Gart­ner Sum­mit Re­port

Banking Frontiers - - Highlights - Manoj@bank­ingfron­

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.

Dou­glas Laney

Frank Buy­tendijk

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