Big Data and Role of Information Professional
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Transcript of Big Data and Role of Information Professional
SLA – IEBD Webcast
Big Data and Role of the Information
Professional
Pat Saporito, CPCU, Sr. Director, Global COE for Analytics
[email protected] Twitter: @patsaporito
© 2012 SAP AG. All rights reserved. 2 Confidential
Agenda
Big Data & Disruption
Potential Business Value & Challenges
Emerging Roles & Stakeholders
Culture & Change Management
Information Professionals Role
© 2012 SAP AG. All rights reserved. 3 Confidential
Internet of Things is disrupting all industries
1 billion Facebook
users
4 billion YouTube views
per day
Data
doubles every 18
months
15
billion web-enabled
devices
5 billion in emerging
middle class
© 2012 SAP AG. All rights reserved. 4 Confidential
Drive Better
Profit Margins
New
Strategies and
Business Models
Operational
Efficiencies
Value
Velocity
Volume Variety
Mobile
CRM Data
Planning
Opportunities Transactions
Customer
Sales Order
Things
Instant Messages
Demand
Inventory
Big Data Matters: 5 Vs Potential to Provide Transformational Business Value
Veracity
© 2012 SAP AG. All rights reserved. 5 Confidential
Data (Big & Small) - Its Uses
1:1 Marketing
Amazon.com,
Gamification/ Game Design
Angry Birds, CastleVille
Group/Collective Buying
• Groupon, Living Social
Social Networking
• Facebook, Linked In
Inbound Marketing
Retargeting, remarketing
Travelocity
Location Based Marketing
• Google Places
Video
• YouTube, Hulu
User Generated Content
• Facebook, Linked In, Twitter
Mobile Technologies
• Smartphones, iPads/tablets
© 2012 SAP AG. All rights reserved. 6 Confidential
All that Glitters is not Gold
All data is not equal
• Validate data sources
• Validate its fit for purpose
• ID alternative data sources
© 2012 SAP AG. All rights reserved. 7 Confidential
Selected 3rd Party Data Categories & Sources
Sources: • Acxiom
• AM Best
• AMA
• American Housing Survey
• American Tort Reform Foundation
• Bureau of Labor Statistics
• Cap Index
• Carfax
• Census Point
• Choicepoint
• Corporate Research Board
• Directory of US Hospitals
• Dun & Bradstreet
• EASI Analytics
• Equifax
• ESRI
• Experian
• Insurance Institute for Highway Safety
• Internal Revenue Service
• State Licensing Data (Attys, CPAs, MDs,
etc.)
• Martindale/Hubble Attorney Listing
• MRI Purchasing Propensities
• NFIRS – National Fire Reporting
• NHTSA
• OSHA
• US Census
• US Geological Surveys
• Warranties
Categories
© 2012 SAP AG. All rights reserved. 8 Confidential
The Mother Load – Data.Gov http://catalog.data.gov
134,000 data sets
© 2012 SAP AG. All rights reserved. 9 Confidential
Organizations need to mature their analytics to attain
business value
Raw
Data
Cleaned
Data
Standard
Reports
Ad Hoc
Reports &
OLAP
Agile
Visualization
Predictive
Modeling
Optimization
What happened?
Why did it happen?
What will happen?
What is
the best that
could happen?
Us
er
En
ga
ge
me
nt
Maturity of Analytics Capabilities
Self Service BI
Generic
Predictive Analysis
Co
lle
cti
ve
In
sig
ht
© 2012 SAP AG. All rights reserved. 10 Confidential
Turning new signals into business value
Proactive
Health/Wellness
& Risk
Management
360O Customer View
360O Provider View
Extraordinary
Policy/Contract &
Claims Service
Customer and
Producer
Sentiment
Underwriting &
Pricing,
Real Time
Predictive Risk
Management
Fraud
Detection, Real
Time
Telematics /
Usage Based
Insurance
Insider
Threats
Risk Mitigation,
Real-time
Asset Optimization Distribution
Management
:-)
© 2012 SAP AG. All rights reserved. 11 Confidential
“World Class Analytics”
Often Described, Rarely Achieved
© 2012 SAP AG. All rights reserved. 12 Confidential
Big Data Challenges
Staffing
and
Skills
Data Quality/
Governance
Cost
Uncertainty
on Value of
Big Data
Tools &
Technogies
Connecting people to
information, and applying
analytics
© 2012 SAP AG. All rights reserved. 13 Confidential
Nucleus Research, Gartner, Fortune Magazine
Analytic Use Will Skyrocket: 2020 vs. 2014… yet, we’re not using the data we already have
10%
75%
Use Analytics
Today
Need
Analytics
by 2020
Ability to manage and
consume all data is
getting harder
Not utilizing all
the information
out there
Bottom Line: Not leveraging the
power of “collective insight”
Missing new
insights
IT is not agile enough
and the business wants
to get involved
=
© 2012 SAP AG. All rights reserved. 14 Confidential
Many New Titles & Roles
Data Diva
Data Savant
Data Super Hero
Chief Analytics Officer
Analytics
Cave Man
Not everyone is a Data
Scientist… but more
people need analytics in
their jobs.
© 2012 SAP AG. All rights reserved. 15 Confidential
Analytic Value Chain
Many Different Types of Users
© 2012 SAP AG. All rights reserved. 16 Confidential
How Information Professionals Can Help
• Content: Identify external data sources
• Information Governance: Validate data quality, suitability
• Access: Help develop text mining taxonomies
• Tools: Help evaluate tools
• Research: Develop a bibliography on analytics, big data, analytic
leaders, analytic competitors, analytics educational programs.
• Advocacy: Work with BI Competency Centers.
© 2012 SAP AG. All rights reserved. 17 Confidential
Insurance Analytics Evolution
Where are you today? Where do you want to be?
Pricing & Underwriting
Traditional Class Rated
Portfolio Analysis Household Analysis, Tier Rating Plans
Risk Based Pricing, Ad-hoc or On Demand Rate Reviews
Data Poor Quality, Silo’d, Inaccessible Data
Data Assembled Across Product Lines/Historical
Consistent Enterprise View Knowledge/ Data Mining
Atomic Detail Data Wisdom/ Predictive
Product Development
One Product Fits All
Unbundled Coverages Cafeteria/ Menu Approach
Customer & Profitability Driven
Marketing
Product Value Customer Segment Value
Customer Lifetime Value
Dynamic Value Management
Accounting & Finance
Unit focused claims mgmt.
Integrated, but reactive claims mgmt.
Driver based historical claims mgmt.
Driver based predictive claims mgmt.
Metrics Silo’d, Functional, Lagging Metrics
SBU-Strategic Objective linked, historical drivers
Strategic & Cross-SBU objective linked, predictive drivers
Integrated predictive models & metrics
Claims
Traditional Planning & Budgeting
Driver Based Planning & Budgeting
Integrated Planning Predictive Planning
Less Advanced More Advanced
© 2012 SAP AG. All rights reserved. 18 Confidential
Information Culture
Connecting People to Data
Use information as a strategic
asset in decisions
Build and tell fact-based
stories
Maximize business
performance with effective use
of information (apply the
analytics)
“
”
The stone age was
marked by man's
clever use of crude
tools; the
information age, to
date, has been
marked by man's
crude use of clever
tools.
Anon
© 2012 SAP AG. All rights reserved. 19 Confidential
Practical Guidance
Applied Insurance Analytics
Free download of Chapter 1 (Overview)
© 2012 SAP AG. All rights reserved. 20 Confidential
Free desktop visualization tool
SAP Lumira http://saplumira.com/
© 2012 SAP AG. All rights reserved. 21 Confidential
Be ready for
continuous
disruption
Create an
Information
driven
culture
Intelligence
and Analytics
are universal,
"Big Data“
isn't
We all emit
data, lots of it!
Data needs to
be front and
Center, no
matter how
big or small
Analytics is at the core of an intelligent business
Shifting to an Enterprise Analytics Mindset
Analytics is not just for power users - it's for everyone
© 2012 SAP AG. All rights reserved. 22 Confidential
Next Steps
• Volunteer for Analytics projects
• Expand your peer network especially with:
• Chief Analytics Officer; let them know your value-add
• BI Competency Center
• Enlarge your user base
• Role: Data scientists
• Function: Actuarial, marketing, claims,
• Expand your skills
• Learn about big data
• Try new tools – especially new visualization and text mining tools
• Lead by Example
• Use infographics in fulfilling/presenting info requests
© 2012 SAP AG. All rights reserved. 23 Confidential
Plan
Explore
Enrich Explain
Monitor
Design
Govern DATA
PEOPLE
Analyst
IT
Developer
Decision
Maker
Visualize Exploration &
Visualization
Predict Advanced
Analytics
Operational Strategic
Become a Trusted Data Advisor Help incorporate analytics into your company’s DNA
Engage Enterprise-
wide BI
Act
Data
Advisor
Thank You!
Pat Saporito, CPCU
Sr. Director, BI
Global COE for Analytics
(201) 681-9671
Twitter: @Pat.Saporito
LinkedIn: www.linkedin/in/patriciasaporito
SAP Collaboration Network
http://scn.sap.com/
SAP Decision Factor Blog
http://www.the-decisionfactor.com/home/
© 2012 SAP AG. All rights reserved. 25 Confidential
Analytics Bibliography: Books
Analytics at Work: Smarter Decisions, Better Results. Thomas H. Davenport, Jeanne G. Harris, Robert
Morison. Harvard Business School Publishing. 2010.
Applied Insurance Analytics: A Framework for Driving More Value from Data Assets, Technologies
and Tools. Patricia Saporito. Pearson FT Press, 2014.
Big Data: A Revolution That Will Transform How we Live, Work and Think. Viktor Mayer-Schönberger and
Kenneth Cukier. Houghton Mifflin Harcourt, 2013.
Big Data@Work. Dispelling the Myths, Uncovering the Opportunities. Tom Davenport. Harvard Business
School Publishing, 2014.
Business Intelligence in Plain Language: A practical guide to Data Mining and Business Analytics. Jeremy
Kolb. Applied Data Labs, Inc. 2012.
Business Intelligence Competency Centers: A Team Approach to Maximizing Competitive Advantage.
Gloria J. Miller, Stephanie V. Gerlach and Dagmar Brautigam. John A. Wiley & Sons. 2006
Mining the Talk: Unlocking the Business Value in Unstructured Information. Scott Spangler and Jeffrey
Kreulen. IBM Press/Pearson, plc. 2008.
Predictive Analytics: The Power to Predict who Will Click, Buy, Lie or Die. Eric Siegel. John Wiley & Sons.
2013.
The Visual Display of Quantitative Information. Edward Tufte. 2001. (A classic reference work; the original
“bible” of visualization. Also see: Envisioning Information and Visual Explanations, by Tufte.
© 2012 SAP AG. All rights reserved. 26 Confidential
Analytics Bibliography: Trade & Professional Assns.
International Institute for Analytics (IIA). www.iianalytics.com
An independent research firm co-founded Jack Phillips and Research Director Thomas H.
Davenport. Works with organizations to build strong and competitive analytics programs.
INFORMS (Institute for Operations Research & Management Sciences)
www.informs.org
Professional organization for cross industry operations research and management
professionals. Sponsors the CAP (Certified Analytic Professional) professional designation.
TDWI (The Data Warehouse Institute) www.tdwi.org
A leading educational and research organization for BI and Data Warehousing. TDWI
produces an annual BI Benchmark Report.
© 2012 SAP AG. All rights reserved. 27 Confidential
Analytics Bibliography: Articles, Studies, White Papers
Benchmarking Analytic Talent. Talent Analytics Corp. December 2012. A research study on analytics
professionals.
Big Data: The next frontier for innovation, competition, and productivity. May 2011. McKinsey
Research Institute. One of the key studies on Big Data.
Business Intelligence and Performance Management; Key Initiative Overview. Gartner Group. 2013.
(Research Brief)
Data and Analytics in Insurance: P&C Insurer Strategic Priorities and Operational Plans for 2014 and
Beyond. Mark Breading and Denise Garth. June 2014. Strategy Meets Action.
The Data-Driven Organization. Marcia W. Blenko, Michael C. Mankins, Paul Rogers. Harvard
Business Review. June 2010.
Disruptive Technologies: Advances that will transform life, business, and the global economy. May
2013. McKinsey Research Institute. Insights into Machine to Machine (M2M), Internet of Things (IoT),
and other technologies.
The way forward. Insurance in an age of customer intimacy and Internet of Things. Economist
Intelligence Unit; sponsored by SAP. June 2014. Global survey of P&C and Life insurance executives
on the future of insurance. Key findings include important role of data and analytics.