzo | @BigDataExpo #BigData

The data lake is a centralized repository for all the organization’s data of interest whether internally or externally generated

2016 will be the year of the data lake. But I expect that much of 2016 data lake efforts will be focused on activities and projects that save the company more money. That is okay from a foundation perspective, but IT and Business will both miss the bigger opportunity to leverage the data lake (and its associated analytics) to make the company more money.

This blog examines an approach that allows organizations to quickly achieve some “save me more money” cost benefits from their data lake without losing sight of the bigger “make me more money” payoff – by coupling the data lake with data science to optimize key business processes, uncover new monetization opportunities and create a more compelling and differentiated customer experience.

Let’s start by quickly reviewing the concept of a data lake.

The Data Lake
The data lake is a centralized repository for all the organization’s data of interest, whether internally or externally generated. The data lake frees the advanced analytics and data science teams from being held captive to the data volume (detailed transactional history at the individual level), variety (structured and unstructured data) and velocity (real-time/right-time) constraints of the data warehouse. The data lake provides a line of demarcation that supports the traditional business intelligence/data warehouse environment (for operational and management reporting and dashboards) while enabling the organization’s new advanced analytics and data science capabilities (see Figure 1).

Bill 1

Figure 1: The Data Lake

The viability of a data lake was enabled by many factors including:

  • The development of Hadoop as a scale-out processing environment. Hadoop was developed and perfected by internet giants such as Google, Yahoo, eBay and Facebook to store, manage and analyze petabytes of web, search and social media data.
  • The dramatic cost savings using open source software (Hadoop, MapReduce, Pig, Python, HBase, etc.) running on commodity servers that yields a 20x to 50x cost advantage over traditional, proprietary data warehousing technologies .
  • The ability to load data as-is, which means that a schema does NOT need to be created prior to loading the data. This supports the rapid ingestion and analysis of a wide variety of structured and unstructured data sources.

The characteristics of a data lake include:

  • Ingest. Capture data from wide range of traditional (operational, transactional) and new sources (structured and unstructured) as-is
  • Store. Store all your data in one environment for cross-functional business analysis
  • Analyze. Support the analytics and data science to uncover new customer, product, and operational insights
  • Surface. Empower front-line employees and managers, and drive a more profitable customer engagement leveraging customer, product and operational insights
  • Act. Integrate analytic insights into operational (Finance, Manufacturing, Marketing, Sales Force, Procurement, Logistics) and management (Business Intelligence reports and dashboards) systems

Data Lake Foundation: Save Me More Money
Most companies today have some level of experience with Hadoop. And many of these companies are embracing the data lake in order to drive costs out of the organization. Some of these “save me more money” areas include:

  • Data enrichment and data transformation for activities such as converting unstructured text fields into a structured format or creating new composite metrics such as recency, frequency and sequencing of customer activities.
  • ETL (Extract, Transform, Load) offload from the data warehouse. It is estimated that ETL jobs consume 40% to 80% of all the data warehouse cycles. Organizations can realize an immediate value by moving the ETL jobs off of the expensive data warehouse to the data lake.
  • Data Archiving, which provides a lower-cost way to archive or store data for historical, compliance or regulatory purposes
  • Data discovery and data visualization that supports the ability to rapidly explore and visualize a wide variety of structured and unstructured data sources.
  • Data warehouse replacement. A growing number of organizations are leveraging open-source technologies such as Hive, HBase, HAWQ and Impala to move their business intelligence workloads off of the traditional RDBMS-based data warehouse to the Hadoop-based data lake.

These customers are dealing with what I will call “data lake 1.0,” which is a technology stack that includes storage, compute and Hadoop. The savings from these “Save me more money” activities can be nice with a Return on Investment (ROI) typically in the 10% to 20% range. But if organizations stop there, then they are leaving the 5x to 10x ROI projects on the table. Do I have your attention now?

Data Lake Game-changer: Make Me More Money
Leading organizations are transitioning their data lakes to what I call “data lake 2.0” which includes the data lake 1.0 technology foundation (storage, compute, Hadoop) plus the capabilities necessary to build business-centric, analytics-enabled applications. These additional data lake 2.0 capabilities include data science, data visualization, data governance, data engineering and application development. Data lake 2.0 supports the rapid development of analytics-enabled applications, built upon the Analytics “Hub and Spoke” data lake architecture that I introduced in my blog “Why Do I Need A Data Lake?” (see Figure 2).

Bill blog2

Figure 2: Analytics Hub and Spoke Architecture

Data lake 2.0 and the Analytics “Hub and Spoke” architecture supports the development of a wide range of analytics-enabled applications including:

  • Customer Acquisition
  • Customer Retention
  • Predictive Maintenance
  • Marketing Effectiveness
  • Customer Lifetime Value
  • Demand Forecasting
  • Network Optimization
  • Risk Reduction
  • Load Balancing
  • “Smart” Products
  • Pricing Optimization
  • Yield Optimization
  • Theft Reduction
  • Revenue Protection

Note: Some organizations (public sector, federal, military, etc.) don’t really have a “make me more money” charter; so for these organizations, the focus should be on “make me more efficient.”

Big Data Value Iceberg
The game-changing business value enabled big data isn’t found in the technology-centric data lake 1.0, or the top of the iceberg. Like an iceberg, the bigger business opportunities are hiding just under the surface in data lake 2.0 (see figure 3).

bill blog3

Figure 3: Data Lake Value Iceberg

The “Save Me More Money” projects are the typical domain of IT, and that is what data lake 1.0 can deliver. However if your organization is interested in the 10x-20x ROI “Make Me More Money” opportunities, then your organization needs to aggressively continue down the data lake path to get to data lake 2.0.
10x-20x ROI projects…do I have your attention now?

Data Lake: Save Me More Money vs. Make Me More Money
Bill Schmarzo

Read the original blog entry...

More Stories By William Schmarzo

Bill Schmarzo, author of “Big Data: Understanding How Data Powers Big Business”, is responsible for setting the strategy and defining the Big Data service line offerings and capabilities for the EMC Global Services organization. As part of Bill’s CTO charter, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He’s written several white papers, avid blogger and is a frequent speaker on the use of Big Data and advanced analytics to power organization’s key business initiatives. He also teaches the “Big Data MBA” at the University of San Francisco School of Management.

Bill has nearly three decades of experience in data warehousing, BI and analytics. Bill authored EMC’s Vision Workshop methodology that links an organization’s strategic business initiatives with their supporting data and analytic requirements, and co-authored with Ralph Kimball a series of articles on analytic applications. Bill has served on The Data Warehouse Institute’s faculty as the head of the analytic applications curriculum.

Previously, Bill was the Vice President of Advertiser Analytics at Yahoo and the Vice President of Analytic Applications at Business Objects.

@BigDataExpo Stories
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.