The Data Driven Enterprise Considerations for changing your business - - PowerPoint PPT Presentation

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The Data Driven Enterprise Considerations for changing your business - - PowerPoint PPT Presentation

May 24, 2023 284 likes •546 views

The Data Driven Enterprise Considerations for changing your business by utilizing data Frankfurt, November 27 th , 2017 Gerhard Otterbach, Sales Manager, Teradata Germany Data is The New Oil.. Semiconductor Technology Scaling Source: Intel

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SLIDE 1

The Data Driven Enterprise

Considerations for changing your business by utilizing data

Frankfurt, November 27th, 2017

Gerhard Otterbach, Sales Manager, Teradata Germany

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SLIDE 2

Source: Intel

Semiconductor Technology Scaling

Speed: Delay (Sec) Costs ($)

Vacuum Tube Transistor NMOS CMOS Vacuum Tube Transistor NMOS CMOS

Data is The New Oil.. “Data and analytics are changing the basis of

  • competition. Leading

companies are using their capabilities not only to improve their core

  • perations but to launch

entirely new business models…”

The Age of Analytics: Competing in a data-driven world” – McKinsey Global Institute, December 2016

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SLIDE 3

Digitization Changes Data

“Analog” “Electronic” “Digital”

“These sensors have the capability to take continuous data about the heat of an engine, fuel consumption, the wear of the blades, the environment it’s taking off in - a series of things. And one flight between New York City and Chicago produces a terabyte

  • f data…”

Jeff Immelt, GE CEO - “GE’s Jeff Immelt on digitizing in the industrial space”, McKinsey Quarterly, October 2015

“These sensors have the capability to take continuous data about the heat of an engine, fuel consumption, the wear of the blades, the environment it’s taking off in - a series of things. And one flight between New York City and Chicago produces a terabyte

  • f data…”

Jeff Immelt, GE CEO - “GE’s Jeff Immelt on digitizing in the industrial space”, McKinsey Quarterly, October 2015

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SLIDE 4

“What Gets Measured, Gets Managed”

Peter Drucker, Management Consultant (1909-2005)

Data Changes Business Management

Customer

Experience

Finance

Transformation

Product

Innovation

Risk

Mitigation

Assets

Optimization Operational Excellence

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SLIDE 5

“Physical products and goods continue to be quite physical but are coming wrapped in data. Think about your container on a ship that’s tagged, and it turns out that even the actuarial models for how the tracking of that is valued and insurance contracts are constructed is different whether the thing is tagged and tracked versus not..”

James Manyika, Director McKinsey Global Institute “Why every leader should care about digitization and disruptive innovation” McKInsey Insights, January 2014

“Physical products and goods continue to be quite physical but are coming wrapped in data. Think about your container on a ship that’s tagged, and it turns out that even the actuarial models for how the tracking of that is valued and insurance contracts are constructed is different whether the thing is tagged and tracked versus not..”

James Manyika, Director McKinsey Global Institute “Why every leader should care about digitization and disruptive innovation” McKInsey Insights, January 2014

Longer-term disruptive impacts:

  • Outcome economy: Pay-per-outcome,

connected ecosystems, platform-enabled marketplace, etc.

  • Autonomous, pull economy: Continuous

demand-sensing, end-to-end automation, resource optimization and waste reduction, etc.

Near-term incremental impacts:

  • Increased operational efficiency and safety:

self-monitoring machines, improved asset utilization, condition-based maintenance, etc.

  • New products and services: pay-per-use

models, data monetization, software-based services, etc.

OPTIMISATION

“Are we doing the right things right now?” “System-of-Systems thinking”

EFFICIENCY

“Are we doing things right?” “System thinking”

Data Changes Business Management

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SLIDE 6

Consumables Energy Maintenance/SLA

Power Generation Wear & Fuel Mix Production Capacity bottleneck removal

New “Industry” Market Places

1

New Focus Guarantee led Selling

2

New Competitors UBER

3

New Capabilities Integrated Mobility

4

Data Changes Business Management

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SLIDE 7

Consumables Energy Maintenance/SLA

Power Generation Wear & Fuel Mix Production Capacity bottleneck removal

“Physical products and goods continue to be quite physical but are coming wrapped in data. Think about your container on a ship that’s tagged, and it turns out that even the actuarial models for how the tracking of that is valued and insurance contracts are constructed is different whether the thing is tagged and tracked versus not..”

James Manyika, Director McKinsey Global Institute “Why every leader should care about digitization and disruptive innovation” McKInsey Insights, January 2014

“Physical products and goods continue to be quite physical but are coming wrapped in data. Think about your container on a ship that’s tagged, and it turns out that even the actuarial models for how the tracking of that is valued and insurance contracts are constructed is different whether the thing is tagged and tracked versus not..”

James Manyika, Director McKinsey Global Institute “Why every leader should care about digitization and disruptive innovation” McKInsey Insights, January 2014

Longer-term disruptive impacts:

  • Outcome economy: Pay-per-outcome,

connected ecosystems, platform-enabled marketplace, etc.

  • Autonomous, pull economy: Continuous

demand-sensing, end-to-end automation, resource optimization and waste reduction, etc.

Near-term incremental impacts:

  • Increased operational efficiency and safety:

self-monitoring machines, improved asset utilization, condition-based maintenance, etc.

  • New products and services: pay-per-use

models, data monetization, software-based services, etc.

WEATHER FORECASTS WEATHER DATA APPLICATION WEATHER MAPS FIELD SENSORS IRRIGATION NODES IRRIGATION APPLICATION SEED OPTIMIZATION APPLICATION FARM PERFORMANCE DATABASE SEED DATABASE

FARM MANAGEMENT SYSTEM

FARM EQUIPMENT SYSTEM WEATHER DATA SYSTEM SEED OPTIMIZATION SYSTEM IRRIGATION SYSTEM

System of Systems

RAIN, HUMIDITY, TEMPERATURE SENSORS

FARM EQUIPMENT SYSTEM TILLERS PLANTERS COMBINE HARVESTERS TRACTORS

Product System

How Smart, Connected Products Are Transforming Competition, Michael E. Porter & James E. Heppelmann, Harvard Business Review

Data Changes a Business System

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SLIDE 8

Data Drives Strategy, Strategy is Enabled By Data

“There is a significant degree to which strategy is actually based on technology and therefore changes in technology are actually changing the nature of business strategy itself.”

P

Phil Evans, Managing Partner BCG CIO Forum Amsterdam Dec 2013

Leaders Act Inside Out:

Strong believers in data and exploit it as a source for new value and innovation - data as new oil!

Followers Act Outside In:

Exploit data because others are. Vague understanding of possible benefits - data as “exhaust”.

NEW MODEL: Business is the result of leveraging data

OLD MODEL:

Data is the result of running the business

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SLIDE 9

Design For Data..

Characteristics Of A Data Driven Leader…

Data At The Core.. 1 2 Invest In Data 3 Experiment With Data 4 Focus On The Customer 5 Innovate With Data 6

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Data At The Core

“The information about the package is as important as the package itself…”

Fred Smith, Founder of Federal Express

1

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Data At The Core

1

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Design For Data...

“People think we got big by putting big stores in small towns. Really we got big by replacing inventory with information.”

Sam Walton (1918-1992),Founder of Wal-Mart Stores

2

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Invest In Data

“In the worksite setting, 60% of the potential value requires the ability to integrate and analyse data.”

The Internet of Things: Mapping The Value Beyond The Hype McKinsey Global Institute, June 2015

3

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SLIDE 14

Invest In Data

3

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Experiment With Data

“It’s not a coincidence that Netflix performs over 1,000 experiments per year. It’s also not a coincidence that the most successful tech companies in the world, such as Amazon, Facebook, Google, and Intuit, also do the same…”

House Of Creativity: Netflix Casts Big Data In Transformation Role, CMO.com 21st March 2017

4

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SLIDE 16

40+ Projects over 2 years

3

MAR

5

MAY

7

JUL

9

SEP

11

NOV

13

JAN

15

MAR

17

MAY

19

JUL

21

SEP

23

NOV

Classic Paradigm

  • Highly Planned & Controlled
  • Slow Release Schedule
  • Low Risk / High Success-
  • Projects must succeed
  • Business gives requirements
  • IT drives the schedule /

projects

New Paradigm

  • Many Small Iterative Projects
  • Low cost (<50K$) pr project
  • Failure is accepted as part of

the process - Leads to new innovations

  • Business drives the projects
  • IT enables infrastructure and

technology resources

$5m $5m $5m 3 Releases Over 2 years

Release 1 Release 2 Release 3 3

MAR

5

MAY

7

JUL

9

SEP

11

NOV

13

JAN

15

MAR

17

MAY

19

JUL

21

SEP

23

NOV

”IT captures only the data that is needed to answer known questions” ”Business gets answers to any (known) question” ”IT Captures all the data in case its needed in the future” ”Business gets answers to any question (if we have data)”

  • High quality and integrated

data

  • Pre-defined analytics
  • Some “drill” flexibility
  • High performance
  • “Answer most common

questions”

  • Anyone can start experiment
  • Data not prepared
  • Performance unknown
  • Access to all data across

enterprise

  • Data integration and data

preparation “on the fly”

  • “Answer any question"

IT Leading Business Leading

Experiment With Data

4

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SLIDE 17

Focus On The Customer

5

“To not only stay in the game but capture new sources of value, incumbents will need to reinvent their customer

  • experience. That begins

with bringing in data and analytics-based insights about what really matters to customers and how best to deliver it to them“

“Putting customer experience at the heart of next- generation operating models” – McKinsey, March 2017

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SLIDE 18

Focus On The Customer

“It’s amazing how much friction Disney has engineered away: There’s no need to rent a car or waste time at the baggage carousel. You don’t need to carry cash, because the MagicBand is linked to your credit card. You don’t need to wait in long lines. You don’t even have to go to the trouble of taking out your wallet..”

Disney's $1 Billion Bet on a Magical Wristband, WIRED Magazine, April 2015

5

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SLIDE 19

Change Your business Optimize Your Business Re-Invent Your Business Improve Your Business

Optimization Innovation Internal Focus External Focus

Change Your business Optimize Your Business Improve Your Business Re-Invent Your Business

Innovate With Data

6

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Final Words (I) – You will need Data Talent …

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Final Words (I) – … but to succeed you need a Data Team

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Final Words (II) – Drive Better Decisions with Data ...

“Let My Dataset Change Your Mindset”

Hans Rosling (t 2017) Medical Professor, Karolinska Institute

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SLIDE 23

Final Words (II) – ... And don´t any longer follow the HIPPO only

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Final Words (III) - There is no way back!

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Thank You For Your Time!

"In God we trust, all

  • thers must

bring data”

  • W. Edwards Deming