Transcription

Big SuccessWith Big DataExecutive Summary

2 Big Success with Big DataIn organizations that are using big data today,users report overwhelming satisfaction withtheir results, according to a new AccentureAnalytics survey, and see big data as a catalystfor their transformation as digital enterprises.Key findings emerging from the researchcluster around these themes: Big data is taking off.Users that have completed at leastone project are very satisfied withtheir initial forays into big data. Thevast majority who have completedtheir projects report that they aresatisfied with business outcomesand that their big data initiativeis meeting their needs. Bigger companies are gettingmore from big data.The bigger the organization, thebetter the results, perhaps becausethey bring more to the table. Largerorganizations are leading the wayby starting with focused initiatives,rather than trying to do everythingat once. Big data demands broad learning.Users begin big data projectsthinking it will be easy, only todiscover that there is a lot tolearn about data as an assetand about analytics. Help needed.With big data talent in shortsupply, successful users sourceskills wherever they can findthem, leaning heavily on external,experienced resources. Big data is definitely disruptive,potentially transformational.The consensus is clear: bigdata brings disruption that canrevolutionize business.Source: Accenture Big Success with Big Data Survey, April 2014

Big Success with Big Data 3Big success with big dataBig data is clearly delivering significant value to users whohave actually completed a project, according to survey results.The vast majority (92 percent) of all users report they aresatisfied with business outcomes, and 94 percent feel theirbig data implementation meets their needs. Larger companiesare more likely than others to regard big data as extremelyimportant and central to their digital strategy (see Figure 1).One of the world’s biggestpackage shippers is also amongthe world’s largest big data users,spending 1 billion annually tostore and study 16 petabytes ofdata from every conceivable pointof its business.1While a significant number of organizationsmay still be standing on the sidelines, bigdata users who start and complete projectssee practical results and significant value.Organizations perceive big data to be criticalfor a wide spectrum of strategic corporategoals, from new revenue generation andnew market development to enhancingthe customer experience and improvingenterprise-wide performance.Figure 1: Importance of big dataHow important is big data to your organization?Overall59%34%6%More than 10B67%28%4% 1% 5B- 10B61%36%3%58% 1B- 5B59% 500M- 1B 250M- 500M43%Extremely Important36%6%34%6%43%ImportantModerately Important12%1%Not very importantSource: y1Source: Accenture Big Success with Big Data Survey, April 2014

4 Big Success with Big DataWinning big by thinking bigLarger companies turn out to be amongthe biggest beneficiaries of initial big dataimplementations. Why? Although big dataprojects still pose challenges, larger companiesappear to bring more to the table: A deeper understanding of big data’sscope and sources of value. A serious focus on practical applicationsand business outcomes. Greater commitment in budget and talent. A keener appreciation of the importanceand disruptive power of big data.Start local, end globalUsers in larger companies are winning bigby starting small and staying realistic withtheir expectations, helped by frequent, directCIO involvement and strong c-suite support.Rather than attempting to do everything atonce, they focus resources around provingvalue in one area, and then letting the resultscascade across the wider enterprise. Themantra here could be ‘start local, end global,’as users focus on practical applications suchas customer support, build internal support,and concentrate on desired outcomes.A global retailer began its bigdata work in marketing, thenexpanded to digital channelsand is now introducing bigdata across the enterprise.Big data demands broad learningWhile many organizations are only beginningto explore initial projects, they find big datapresents big challenges: A roughly equal percentage (37 percent)thinks organizations can achieve extremelylarge cost-savings with big data. Many companies have different definitionsof big data. One in four (26 percent) believe companiesare required to implement big data all atonce across the enterprise. Varied expectations persist, from theprospect of large immediate cost-savingsto mistaken notions about the cost ofimplementation. Among the list of obstacles cited is thelack of talent, as well as security issuesand budget concerns.Many organizations hold differing views ofdata sources and uses. Valuable data sourcesare omitted or overlooked (see Figure 2).Differing perceptions about the scope andbenefits of big data remain to be clarified:Many users imagine big data initiativeswill be easy until they confront challengesfrom security and budget to talent, or thelack of it (see Figure 3). More than fourin ten (41 percent) reported a lack ofappropriately skilled resources, and almostas many (37 percent) felt they did not havethe talent to run big data and analyticson an ongoing basis.Assembling the requisite expertise becomesa key success factor for many projects. More than one-third of users (36 percent)think big data requires an extremelybig investment.Source: Accenture Big Success with Big Data Survey, April 2014A leading B2C e-commerceportal in China has mobilizeda global team of experts inmachine learning, analytics andbig data across Asia, Europeand the United States to deriveinsights from its massive onlinevolume that will drive customerpurchase recommendations.

Big Success with Big Data 5Figure 2: Sources of big dataWhich of the following do you consider part of big data (regardless of whether your company uses each)?Large data files (20 terabytes or larger)65%Advanced analytics or analysis60%50%Data from visualization tools48%Data from social networks43%Unstructured data (e.g., video, open text, voice)38%Geospatial/location information37%Social media/monitoring/mapping34%TelematicsUnstructured data/log files/free text25%Figure 3: Main challenges with big data projectsWhat are the main challenges to implementing big data in your company?Security51%Budget47%Lack of talent to implement big data41%Lack of talent to run big dataand analytics on an ongoing basis37%Integration with existing systems35%33%Procurement limitations on big data vendorsEnterprise not ready for big data27%Source: Accenture Big Success with Big Data Survey, April 2014

6 Big Success with Big DataFigure 4: Sourcing big data supportDid you get external help for your big data installation?Yes, consultants57%Yes, contract employees45%34%Yes, technology vendor resources5%No, we used internal resources onlyA total of 95 percent of respondents used one or more types of external help.Figure 5: Addressing big data challengesWhat have you done to overcome these challenges?Internal technical training54%Vendor-based workshops50%Independent research49%Internally led business caseworkshop/socialization45%33%External technical trainingProof of concept to demonstratevalue and effectivenessSource: Accenture Big Success with Big Data Survey, April 201418%

Big Success with Big Data 7Help neededWith so many organizations simultaneouslycompeting for big data skills, sourcing talentis undeniably difficult. More than half of respondents (57 percent)leveraged the help of consultants,45 percent used contract employeesand 34 percent used technology vendorresources (see Figure 4). Organizations that relied on consultants,contractors and other external resourcesfound their big data installations to be easierthan those using only internal resources.The big data skills shortage is likely to persistin the near term, making this one problemcompanies cannot overcome through hiringalone. To address the talent shortage crisisand other challenges, companies resort toa spectrum of strategies (see Figure 5).Successful big data practitioners areleveraging big data and big data technologiesto drive business outcomes. An outcomefocus requires an ability to mobilize datafrom across the enterprise; to interrogatethat data deeply to understand its value,and determine what data is important andwhat data is not; and requires a disciplineto govern it so that it maintains its currencyin the enterprise.As more data is available, it demands tobe quantified, quickly. New methods andapproaches for data discovery mean analyticdriven insights are generated in weeks ormonths. Agile approaches are employedto drive rapid, demonstrable progress.Working with big data necessarily placescompanies in a sphere that is potentially richwith inadvertent discovery and innovation.Understanding business use cases and datausage patterns (the people and things thatconsume data) provides crucial evidenceinto the appropriate solutions, technologiesand approaches that will be used to deliverresults. Multiple solutions exist for any givenbig data challenge, so it is vital to remainopen to the possibilities, and become alearning enterprise by testing extensively,learning what works best, then refining andmoving forward. Big data pioneers havehoned their capacity to test everything andlearn quickly; other companies are emulatingthese practices. Nearly all (91 percent) companies expectto increase their data science expertise,the majority within the next year. Training, workshops and research areused to address the talent challengeby developing skills internally.Source: Accenture Big Success with Big Data Survey, April 2014

8 Big Success with Big DataBig data’s disruptive potentialExpectations about big data among survey respondentsconvey the potentially life-or-death competitive threat,as well as the enormous transformational potentialcreated by big data.A vast majority of users (89 percent)believe big data will revolutionize businessoperations in the same way the Internet did(see Figure 6). Nearly as many (85 percent)feel big data will dramatically changethe way they do business.Almost eight in ten users (79 percent) agreethat ‘companies that do not embrace big datawill lose their competitive position and mayeven face extinction.’ Even more (83 percent)have pursued big data projects in order toseize a competitive edge.Early adopters see competitive advantagein big data, and are rapidly moving todisrupt their own data practices, rather thanlet competitors beat them to the punch.Perceptions about big data’s disruptive powerare not confined to technology organizations;users see a new competitive weapon in playacross industries and geographies, frombusinesses such as financial services andinsurance, to practitioners such as postalservices and governments.Companies are moving rapidly to takeadvantage of maturing new technologiesthat move, mine and consume increasinglydiverse data from an ever larger array ofsources and sensors, driving outcomes soonerwith greater impact than anyone imaginedpossible. Users are structuring projects andexpecting results in weeks or months, ratherthan losing years in the design phase. Theresult is an exponentially more complex andchallenging environment: architectures andanalysis are always on; vast volumes of dataare being continuously gathered and must beconsumed and analyzed at speed; more datameans more noise around meaningful signals.All of this helps to explain such strong userexpectation that spending on data scienceexpertise will increase in the near term.Ninety-one percent of users report plans tobuild out or increase their current data scienceexpertise soon, and the larger the company,the sooner they plan to invest, 69 percentwithin the coming year for companiesgreater than 10 billion (see Figure 7).One large national agency at a European government wasexperiencing slowdowns in utilization, cancelled queries andstorage limitations. After implementing a new solution for bigdata processing, storage requirements fell by 90 percent, TotalCost of Operations (TCO) dropped, and previously impossiblestatistical analysis is now routine.Source: Accenture Big Success with Big Data Survey, April 2014

Big Success with Big Data 9Figure 6: Big data’s competitive significanceBig data will revolutionize the way wedo business to a degree similar to theadvent of the Internet in the 1990s51%Big data will dramatically change theway we do business in the future38%39%Companies that do not embrace bigdata will lose their competitive positionand may even face extinction46%37%We feel we are ahead of our peers inusing big data and this creates acompetitive advantage for us13%42%Agree2%4%12%Neither Agree nor Disagree1%2%19%46%37%Strongly Agree10%DisagreeFigure 7: Big data investment in the near termDoes your company have or plan to build/increase your data science expertise within the next year?Greater than 10B69%52% 5B- 10B35%49% 500M- 1BYes, within the next year38%59% 1B- 5B 250M- 500M22%41%33%Yes, but not within the next year57%No, we don’t see the needNo, we don’t have the budget7%1% 2%8%1% 1%4%1% 1%8%2%8%1% 1%No, other reasonsSource: Accenture Big Success with Big Data Survey, April 2014

10 Big Success with Big DataDisrupt your enterprise(before someone else does)The cumulative effect of introducing bigdata technologies and practices into theenterprise results in transformationalchange. In practice, big data impactscentral functions across the enterprise,from customer relationships and productdevelopment to operations (see Figure 8).Companies typically need new enterpriseIT architectures to work with vast volumesof data at speed. Thinking about data as anasset requires organizations to change theirmindsets, becoming more data-focused, andassembling and acquiring the skills neededto manage data at speed and at scale.Users welcome the disruption because theysuspect that if they don’t harness the powerof big data first, a known competitor ora company not even in their market todaycould attack tomorrow. Few enterprises canafford to be complacent when barriers toentry are being dramatically reduced by ITefficiencies and the advantages conferredby analytics and big data.A leading North American financial institution hasalready seen the transformative effects of big dataplay out in several areas of its operations: As multiple online banking applications struggledto perform real-time analysis on incoming data, anew architecture was proven and implemented thatwill seamlessly scale as volume continues to grow. A new credit card data warehouse reduced storagemanagement costs, enhancing service to the bank’shundreds of millions of card holders. Multiple data sources, terabytes of volumeand other challenges drove a complete datatransformation of its consumer analytics platform.Figure 8: Potential for transformationWhere will big data have the biggest impact on your organization in the next five years?Top Impact37%Impacting customer relationships63%26%Redefining product development58%15%Changing the way we organize operations56%8%Making the business more data-focused48%9%Optimizing the supply chainFundamentally changingthe way we do businessSource: Accenture Big Success with Big Data Survey, April 2014Top 3 Impact47%5%27%

Big Success with Big Data 11The future isnot near it’s nowAccenture is engaged today with thepractical reality of helping make big datawork across large, complex enterprisesin many different industries.Accenture’s feet-on-the-ground big data and analyticspractitioners have deep experience working hand-inhand with companies on successful implementations,translating the difficult and confusing into the practicaland achievable.To get the most from their big data projects, organizationsshould consider the following: Explore the entire big data ecosystem. The big datalandscape is in a constant state of flux with new datasources and emerging big data technologies. Exploreall data available and be prepared to explore a broadrange of technology options when developing a bigdata strategy with a focus toward business actions andoutcomes that can be differentiating in the market. Start small then grow. Focus resources around provingvalue quickly in one area of the business first via a pilotprogram or proof of concept. Build internal consensusand then grow big data programs organically. Be nimble. Stay flexible, adapt and learn as technologiesevolve and new opportunities can be explored. Focus on building skills. In addition to staffing upwhen possible, build skills of existing employees withtraining and development and tap outside expertise.To learn more about how Accenture is making big datawork for big enterprises, see complete survey results ataccenture.com/bigdatasuccessSource: Accenture Big Success with Big Data Survey, April 2014

About the researchAccenture Analytics surveyed more than 1,000 respondents from companies operatingacross seven industries and headquartered in 19 countries that had completed at leastone big data implementation. As the intent of the survey was to measure actual userexperience with big data projects, respondents from companies that had not completed atleast one big data installation were not included in the results. More than 4,300 targetswere screened; 36 percent have not completed nor are currently pursuing a big datainstallation while nearly four percent were currently implementing their first big dataproject. Among those who had completed a big data project, more than half did not meetour demographic criteria. A total of 1,007 respondents completed the survey.About AccentureAccenture is a global management consulting, technology services and outsourcingcompany, with more than 293,000 people serving clients in more than 120 countries.Combining unparalleled experience, comprehensive capabilities across all industries andbusiness functions, and extensive research on the world’s most successful companies,Accenture collaborates with clients to help them become high-performance businessesand governments. The company generated net revenues of US 28.6 billion for the fiscalyear ended Aug. 31, 2013. Its home page is www.accenture.com.Accenture Analytics, part of Accenture Digital, delivers insight-driven outcomes at scaleto help organizations leverage the digital revolution for their competitive advantage.With deep industry, functional, business process and technical experience, AccentureAnalytics develops innovative consulting and outsourcing services for clients seekingsuperior returns on their analytics investment. For more information, follow [email protected] and visit www.acccenture.com/analytics.Copyright 2014 AccentureAll rights reserved.Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.

Big Success with Big Data 3 Big success with big data Big data is clearly delivering significant value to users who have actually completed a project, according to survey results. The vast majority (92 percent) of all users report they are satisfied with business outcomes, and 94 percent feel their big data implementation meets their needs.File Size: 683KB