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Peter Principle and Big Data | @ExpoDX #BigData #Analytics #AI #IoT #IIoT

I believe organizations fail in creating sustainable business value with Big Data capabilities because of the Peter Principle

Wikibon just released their “2017 Big Data Market Forecast.” How rosy that forecast looks depends upon whether you look at Big Data as yet another technology exercise, or if you look at Big Data as a business discipline that organizations can unleash upon competitors and new market opportunities. To quote the research:

“The big data market is rapidly evolving. As we predicted, the focus on infrastructure is giving way to a focus on use cases, applications, and creating sustainable business value with big data capabilities.”

Leading organizations are in the process of transitioning the big data conversation from “what technologies and architectures do we need?” to “how effective is our organization at leveraging data and analytics to power our business models?

We developed the Big Data Business Model Maturity Index to help our clients to answer that question; to be able to 1) understand where they sit today with respect to how effective they are in leveraging data and analytics to power their business models, and 2) what is the roadmap for creating sustainable business value with big data capabilities (see Figure 1).

Figure 1: Big Data Business Model Maturity Index

So why do organizations struggle if it’s not a technology or an architecture challenge? Why do organizations struggle when the path is so clear, and the business and financial benefits to compelling?

I believe that organizations fail in creating sustainable business value with big data capabilities because of the Peter Principle.

“Peter Principle”: The Destroyer of Great Ideas
The Peter Principle is a management theory formulated by Laurence J. Peter in 1969. It states that the selection of a candidate for a position is based on the candidate’s performance in their current role, rather than on abilities relevant to the intended role. Thus, employees only stop being promoted once they can no longer perform effectively – that “managers rise to the level of their incompetence.[1]”

There are two key points in this concept that are hindering the wide spread adoption of data and analytics to power – or transform – an organization’s business models:

  • “Selection of a candidate for a position is based on the candidate’s performance in their current role, rather than on abilities relevant to the intended role.” Never before have we had an opportunity to create and leverage superior customer, product, operational and market insights to disrupt business models and disintermediate customer relationships…never. Consequently, current business leadership lacks the experience to know what to do to make this happen. Organizations likely need a new generation of management (which we are seeing in the “born digital” companies like Amazon, Google, Uber and Netflix) or a massive un-education/re-education of their current business leadership (like what we are seeing at GE…more to follow on the GE transformation, so keep reading!!) to realize that analytics is a business discipline to drive differentiation and monetization opportunities.
  • “Managers rise to the level of their incompetence” which means that those in power are very reluctant to embrace any new approaches with which they are not already familiar. And we have all met these folks who can’t embrace a new way of thinking because they are so personally or professionally invested in the old way of thinking. Consequently, new ideas and concepts die before they are even given a chance because these folks are threatened by any thinking that did not get them to where they are today.

How do you teach the existing generation of management to “think differently” about how to leverage data and analytics to power their business models? How does one get an organization to open their minds and stop focusing on just “paving the cow path,” but instead focus on data and analytics-driven innovation? Let’s try a little exercise, my guinea pigs!!

Decision Modeling: Predictions Exercise
The Challenge: Can we transform business thinking by changing the verb from “automate” to “predict?” Instead of focusing on automating what we already know, in its place let’s try focusing on “predicting” what is likely to happen and “prescribing” what actions we should take.

“Automate” assumes that the current process is the best process, when in fact; there may be opportunities to leverage new sources of data and new data science techniques to change, re-engineer or even delete the process. Can we drive a more innovative approach by instead of focusing on “automation,” we focus on what predictions (in support of key business decisions) we are trying to make and prescribing what actions we should take?

Let’s demonstrate the process using the Chipotle key business initiative of “Increase Same Store Sales.” (Note: this decision modeling exercise expands upon Step 8 in the “Thinking Like A Data Scientist” methodology).

  • First, list the use cases. In Table 1, we will start with just one use case: “Increase Store Traffic Via Local Events Marketing.”
  • Second, list the decisions that one would to address to support the use case. For example, we would need to make a decision about “Which local events to support and with how much funding?”
  • Next, for each decision, brainstorm the predictions that one would need to make to enable the decision. It’s useful to start the predictions statement with the word “Predict.” For example, in support of the “Which local events to support” decision, we would need to “Predict attendance at the local events”.
  • Then, list the potential analytic scores that could be used to support the predictions that we are trying to make. The potential scores were identified in Step 7 in the “Thinking Like A Data Scientist” methodology, but this decision modeling exercise gives us a chance to validate and expand upon those potential analytic scores.
  • Finally, brainstorm the potential variables and metrics that might be better predictors of performance. Step 6 in the “Thinking Like A Data Scientist” methodology identified many of those variables and metrics, but again this decision modeling exercise gives us a chance to validate and expand the potential variables and metrics.

Table 1 shows the results of this process for one use case (Increase Store Traffic Via Local Events Marketing) that supports the “Increase Same Store Sales” business initiative.

Chipotle Business Initiative: Increase Same Store Sales
Use Cases Decisions -> Predictions Scores/Metrics
Increase Store Traffic Via Local Events Marketing Which local events to support and with how much funding?

 

  • Predict attendance at local events (sporting events, concerts)
  • Predict composition of attendance at local event (parents, kids, teenagers)

How much staff do we need to support the local events?

  • Predict how many workers are required by hour to staff the store
  • Predict what special skills are needed by hour to staff the store
  • Predict how much overtime might be required

How much additional inventory do we need?

  • Predict how much additional food inventory is required to support the local event
  • Predict how much many additional utensils and bowls inventory required to support local events
  • Predict store waste/shrinkage
  • Predict when we need to replenish store inventory and with what

From what suppliers do we source additional food inventory?

  • Predict suppliers excess capacity by food item
  • Predict time-to-delivery for food inventory replenishment
  • Predict (prioritize) what suppliers to engage for additional food procurement
  • Predict quality scores of the new suppliers
Economic Potential Score

 

  • Local demographics
  • Increase in home values
  • Local economic indicators
  • Local unemployment rate
  • Change in city budget
  • Average income levels
  • Average education levels
  • Number of local IPO’s

 

 

Local Vitality Score

  • Miles from high school
  • Miles from mall
  • Average mall attendance
  • Miles from business park
  • Number of college students
  • Number of local sporting events
  • Number of local entertainment events

Local Sourcing Potential

  • Number of local suppliers
  • Miles from stores
  • Supplier production capacity
  • Supplier quality
  • Supplier reliability
  • Delivery feasibility

Table 1: Predictions Exercise Worksheet

In the workshop or classroom, we would repeat this process for each use case (e.g., improve promotional effectiveness, improve market basket revenues). This analytics-driven approach can bring more innovative and out-of-the box thinking to the organization.

Summary: The GE Story

A recent article titled “You Can’t Outsource Digital Transformation” discusses what GE is doing to prepare for–if not lead–digital business transformation disruption. To quote the article:

“It’s the threat of a digital competitor who skates past all the traditional barriers to entry: the largest taxi service in the world that owns no cars; or a lodging service without any real estate; or a razor blade purveyor without any manufacturing.”

The author, Aaron Darcy, describes what GE is doing to “think differently” – that is to unlearn and relearn – regarding digital business model disruption. This includes:

  • Transforming their operating model with the creation of GE Digital to help lead their digital business transformation.
  • Creating a partner open software ecosystem that enables collaboration with partners and third-party developers to deliver business and financial value for all participants (Customer, Partner and GE).
  • Transforming (un-education and re-education) management leadership with lean startup principles that emphasizes iterative innovation, space to experiment, and a fail-fast mentality.
  • Exploring new or alternative business models by focusing on delivering outcomes and creating sustainable business value with big data capabilities.

Nothing threatens the existence of your business like the Peter Principle. An organization’s unwillingness to “un-education / re-education” will ultimately be the undoing of the organization. Because as IDC believes “By 2018, 33% of all industry leaders will be disrupted by digitally enabled competitors.” Ouch.

[1]https://en.wikipedia.org/wiki/Peter_principle

The post Peter Principle: The Destroyer of Great Ideas…and Companies appeared first on InFocus Blog | Dell EMC Services.


DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the conference tracks for CloudEXPO | DXWorldEXPO 2018 New York.

DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City.

Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.

A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throughout enterprises of all sizes.

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

2018 Conference Agenda, Keynotes and 10 Conference Tracks

DXWordEXPO New York 2018 and Cloud Expo New York 2018 agenda present 222 rockstar faculty members, 200 sessions and 22 keynotes and general sessions in 10 distinct conference tracks.

  • Cloud-Native | Serverless
  • DevOpsSummit
  • FinTechEXPO - New York Blockchain Event
  • CloudEXPO - Enterprise Cloud
  • DXWorldEXPO - Digital Transformation (DX)
  • Smart Cities | IoT | IIoT
  • AI | Machine Learning | Cognitive Computing
  • BigData | Analytics
  • The API Enterprise | Mobility | Security
  • Hot Topics | FinTech | WebRTC

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

DXWorldEXPO | CloudEXPO 2018 New York cover all of these tools, with the most comprehensive program and with 222 rockstar speakers throughout our industry presenting 22 Keynotes and General Sessions, 200 Breakout Sessions along 10 Tracks, as well as our signature Power Panels. Our Expo Floor brings together the world's leading companies throughout the world of Cloud Computing, DevOps, FinTech, Digital Transformation, and all they entail.

As your enterprise creates a vision and strategy that enables you to create your own unique, long-term success, learning about all the technologies involved is essential. Companies today not only form multi-cloud and hybrid cloud architectures, but create them with built-in cognitive capabilities.

Cloud-Native thinking is now the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, as well as the public sector.

CloudEXPO is the world's most influential technology event where Cloud Computing was coined over a decade ago and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals.

FinTech Is Now Part of the DXWorldEXPO | CloudEXPO Program!

Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.

Accordingly, attendees at the upcoming 22nd CloudEXPO | DXWorldEXPO November 11-13, 2018 in New York City will find fresh new content in two new tracks called:

  • FinTechEXPO
  • New York Blockchain Event

which will incorporate FinTech and Blockchain, as well as machine learning, artificial intelligence and deep learning in these two distinct tracks.

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly developed, deployed, and scaled on public, private, and hybrid clouds.

More than US$20 billion in venture capital is being invested in FinTech this year. DXWorldEXPOCloudEXPO are pleased to bring you the latest FinTech developments as an integral part of our program.

DXWorldEXPO | CloudEXPO are accepting speaking submissions for this new track, so please visit Cloud Computing Expo for the latest information or contact us at [email protected]

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

Download Slide Deck ▸ Here

Only DXWorldEXPO | CloudEXPO bring together all this in a single location:

Attend DXWorldEXPO | CloudEXPO. Build your own custom experience. Learn about the world's latest technologies and chart your course to Digital Transformation.

22nd International DXWorldEXPO | CloudEXPO, taking place November 11-13, 2018, in New York City, will feature technical sessions from a rock star conference faculty and the leading industry players in the world.

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

Download Slide Deck: ▸ Here

Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS - software, platform, and infrastructure as a service.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers.

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

Download Slide Deck: ▸ Here

Companies are each developing their unique mix of cloud technologies and services, forming multi-cloud and hybrid cloud architectures and deployments across all major industries. Cloud-driven thinking has become the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, and the public sector.

Sponsorship Opportunities

DXWorldEXPO | CloudEXPO are the single show where technology buyers and vendors can meet to experience and discus cloud computing and all that it entails. Sponsors of DXWorldEXPO | CloudEXPO will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers.
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35-minute technical session
  • Online advertising on 4,5 million article pages in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage.
  • Unprecedented PR Coverage: Unmatched editorial coverage on Cloud Computing Journal.
  • Tweetup to over 100,000 plus Twitter followers
  • Press releases sent on major wire services to over 500 industry analysts.

Secrets of Our Most Popular Sponsors and Exhibitors ▸ Here

For more information on sponsorship, exhibit, and keynote opportunities, contact [email protected].

Sponsorship Opportunities Here

Download Slide Deck:Here

Speaking Opportunities

The upcoming 22nd International DXWorldEXPO | CloudEXPO November 11-13, 2018 in New York City, NY announces that its Call For Papers for speaking opportunities is now open.

Secrets of Our Most Popular Faculty Members ▸ Here

Submit your speaking proposal Here or by email [email protected].

Download Slide Deck: ▸ Here

About DXWorldEXPO LLC

DXWorldEXPO LLC is a Lighthouse Point, Florida-based trade show company and the creator of DXWorldEXPODigital Transformation Conference & Expo. The company produces and presents CloudEXPO, DevOpsSummitFinTechEXPO Blockchain Event, the world's most influential conferences and trade shows.

More Stories By William Schmarzo

Bill Schmarzo, author of “Big Data: Understanding How Data Powers Big Business” and “Big Data MBA: Driving Business Strategies with Data Science”, is responsible for setting strategy and defining the Big Data service offerings for Dell EMC’s Big Data Practice.

As a CTO within Dell EMC’s 2,000+ person consulting organization, he works with organizations to identify where and how to start their big data journeys. He’s written white papers, is an avid blogger and is a frequent speaker on the use of Big Data and data science to power an organization’s key business initiatives. He is a University of San Francisco School of Management (SOM) Executive Fellow where he teaches the “Big Data MBA” course. Bill also just completed a research paper on “Determining The Economic Value of Data”. Onalytica recently ranked Bill as #4 Big Data Influencer worldwide.

Bill has over three decades of experience in data warehousing, BI and analytics. Bill authored the Vision Workshop methodology that links an organization’s strategic business initiatives with their supporting data and analytic requirements. Bill serves on the City of San Jose’s Technology Innovation Board, and on the faculties of The Data Warehouse Institute and Strata.

Previously, Bill was vice president of Analytics at Yahoo where he was responsible for the development of Yahoo’s Advertiser and Website analytics products, including the delivery of “actionable insights” through a holistic user experience. Before that, Bill oversaw the Analytic Applications business unit at Business Objects, including the development, marketing and sales of their industry-defining analytic applications.

Bill holds a Masters Business Administration from University of Iowa and a Bachelor of Science degree in Mathematics, Computer Science and Business Administration from Coe College.

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