big data, big disappointment

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  • Big Data, Big Disappointment

    A diagnosis and prescription (sort of) for (somewhat) successful analytics efforts in medium to large firms in

    Mexico

    (c) 2015 Jesus Ramos 1

  • Big Data has arrived, but big insights have not

    - Big data: are we making a big mistake? Tim Harford. Financial Times.

    (c) 2015 Jesus Ramos 2

    And with all the money Gartner says were to fork over, the question is

  • Why?

    (c) 2015 Jesus Ramos 3

  • In analytically mature businesses, mostly because

    False positives are ignored Correlation DOES imply causation We dont care about sampling More data is always better

    (c) 2015 Jesus Ramos 4

    From 8 Reasons why Big Data projects fail. Matt Asay. InformationWeek. 8/714

  • And in the rest of us, because

    We dont understand what Big Data is!

    Sowe need definitions:

    (c) 2015 Jesus Ramos 5

  • BD is a 2-part deal

    (c) 2015 Jesus Ramos 6

    Big DataTechnology for storing and processing large

    amounts of data

    AnalyticsThe insights gained from such large data

    Without analytics, Big Data is a sleeping giant!

    - me

  • Dont talk about BD w/o the A

    From this slide on, and for the rest of your professional lives, I urge you to please add the Analytics suffix to the buzzword Big Data.

    (c) 2015 Jesus Ramos 7

  • Why this distinction matters (to CTO/CIO)?

    (c) 2015 Jesus Ramos 8

    Big DataQuality Attributes to

    watch out for:

    AnalyticsQuality attributes to

    watch out for:

    - Performance- Fault-tolerance- Replication- High Availability- Integration with

    current ecosystem

    - Read Performance- Insert Performance- Integration with

    Analytical Tools- In-DB Analytics

  • Why this distinction matters (to CTO/CIO)?

    (c) 2015 Jesus Ramos 9

    We might end up buying/building the wrong technology.

  • The purpose of BDA

    1.Development of new products

    2.Gain operational efficiencies

    3.Support decision-making

    (c) 2015 Jesus Ramos 10

    If our BDA initiative doesnt touch these goals, were doing it wrong!

  • CEO/COO

    CFO CTO CDO

    The right place for BDA within the firm

    (c) 2015 Jesus Ramos 11

    In a startup:

    BDA

    BDA BDA BDA

    Analytics is part of the orgs DNA

  • The right place for BDA within the firm

    (c) 2015 Jesus Ramos 12

    In an mature org:

    CEO

    CTO CFO COO

    CDOBDA

    CEO sponsorhip needed to break cultural resistance!BD

  • The WORST place for BDA within the firm

    (c) 2015 Jesus Ramos 13

    CEO

    CTO/CIO COO CFOBDA

    Why?

  • Reasons why BDA should not be born in IT (unless core biz is tech)

    1. Asking the wrong questions

    2. Lacking the right skills

    3. Culture change happens elsewhere

    (c) 2015 Jesus Ramos 14

  • Asking the right questions

    Even though IT enables the value chain through technology, burning operational

    questions may be out of our reach, grasp, or jurisdiction.

    (c) 2015 Jesus Ramos 15

  • Lack of the right skillsForget Drew Conways Venn Diagram. The problem is deeper:1. IT is a labor of engineering.2. The fundamental question of engineering is

    How.3. To answer questions we need statistics. 4. The fundamental question of Stats is

    Why.5. When we answer Why we gain insight.

    (c) 2015 Jesus Ramos 16

  • Lack of the right skills (2)

    Of course, our engineers could go through training to become statisticians, and when they do, they are sometimes better at it than classically-trained statisticians.

    Only this training is long, and often requires

    a change of mindset to become true Data Scientists.

    (c) 2015 Jesus Ramos 17

  • Culture change happens elsewhere

    If tech is not the core business nor is central to strategy, IT will not have enough gravitas to

    pull the entire org from a hunch-based decision management, to a data-driven one.

    (c) 2015 Jesus Ramos 18

  • If you have no choice but give birth to BDA in IT

    1. Set up a DWH (if not present).2. Federate data.3. Establish data ingestion frequency (must match my

    decision-making frequency) & pipeline.4. Hire the right people (and keep the BI people

    at bay lest they spread an illness called Reportitis Operativitis).5. Seize ITs presence all across the value chain.6. Address the low-hanging fruit of analytics.

    (c) 2015 Jesus Ramos 19

  • If you have no choice but give birth to BDA in IT

    1. Set up a DWH (if not present).2. Federate data.3. Establish data ingestion frequency (must match my

    decision-making frequency) & pipeline.4. Hire the right people (and keep the BI people

    at bay lest they spread an illness called Reportitis Operativitis).5. Seize ITs presence all across the value chain.6. Address the low-hanging fruit of analytics.

    (c) 2015 Jesus Ramos 20

    Big Data

    Analytics

  • Where do I get the right people (in Mexico) ?

    1. MSc Data Science ITAM.2. MSc Applied Statistics U. Anahuac.3. BS Applied Maths + MSc Industrial

    Engineering.4. BS Industrial Engineering + MSc Computer

    Science.5. BS Computer Engineering + MSc Industrial

    Engineering.

    (c) 2015 Jesus Ramos 21

  • Where do I get the right people (in Mexico) ?

    Note that theyre all master degrees, so dont expect to pay average developer salaries.

    Note that Industrial Engineering appears a lot. Thats because those guys know how to measure processes.

    Note that when we mention Computing, its Computer Science, not Engineering.

    (c) 2015 Jesus Ramos 22

  • Take aways: BigData does nothing without Analytics. BDA must deliver 1) new products, 2)

    operational efficiency, 3) decision support. The right place for BDA is a position of

    influence. BDA living in IT has many possible

    drawbacks related to skill. But IT is in a priviledged position to deliver

    value through BDA.(c) 2015 Jesus Ramos 23

  • Pending discussions:

    Big Data Ethics Beware Data Charlatanry! Analytics team-building Data Science + Software Engineering What mexican education system

    needs to produce data professionals.

    (c) 2015 Jesus Ramos 24

  • (c) 2015 Jesus Ramos 25

    Thanks!tw: @xuxoramos

    linkedin: xuxoramosramos.cardona@gmail.com

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