UNLOCKING
THE BIG PROMISE
OF BIG DATA
What is big data?
Big data is the term for a collection of data
sets so large and complex that it becomes
difficult to process using on-hand database
management tools or traditional data
processing applications.
-- From Wikipedia, the free encyclopedia
Sources of big data
Well-known challenges
in pushing data out
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Privacy
Fairness
Inclusiveness
Incentive alignment
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Bureaucratic efficiency
Politicism
Interest-group dynamics
Capability building
Maintaining stability in
staple services
Registering resources
Gun permit holders in Westchester County, NY
Source: The Journal News in a Dec 2012 Freedom of Information Act Request
Registering resources
• Accurately accounting for resource
value
• Dynamically protecting privacy
Gun permit holders in Westchester County, NY
Web enablement
New challenges in pushing data out
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Finding kernels of value
Managing user quality of inference
Making insights actionable
Meeting the expectations of users
Developing capabilities for responding to
escalating expectations
• Protecting privacy dynamically
Challenges in getting data in
• Does the available data accurately represent
the broader decision framework?
• What questions can be addressed by the data?
• Who should control datasets and the data that
they generate?
• How should organizations be designed to take
advantage of big data?
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Crowdsourcing
Crowdsourcing
• Evaluating the quality of suggestions
• Developing criteria for choosing
among legitimate alternatives
• Implementing
Open innovation platforms
Open innovation platforms
• Structuring the ask
• Identifying true expertise
• Building complex capabilities for
integrating expert knowledge
Social media
Social media
• Encouraging goal adhesion
• What’s true?
The tip of the iceberg
Familiar issues in
innovative governance
• Assuring stability in the delivery of essential
services
Familiar issues in
innovative governance
• Assuring stability in the delivery of essential
services
• Enabling fair and effective process
• Negotiating and aligning incentives
• Narrowing scope for experimentation
• Expanding scope to scale up subsequently
Case study: Innovative governance at
Banc One under Jamie Dimon
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Formula:
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Fix the company’s balance sheet
Cut costs
Hire talented managers
Motivate the workforce to act as owners rather than employees
First three months
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$57m stock purchase
Follow-up list (one sheet of paper)
Middle office; keeps predecessor in office
Meetings: “show me the data you are looking at”
Capital markets: meet every day for 3 weeks
Balance sheet and earnings
Plan to realign incentives; incentives over bonuses but no comp cuts
2000 and 2001 restructuring charges; cancelled dividends
Hiring; identifying his team (Michael Cavanaugh; Charlie Scharf)
Executive Management Report (EMR)
Risk analysis
Fix transfer pricing
Diagnoses the return on investment is lower than the cost of capital
NOT strategic vision, IT or detailed solutions; leave customer-facing personnel alone
Take the CFO position himself
Cancel vendor contracts
Cancel WSJ, gym memberships and exec perks
Case study: Failed governance at
Kodak under five CEOs
Maturity
Value
creation
Disruption
Shakeout
Fragmentation
Time
Big data and shared responsibility:
innovative governance
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Identifying climate-change hot spots
Remediating financial instability
Catching epidemics early
Expanding the capacity of public utilities
Focusing pharmaceutical research
Improving personal and community security
Forecasting (weather, migration, election results)
Improving education
Managing traffic and public transportation
New issues of innovative governance
• How can we use transparency to improve
outcomes? What’s the right balance between
transparency and hierarchical process?
• When does advocacy promote fairness?
• How do we evaluate competing organizational
models for allocating decision rights?
• What partnering capabilities are required for
innovating effectively?
Calls to action
Calls to action
• Politicization; dilution of public
authority and responsibility
• Embracing the emotionality of
advocacy
Tracking progress on public goals
Tracking progress on public goals
• Failing to attend to qualitative
goals
• Confronting disputes over the
legitimacy of measures
Public goods
Public ‘bads'
Access
Congestion
A gradual transition from driving on
the left to the right
The promise
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Relieved congestion
Fairer and better access
Constructive competition
More efficient and effective investment