Digital Disruption
and the BI/DW
Professional
Ray Pineda
Deloitte Consulting Partner
June 2014
Let’s go Digital.
2
Digital engagement is the future
•
If Facebook were a country, it would
be the world’s 2nd largest - 1.3B
78%
of small businesses now get at
least one quarter of new
customers via social media.
•
Percent of 18-34 year olds who check
Facebook when they wake up - 48 %
61%
of young people refer to social media to
decide where to go when they go out.
•
Social Media has overtaken adult
content as the #1 activity on the web
27%
of Americans check their social
networks several times a day.
•
1 out of 8 couples married in the US
last year met via social media
35%
27%
Digital Convergence
of Americans check brand pages
regularly as part of their social media
activity.
of time spent online is for
social media.
© Deloitte & Touche LLP and affiliated entities.
A critical mass of new technologies and consumer and client demand is
ushering in a new era of computing, and with it the “Post Digital Age”
• Several technology forces have manifested at
the same time, all of which are powerful
change agents on their own
• The collision of these forces makes their
impact even more significant
Web
Client/Server
1
2
Mainframe
•
•
•
Projects measured in years
Vast divide between IT and business
Long adoption curves
Digital Convergence
•
•
•
•
Digital
4
•
•
3
•
•
•
Projects measured
in weeks
IT and business
collaboration
Accelerated
adoption
Projects measured in months
Bridging gaps between IT and business
Accelerated adoption
Projects measured in years
Vast divide between IT and business
Long adoption curves
The number of mobileconnected devices
exceeded the word’s
population in 2012
6 Billion
People worldwide have
access to a mobile
phone
© Deloitte & Touche LLP and affiliated entities.
4
A new kind of User
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Demands a new approach
Post-digital forces are transforming business and changing
expectations on how we deliver value
New
Skills
New
Approach
•
•
•
•
•
Industrial design
New business models
Iterative approaches
Rapid prototypes
Shorter time to value
Digital Convergence
•
•
•
•
•
•
Design thinking
Creative
Agile
User experience
Mobile app development
Innovation services
New
Outputs
•
•
•
•
•
•
Personalized
Anywhere/anytime/anyone
Contextualized
Intuitive
Faster time to value
Pilots and experiments
© Deloitte & Touche LLP and affiliated entities.
Key trends in digital
1st
Mobile first
Mobile is fast becoming the new desktop for
consumer markets. Responsive design,
mobile apps, location based intelligence are
all changing how users interact and transact
with service providers.
Social media, crowd support and
gamification
Social media has become a key method for
organizations to sell, support and promote. This has
evolved to include crowd support, and gamification to
facilitate 2-way interactions.
Easy service and channel experience
Users expect digital interactions and transactions to be
easy (forms, workflows, communication). Anything short
of an exceptional user experience will negate the value
of your digital assets.
Personalizing the experience
Organizing for success
Through design and intelligent technology
choices, organizations can deliver a tailored
and progressively personalized digital
experience.
This provides value to customer and
enables the organization to tailor services.
Having the right capabilities, structure, governance and
defined interactions to innovate and operate the channel
is key to digital success.
Accountability and ownership are key for the right return
on digital investment.
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Disruptive Technologies
The convergence of the four disruptive technologies is changing the way businesses must respond to
individuals’ needs and expectations.
Analytics
Social Business
Move from descriptive to predictive and
prescriptive
Deconstruct organizational silos;
empower collaborative networks
Decision making based on real-time
insights
Who you know and who they know
form strong and weak connections
Mobility
Cloud
Location independent but location
aware
Achieve Cloud agility and elasticity
with little initial investment
Un-tether your enterprise; empower
users where business actually occurs
Move past the static ecosystem;
empower the dynamic value chain
Private versus
compartmentalized
Cyber Intelligence
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Digital disruption
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Career in analytics
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
What does it mean to BI?
Analytics
Analytics Defined
Business Analytics uses data to generate predictive insights to make better
informed and timely decisions that will drive strategy and improve performance
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Turning data into actionable insight
Data analysis and reporting allows the business to view past and current results. By adding Advanced
Analytics, foresight is applied to future decision making returning more value to the business.
Data Harmonization
and Standardizations
Data
Information
Visualization Tools
Reports +
Data Analysis
Tools
Use appropriate
Information Delivery
Business Value$ $
Insight
Application of
Business Drivers
Empowered
decision
making
Constant Optimization
Business Intelligence/Business Analytics
Data Warehouse/Operational Reporting
Looking back
Looking forward
Discover and simulate
Understand
What happened?
Analyze
Key Performance Indicators
(KPI’s)
Digital Convergence
Present
Slice and dice
Predict
What will happen?
Optimize
Key Performance
Predictors (KPP’s)
© Deloitte & Touche LLP and affiliated entities.
Making analytics relevant to the heart of clients’ business
with Deloitte Analytics domains
Customer
Analytics
Risk
Analytics
Finance
Analytics
Workforce
Analytics
Supply Chain
Analytics
Companies
should have a
more complete
intimate
understanding
of their
customers to
get them, grow
them, and
keep them.
Many leaders
want to take
advantage of
the benefits of
risk analytics to
limit risk
exposure or to
take certain
risks to
generate
returns.
Finance
managers have
applied
analytics to
better
understand the
present and
more
accurately
predict the
future.
Workforce
reporting and
analytics
achieves
greater
visibility and
deeper insights
into the most
complex
workforcerelated
challenges.
Apply
analytics to
achieve
forward-looking
insights
combined with
the disciplined
execution of
the supplychain function.
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Top performing companies use analytics – the trend
indicates every company will do analytics as part of their
new normal
A recent MIT/Sloan study revealed that, on average, top performing companies use analytics
almost three times as much as lower performing companies in daily operations and
decisioning.1
1. Organizations that identify themselves as substantially outperforming their competitors are three times more likely to be sophisticated in their use of analytics. Analytic “Sophisticates”
outperform Information “Starters“ by a 3X margin – MIT Sloan Management Review, 2010
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Business Analytics to Thrive:
Growing from $60 Billion (2012) to $81 Billion (2014)
Source: Gartner, Inc.
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Social Business
Social Media -> Social Business
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Social Business
Unstructured Data : 80% of business data
Emerging
Business
Usage
Maturity
Mature
Simple
Digital Convergence
Management Complexity
Complex
© Deloitte & Touche LLP and affiliated entities.
The Challenge of Social
• As consumer conversation continues to move online, social media is
becoming ever more important for businesses: both as a channel to engage with
consumers and as a source of data to inform broader business decisions
• However, use of social has often proved challenging, for two main reasons:
Healthy scepticism
Lack of proper analytics
Senior stakeholders remain
sceptical about the business
benefits of social : does they
justify the required investment of
time/resources?
Meaningful goals and outputs of
social are hard to define and
difficult to tie to business benefits
• Too often, the goals and metrics of social are weakly defined and cannot be tied
directly back to business benefits
• There is therefore no way to connect social buzz with sales/profitability:
Am I making
money from
engaging with
consumers on
social?
?
Digital Convergence
Is negative social
buzz causing my
sales to drop?
Am I realising any
direct financial
benefit from
investing in social?
• The result is that social is often done “because we should”, with no clear strategy
or purpose
• So the potential benefits of social aren’t realised, as there is no way to
properly understand the financial implications
© Deloitte & Touche LLP and affiliated entities.
Kaggle – Go from Big Data to Big Analytics
• What is Kaggle? Crowdsourcing community of data scientists. One engages Kaggle through “Kaggle
Connect” or “Kaggle Competition”
• Disruptive Model:
• Enables access to top Data Scientist on a T&M model
• Enables solving data problems in a competition manner (All State example)
• Heavy focus on machine learning and AI
• Deloitte and Kaggle:
• Deloitte is exploring how to leverage platform to help solve our clients’ data problems.
Agreement to experiment and work together to solve client problems.
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Gamification Examples You May Have Played Already
Progression
Levels,
Badges
Fitbit.com (see quantified self)
Social Graph
Missions
Achievements
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Real-World Gamification Example
Speed Camera Lottery – Simple Example
1. Speeders get tickets via speed
camera
2. Others get feedback on their speed
3. Those under the limit get entered into
a lottery
4. Random draw wins fine money
•
•
60% reduction in speeding in test area
(India)
10% reduction in deployment area
(Sweden)
http://www.thefuntheory.com
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Cloud Computing
Cloud and SaaS
Increase
business agility
Reduce the amount
of IT capital spending
Reallocation of
resources
SaaS
High
Private Cloud
Internalization
Institutionalization
Adoption
IaaS
Positive Perception
Adoption
PaaS
Low
Understanding
Awareness
Unaware
Time
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Cloud Services Types
Cloud Computing is defined as multi-tenant, on-demand, scalable, elastic, pay-as-you-go
IT applications and services, used to deploy a wide variety of solutions
Hosted
Applications
Infrastructure
Software
Service Type
Definition
Software-as-aService (SaaS)
Customers run finished
applications from the
cloud service provider
on a subscription basis,
with no software
license, and limited
operational control
SaaS
Operating
Systems
Servers
Platform-as-aService (PaaS)
Infrastructure-as-aService (IaaS)
Customers provision
servers, storage, and
database services on
cloud infrastructure
through a subscription
service, with direct
operational control.
IaaS
PaaS
Virtualization
Customers load and
run software on cloud
platforms through a
subscription service,
without visibility to the
underlying server
environment.
Connectivity
Data Centre
Digital Convergence
Cloud Candidates
Sample Vendors
 CRM
 HR, Payroll
 Finance
 Productivity Apps, email,
collaboration
 Custom Development
 Java, Ruby, and extensions
to SaaS environments
 Dev and Test Environments
 High compute calculations
(e.g., Monte-Carlo scenario
analysis)
 Web servers
© Deloitte & Touche LLP and affiliated entities.
…But Is Fairly Limited In Its Deployment Options
AaaS
Public Cloud Characteristics
Quick start-up time
Outsource non-core competencies
Public Cloud
Lower initial fees, variable cost and bill
by usage
Private Cloud Characteristics
PaaS
SaaS
Leverage scalable vendor infrastructure
Flexible resource allocation
IaaS
On-premise systems and data
Digital Convergence
Leverage existing staff and investments
Private Cloud
Utilize virtualization and grid technology
to lower internal costs
© Deloitte & Touche LLP and affiliated entities.
Adoption Of Cloud Computing in BI is at its inception
Source: Gartner Hype Cycle for BI, 2010
Cloud-Based
BI Services
Main barrier to adoption is trusting your data to a third party provider
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Mobility
The Mobility ecosystem is complex, expanding rapidly,
and increasingly absorbing new stakeholders
Utilities:
Smart Grid
Utilization
Data
App Stores
Wi-Fi
Customer
Data
NGN
IM
S
Standard
Middleware
OSS Apps &
Middleware
BSS
Smart
Homes
Middleware
Cellular:
3G, 4G
Middleware
Internet
Tablet
PCs
Digital Convergence
Retail
Banking
Apps
Sensor Networks
Wireless
scanner
Medical
Devices
Content
Banks
Wireless
POS
Smart
Phones
Media
Producers
Delivery
Apps Multimedia
Middleware
Middleware
Satellite
Middleware
App Developers
ERP,
CRM
Industrials
Operational
Data
Hospitals
EMR
App Patient
Data
© Deloitte & Touche LLP and affiliated entities.
Global Mobility Has Changed
Previously
Currently
“One Size Fits All” benefits
structure
Customizable benefits with core
/ optional elements
Regional policies for cross
border moves
Single, global policy for
Assignments and Transfers
No control over costs
Cost management discretion for
Managers
No workflow capability
Defined workflow for
Managers / Employees / HR
HR / Talent Acquisition
completed authorizations
Manager initiates authorization
process
Global Mobility
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Innovation success story — Mobile Analytics
Client Question:
How can we gain better
visibility into how we are
performing toward strategic
priorities?
Solution: Exec iPad app
• Heat map view
• Key metrics
• Live twitter feed
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Augmented Reality – a live view of the physical environment
overlaid with virtual, computer- generated imagery and information
Defining Augmented Reality
1. Combines real and virtual
2. Is interactive in real time Users can view multiple
layers of data on a single view
Information is overlaid on the digital image generated
by the device’s camera
Location information is further refined using GPS and
compass functionality
AR can identify a variety of visual inputs:
Digital Convergence
•
•
•
•
•
•
•
•
•
Books/DVDs
Landmarks
Logos
Contact info
Artwork
Businesses
Products
Barcodes
Text
© Deloitte & Touche LLP and affiliated entities.
Mobile BI
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.
Business disruption driven by new technologies
Digital Convergence
Hyperavailability
Information
explosion
Security &
compliance
Transparency
© Deloitte & Touche LLP and affiliated entities.
Deloitte Information Management & Analytics
Ray Pineda
Consulting Partner
Digital Convergence
Raymond is one of Deloitte’s Information Management and Analytics Technology practice
leaders in Canada. He also leads alliances and acquisitions for the Deloitte Analytics
Integrated Market Offering (IMO). He has 32 years of Information Technology consulting
experience, 17 years as a Consulting partner with Deloitte, and has served numerous
clients in developing Strategic Systems Plans and in successfully implementing ERP
and Performance Management solutions. He currently specializes in developing
Analytics strategies / roadmaps and in leading implementations of large-scale Business
Analytics solutions such as Performance Management (Planning/Budgeting/Forecasting
and Consolidation applications), Business Intelligence and Data Analytics. Ray is a
Certified Management Consultant (CMC) and serves as a business advisor to a number
of financial services, public sector, mining and real estate clients of the firm. He currently
serves on the Advisory Board of Queen’s School of Business Master of Management
Analytics program.
© Deloitte & Touche LLP and affiliated entities.
Digital Convergence
© Deloitte & Touche LLP and affiliated entities.