The ubiquity of big data is such that Gartner dropped it from their Hype Cycle of Emergent Technologies back in 2015. Across sectors, businesses are scrambling to make every function “data driven,” and there’s no shortage of firms lining up to help them. The big data analytics industry, dedicated to helping big businesses leverage the petabytes of information they now generate and store, is worth $122 billion — and growing.
The basic premise of the industry’s offering is this: Hidden in that huge mass of enterprise data are latent patterns. If only you could interpret your data properly, like an explorer deciphering an ancient scroll, you’d be able to unearth these precious business secrets. Specialist analytic software tools are needed to crack the code. The big, diverse, disparate, messy data go into these tools, and “actionable insights” come out.
Here is a game you can play at home: Search online for a real-world story of how big data analytics produced a piece of “hidden” or “unexpected” intelligence, based upon which the business took action, with quantifiable commercial results (preferably expressed in one of the major world currencies). You might just detect a conspicuous absence of concrete case studies to validate this “data-insight-action-value” chain as a concept.
In the original version of that game, popular among jaded office workers in the mid-2000s, players would seek examples of bloggers who made so much cash from blogging that they quit their jobs to blog full time (at home, in a hammock, with a daiquiri). Veteran players eventually noticed that there is only one blogging topic lucrative enough to support such a lifestyle change — How To Make A Living From Your Blog So You Can Quit The 9-5.
Clicking through pages of “unlock the value of your big data!” advertorials, a cynic might suspect that the best (and perhaps only) method of deriving value from big data is to go into the business of telling people how to get value from their big data.
All that’s happened is that technological innovations in data handling capability (made by companies like Google to deal with the scale and complexity of Web 2.0) temporarily leapt ahead of our progress in learning how to apply them — progress we make through experimentation.
In the interim, firms have defaulted to leveraging big data in exactly the same way they previously used small data: for reporting and business intelligence. Having invested in purpose-built tools to analyze data at scale, they’ve been rewarded with cool interactive dashboards visualizing it. These are basically auto-generated charts, conspicuously similar to the manually created Excel and PowerPoint reports executives were staring at back in 2005, but far prettier and costlier. It’s easy to see why this approach hasn’t quite delivered on the big data promise.
Firstly, in order for a puny human brain to interpret large and complex data sets, the data sets must first be made “smaller” via aggregation, summarization, description and presentation, which kind of misses the point.
Secondly, there’s just a natural limit on how far having information about your business is going to help you win at it. An enterprise’s data is simply the digital impression left behind by real-world transactions. Typically, mining that internal data will validate basic hypotheses upon which the business is predicated (“we make profits in our luxury fashion stores when they’re located in affluent areas”). In the worst case, it can make you uncomfortable by totally undermining those core assumptions without suggesting a back-up plan — (“we thought people bought ice cream on impulse when it’s hot and sunny outside; turns out we were wrong”).
Big businesses have absorbed Google-style tech, but are only just beginning to adopt Google-style thinking alongside it.
Big Data Innovation Summit London
$200 off with code DATA200
Data Innovation Summit 2017
30% off with code 7wData
Enterprise Data World 2017
$200 off with code 7WDATA
Data Visualisation Summit San Francisco
$200 off with code DATA200
Chief Analytics Officer Europe
15% off with code 7WDCAO17