Big Data Myths...BUSTED

Jen Cohen Crompton

Since Big Data is such a “big” and diverse topic, there are plenty of assumptions, misunderstandings, and confusion surrounding the concept. Through discussions with colleagues, I’ve noticed a few recurring themes, uncertainties and generalizations. I’ve also heard plenty of assumptions and claims…some of which are true and some lack validity. After hearing from industry experts, I’ve compiled three Big Data Myths, which we will bust, to uncover some of the Big Data facts.

Myth One: Big Data is really “BIG.”

When it is stated that big data is really big, that infers that big data translates into a lot of information, more than most companies collect. In that case, this myth is not true at all. At the latest Hadoop conference, big data was defined as any data that cannot fit into Excel, which in reality, is the amount of data most companies collect and store, especially since the rise in social media and the volumes of data collected from those sources.

“Social media releases floods of data that hold massive promises for business – both in terms of branding and opening up new channels to market, in which large populations of consumers are speaking. They’re [consumers] communicating who they are and what they do and do not like. Such a relentless flow of data provides extraordinary levels of feedback and an unrivaled chance for companies to listen to the voices of their customers and target audience(s), garner intelligence, and participate in a collaborative dialogue to boost competitive advantage and new opportunity,” explains Upasna Gautam of MagicLogix.com. [Stay tuned for another post about the link between social media and big data.] Most businesses are using social media outlets for this type of insight and the amount of data collected and needed to be analyzed is considered “big.”

So it isn’t just enterprises who are struggling to manage big data. The general rule – if you have multiple spreadsheets with data, you have big data on your hands. As Margaret Dawson, VP of Marketing for Symform points out, “SMBs also struggle to keep up with skyrocketing data volumes. In fact, a recent data and backup trends survey of SMBs found that respondents average one terabyte to over 500 TBs (1 TB = 1000 GB) of data, with most forecasting data growth of 10-40% over the next year.” Wow.

Myth Two: Big Data makes BETTER analytics.

Is bigger really better? Sometimes, but in the case of big data, it seems that in certain circumstances, bigger is simply bigger and quantity does not always equal quality; the gap occurs in the analysis and translation of the data. It’s [almost] comparable to giving someone a hammer, nails, wood, and all the tools they need to build a house, but without the blueprint, they don’t know what to do and where to start. This means that with our data, we have to be sure we are collecting the valuable data to help solve the most prominent problems – the problems that relate back to our KPIs and bottomlines – and following the right blueprint to get what we need.

Erin Bartolo, Data Science Program Manager at the School of Information Studies at Syracuse University, agrees and provides a strategy to ensure bigger data turns into something meaningful. “Entertain your inner skeptic by questioning everything from what data are meaningful to how you project your own biases on findings. Without objective, analytical skills, analytics merely backs up our own biases with data,” she advises. She explains that the “whys” and “hows” need to be infused into the data analysis to really find value. She says, “…increasing one’s awareness of data and appreciation of its objectivity reveals insights whether the data is stored in an Excel spreadsheet or in a massive data warehouse.”

So in this case, size doesn’t really matter, unless you need the size of the data to answer the questions that relate back to your ultimate goals.

Myth Three: You need a team of Hadoop engineers and Analytics platforms to be on premise to work with Big Data.

While it is quite a challenge to merge data collected from various sources and analyze the information (and Hadoop professionals could be an advantage), there are other solutions and platforms that can help transform the unstructured data into structured data and merge with business intelligence (BI) tools.

Werner Hopf, CEO, Dolphin believes, “There are compelling [software] solutions to help companies meet those goals, achieve significant savings and performance improvements, and lay the foundation for leveraging SAP HANA – the vehicle for truly maximizing the potential benefits of big data – in the future.” These options can be cost effective and easily navigated by an intelligent, but not expert users.

The other idea of housing analytics platforms on premise is busted by Keith Metcalfe, Vice President of Sales and Marketing at WCI Consulting as he adds, “Integrating and cleansing data to a targeted place for reporting is a core concept behind any enterprise approach to analytics/business intelligence, and there is no technical reason why that target cannot reside in a hosted/SaaS environment. Cloud platforms and analytics tools are great applications for hosted (e.g. Amazon Web Services) or SaaS analytics platforms (e.g. SAP BusinessObjects BI OnDemand). Having said this, core to the topic of SaaS and hosted environments is that an organization sees value in replacing IT infrastructure, as this is where the financial return justifies the cost of investing in such environments.”

Two last pieces of big data management advice from Hopf, “From a data management perspective, making the most of the big data opportunity requires the adoption of two key strategies: 1) augmenting data archiving capabilities with nearline storage; and 2) re-architecting the business warehouse (BW) data model for lean, flexible, organized “views” of information that serve up agile reporting without increasing administrative
overhead.” Do this, add the human aspect, and solve big business problems using your big data.

If you have questions about these myths, feel free to reach out to a Top Big Data Twitter Influencers.

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About Jen Cohen Crompton

Jen Cohen Crompton is a SAP Blogging Correspondent reporting on big data, cloud computing, enterprise mobility, analytics, sports and tech, and anything else innovation-related. When she's not blogging, she can be caught marketing, using social media and/or presenting at conferences around the world. Disclosure: Jen is being compensated by SAP to produce a series of articles on the innovation topics covered on this site. The opinions reflected here are her own.

Technology Drives Profit For Engineering, Construction, And Operations Companies

Judy Cubiss and Ginger Shimp

In a recent podcast, Brian Fanzo and Daniel Newman, co-hosts of the popular S.M.A.C. Talk (social, mobile, analytics, cloud) Technology Podcasts spoke with Michael Shomberg, global vice president and general manager for the engineering, construction, and operations business unit at SAP, about the challenges and opportunities coming to the forefront in the construction industry.  This was an episode of an extraordinary series entitled Digital Industries, which examines how digital transformation is affecting 16 different industries.  Listen to a short clip of the podcast:

Construction companies face greater challenges than ever before.  Shomberg elucidates:

projects are getting more complex they are getting bigger more efficient more environmentally safe and the experienced are retiring and being replaced by tech enabled millennials

These surprises, Shomberg explains, are making it difficult for construction companies to meet their cost and/or schedule goals.

Construction labor productivity has been flat for 60 years, which is in direct contrast to industrial business, which have seen a 2X increase in labor productivity in the same time period. Clearly there is a lot of opportunity for the construction industry to improve and learn from other industries.

Challenges and solutions

Digital transformation is a broad term that is going to have an increasingly significant impact on how business is conducted, particularly for construction companies. Industry leaders recognize the need for digitization, what they call the industrialization of construction. Overall, the construction industry has lagged technologically. But now, as technology interconnectivity is now widely available, the industry is at an inflection point. Shomberg says that this means it is possible to take those proven technologies from the manufacturing world and move them to construction. He adds that things like real-time feedback, optimization of procedures, and lean costing to eliminate the waste will help drive efficiency as the size and complexity of projects continue to grow.

chinese based contractor build a 57-story building in just 19 days

Construction leaders also need to address very real demographic shifts in the workforce—both the workforce at large, and as they relate specifically to the construction industry. As baby boomers and even Gen-Xers continue to retire, the “old school” way of managing the day-to-day activities, with Excel and paper, within a construction company will increasingly decline. As veteran authorities retire, they are being replaced with millennials who are comfortable with (and prefer) integrated technology, using hardware like iPads and iPhones and creating an atmosphere in which it’s possible to access real-time feedback through mobile and cloud technologies. This in turn increases efficiency and eliminates surprises.

large Middle Eastern contractor uses the internet of things to monitor and improve asset utilization saving approximately 15 million dollars per year

Technology can be used to share even more rich information to and from the field, as well as to provide visual data from the site in order to forestall surprises. As Shomberg puts it: “If there is an issue, which there always are on construction sites, managers know immediately and can re-plan so as not to have that issue mushroom and maybe become a much bigger problem.”

To the surprise of no one, digital transformation requires fundamental infrastructure changes, such as eliminating multiple databases, abolishing data warehouses, and jettisoning the slow processing of information. Eradicating the manual processing of information means that daily forecasting and daily updates become a reality. Now everybody knows exactly what’s going on, and there is a single plan available for all the troops. This is something that has eluded construction for many years but is now possible thanks to digital connectivity.

To listen this episode of Digital Industries for the construction industry, co-produced by SAP and S.M.A.C. Talk Technology Podcast, click here.

Transforming into a truly digital business is much more than just implementing new technology to meet the demands of a digital age. It’s more than keeping up with the deluge of transformation happening all around us. Digital transformation is about understanding how to harness these changes and incorporate them into your business strategy. It’s about driving agility, connectivity, analytics, and collaboration to run a Live Business. A digital core empowers you with real-time visibility into all mission critical business processes inside your four walls, and in your interactions with customers, suppliers, workforce, Big Data, and the Internet of Things.

For more on how SAP can help you drive your own digital transformation in the construction industry, visit us online.

Further resources

Chairman Zhang’s Flatpack Skyscrapers, BBC News June 11, 2015.

The Internet of Things Is Giving the Construction Industry a New Strategy, IBM Big Data & Analytics Hub, June 4, 2015.

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Judy Cubiss

About Judy Cubiss

Judy is director of content marketing for Finance at SAP. She has worked in the software industry for over 20 years in a variety of roles, including consulting, product management, solution management, and content marketing in both Europe and the United States.

About Ginger Shimp

With more than 20 years’ experience in marketing, Ginger Shimp has been with SAP since 2004. She has won numerous awards and honors at SAP, including being designated “Top Talent” for two consecutive years. Not only is she a Professional Certified Marketer with the American Marketing Association, but she's also earned her Connoisseur's Certificate in California Reds from the Chicago Wine School. She holds a bachelor's degree in journalism from the University of San Francisco, and an MBA in marketing and managerial economics from the Kellogg Graduate School of Management at Northwestern University. Personally, Ginger is the proud mother of a precocious son and happy wife of one of YouTube's 10 EDU Gurus, Ed Shimp.

AI, Blockchain, And Cloud Fuel Banking’s Evolution

John Bertrand

Artificial intelligence (AI), blockchain, and cloud technologies are increasingly appearing on the horizon. This could be exactly what the banker ordered, given the legal mandates for open banking and General Data Protection Regulation for 2018. These three key technologies can fuel the financial services industry’s evolution into the digital age.

Artificial intelligence

AI is a collection of machine learning, natural language processing, and cognitive computing designed for scale. It is this scalability that is exciting, as it can create exponential growth and deliver today’s required personalized communications. For example, in July 2017 UK payments processed 21 million payments per business day. If 0.5% of the daily volume needed additional review, 105,000 items would need to be checked, often manually and with rules-based, tick-the-box solutions. AI would significantly increase productivity by matching payment behavior and pattern recognition, and simply asking the question, “does this look right?” AI-powered chatbots could help business users and consumers answer inquiries and enhance the customer experience.

Blockchain

Blockchain is also a mix of technologies that enables us to trust someone we do not know and protects us from cybercriminals. The block contains vital information about a party, and the chain is the sequence of third-party, verified events that have taken place over the history of the transaction. Blockchain is fully encrypted and can be permissioned for private and public groups. Given the manual, paper-based state of the supply chain, it is not surprising that we’re seeing many new proofs of concepts and pilots using blockchain.

Cloud

Cloud computing gives improved security, scale, and agility to respond to market demands and can decrease banks’ cost bases. The advances in cloud technologies permit software applications to move seamlessly between legacy, private cloud, and public cloud solutions. One such technology, containers, allows the applications to flow safely across the end-to-end processes regardless of the underlying technologies, much like how shipping containers transformed the inefficient, non-scalable 20th century transportation industry to the one today.

Finance’s digital evolution

These technologies are could be the savior of financial services industry. Financial services are rapidly becoming a technology-driven sector, evidenced by the increasing amount of money being spent in this area.

  • Financial services is now one of the largest buyers of software
  • IDC expects this figure to grow more than five percent over 2016’s spending
  • The forecast of $2.7 trillion in worldwide IT spending by 2020 is led by the financial services industry

Legacy banks and financial services firms can either build the technology themselves or work with fintechs to do so; either way it has to be done. Eminent evolutionary biologist Charles Darwin could have been discussing this new banking environment when he noted:

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. 

Potential impacts of financial services’ digital evolution include:

  • Low-cost centers using AI to increase straight-through processing (STP) to 100%, thus removing cost, increasing customer satisfaction, and reducing liabilities from errors
  • Administration of trade finance through blockchain to reduce costs and increase certainty of ownership at any point in time
  • Spare computer capacity created by using the cloud, enabling banks to meet peak-day requirements and increase cybersecurity

Security is now a bottom-line concern. See The Future of Cybersecurity: Trust as Competitive Advantage.

This article was originally published on Finextra.

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Diving Deep Into Digital Experiences

Kai Goerlich

 

Google Cardboard VR goggles cost US$8
By 2019, immersive solutions
will be adopted in 20% of enterprise businesses
By 2025, the market for immersive hardware and software technology could be $182 billion
In 2017, Lowe’s launched
Holoroom How To VR DIY clinics

From Dipping a Toe to Fully Immersed

The first wave of virtual reality (VR) and augmented reality (AR) is here,

using smartphones, glasses, and goggles to place us in the middle of 360-degree digital environments or overlay digital artifacts on the physical world. Prototypes, pilot projects, and first movers have already emerged:

  • Guiding warehouse pickers, cargo loaders, and truck drivers with AR
  • Overlaying constantly updated blueprints, measurements, and other construction data on building sites in real time with AR
  • Building 3D machine prototypes in VR for virtual testing and maintenance planning
  • Exhibiting new appliances and fixtures in a VR mockup of the customer’s home
  • Teaching medicine with AR tools that overlay diagnostics and instructions on patients’ bodies

A Vast Sea of Possibilities

Immersive technologies leapt forward in spring 2017 with the introduction of three new products:

  • Nvidia’s Project Holodeck, which generates shared photorealistic VR environments
  • A cloud-based platform for industrial AR from Lenovo New Vision AR and Wikitude
  • A workspace and headset from Meta that lets users use their hands to interact with AR artifacts

The Truly Digital Workplace

New immersive experiences won’t simply be new tools for existing tasks. They promise to create entirely new ways of working.

VR avatars that look and sound like their owners will soon be able to meet in realistic virtual meeting spaces without requiring users to leave their desks or even their homes. With enough computing power and a smart-enough AI, we could soon let VR avatars act as our proxies while we’re doing other things—and (theoretically) do it well enough that no one can tell the difference.

We’ll need a way to signal when an avatar is being human driven in real time, when it’s on autopilot, and when it’s owned by a bot.


What Is Immersion?

A completely immersive experience that’s indistinguishable from real life is impossible given the current constraints on power, throughput, and battery life.

To make current digital experiences more convincing, we’ll need interactive sensors in objects and materials, more powerful infrastructure to create realistic images, and smarter interfaces to interpret and interact with data.

When everything around us is intelligent and interactive, every environment could have an AR overlay or VR presence, with use cases ranging from gaming to firefighting.

We could see a backlash touting the superiority of the unmediated physical world—but multisensory immersive experiences that we can navigate in 360-degree space will change what we consider “real.”


Download the executive brief Diving Deep Into Digital Experiences.


Read the full article Swimming in the Immersive Digital Experience.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Jenny Dearborn: Soft Skills Will Be Essential for Future Careers

Jenny Dearborn

The Japanese culture has always shown a special reverence for its elderly. That’s why, in 1963, the government began a tradition of giving a silver dish, called a sakazuki, to each citizen who reached the age of 100 by Keiro no Hi (Respect for the Elders Day), which is celebrated on the third Monday of each September.

That first year, there were 153 recipients, according to The Japan Times. By 2016, the number had swelled to more than 65,000, and the dishes cost the already cash-strapped government more than US$2 million, Business Insider reports. Despite the country’s continued devotion to its seniors, the article continues, the government felt obliged to downgrade the finish of the dishes to silver plating to save money.

What tends to get lost in discussions about automation taking over jobs and Millennials taking over the workplace is the impact of increased longevity. In the future, people will need to be in the workforce much longer than they are today. Half of the people born in Japan today, for example, are predicted to live to 107, making their ancestors seem fragile, according to Lynda Gratton and Andrew Scott, professors at the London Business School and authors of The 100-Year Life: Living and Working in an Age of Longevity.

The End of the Three-Stage Career

Assuming that advances in healthcare continue, future generations in wealthier societies could be looking at careers lasting 65 or more years, rather than at the roughly 40 years for today’s 70-year-olds, write Gratton and Scott. The three-stage model of employment that dominates the global economy today—education, work, and retirement—will be blown out of the water.

It will be replaced by a new model in which people continually learn new skills and shed old ones. Consider that today’s most in-demand occupations and specialties did not exist 10 years ago, according to The Future of Jobs, a report from the World Economic Forum.

And the pace of change is only going to accelerate. Sixty-five percent of children entering primary school today will ultimately end up working in jobs that don’t yet exist, the report notes.

Our current educational systems are not equipped to cope with this degree of change. For example, roughly half of the subject knowledge acquired during the first year of a four-year technical degree, such as computer science, is outdated by the time students graduate, the report continues.

Skills That Transcend the Job Market

Instead of treating post-secondary education as a jumping-off point for a specific career path, we may see a switch to a shorter school career that focuses more on skills that transcend a constantly shifting job market. Today, some of these skills, such as complex problem solving and critical thinking, are taught mostly in the context of broader disciplines, such as math or the humanities.

Other competencies that will become critically important in the future are currently treated as if they come naturally or over time with maturity or experience. We receive little, if any, formal training, for example, in creativity and innovation, empathy, emotional intelligence, cross-cultural awareness, persuasion, active listening, and acceptance of change. (No wonder the self-help marketplace continues to thrive!)

The three-stage model of employment that dominates the global economy today—education, work, and retirement—will be blown out of the water.

These skills, which today are heaped together under the dismissive “soft” rubric, are going to harden up to become indispensable. They will become more important, thanks to artificial intelligence and machine learning, which will usher in an era of infinite information, rendering the concept of an expert in most of today’s job disciplines a quaint relic. As our ability to know more than those around us decreases, our need to be able to collaborate well (with both humans and machines) will help define our success in the future.

Individuals and organizations alike will have to learn how to become more flexible and ready to give up set-in-stone ideas about how businesses and careers are supposed to operate. Given the rapid advances in knowledge and attendant skills that the future will bring, we must be willing to say, repeatedly, that whatever we’ve learned to that point doesn’t apply anymore.

Careers will become more like life itself: a series of unpredictable, fluid experiences rather than a tightly scripted narrative. We need to think about the way forward and be more willing to accept change at the individual and organizational levels.

Rethink Employee Training

One way that organizations can help employees manage this shift is by rethinking training. Today, overworked and overwhelmed employees devote just 1% of their workweek to learning, according to a study by consultancy Bersin by Deloitte. Meanwhile, top business leaders such as Bill Gates and Nike founder Phil Knight spend about five hours a week reading, thinking, and experimenting, according to an article in Inc. magazine.

If organizations are to avoid high turnover costs in a world where the need for new skills is shifting constantly, they must give employees more time for learning and make training courses more relevant to the future needs of organizations and individuals, not just to their current needs.

The amount of learning required will vary by role. That’s why at SAP we’re creating learning personas for specific roles in the company and determining how many hours will be required for each. We’re also dividing up training hours into distinct topics:

  • Law: 10%. This is training required by law, such as training to prevent sexual harassment in the workplace.

  • Company: 20%. Company training includes internal policies and systems.

  • Business: 30%. Employees learn skills required for their current roles in their business units.

  • Future: 40%. This is internal, external, and employee-driven training to close critical skill gaps for jobs of the future.

In the future, we will always need to learn, grow, read, seek out knowledge and truth, and better ourselves with new skills. With the support of employers and educators, we will transform our hardwired fear of change into excitement for change.

We must be able to say to ourselves, “I’m excited to learn something new that I never thought I could do or that never seemed possible before.” D!

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