Magenta Advisory partner Otto Söderlund's presentation on Big Data and fact-based decision making at Magenta breakfast seminar 18-April-2013. Point of view is business rather than technological.

1. Big data – enabler of fact-based decision making
18 April 2013
Otto Söderlund, Partner

2. 2

3. 3
Big data is high-volume, high-velocity and high-variety information
assets that demand cost-effective, innovative forms of information
processing for enhanced insight and decision making.
-Gartner

4. 4
Recipe for
Big Data Success
Baking time:
1-5 years
Makes:
5-6% increase in profits
Difficulty:
Hard
Preparation:
Blend own and bought data into a
solid mixture. Stir in rest of the
ingredients and make sure that
management is committed to use
data. Cook on a low heat stirring
continuously until al dente.
Ingredients:
• 100 TB structured data
• 80 TB non-structured data
• 50 TB bought data
• Handful of data analysts
• Committed management
• Pinch of effective decision-making
processes

5. Source:Tata Consulting Services 2013
5
15 %
15 %
13 %
11 %
11 %
8 %
8 %
7 %
5 %
6 %
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
16 %
Where companies across industries focused their Big Data investments in 2012 (% of total Big Data investments)

6. Sources:Tata Consulting Service 2013, Economist Intelligence Unit 2012, Harvard Business Review 2012
6
6%
Improvement in profitability for
firms that emphasize decision-
making based on data and
analytics
54%
Expected return on Big Data
investments across functions
26%
Average improvement in
performance over the past three
years for processes where Big
Data analytics has been applied

7. UNCLEAR BIG DATAVISION
AND APPROACH
01
SEEING TRANSFORMATION
PURELY AS A TECHNICAL
CHALLENGE
02
UNDERESTIMATING
RESOURCE AND
COMPETENCE NEEDS
03
UNDERESTIMATING
OPERATIONAL
IMPLICATIONS
04
Source: Magenta Advisory analysis
7
STARTING
TOO BIG
05

8. 8
Past:
Decision making was based on HiPPO
(Highest Paid Person’s Opinion)
Present:
Anyone can submit ideas and real-
time experimentation engine chooses
best content.
Picture: STEVE BLOOM / BARCROFT MEDIA

9. 9
We run the company by
questions, not by answers. So in
the strategy process we've so
far formulated 30 questions
that we have to answer.
- Eric Schmidt, Executive Chairman of Google
Picture: LA CROIX

10. 10
The price of light is less than the cost of darkness
- Arthur C. Nielsen