Welcome!

@BigDataExpo Authors: Liz McMillan, Pat Romanski, Rene Buest, Kevin Benedict, Elizabeth White

Related Topics: @BigDataExpo, Open Source Cloud, @CloudExpo

@BigDataExpo: Article

Big Data Business Model Maturity Index Guide By @Schmarzo | @BigDataExpo #BigData

Helping organizations measure how effective they were at leveraging data and analytics to power their business model

We developed the Big Data Business Model Maturity Index to help organizations measure how effective they were at leveraging data and analytics to power their business models (see Figure 1).

What we hadn’t done until now, though, was to translate this index into a set of recommendations or actions to help organizations advance from one stage to the next.  That’s the objective of this blog (and maybe my next book…God forbid!!!):  to give our clients a checklist of actions to facilitate progressing along the Big Data Business Model Maturity Index.

Figure 1: Big Data Business Model Maturity Index

Understanding The Big Data Business Model Maturity Index
The vast majority of organizations with which I meet are stuck in Phase 1:  the Business Monitoring phase.  In this phase, organizations are using Business Intelligence (BI) and data warehousing tools to monitor the business; providing a retrospective, batch view of what the business has accomplished.  And while this is a critical foundation upon which to build big data capabilities, organizations have learned that they cannot become a real-time, predictive and prescriptive data-driven organization using these BI and data warehouse tools.  Organizations need something more, which is where the Big Data Business Model Maturity Index comes into play.

So what are the steps that an organization needs to accomplish in order to advance itself through the Big Data Business Model Maturity Index?  What actions do organizations need to take in order to become a more real-time, more predictive and prescriptive organization that is capable of monetizing opportunities with Big Data and developing entirely new business models around these new insights?  Organizations need a prescriptive guide (and future Big Data MBA course?) to progress through the Big Data Business Model Maturity Index; to become more effective at leveraging data and analytics to power their business models.

Steps to Progress from Monitoring to Insights
The Insights stage is about coupling the wealth of internal and external data with predictive analytics (and even machine learning) to uncover insights about the organization’s key (internal) business processes, product and service attributes, and/or customer behaviors and sentiments.  Key actions required to transition from the Monitoring to the Insights stage include:

  • Identify Key Business Decisions. Identify and understand the decisions that the key business stakeholders need to make to support an organization’s key business initiatives (e.g., “Reversing financial trading platform market share loss”)
  • Create Analytics Sandbox. Provide an analytics environment that allows the data scientists to rapidly ingest data (as-is; no schema required), explore the data, and test the data for its predictive capabilities in a fail fast environment that includes:
    • Historical detailed operational and transactional data at the most granular (individual investor, adviser or trader) level
    • Internal unstructured data about engagements and conversations (consumer comments, surveys, advisor notes, email conversations, etc.) with individual investors, advisers or traders
    • External unstructured data about individual investors, advisers or traders publicly available activities (social media postings, property values, property taxes, college donations, job promotions)
  • Deploy Predictive Analytics. Leverage predictive analytics and machine learning to mine the above wealth of data to uncover individuals’ relevant behaviors (e.g., trading and engagement tendencies, propensities, preferences, patterns, trends, interests, passions, affiliations, associations, sentiment)
  • Build Analytic Profiles. Create individual Analytic Profiles for the key individuals (e.g., investors, traders, advisors, portfolio managers) that includes basic demographic data (age, income level, education level, number of dependents, etc.) coupled with advanced demographic data (value of home, donations, vacations, travel, age to retirement, etc.) as well as “scores” that support the organization’s key business initiatives (e.g., Customer LTV, FICO, Retirement Readiness, Risk Tolerance, Children’s College Funding, Legacy Giving)
  • Deploy Right-time Analytics. Create a “Right time” analytics capabilities that can monitor individuals’ behaviors (across individuals’ transactions, engagements, events, activities, etc.) to flag behavioral changes or insights that might be worthy of analysis.
  • Train Business Users. Train business users in a process to think creatively (“Thinking Like A Data Scientist”) about identifying data sources, variables and metrics that could potentially be better predictors of business or individual performance
  • Capture Insights. Capture and catalogue the insights that are being uncovered about your key business entities (e.g., customers, products, operations, markets) for review and assessment in the Optimization phase of the Big Data Business Model Maturity Index.

Steps to Progress from Insights to Optimization
The Optimization stage applies prescriptive analytics to the customer, product, operational and market insights to deliver recommendations to front-line employees, partners and customers to improve effectiveness of the organization’s key (internal) business processes.  Key actions required to transition from the Insights to the Optimization stage include:

  • Evaluate Insights Business Relevance. Train business subject matter experts to assess the potential value of each of the customer, product, operational and market insights using the A.M. Test:
    • Are the insights Strategic for the targeted business initiative?
    • Are the insights Actionable?
    • Are the insights Material (i.e., the value of acting is greater than the cost of acting)?
  • Deploy Prescriptive Analytics. For insights that pass the S.A.M. Test, build prescriptive analytics to deliver actionable recommendations to the key business entities (investors, advisers, partners, agents, portfolio managers, etc.) that support the key decisions for the targeted business process
  • Deploy Data Lake. Build a Data Lake that supports rapid data ingestion, data engineering, data exploration and analytic modeling.  Key characteristics of a data lake include:
    • Captures data from a wide range of traditional and new sources as-is (structured and unstructured)
    • Enables you to store all your data in one environment for cross-functional business analysis
    • Enables in-place predictive analytics to uncover new customer, product, and operational insights
    • Enables prescriptive analytics to create recommendations that empower front-line employees and drive more profitable customer engagement
    • Enables the integration of the analytic results (scores, recommendations, rules) into operational and management systems
  • Leverage App Dev. Operationalize the recommendations by leveraging modern app/dev techniques to integrate the results with web-based, mobile app, dashboards, reports.,  This delivers the recommendations, scores and rules in a way that lets the business stakeholders  consume them easily.
  • Measure Decision Effectiveness. Instrument or configure the recommendations in order to determine the effectiveness of the recommendations (i.e., did the recommendations work as predicted).  Use the results of the effectiveness measurements to finetune the analytic models.

Steps to Progress from Optimization to Monetization
The Monetization stage leverages the approach from the Optimization phase to identify and execute on new (external) business opportunities within the context of the organization’s existing business strategy.  Key actions required to transition from the Optimization to the Monetization stage include:

  • Categorize Analytic Insights. Capture and catalogue the captured customer, product, operational and market insights in the data lake and/or analytic sandbox, and then validate the business relevance and business potential of those insights
  • Codify Monetization Opportunities. Decompose short-to-medium term business strategy and key business initiatives for growth to understand what the organization wants to accomplish and how data insight could accelerate those initiatives. Run envisioning exercises with key business subject matter experts (SME’s) to review and assess the value of insights as they relate to growth opportunities.  New business opportunities typically fall into the areas of new products, services, channels, audiences, markets, and/or partners.
  • Prove ROI. Provide a Proof of Value environment where the data science team can collaborate with the business SME’s to determine if the analytics can be turned into new business opportunities (i.e., validate market size and market share potential, determine the analytic lift and range of Return on Investment); determine how would these insights be used to identify and launch new market or revenue initiatives?
  • Operationalize New Products/Services. If there is a compelling ROI and the analytic models can generate the necessary lift, then push the new monetization opportunities to market launch.  Instrument the rollout to monitor the monetization effectiveness and make right-time course corrections.

Steps to Progress from Monetization to Metamorphosis
The Metamorphosis stage leverages the organization’s cumulative insights, data and analytics to create net new components of the business strategy – new business models, new consumption models, new corporate goals, new BHAGs!  Key actions required to transition from the Monetization stage to the Metamorphosis stage include:

  • Create New Customer Consumption Models. Consider your customers’ financial reasons for doing business with you; why and how are your customers making purchasing decisions and how can you improve the effectiveness and timeliness of those decisions.  Create new consumption models (e.g., convert CapEx to OpEx), and additional products/services that deliver connective value.
  • Create Analytics Platform. Extend your analytics platform to incorporate customer-facing interactivity (think GE Predix or Apple App Store) where customers can develop new apps that integrate into their business operations (business models).
  • Enable Third-Party App Developers. Determine how to enable, scale and secure the analytics platform so that third-party application developers can develop, market, sell and support new value-added applications (think Apple App Store and Google Play)

Big Data Business Model Maturity Index Summary
Figure 2 summarizes the steps in the process of becoming more effective at leveraging data and analytics to power the business.

Figure 2:  Big Data Business Model Maturity Index Guide

This is a process that any organization can follow.  However, resist the urge to jump to step 3 or 4 in the process, and resist the urge to just throw technology at the opportunity and hope that everything works out.  Hope is only a strategy if you are in the cosmetics business, but the rest of us need a guide.

By the way, if you are coming to Strata + Hadoop World in San Jose March 19 through March 21, be sure to catch my session “Developing a Big Data Business Strategy” on Wednesday, March 30th at 11:00 – 11:40am in Room: LL21 E/F.  Check out this link for more details: http://conferences.oreilly.com/strata/hadoop-big-data-ca/public/schedule/detail/49020.  See you there!!

The post Big Data Business Model Maturity Index Guide appeared first on InFocus.

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
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
Connecting to major cloud service providers is becoming central to doing business. But your cloud provider’s performance is only as good as your connectivity solution. Massive Networks will place you in the driver's seat by exposing how you can extend your LAN from any location to include any cloud platform through an advanced high-performance connection that is secure and dedicated to your business-critical data. In his session at 21st Cloud Expo, Paul Mako, CEO & CIO of Massive Networks, wil...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
SYS-CON Events announced today that Massive Networks 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. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
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 ...
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, 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. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
SYS-CON Events announced today that Pulzze Systems will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems Inc, provides the software product "The Interactor" that uniquely simplifies building IoT, Web and Smart Enterprise Solutions. It is a Silicon Valley startup funded by US government agencies, NSF and DHS to bring innovative solutions to market.
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
SYS-CON Events announced today that Elastifile 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. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
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...