There’s Gold in Them Thar Data! - SAS · Banco Bradesco S.A. (Brazil) Banco do Brasil S.A. Banco...
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Copyright © 2014, SAS Institute Inc. All rights reserved.Copyright © 2014, SAS Institute Inc. All rights reserved.
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@anne_buff
@SASBestPractice
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There’s Gold in Them Thar Data!
Finding and Delivering Business Value Through Data
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Presented by
Copyright © 2014, SAS Institute Inc. All rights reserved.
There’s Gold in Them Thar Data: Finding and Delivering Business Value Through Data
Anne BuffPrincipal Business Solutions ManagerSAS Best Practices
Barbara WixomPrincipal Research Scientist, MIT Sloan School ofManagementCenter for Information
Systems Research
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Dr. Barbara H. WixomPrincipal Research Scientist
Center for Information Systems Research (CISR)MIT Sloan School of Management
[email protected]; http://cisr.mit.edu/
There’s Gold in Them Thar Data:Finding and Delivering Business Value Through Data
Wednesday, October 22, 2014
SAS – The Premier Business Leadership Series
This research was made possible by the support of MIT CISR sponsors and patrons.
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
MIT CISR gratefully acknowledges the support and contributions of its Research Patrons and Sponsors.
CISR Research PatronsThe Boston Consulting Group, Inc.Gartner, Inc.
Microsoft CorporationOliver Wyman, Inc.
SAS Institute Inc.Tata Consultancy Services
MIT CISR’s Mission Founded in 1974, MIT CISR delivers
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Aetna, Inc.AGL Energy Limited (Australia)Akamai TechnologiesAllianz Global Corporate & Specialty Allstate Insurance Co. AMP Services Ltd. (Australia)ANZ Banking Group (Australia)APM TerminalsAustralia PostAustralian Taxation OfficeBanco Bradesco S.A. (Brazil) Banco do Brasil S.A.Banco Santander (Spain)BB&TBBVA (Spain)Bemis Company, Inc.Biogen IdecBNP Paribas (France)BNY MellonBP (U.K.)BT Group (U.K.)Canada Pension Plan Investment BoardCanadian Imperial Bank of Commerce Capital One Services, LLCCaterpillar, Inc.Chevron Corp.CHRISTUS Health Chubb & SonCielo (Brazil)
Coles (Australia)Commonwealth Bank of AustraliaCredit Suisse (Switzerland)DBS Bank Ltd. (Singapore)Dunkin’ BrandsDWS (Australia)Eaton Vance ManagementEMC Corp.Equinox Ltd. (New Zealand)ExxonMobil Global Services Co.Ferrovial (Spain)Fidelity InvestmentsFOXTEL (Australia)Hitachi, Ltd. (Japan)Holcim Brasil S.A.HSBC Bank plc (U.K.)IBM CorporationInformaticaING Direct SpainInsurance Australia GroupItaú – Unibanco S.A. (Brazil)Johnson & JohnsonLeighton Holdings Ltd. (Australia)Level 3 CommunicationsLKK Health Products Group Ltd. (HK, China)MAPFRE (Spain)New Zealand Govt.—GCIO OfficeNomura Research Institute, Ltd. (Japan)Northwestern Mutual
Orange S.A.Origin Energy (Australia)Parsons BrinckerhoffPepsiCo Inc.Principal Financial Group, Inc.Raytheon CompanyReserve Bank of AustraliaRoyal Bank of CanadaRoyal Philips (Netherlands)Sabadell BankSchneider Electric Industries SASStandard & Poor’sStandard Bank Group (South Africa)State Street Corp.TD Bank (Canada)Teck Resources Ltd. (Canada)Telstra Corp. (Australia)Tenet HealthTetra Pak (Sweden)TransUnion LLCTrinity HealthU.S. Dept. of Health & Human ServicesUnum GroupUSAAVF CorporationWestpac Banking Corp. (Australia)World Bank
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Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
There’s gold in them thar data: data monetization
Photo and video from film: Princess Bride
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
There’s gold in them thar data
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Data Monetization
Improve/Innovate
Asset Management
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
There’s gold in them thar data: Asset Management
Data Monetization
Improve/Innovate
Asset Management
Asset Management: Optimizing investments in data capture, storage, management, control, and delivery.
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
There’s gold in them thar data: Improve/Innovate
Data Monetization
Improve/Innovate
Asset Management
Improve/Innovate: Leveraging data to enable better or new decision making and business processes that increase revenues or reduce costs.
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Internal approaches are not choices
Monetization
Improve/Innovate
Asset Management
INTERNAL
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Monetization is a choice
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Monetization
Improve/Innovate
Asset Management
EXTERNAL
Data Monetization: Exchanging information-based products and services for legal tender or something of perceived equivalent value.
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Rather, data monetization is three choices
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Bartering
Bartering: Exchanging data for products and services.
Do you know where your bartering is?
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Bartering
Source: Barb Wixom, MIT CISR case studies, in progress.
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Bartering
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Bartering: Exchanging data for products and services.
Challenges:
Control/compliance
Value preservation
Future success:
Ensure that an organizational group is accountable for value management, compliance
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Selling
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Are you prepared for a new business model?
Selling: Exchanging data for money.
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Owens and Minor
Source: http://www.owens-minor.com/Services/Analytics/Pages/WISDOM.aspx
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Owens and Minor’s current competitive landscape
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Selling
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Selling: Exchanging data for money.
Challenges:
Sustaining competitive advantage
Environmental scanning
Future success:
Create an organizational structure focused on selling
Partnering, M&A
Understand your value proposition
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Wrapping
1We surveyed 63 executives at MIT CISR’s 2014 Summer Session on the topic of data monetization.
Wrapping: Exchanging data for increased revenues from core products and services.
In a recent poll1, 73 percent of executives chose wrapping
as the data monetization approach that offers the
greatest future potential for their company.
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
OneTouch® Verio®Sync Meter
Johnson & Johnson is a Global Fortune 500 company engaged in the research and development,
manufacture and sale of a broad range of products in the healthcare field.
OneTouch® product line developed by LifeScan
– Supports diabetes care
– Blood glucose monitoring – testing and delivering test results
Wirelessly sends blood sugar results to the OneTouch® Reveal™ mobile app.
Source: http://www.onetouch.com/veriosync
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Wrapping
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Wrapping: Exchanging data for increased revenues from core products and services.
Challenges:
Avoiding merely “raising the bar” of core offerings
Meeting expected service levels to avoid damage to stakeholder relationships
Future success:
Incorporate into core product and business capability roadmaps
Achieve SLAs using data management and technology best practices
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
comScore, Inc.: platform, people, and perception
B.H. Wixom, J.W. Ross, and C.M. Beath, “Capturing Value From Big Data At comScore Through Platform, People and Perception” MIT
Sloan CISR Research Briefing, Vol. XIII, No. 11, November 2013.
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
There’s gold in them thar data!
Monetization
Improve/Innovate
Asset Management
INTERNAL
EXTERNAL
Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Contact information
Dr. Barbara Wixom
Principal Research Scientist
Center for IS Research (CISR)
Sloan School of Management
Massachusetts Institute of Technology
MIT CISR research is available at no charge via http://cisr.mit.edu/patrons/sas-institute/
Follow @MIT_CISR, @barbwixom on Twitter
Copyright © 2014, SAS Institute Inc. All rights reserved.#pbls14 • @anne_buff • @barbwixom
Finding the Value
Copyright © 2014, SAS Institute Inc. All rights reserved.#pbls14 • @anne_buff • @barbwixom
Why now?
Business Drivers
Environmental Drivers
Copyright © 2014, SAS Institute Inc. All rights reserved.#pbls14 • @anne_buff • @barbwixom
Where’s the value?
External = Monetization
Internal = Business Value Creation (asset management, improving & innovating)
Copyright © 2014, SAS Institute Inc. All rights reserved.#pbls14 • @anne_buff • @barbwixom
Delivering the Value
Copyright © 2014, SAS Institute Inc. All rights reserved.#pbls14 • @anne_buff • @barbwixom
What are the capabilities?
Platform
People
Perception
Copyright © 2014, SAS Institute Inc. All rights reserved.#pbls14 • @anne_buff • @barbwixom
What are the sources?
Value, Control, Security, Privacy
Data, Insight , Action
Sell, Barter, Wrap
Copyright © 2014, SAS Institute Inc. All rights reserved.#pbls14 • @anne_buff • @barbwixom
How do you measure the value?
Value Relative to Use
Rareness
Imitability
Organization
Copyright © 2014, SAS Institute Inc. All rights reserved.#pbls14 • @anne_buff • @barbwixom
Thank You!
B. Wixom, “Cashing In On Your Data.” MIT Sloan CISR
Research Briefing, Volume XIV, Number 8, August 2014
B. Wixom and C. Beath, “Winning the Data Race.” MIT
Sloan CISR Research Briefing, Volume XIV, Number 3,
March 2014
B. Wixom, J. Ross, and C. Beath, “Capturing Value From
Big Data At ComScore Through Platform, People, and
Perception.” MIT Sloan CISR Research Briefing, Volume
XIII, Number 11, November 2013
J. Barney, "Looking inside for Competitive Advantage."
Academy of Management Volume 9, Number 4
(November, 1995): 49-61