Tag Archives: value
According to Gartner, 64% of organizations surveyed have purchased or were planning to invest in Big Data systems. More and more companies are diving into their data, trying to put it to use to minimize customer churn, analyze financial risk, and improve the customer experience.
Of that 64%, 30% have already invested in Big Data technology, 19% plan to invest within the next year, and another 15% plan to invest within two years. Less than 8% of Gartner’s 720 respondents, however, have actually deployed Big Data technology. This is bad, because most companies simply don’t know what they’re doing when it comes to Big Data.
Over the years, we have heard that Big Data is Volume, Velocity, and Variety. I feel this is one of the reasons why despite the Big Data hype, most companies are still stuck in neutral is because of this limited view.
- Volume: Terabytes to Exabytes, petabytes to Zetabytes of lots of data
- Velocity: Streaming data, milliseconds to seconds, how fast data is produced, and how fast the data must be processed to meet the need or demand
- Variety: Structured, unstructured, text, multimedia, video, audio, sensor data, meter data, html, text, e-mails, etc.
For us, the focus is on collection of data. After all, we are prone to be hoarders. Wired by our survival extinct to collect and hoard for the leaner winter months that may come. So while we hoard data, as much as we can, for the illusive “What if?” scenario. “Maybe this will be useful someday.” It’s this stockpiling of Big Data without application that makes it useless.
While Volume, Velocity, and Variety are focused on collection of data, Gartner, in 2014, introduced 3 additional Vs: Veracity, Variability, and Value which focus on usefulness of the data.
- Veracity: Uncertainty due to data inconsistency and incompleteness, ambiguities, latency, deception, model approximations, accuracy, quality, truthfulness or trustworthiness
- Variability: The differing ways in which the data may be interpreted, different questions require different interpretations
- Value: Data for co-creation and deep learning
I believe that perfecting as few as 5% of the relevant variables will get a business 95% of the same benefit. The trick is identifying that viable 5%, and extracting meaningful information from it. In other words, “Value” is the long pole in the tent.
Eighteen months ago, I was sitting in a conference room, nothing remarkable except for the great view down 6th Avenue toward the Empire State Building. The pre-sales consultant sitting across from me had just given a visually appealing demonstration to the CIO of a multinational insurance corporation. There were fancy graphics and colorful charts sharply displayed on an iPad and refreshing every few seconds. The CIO asked how long it had taken to put the presentation together. The consultant excitedly shared that it only took him four to five hours, to which the CIO responded, “Well, if that took you less than five hours, we should be able to get a production version in about two to three weeks, right?”
The facts of the matter were completely different however. The demo, while running with the firm’s own data, had been running from a spreadsheet, housed on the laptop of the consultant and procured after several weeks of scrubbing, formatting, and aggregating data from the CIO’s team; this does not even mention the preceding data procurement process. And so, as the expert in the room, the voice of reason, the CIO turned to me wanting to know how long it would take to implement the solution. At least six months, was my assessment. I had seen their data, and it was a mess. I had seen the flow, not a model architecture and the sheer volume of data was daunting. If it was not architected correctly, the pretty colors and graphs would take much longer to refresh; this was not the answer he wanted to hear.
The advancement of social media, new web experiences and cutting edge mobile technology have driven users to expect more of their applications. As enterprises push to drive value and unlock more potential in their data, insurers of all sizes have attempted to implement analytical and business intelligence systems. But here’s the truth: by and large most insurance enterprises are not in a place with their data to make effective use of the new technologies in BI, mobile or social. The reality is that data cleanliness, fit for purpose, movement and aggregation is being done in a BI when it should be done lower down so that all applications can take advantage of it.
Let’s face it – quality data is important. Movement and shaping of data in the enterprise is important. Identification of master data and metadata in the enterprise is important and data governance is important. It brings to mind episode 165, “The Apology”, of the mega-hit show Seinfeld. Therein George Costanza accuses erstwhile friend Jason Hanky of being a “step skipper”. What I have seen in enterprise data is “step skipping” as users clamor for new and better experiences, but the underlying infrastructure and data is less than ready for consumption. So the enterprise bootstraps, duct tapes and otherwise creates customizations where it doesn’t architecturally belong.
Clearly this calls for a better solution; A more robust and architecturally sustainable data ecosystem, which shepherds the data from acquisition through to consumption and all points in between. It also must be attainable by even modestly sized insurance firms.
First, you need to bring the data under your control. That may mean external data integration, or just moving it from transactional, web, or client-server systems into warehouses, marts or other large data storage schemes and back again. But remember, the data is in various stages of readiness. This means that through out of the box or custom cleansing steps the data needs to be processed, enhanced and stored in a way that is more in line with corporate goals for governing the quality of that data. And this says nothing of the need to change a data normalization factor between source and target. When implemented as a “factory” approach, the ability to bring new data streams online, integrate them quickly and maintain high standards become small incremental changes and not a ground up monumental task. Move your data shaping, cleansing, standardization and aggregation further down in the stack and many applications will benefit from the architecture.
Critical to this process is that insurance enterprises need to ensure the data remains secure, private and is managed in accordance with rules and regulations. They must also govern the archival, retention and other portions of the data lifecycle.
At any point in the life of your information, you are likely sending or receiving data from an agent, broker, MGA or service provider, which needs to be processed using the robust ecosystem, described above. Once an effective data exchange infrastructure is implemented, the steps to process the data can nicely complement your setup as information flows to and from your trading partners.
Finally, as your enterprise determines “how” to implement these solutions, you may look to a cloud based system for speed to market and cost effectiveness compared to on-premises solutions.
And don’t forget to register for Informatica World 2014 in Las Vegas, where you can take part in sessions and networking tailored specifically for insurers.
Those moving to Big Data, and that is a lot of enterprises right now, should also consider the need for data integration to support their new data platform. In many cases, the use of proper data integration procedures and technology is an afterthought. However, with a bit of planning and the right data integration technology, the transition to Big Data can be a smooth and productive one. Here are a few things to consider:
Data quality becomes even more important. Considering that Big Data systems, no matter if they are within the cloud or the data center, manage massive amounts of data, both structured and unstructured. Thus, the ability to manage data quality becomes more of a priority. (more…)
“We have 20% duplicates in our data source”. This is how the conversation began. It was not that no one cared about the level of duplicates, it’s just that the topic of duplicate records did not get the business excited – they have many other priorities (and they were not building a single view of customer).
The customer continued the discussion thread on how to make data quality relevant to each functional leader reporting to C-level executives. The starting point was affirmation that the business really only care about data quality when it impacts the processes that they own e.g. order process, invoice process, shipping process, credit process, lead generation process, compliance reporting process, etc. This means that data quality results need to be linked to the tangible goals of each business process owner to win them over as data advocates. (more…)