Lean Analytics: Why is Big Data so Disruptive?

 

Big Data technologies have changed the way we collect data, enabling us to handle infinite amounts of data.

In the old model, with relational databases, you first define the schema for what you collect and then put data into that schema, before analyzing it with BI tools. This is how data warehouse and data mining have been used during decades. You first needed to figure out the question, then you collected the data.

analytics-before

Big Data enables you to change that order. Now, you collect unstructured data first, and you ask the question later.

analytics-bigdata

Modern analytics start by collecting everything, and then formulating your question.

This is what Alistair Croll explains in his book and in the slides and charts above.

The new paradigm allows you to search for the “unknown unknowns.” In analytics, most good answers will lead to another question. Data driven decisions depend on the ability to ask better questions and then ask again.

Implications for Business

In times of rapid market changes, what differentiates your business is how fast you experiment, how fast you can ask iterative questions and measure your progress, and how fast you readjust your business based on your learnings.

These are the principles behind the lean startup, and behind innovation. The most important metric for modern companies becomes “how fast does your organization learn?”

Big Data changes the cost of making data-driven decisions. It is an enabler for a more disciplined and empirical thinking about innovation and strategy.  In that sense, Big Data analytics becomes one more enabler for disruption.

Enhanced by Zemanta

Merry Christmas!

Feliz Navidad

During this holiday season you can download my books for free for your Kindle.

Digital Renaissance is a techno-thriller set in the world of IT startups in Shanghai and Kuala Lumpur.

El Conductor is a short story about the Spain of 2013, seen from a limo driver. It is written in Spanish.

Enjoy reading!

Merry Christmas and Happy 2014!

digital_renaissance_kindlecover

El Conductor Cover

You do not need a Kindle to read these books! You can still read them for free on any computer, smartphone or tablet using Amazon’s free software available here: http://amzn.to/13aluuF

Enhanced by Zemanta

Why it is time to kill Digital Marketing

ad-pages-sold-by-news-magazines
You will find more statistics at Statista

Digital Marketing and Digital Communications have been so far the little arms of the Marketing and Communications departments.

It is now time to kill Digital marketing and Digital Communications. Because now everyone in Marketing and Communications should understand Digital. Digital is no longer the rare species. Digital is emerging as the future in Marketing and Communications.

The world has changed. Growing kids ignore the once powerful world of print and traditional media. You too can ignore the chart above at your own risk, but Digital is taking over offline media, very quickly.

Many top executives in Marketing and Communications still come from traditional media. Some of them treat their digital teams as those guys that manage this thing they don’t actually understand well and they don’t actually care much.

Some of them still love press clipping from print papers and magazines as their lens to see the world. They need to change or they will be changed.

As the well-respected spanish newspaper director Pedro J. Ramirez put it: “For news, the future will be digital or won’t be.

 

Enhanced by Zemanta

The iPad’s Disruption Of The Windows PC Market

Windows PC vs iPad
Chart via Horace Dediu

Now we can actually confirm that the day the iPad was introduced, Personal Computing changed forever.

Two years earlier, 2008 was the year of the netbook. Analysts would doubt whether Steve Jobs was right to dismiss netbooks when he insisted Apple would never launch one.

And once a gain his genius was spot on. In 2010 the iPad created a new category that made netbooks completely irrelevant. The rise of the netbook signaled a need for light computers with long battery duration and just powerful enough for everyday use. Now we know the answer was not going to be just a smaller PC.

The inevitable growth of broadband pipes and services in the cloud are a perfect fit for tablets, phablets and smartphones to become a more and more frequent replacement of laptops in our daily life. In emerging markets the leapfrog to wireless broadband and mobile computing is a reality. It will only accelerate the trend the chart shows.

Microsoft has a big problem with mobile and tablets. Windows 8 is a compromise to address tablets and desktops, but it is not working neither of them. Microsoft faces disruption in the personal computing space they used to dominate. Compromises have never worked well in face of disruption.

Enhanced by Zemanta

Online TV Vs. Traditional TV: Who wins?

adoption-of-pay-tv-services-in-the-us
You will find more statistics at Statista

Remember the charts in 2008 showing iPhone’s market share under 5% versus Nokia’s above 50%? Doesn’t the Cable TV chart above remind you to those Nokia charts trying to show that the inevitable won’t happen? And then, it is only a matter of time.

For TV, the shift to online might happen sooner than what a first glimpse at the chart may suggest. If you add Netflix, Hulu, Amazon and iTunes shares on the chart, you get that online TV has already surpassed Cable TV. Yes, data can tell many different stories depending on how you show it.

Internet bandwidth is less and less a bottleneck for online TV to offer the same picture quality as Cable or Satellite. As we get more connected TVs, the difference between traditional and online TV blurs. For live TV, the consumer TV experience is the same whether the signal is carried over a cable, a satellite or an IP connection.

Very soon the only difference between traditional and Online TV will be the technology that carries the signal. While live TV on cable and satellite use a broadcast carrier, live TV for online is unicast.

To a viewer that does not change much. For an advertiser that is a big difference.

- With broadcast, all consumers must watch the same ads. You can only target your ad by understanding what content/TV-show appeals to what demography.
- With unicast, each consumer can watch an unique personalized ad. That means that marketers can tailor their message to the segment of one.

It is not only that marketers could program TV ads with the same granularity as you can program a Facebook or LinkedIn Campaign (e.g. I want my ad to be seen only by male people working for AT&T in Illinois). It is that you could even imagine to personalize your ad with the name of the viewer, or if permission given, with his customer history.

What do you think will be more valuable to advertisers? A mass media ad, like those aired on TV today, or the possibility to target specific niches, and even persons?

That is the hidden power of online TV, and this is what traditional media agencies (and TV broadcasters) don’t want you to know… so that you keep wasting half of your marketing budget.

“Half of the money I spend on advertisement is wasted. The trouble is I don’t know which half.“
—John Wanamaker (1838-1922)

Enhanced by Zemanta

Can you measure TV Audience with Twitter?

chart-of-the-day-more-evidence-that-twitter-is-disconnected-from-the-mainstream

Trying to make a straight correlation between TV audience and Twitter activity is as nonsense as ignoring the potential Twitter provides to get insightful metrics for TV.

Some shows will trigger more Twitter activity than others. Granted. That does not make any attempt to map TV audience with Twitter invalid. It just shows that getting meaningful insights requires some more thoughtful analysis and modeling than the mere counting of tweets.

 

Enhanced by Zemanta