big data: a big trap for product development

©2012 Strategy2Market®, Inc. All rights reserved. 1seeding new ideas

seeding new ideas

Smith & Nephew NPWTNew Product DevelopmentPhase I Deliverable

St. Petersburg, FLNovember 6, 2000

Big Data: A Big Trap for Product Development?

Chicago Product Management AssociationAugust 9, 2012seeding new ideas


Agenda

• What is Big Data

• The State of Big Data

• How to Create Value in Product Development with Big Data


What is Big Data?


“Data that exceed the processing capacity of conventionaldatabase systems. The data is too big, moves too fast, or doesn’tfit the strictures of your database architectures.”

Ed Dumbill, Program Chair,

O’Reilly Strata Conference

What is Big Data?


What is Big Data?

CDRGPS

Smartmeters

WeblogsiPass

EquipmentPerformance

HealthBody

Monitoring

OnStar

Pictures PublicationsAudio

BusinessCRMSalesERPGL

Credit BureausRisk Modeling

Direct Mail

Mapping DataRoute

OptimizationNYSE

FingerprintsFacial

recognition

Traditional Data

Machine-Generated/Sensor

Social Media & Other New Formats

Blogs

Big Data:

VolumeVelocityVarietyValue

AstronomyCelestial

PositioningBioinformatics

Human GenomeGovernment

Census returnsIRS Filings

SatelliteImages

RelationshipsInfluence

HumanEmotions

Social MediaCommentary

Video


Traditional Data• Observational

• Experimental

• Well-defined

• Structured

• Manageable volume

• Manageable speed

Big Data• Observational

• By-product of administrative,operational and otheractivities

• New, ill-defined forms

• Unstructured

• Huge volumes

• High speed

Big Data is Different


Drivers of Big Data Capability

Declining Storage/CPU/bandwidth costs

New and broader sources of data available andbeing combined to create more value

Ability to move from a batch/time-delayed analysisenvironment to real-time analysis

Data is becoming more understandable

Increasing availability of big data apps

Cloud services make big data storage/access/

processing available to all; empowers new start-ups


The State of Big Data


The Growth of “Big Data”

• In 2009, nearly all sectors in the US Economy had at least an average of 200TB of stored data per company with more than 1,000 employees (McKinsey)

• Data is growing at 50%/year (New York Times)

• IBM estimates 90% of all data in the world was created in the last two years

1301,227

2,720

7,910

Quantity of Global Digital Data, Exabytes

2005 2010 2012 2015

EMC/IDC Digital Universe Study, 2011


The Growth of “Big Data”

We create 2.5 million terabytes of data per day globally (IBM)

• 12 TB of Tweets per day (IBM)

• 400-600 million records/day are received and analyzed by the FTC todetect/deter fraud (White House Council of Economic Advisors)

• 597,000 TB of mobile data generated/day globally in 2011 (the wholeinternet is only 75,000 TB) (Cisco)

• In 2011, for the first time more than half mobile data traffic (52%) wasvideo (Cisco)


Data from smart phones is one of theprimary drivers of data growth

0

2

4

6

8

10

12

2011 2012 2013 2014 2015 2016

Exa

byt

es

pe

rM

on

th

Forecast of MonthlyGlobal Mobile Data Traffic

Source: Cisco VNI Mobile, 2012

78% CAGR 2011-2016


“At the World Economic Forum last month in Davos, Switzerland, BigData was a marquee topic. A report by the forum, “Big Data, BigImpact,” declared data a new class of economic asset, like currencyor gold.”

New York Times “The Age of Big Data” Feb 11, 2012


How to Create Value with Big Data


The Big Data Industry

“Building data startups: Fast, big, and focused,” O’Reilly Radar, August 9, 2011


Framework for Creating Value FromBig Data

Business Models

Collecting, organizing,enhancing and selling

access to Big Data

Leveraging Big Data tocreate improved solutions

to existing customerneeds

Leveraging Big Data increative ways to create

solutions to unrecognizedcustomer needs

Examples:- Gnip- Recorded Future- Converseon

Examples:- BabySimplify- BillGuard- Ginger.io- Quinzee- Flipboard

Examples:- Klout- StartUp Genome- Affective


New Product Development CriticalSuccess Factors

A unique superior product

A strong market orientation

Projects aimed at an attractive market

Leverage core competencies

Competitive advantage in data processesand algorithms rather than the data center,

database and data processing tools

Ability to combine data sources to createnew value


Common Strategy/Product Pitfalls

Technology looking for a market need

A product that does not solve an importantneed the market is willing to pay for

Doing something different but not better


Gnip

Recorded

Future

Baby

Simplify BillGuard Klout

StartUp

Genome

CSF

unique, superior pdt

market orientation

attractive market

leverage competencies

Pitfalls

Technology first

need not worth solving

different not better

Total 0 0 0 0 0 0

Portfolio Evaluation


Contact Information

Kathy Morrissey

Strategy 2 Market, Inc.

312-212-3140

[email protected]

@strategy2market

www.Strategy2Market.com

Download this presentation at:

http://www.strategy2market.com/s2m_BigData.html


About Strategy 2 Market

s2m is an 10 year old consulting and training firm that specializes in newproduct development (NPD). Our three primary goals are:

1. To drive new product revenue through a comprehensive and strategicallyaligned program

2. To reduce the complexity of the new product development process andimprove time to market

3. To assist organizations in choosing the right projects and optimizingresources

We have significant experience in helping companiesimprove their new product development systems


New Product Development forProduct Managers Workshop

This one-day seminar addresses the Product Managers’ role in the early stages of the newproduct development process. The emphasis of this session will be on

• Developing product strategies (including platform, market and technology strategies)

• Translating those strategies into roadmaps

• Building those strategies into a comprehensive NPD portfolio management system thatprioritizes NPD projects and manages resources.

• We also review other early-staged responsibilities from the Discovery to Business CasePhase.

Date: October 19, 2012

Location: The Illinois Technology Association TechNexus Conference Center

200 S. Wacker Dr., 15th Floor, Chicago, IL 60606

Questions: Mary Drotar, [email protected] or 312.212.3144

Cost: $995.00

Registration: http://www.strategy2market.com/npd_for_PMs.html


New Product Development for ProductManagers Agenda

8:15 – 8:30 Registration and Breakfast

8:30 – 8:45 Introductions

8:45 – 12:00 Defining a Product Manager in a NPD System

Roles and Responsibilities

New Product Development Process Overview

Strategy (includes 15 min. break)

Business Model

Business Strategy

Innovation Strategy

Product Strategy

Platform Strategy

12:00 – 12:30 Lunch

12:30 – 1:00 Strategy Continued (includes 15 min. break)

Market Strategy

Technology Strategy

1:00 – 1:45 Technology/Platform Roadmaps

1:45 – 2:30 Transition Strategy into Portfolio Management

2:30 – 4:30 NPD Process

Pre-screen

Discovery

Scoping

Business Case

big data: a big trap for product development

Technology

age of big data

data sources

data center

terabytes of data

drivers of big data

new valueseeding new

tb of stored data

data processesand algorithms