business unintelligence - a whistle stop tour

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Copyright © 2013 9sight Consulting, All Rights Reserved Dr Barry Devlin Founder & Principal 9sight Consulting Business Intelligence: Beyond Analytics and Big Data A whistle-stop tour BrightTALK Webinar 11 September 2013

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The old world of business intelligence is being transformed into a new biz-tech ecosystem. Analytics is forcing the recombination of operational and informational systems in a consistent and coherent IT environment for all business activities. Big data—despite the hype—introduces two very different types of information that transform how business processes interact with the external world. Together, these directions are driving a new BI, so different to its prior form that I call it “Business unIntelligence”. This session covers: - Business drivers and results of the biz-tech ecosystem - Modern conceptual and logical architectures for information, process and people - Positioning of all forms of business analytic and big data

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Page 1: Business unIntelligence - a Whistle Stop Tour

Copyright © 2013 9sight Consulting, All Rights Reserved

Dr Barry Devlin

Founder & Principal9sight Consulting

Business Intelligence:Beyond Analytics and Big Data

A whistle-stop tour

BrightTALK Webinar

11 September 2013

Page 2: Business unIntelligence - a Whistle Stop Tour

Dr. Barry Devlin

2 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Founder and Principal9sight Consulting, www.9sight.com

Dr. Barry Devlin is a founder of the data warehousing industry andamong the foremost authorities worldwide on business intelligence(BI) and beyond. He is a widely respected consultant, lecturer andauthor of the seminal “Data Warehouse—from Architecture toImplementation”. His new book, “Business unIntelligence—Insightand Innovation Beyond Analytics and Big Data” (http://bit.ly/BunI-Technics) is published in October 2013.

Barry has 30 years of experience in the IT industry, previously withIBM, as an architect, consultant, manager and software evangelist.

As founder and principal of 9sight Consulting (www.9sight.com),Barry provides strategic consulting and thought-leadership tobuyers and vendors of BI solutions. He is currently developing newarchitectural models for fully consistent business support—frominformational to operational and collaborative work.

Based in Cape Town, South Africa, Barry’s knowledge andexpertise are in demand both locally and internationally.

Email: [email protected]: @BarryDevlin

Page 3: Business unIntelligence - a Whistle Stop Tour

A fair(l)y Big Data Tale

Wal-Mart Data Warehouse– 1991 … 340GB; 2004 … 460TB– 2008 … 2.5PB; 2013 … 10+PB

– Big data is not new

From the beginning, more thanbusiness intelligence– Operational BI– Supply chain management– Predictive analytics

12% of US productivity gains in thesecond half of the 1990s due toWal-Mart

– McKinsey Report

3 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Page 4: Business unIntelligence - a Whistle Stop Tour

Introducing the biz-tech ecosystem

1. Reintegration:– Of the technology and the

organizations across entire business

2. Interdependence:– A classic positive feedback loop

between IT and business

3. Cross-over:– Of IT and business skills

4. Cooperation:– Free flow of information; joint

processes between businesses

5. Trust:– Hyper-competition or ???

4 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

http://ideasmanv2.wordpress.com/2007/04/15/a-mystical-yin-yang/

Page 5: Business unIntelligence - a Whistle Stop Tour

Business and IT – Beauty and the BeastA new beginning

Traditional out-sourcing isno longer an option

Simpler / cheaperdeployment (e.g. AmazonRedShift) for basicfunctionality allows IT tofocus on business valueand innovation

5 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Page 6: Business unIntelligence - a Whistle Stop Tour

Designing the biz-tech ecosystem:The IDEAL conceptual architecture

Foundation forBusiness – IT cooperation

Characteristics– Integrated– Distributed– Emergent– Adaptive– Latent

Also…– Complete, Elegantly simple,

Enterprise-wide, Open system

6 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Information

Process

People

Page 7: Business unIntelligence - a Whistle Stop Tour

m3: The modern meaning model

Ackoff’s DIKW pyramidis no longer viable

Information precedes data– Data is simply information

optimized for computers– The Web has fully devalued

“facts”

– People process information

7 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Locu

s

Structure

Ph

ysic

al

Loose

Men

tal

Strict

Inte

rper

son

al

HardInformation

SoftInformation

ExplicitKnowledge

TacitKnowledge

MeaningThe stories we tell ourselves

Ob

ject

ive

/u

niv

ersa

lSu

bje

ctiv

e /

un

iqu

e

Sen

se-

mak

ing

Men

tori

ng

Understanding Insight

Data Content

Articulation

Practice

Vid

eoin

g

Ob

serving

Modeling

Interpreting

Page 8: Business unIntelligence - a Whistle Stop Tour

The tri-domain information model

Process-mediated data– “Traditional” operational

& informational data– Via data entry and

cleansing processes

Machine-generated data– Output of machines

and sensors– The Internet of Things

Human-sourced information– Subjectively interpreted

record of personalexperiences

– From Tweets to Videos

8 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Human-sourced information

Machine-generated

data

Process-mediated data

Structure/Context

Timeliness/Consistency

HistoricalReconciledStableLiveIn-flight

[In the context of these domains, “data” signifies well-structured and/ormodeled and “information” is more loosely structured and human-centric.]

Page 9: Business unIntelligence - a Whistle Stop Tour

Decision making is a process, too

Extreme timeliness / high uncertainty– Sense and respond as the basis

for an adaptive enterprise– Stephan Haeckel

MEDA model– Closing the loop between

action and monitoring– Adaptive workflow

Adaptive decision cycle– Center-out model (traditional BI)– Edge-on model (spreadsheets)– Promote individual insights to

team and enterprise levels

9 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Act Decide

EvaluateMonitor

Garner

Condition

Utilize

Iterate Innovate

Page 10: Business unIntelligence - a Whistle Stop Tour

The REAL logical architecture Realistic, Extensible,

Actionable, Labile

Build the biz-tech ecosystem

Three interconnected pillarsof information– Messages, events, measures and

transactions from real world– Metadata is context-setting

information

Adaptive process– Business and IT– Information processing

– Instantiation, assimilation andreification – ETL, ELT, Virtualization

– Workflows and activities– Choreography

10 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

EventsMeasures Messages

Transactions

Reification

Utilization

Ch

ore

ogr

aph

y

Org

aniz

atio

n

Instantiation

Human-sourced

(information)

Machine-generated

(data)

Process-mediated

(data)

Context-setting (information)

Assimilation

Transactional(data)

Page 11: Business unIntelligence - a Whistle Stop Tour

The human and social dimension:Gut-feel, intent and interaction

Meaning is a personal/ social interpretationbased (loosely) on information and knowledge– Rationality is only one part– Emotional state plays an important role– Gut-feel can be more effective than rationality

in decision making

Intention drives understandingand action

We are social animals– Business is a social enterprise

Innovation is often team-based

11 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Page 12: Business unIntelligence - a Whistle Stop Tour

Innovative and insightful decision making:The iSight model

Formalizing the person/team environment– True Enterprise 2.0 and Collaboration– Adaptive process

Informal information is key– Capturing and storing personal interactions

12 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

• Strategy• Plan• Process Change• Specific Action• Etc.

Investigate

InteractInteract

Person

Intuit

Intend

Integrate

Interpret

InnovateInnovate

Team

Improvise

Imagine

ImplementInformation

(External,Formal)

Overt Hidden

Team Information(Formal & Informal)

Page 13: Business unIntelligence - a Whistle Stop Tour

From BI to Business unIntelligence

Rationality of thought and far beyond it

Logic of process, predefined and emergent

Information, knowledge and meaning

The confluence of– Reason and inspiration– Emotion and intention– Collaboration and competition– All that comprises the human and

social milieu that is business

Not business intelligence

Business unIntelligence

http://bit.ly/BunI-Technics : 25% discount with code “BIInsights25”

13 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Page 14: Business unIntelligence - a Whistle Stop Tour

Conclusions Big data, speed, uncertainty, etc. demand

adaptive approaches to decision making– The biz-tech ecosystem

Information rather than data is key– Understanding structure and meaning

Decisions are human and social processes– Beyond rational and highly interactive

New architectures for all IT emerge fromreinventing business intelligence– Consider ethical and social implications, too

14 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Page 15: Business unIntelligence - a Whistle Stop Tour

Additional resources

All my articles and white papers are available at:http://bit.ly/9sight_papers

See my blogs at: http://bit.ly/BD_Blog

Follow me on Twitter: @BarryDevlin

15 Copyright © 2013, 9sight ConsultingCopyright © 2013, 9sight Consulting

Page 16: Business unIntelligence - a Whistle Stop Tour

Copyright © 2013 9sight Consulting, All Rights Reserved

Dr Barry Devlin

Founder & Principal9sight Consulting

Thank you

Questions?

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