How To Realize Business Value From Big Data
- 1. How To Realize Business Value From Big Data By Issam Hijazi @iHijazi
- 2. Agenda • Big Data • Business Value • Analyze Business Value of Big Data
- 3. Big Data
- 4. ” When volume, velocity and variety of data exceed an organization's storage or compute capacity for accurate and timely decision making” - Mark Troester, sas
- 5. Big Data: The Three “Vs” elements
- 6. Why to use Big Data? • Analyze Social Media Feeds, web traffic, IT system logs or any type of digital shadows being created in record volumes every day. • discover repeatable business patterns. • analytical use, and enabling new products. • gain competitive advantage. • More accurate Decision Making: “If you could run that forecast taking into account 300 factors rather than 6, could you predict demand better?”
- 7. Big Data Applications Domains
- 8. Big Data Business Drivers
- 10. “In management, business value is an informal term that includes all forms of value that determine the health and well- being of the firm in the long-run” -wikipedia
- 11. Business Value • Business value expands concept of value of the firm beyond economic value • NOT directly measured in monetary terms. • Ex: employee value, customer value, supplier value, partner value, etc…
- 12. An example… • Let’s take “customer value” as an example. • Customer is money, an income to the company. • A happy customer is everyone’s goal
- 13. Example continued… • Imagine that we are about to start user registration functionality on a website • After conducting a thorough set of user tests: 1. half of all users who attempt to register can’t successfully complete the process. 2. Those who do register find the process very frustrating.
- 14. Example continued… • We need to fix this issue, right? • We start asking questions, such as: - If we removed the registration process entirely from the site, what would the effects be? Win? Lose? - How does an improved registration process help the business? - Fixing the registration process to eliminate any frustration would be important, right? • With a little research on the feature’s impact, we can start to quantify the true value of the functionality
- 15. How to identify business value? • Will it increase revenue? • Will it decrease expenses? • Will it bring in new customers? • Will it bring in more money from existing customers? • Will it increase shareholder/taxpayer value? •… depending on how the organization uses that registration information.
- 16. Why Business Value is important? • To clearly communicate why investing resources in the improvements will benefit the organization. • Increases our chances of getting approval to do the interesting, challenging projects.
- 17. How To Realize Business Value From Big Data
- 18. Recap • Big Data is all about information and feeds. • Business Value is all about the impact of certain component or action • Where is the connection?
- 19. The intersection between the two Business Big Data Value
- 20. Continued…
- 21. Make a decision! • You have tracked 300 factors (signals) that you collected through a “variety” of sources, in a different “velocity”, which comes in a huge “volume”. Big Data • You have a business value that needs improvement and enhancement, an action! Business Value • How easy would it be to analyze it?
- 22. An example • Recall our Registration example in Business Value section. • If we have linked this registration with Google Analytics, we’ll have enough information after a while to tackle down user exact behavior. • We’ll identify where the issue is, how often is it. • Hence, we’ll make a firm and accurate Decision!
- 23. Other examples • Facebook uses Big Data to analyze Big Data. Through its “Maybe you like, maybe you know, and such” • Twitter, through “People like you”. It understood your interests and made a decision on who you may want to connect with.
- 24. Last words • There are many applications out there to be used. • You cannot make use of one application to cover all your needs. • A cloud SaaS are an option, a cheaper one sometimes. • Everyone needs to make use of Big Data, even garage start ups. • It's not size that matters. While it's interesting for the technical discussion to focus on size, the focus should be on business value first.
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