Frans feldberg

©All Rights Reserved 2016

BIG data:BIG challenge, BIG threat, BIG value or…. BIG hype?

Big Data Expo21 september 2016


Objectives

Objectives/Agenda1) BIG data What is different?2)Why is BIG data relevant?3)How can big data drive business model innovation?4) Inspire: examples of data‐driven business innovation.


Prof. dr. J.F.M. (Frans) FeldbergProfessor of Data‐Driven Business InnovationFaculty of Economics & Business AdministrationVU University AmsterdamDepartment: Information, Logistics and Innovation

Business Consultant.

FransFeldberg

[email protected]

INTRO

Knowledge, Information and Innovation (www.kinresearch.nl)

Research/Education:• Business Intelligence & Analytics/BIG data• Data‐driven business model innovation• Internet of Things


• Business Administration & Mathematics & Computer Sciences& ….• Bachelor and Master Business Analytics• Multidisciplinary Research Center• Eco System: Businesses & Science• One stop shop: Access to all relevant academic expertise

• Post Graduate Education: Business Analytics & Data Science (http://www.feweb.vu.nl/nl/opleidingen/postgraduate‐opleidingen/business‐analytics/index.aspx )

INTRO

www.acba.nl


(BIG) Data…… What is going on?

Met Big data bezig?






BIG Data…… Hype, kans of bedreiging?



Enige quotes:

• “….Bedrijven gaan er heel veel mee doen en aan verdienen….”

• “…..Voor een kennisland als Nederland geeft dit enorme mogelijkheden…”

• “…..Je kunt een bedrijf starten die de bestaande informatie gaat vergaren, je kunt een service starten die informatie bij elkaar verzamelt en beschikbaar maakt”

• “…..Je kunt technologie ontwikkelen die dit ondersteunt, of je kunt er diensten in verkopen, er zijn verschillende mogelijkheden om er heel snel iets mee te doen”…”

• “…..Ondernemers ruiken hun kansen met nieuwe diensten en nieuwe producten…”




Big Data

“the mother lode of disruptive change in a

networked business environment”

(Baesens et al., 2014, p. 629)

or

“the most hyped IT movement related to DSS

in the field’shistory”

(Arnott & Pervan, 2014, p. 271)

Debating Big Data: A Literature Review on Realizing Organizational Value form Big Data.

(Günther, Rezazade Mehrizi, Feldberg & Huysman, 2016)

How do organizations realize value from big data?



How do organizations realize value from big data?(Günther, Rezazade Mehrizi, Feldberg & Huysman, 2016)

Work‐ Practice

Organizational

Supra‐Organizational

Inductive and Deductive Approaches to Big Data Analytics

Algorithmic and Human‐Based Intelligence

Centralized and Decentralized Big Data Capability Structures

Big data‐driven Business Model Improvement and Innovation

Controlled and Open Big Data Access

Social and Economic Value from Big Data

Gaining insights from big data for decision making.

Developing organizational designs and models.

Dealing with stakeholder interests.

level debate


VOLUME VARIETY VELOCITY VERACITY

4 times different: 4V

What is BIG data?


• Granular.• Unintentional (Expert‐based versus lay cultures). • Unmanageable.• Constant renewal/updating.

What is BIG data?

(Constantiou & Kallinikos, 2014)


What is BIG data?

• Portability: the possibility of transferring and remotely accessing digitized data from one context of application to be used in other contexts

• Interconnectivity: the possibility to synthesize various data sources.

Beyond the Hype?:Two Specific Features of Big Data

How do organizations realize value from big data?(Günther, Rezazade Mehrizi, Feldberg & Huysman, 2016)


What is BIG data?

BIG data is more than simply a matter of Vs: it is also about creating insights!

Discovering what you don’t know you don’t know……

©All Rights Reserved 2016(Courtesy: Andrew McAfee)

New measurement tools give us new insights.Microscope marked a change in era (in an era of change) “GOLDEN AGE”

What is BIG data?


Rene Penning de Vries (Boegbeeld ICT MinvEz)

Onze toekomst in 6Ds1. Digitized2. Demonetized3. Democratized4. Delocalized5. Deceptive6. Disruptive

Why BIG data?

7. DatafiedAdditional D added:


Moore’s Law

Imagine this will happen for a technology that is fundamental for businesses….

Why BIG data?


Why BIG data?


Erik Brynjolfsson & Andrew McAfee

Why BIG data?

Second Half of the Chessboard


In technology strategy, the second half of the chessboard is a phrase, coined by Ray Kurzweilin reference to the point where an exponentially growing factor begins to have a significant economic impact on an organization's overall business strategy.

(http://en.wikipedia.org/)

Andrew McAfee: When do we enter the second half of the chessboard?

1958 + 32 * 1,5 = 2006

US Bureau of Economic

Analysis starts tracking IT

Moore’s Law doubling period

Why BIG data?


Why BIG data?


Why BIG data?


At some point a difference in degree becomes a difference in kind.

Why BIG data?

We leven niet in een tijdperk van veranderingenmaar in een verandering van tijdperken.

(Jan Rotmans)


Why BIG data?


Not only data, but also:

•Internet as a Service

•Cloud Computing

•High Performance Computing

•Crowd Sourcing

Why BIG data?

•Powerful Software (Open Source!)

•High Performance Analytics


Why BIG data?


Why BIG data?


Why BIG data?


What about your company……?

Why BIG data?


Why BIG data?


Producten/Diensten

Markten

Bestaand

Nieuw

NieuwBestaand

Ontregelaar: wij of zij? Ontregelaar: wij of zij?

Ontregelaar: wij !!Ontregelaar: wij of zij?

Why BIG data?

The question is: To be disruptor or disrupted……


“We view big data and big data analytics as the mother lode of disruptive change in a networked business environment.”

(Baesens, Bapna, Marsden, Vanthienen, Zhao, 2014)

Why BIG data?


Strategy making: New Games, New Rules!

Why BIG data?

(Constantiou & Kallinikos, 2014)

Nature of data and information

Standard Strategy Context Big data‐digital ecosystem

Relatively Homogeneous HeterogeneousStructured Unstructured or Semi‐structured

Purposeful, Theory‐driven Agnostic, Haphazard(“sorting in the way in”) (“sorting in the way out”)

Mono‐semiotic, Alphanumerical Trans‐semiotic (Text, Image, Sound)Deductive, Top‐Down Inductive, Bottom‐Up

Long‐Term Horizon Short‐Term Horizon

Forecasting Nowcasting


The use of big data to craft strategy and business models:

(source: Woerner & Wixom (2015))

IMPROVE the business model

INNOVATE the business model

• New Data• New Insights• New Actions

• Data Monetization• Digital Transformation

How can Big Data drive Business Model Innovation?




IMPROVE the business model : New Data

Markets

Manufacturer

Trade Partners

Data Aggregators




(Davenport & Harris, 2006)

DESCRIPTIVE

PREDICTIVE

PRESCRIPTIVE(how to achieve the best outcome?)


IMPROVE the business model : New Insights




IMPROVE the business model : New Insights

“…Einstein will not just consume and manage information like traditional CRM software suites. It will learn from the data. Ultimately it will understand what customers want before even they know. That would be a game‐changer in the CRM industry…’’Marc Benioff (www.forbes.com)



New Data + New Insights => New Actions

• Prescriptive


IMPROVE the business model : New Actions




INNOVATE the business model

Data Monetization

Exchange of data based products and services for something of perceived value.

• Selling• Barter• Wrapping

Digital Transformation

Emergence of business ecosystems, coordinated networks of companies, devices, and consumers that create value.

Competition not defined by traditional industry offerings but by shared customers.



Data Monetization & Digital Transformation: some examples.


10 Top Apps For Eating Healthy(www.forbes.com)

An APP a day keeps the doctor away….!

An a a day keeps the doctor away….!

Examples of data‐driven business innovation

©All Rights Reserved 2016http://www.marketingfacts.nl/



(www.zorgvisie.nl)

Customer intimacy…………….



Myfitnesspal.com


©All Rights Reserved 2016Myfitnesspal.com



http://nieuws.nl.softonic.com/gezondheid‐en‐fitness‐verkopen‐lifestyle‐apps‐jouw‐informatie

Data Monetization: selling.



Data Monetization: selling (aggregator)



(Source : nu.nl)

Data Monetization: barter



Data Monetization: wrapping



Digital Transformation: new ecosystem.



BIG data: Challenges, Risks

•Data Privacy and Ethics: BIG Dilemma’s!

•Data Obsession (“the dictatorship of data”)

•Data Quality: new paradigms?

•Skills: Data Scientists

•Energy


Question: “What are we going to do with the ‘new thing’”, must be changed in: “How are we going to change the old idea”!

What must be taken out of our head and left behind?

Big data: Big Change….


Big data: big change….

Journey……“Als je niet durft te verdwalen, zal je ook geen nieuwewegen vinden.”

Deceptive, Disruptive…..


Dank voor uw aandacht!

Data & Analytics

Frans feldberg