Gartner Summit Report
Gartner organized its Data & Analytics Summit in Mumbai, focusing on the opportunities that data and analytics create to generate business value. Some key observations made at the summit by data experts
Douglas Laney, VP and distinguished analyst with Gartner’s Chief Data Officer Research team:
I believe there is need to move from managing big data to monetizing big data. Most important thing is to know what the data assets are and the assets include a lot of archived data as well. Many enterprises now have a dedicated data curator (like a librarian). There are 10 million data sets published by government organizations. There are 5000 organizations publishing such data. While data integration is important, a lot of data is not aligned semantically (eg pound vs kg, or cattle vs sheep). There is need for data scientists to adapt ideas from other industries, not just one’s own industry.
Trulia is a real estate aggregator. The company saw that most customers where clicking on photos but it could not make out what those visitors were seeking. So, it did the analytics and created tools to empower customers to search based on various parameters. The company now sells these tools to other companies.
Similarly, Food Genius analyzes food purchases on the internet and tells chefs what foods, spices, etc, are trending. Gartner predicts that by 2017, 30% of big data in an organization will be external data.
In fact, there are 2 types of monetization - direct (bartering or trading products, info enhanced products, selling raw data, etc) and indirect (improving a business process which creates economic value, improve efficiency, reduce risk, develop new products, build and solidify partnerships).
Information is the new oil. However, oil is consumed, but data does not go away, allowing it to be consumed multiple times.
Ehtisham Zaidi, Senior Research Analyst at Gartner:
Gartner gets a lot of enquiries for BI and find that the organization is grossly unprepared for data management. Hence, the focus for us is data analytics rather than BI.
Reports and Excel give assessments on the past. Companies focused on this will lose market share.
By 2018, 60% of analytics implemented by Indian companies will make use of IOT event data streams. SAP is the leader in this area. One interesting aspect is that IT service providers have not differentiated themselves from IT product vendors. And this is one reason for job losses.
Denodo and Cisco are coming to market with custom data virtualization tools, ie data does not move into a central repository.
Biggest challenge in analytics is talent ie data scientists. There is a massive growth in data discovery tools. Smart discovery tools include ML & AI. Data preparation is the fastest growing segment.
Today, there are domain specific analytics tools like NetSuit and Salesforce, that focus on sales analytics, marketing analytics, supply chain analytics, etc.
Indian companies rely on system integrators in serving their customers. Infosys has an IIP platform for integrating various open source products and making packages to give to clients. These companies are not much into the space for advanced IT solutions - as product solutions or solutions integrated with their business applications like Finacle, Bancs, etc.
The market is shifting from structured data warehouses to unstructured data such as Hadoop. People are looking at IOT data, etc. So, the relational data warehouse companies are building capabilities for unstructured data. AI would be smarter models out of all these.
Banks are the major users of analytics in order to give customers the next best offer. Indian PSU banks are preparing enormous RFPs for analytics and data warehouses. FMCG compaanies too are leaders, followed by manufacturing.
Frank Buytendijk, Gartner Fellow in Gartner’s Data and Analytics group:
German philosopher Immanuel Kant introduced the concept of categorical imperatives, ie, all decisions should be based on principles. We do not know the principles of the digital society. What about exceptions to the rule? That slowly starts to crumble, so the opposite people come in. They say that you can do things with the best of intentions, but the outcomes may not be desirable. So, it is the outcome that matters.
We now have the opportunity to create and shape the digital society. There are questions here. How do you deal with unintended consequences? How do you deal when something goes wrong?
One core is empathy - being genuinely empathic. Empathy comes with responsibility. Empathy without responsibility is meaningless. Responsibility without empathy is mechanistic. You also need to be competent and the other issue is trust. So, the 4 pillars of care ethics are empathy, responsibility, competence and trust.
Partha Iyengar, VP and Gartner Fellow in Gartner’s CEO Research team:
LIC has spent 4-5 years in optimizing its current business. Its cost per transaction is the lowest in India. The institution is now preparing for a digital transformation. Digital improvement is a foundation for digital transformation and analytics skills are the most in short supply in the IT chain.