data-driven is passé: transform into an insights-driven enterprise

Dr. Holger Kisker

VP & Research Director, Forrester Research

Data-Driven is Passé: Transform Into An Insights-Driven Enterprise

Dr. Anastasio Molano

Senior VP, Strategic Technical Office, Denodo

Nov 19, 2015

Agenda

01. Transforming insights-to-action with “systems of insight”

02. Data virtualization as a key enabler for “systems of insight”

Dr. Holger Kisker

VP & Research Director, Forrester Research

Transforming Insights-to-Action

with “Systems of Insight”

© 2015 Forrester Research, Inc. Reproduction Prohibited 4

Empowered customers create urgency

Age of

manufacturing

Age of

distribution

Age of

information

Age of

the customer

Empowered buyers

demand a new level of

customer obsession

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This is the world we live in …

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and everything’s increasingly connected

7© 2015 Forrester Research, Inc. Reproduction Prohibited

Key trend: selling an outcome

Used to sell:

› Electricity

› Aero engines

› Air conditioning units

› Lifts/Elevators

› Cars

› Agricultural machinery

› Medical testing devices

› Health insurance

› Toothbrush

› Your traditional business

Now sell, or may in future:

› Energy Services

› Units of propulsion

› The right temperature

› Moving people/goods up/down

› Ability to get from A to B

› Optimum yields

› Number of tests

› Wellness program

› Healthy mouth and teeth

› New outcome based business

8© 2015 Forrester Research, Inc. Reproduction Prohibited

Data and analytics are all the rage

Base: 3,005 business and technology decision-makers Source: Forrester’s Global Business Technographics® Data And Analytics Survey, 2015

65% of firms will be

using big data

analytics to optimize

digital experiences.

49% of firms view

improving the use of

data and analytics as

a business priority.

45% of firms have

appointed a chief

data officer.

9© 2015 Forrester Research, Inc. Reproduction Prohibited

But most firms don’t consistently turn data into action

Source: Forrester Business Technographics®, Data & Analytics Survey, 2015

All possible data All possible actions73% 29%of firms

aspire to be

data-driven

of firms are

good at turning

data into action

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There’s a better way to do it.

Stitch Fix embeds insights into everything

Stitch Fix has embedded insights-to-

execution in their operating model

A Chief Algorithmics Officer drives the

insights process and strategy

Stitch Fix is in a constant state of controlled

experimentation.

The result: better customer experiences . . .

. . . And half the inventory carrying costs of

other online fashion retailers

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An insights-driven business

harnesses insights to consistently

turn data into effective action.

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Insights-driven businesses systematically turn data into action

Applications DecisionsProcesses

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Insights fuel your entire business

Digital

customer

experiences

Digital

operational

excellence

Consider how Tesla’s creates an insight drive experience

• Improve CX by fixing problems before they happen.

• Team works together to turn data into action.

• Insights services let engineers find and test insights.

• Developers implement insights firmware (create action).

Pipeline

Insights services

Engineers Firmwaredevelopers

Data scientists

Data engineers

© 2015 Forrester Research, Inc. Reproduction Prohibited 16

What are Stitch Fix and Tesla

doing that’s so unique?

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A System Of Insight - The

business discipline and

technology to harness insights

and consistently turn data into

action.

A system of insight is an operating model: people, process, & technology working together

All Data Possible

ActionsInsights-to-execution

process

Insights team

Digital insights

architecture

Right

dataEffective

actions

Source: April 27, 2015, “Digital Insight Is The New Currency Of Business” Forrester report

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Best Practice #1

› Key success factor - can you answer the following: What’s the real question? Which objective are we aiming

to meet? What problem are we trying to solve? How does an

individual initiative fit into the overall business strategy?

Build Multidisciplinary Insights Teams

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Business leader Manages the team to optimize a specific

business outcome

Technology

leader

Responsible for testing, implementation, and

architecture

Domain experts Recognizes insights worth the investment

Developers Test and implement insights in software and

business rules

Data scientists Build models and exercises them to reveal

potential insights

Data engineers Gathers, assesses, integrates, prepares, and

manages dataSource: April 27, 2015, “Digital Insight Is The New Currency Of Business” Forrester report

Implement multidisciplinary teams using agile techniques

Com

ple

ment

with e

xte

rnal te

am

pla

yers

And you’ll have several of them

Source: April 27, 2015, “Digital Insight Is The New Currency Of Business” Forrester report

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Best Practice #2

›Key success factors:

• Recognize the importance of data “housekeeping”

• Break down silos, and don’t allow data – and data

governance - to become a tech responsibility

PUT A SOLID GOVERNANCE

FOUNDATION IN PLACE

Data governance organizations must define and optimize operational processes

Information

Security

Information

Standardization

Information

Quality

Information

Life Cycle

Governance Recommendations

1. Accept the fact that process improvement and data

governance are intimately linked and must work hand-in-

hand.

2. Involve executive sponsorship and support from IT and LoB

(align business process and data stewards).

3. Evangelize the benefits of data governance in the language

of the business, it’s NOT about the data.

4. Tackle data governance in a phased approach.

5. Establish a consistent approach and continuous

improvement process for all elements of data governance.

6. Make data governance your default approach to all process

and data related initiatives.

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Best Practice #3

›Key success factors:

• Shift focus from data to business outcomes

• Aim to implement flexible data platforms

Combine The Right Tools & Processes

Into Systems Of Insights

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Build/buy/subscribe to insights platforms

Insights-driven

applications

• Sales and marketing

• Operations

• Product design

• … lots more

Insights

fabric

• Services framework

• Data Virtualization

• Big data management

• Cloud data & insights services

Data feed

managementExecution

enginesData science

workbench

Collaboration

and governance

tools

Source: April 27, 2015, “Digital Insight Is The New Currency Of Business” Forrester report

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What’s different about systems of insight?

The same

› The need for all the data

› Insights discovery

› Most of the technology

› Most skills & investment

Different

› Insights teams are

multidisciplinary and embedded

in operations.

› Insights aren’t insights until

proven valuable and

implemented in software and

customer engagement.

› The digital insights architecture

extends into collaboration,

execution, feedback, and

insights fabric.

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Your best strategy – use SoI to engage

Source: April 27, 2015, “Digital Insight Is The New Currency Of Business” Forrester report

© 2015 Forrester Research, Inc. Reproduction Prohibited

We are in a new data/insights economy

1. Old World of Corp. Data

2: New

World of

Customer

Data

3: Next

World of

Internet Data

4: Future

World of

Data

Economy

Data

Virtualizationintegration

analysis

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We are talking about a disruptive shift

Winners

Losers› Firms that treat big data as an IT function

› Firms without the willpower to democratize data and insight

› Vendors focused on closed insights technology systems

› Firms that link data to action through digital insights

› Insights-driven business service companies

› Service providers building insights competencies

› Vendors building digital insights ecosystems

Data-driven

Insights-driven

Dr. Anastasio Molano

Senior VP, Strategic Technical Office, Denodo

Data Virtualization As a Key Enabler for “Systems of Insight”

Agenda

01. What is Data Virtualization?

02. Reference Architecture – Data Virtualization

03. Customer Examples

© 2014 Denodo Confidential

What is Data Virtualization?

■ Data integration but… modern, agile and real-time

■ Abstraction + data services layer

© 2014 Denodo Confidential

Data Services

Agile BI &

Agile Apps

Optimized

Performance

Any Data,

AnywhereIntegrate New

Sources

BI

/ReportingAnalytics Visualization

Data

SharingApplication

Data Virtualization is Essential to Modern BI and Data Architecture

© 2014 Denodo Confidential

Data Virtualization: Key Capabilities

Capability Key Takeaway

1 Agile Data Access Rapid access to internal and external sources

2 Logical Abstraction Virtualize physical data into logical views

3 Combine Structured and Unstructured Data

Semantic integration of disparate data types

4 Data Services Provision in many formats with controlled security and service levels

5 Unified Data Governance Search, explore, query canonical data with lineage

© 2014 Denodo Confidential

Data Virtualization: Use Cases

AGILE BUSINESS INTELLIGENCE

Replaced traditional Operational BI with the Logical Data Warehouse.

Transitioned from old perpetual licensing model to a new subscription-based licensing model.

AGILE SINGLE VIEW APPLICATIONS

Created ‘Unified Desktop’ that provides integrated customer information.

Achieved customer satisfaction index of over 94%.

BIG DATA, CLOUD INTEGRATION

Created virtual layer to abstract access to Salesforce.com; creating data lake abstraction.

Successfully reduced application licensing costs.

DATA SERVICES

Delivered commercial products developed using data services.

Achieved faster time-to-market and increased revenue.

© 2014 Denodo Confidential

Data Virtualization Architecture

© 2014 Denodo Confidential

The “Logical Data Warehouse”

OperationalProductionSystems

Data Warehouse

Data Virtualization Layer

…

Business Intelligence Tools

External & Unstructured Data(SaaS, Web, docs, …)

Up-to-date data

DV Cache

AnalyticalAppliances, Big Data, NoSQL

© 2014 Denodo Confidential

Customer Example – Single Customer View

© 2014 Denodo Confidential

Customer Example – Logical Data Warehouse

© 2014 Denodo Confidential

DV Enabling Big Data

Data Virtualization

HadoopSQL Engines

ETL

BI / Reporting Analytics

Enterprise Systems

Web, Cloud and SaaS

IBM Big SQL

Hadoop

© 2014 Denodo Confidential

Customer Example: Telematics and Predictive Maintenance

Dealer

Maintenance

Parts Inventory

OSI PI Hadoop Cluster

Tableau: Dealer / Customer Dashboard

© 2014 Denodo Confidential

Denodo at a Glance

Denodo offers unified access to corporate data assets, flexible integration and management of data of all kinds, and real time data delivery for applications and analytics in a single solution that doesn't need to move data from their original physical repositories.

Investors

$7B Private Equity firm.

Headquarters

Palo Alto, CA. Main offices in New York, London, Madrid and A Coruña. Satellite offices in Chicago, Boise, Houston and Munich. Worldwide sales network through partners.

Leadership

Longest continuous focus on data virtualization and data services. Product leadership. Solutions expertise.

Customers

250+ customers,

including many F500 and G2000 companies across key verticals, such as healthcare, life sciences, technology, media, telecommunications, insurance, financial services, consumer/retail, energy and public sector. Global presence with customers throughout North America, EMEA, APAC and Latin America.

Financials

2014 Growth: +71%. Solid growth projected for 2015: >100%.

© 2014 Denodo Confidential

Next steps…

■ Contact us: www.denodo.com/action/contact-us/en/

■ Download Denodo Express, the free data virtualization tool: www.denodoexpress.com

■ Follow us:

© Copyright Denodo Technologies. All rights reservedUnless otherwise specified, no part of this PDF file may be reproduced or utilized in any for or by any means, electronic or mechanical, including photocopying and microfilm, without prior the written authorization from Denodo Technologies.

Thanks!www.denodo.com info@denodo.com

Dr. Holger Kisker

hkisker@forrester.com

Twitter: @hkisker

Dr. Anastasio Molano

amolano@denodo.com