In advance of the upcoming webinar Achieving Pervasive Analytics through Data & Analytic Centricity, Dan Woods, CTO and editor of CITO Research, sat down with Clarke Patterson, senior director, Product Marketing, Cloudera, and Chris Twogood, vice president of Poduct and Services Marketing, Teradata, to discuss some of the ideas and concepts that will be shared in more detail on May 14, 2015.
Having been briefed by Cloudera and Teradata on Pervasive Analytics and Data & Analytic Centricity, I have to say it’s refreshing to hear vendors talk about WHY and HOW big data is important in a constructive way, rather than platitudes and jumping into the technical details of the WHAT which is so often the case.
Let me start by asking you both in your own words to describe Pervasive Analytics and Data & Analytic Centricity, and why this an important concept for enterprises to understand?
During eras of global economic shifts, there is always a key resource discovered that becomes the spark of transformation for organizations that can effectively harness it. Today, that resource is unquestionably ‘data’. Forward-looking companies realize that to be successful, they must leverage analytics in order to provide value to their customers and shareholders. In some cases they must package data in a way that adds value and informs employees, or their customers, by deploying analytics into decisions making processes everywhere. This idea is referred to as pervasive analytics.
I would point to the success that Teradata’s customers have had over the past decades in terms of making analytics pervasive throughout enterprises. The spectrum in which their customer have gained value is comprehensive, from business intelligence reporting and executive dashboards, to advanced analytics, to enabling front line decision makers, and embedding analytics into key operational processes. And while those opportunities remain, the explosion of new data types and breadth of new analytic capabilities is leading successful companies to recognize the need to evolve the way they think about data management and processes in order to harness the value of all their data.
I couldn’t agree more. It’s interesting now that we’re several years into the era of big data to see how different companies have approached this opportunity, which really boils down to two approaches. Some companies have taken the approach of what can we do with this newer technology that has emerged, while others take the approach of defining a strategic vision for the role of the data and analytics to support their business objectives and then map the technology to the strategy. The former, which we refer to as an application centric approach, can result in some benefits, but typically runs out of steam as agility slows and new costs and complexities emerge; while the latter is proving to create substantially more competitive advantage as organizations put data and analytics – not a new piece of technology – at the center of their operations. Ultimately, these companies that take a data and analytic centric approach are coming to a conclusion that there are multiple technologies required, and their acumen on applying the-right-tool-to-the-right-job naturally progresses, and the usual traps and pitfalls are avoided.
Would you elaborate on what is meant by “companies need to evolve the way they think about data management?”
Pre “big data,” there was a single approach to data integration whereby data is made to look the same or normalized in some sort of persistence such as a database, and only then can value be created. The idea is that by absorbing the costs of data integration up front, the costs of extracting insights decreases. We call this approach “tightly coupled.” This is still an extremely valuable methodology, but is no longer sufficient as a sole approach to manage all data in the enterprise.
Post “big data,” using the same tightly coupled approach to integration undermines the value of newer data sets that have unknown or under-appreciated value. Here, new methodologies to “loosely couple” or not couple at all are essential to cost effectively manage and integrate the data. These distinctions are incredibly helpful in understanding the value of Big Data, where best to think about investments, and highlighting challenges that remain a fundamental hindrance to most enterprises.
But regardless of how the data is most appropriately managed, the most important thing is to ensure that organizations retain the ability to connect-the-dots for all their data, in order to draw correlations between multiple subject areas and sources and foster peak agility.
I’d also cite that leading companies are evolving the way they approach analytics. We can analyze any kind of data now - numerical, text, audio, video. We are now able to discover insights in this complex data. Further, new forms of procedural analytics have emerged in the era of big data, such as graph, time-series, machine learning, and text analytics.
This allows us to expand our understanding of the problems at hand. Key business imperatives like churn reduction, fraud detection, increasing sales and marketing effectiveness, and operational efficiencies are not new, and have been skillfully leveraged by data driven businesses with tightly coupled methods and SQL based analytics – that’s not going away. But when organizations harness newer forms of data that adds to the picture, and new complimentary analytic techniques, they realize better churn and fraud models, greater sales and marketing effectiveness, and more efficient business operations.
To learn more, please join the Achieving Pervasive Analytics through Data & Analytic Centricity webinar on Thursday, May 14 the from 10 - 11:00am PT