What is Happening?
Recent software analyst and IT media reports, including insights from a recent SAP Americas User Group (ASUG) survey, suggest that SAP’s HANA Big Data service / platform is not yet seen by a majority of ASUG members as benefiting their business (relative to the implementation cost of implementing), or driving enough revenue growth for SAP. SAP has, very smartly, issued a careful rebuttal explaining how, where, and why customers see value in HANA – and more importantly, offering to work with any customer to help them understand and realize business benefits from the offering and its associated apps.
We believe that, through at least 2016, this type of approach is the most effective way of getting user enterprises to understand the value of any Big Data analytics capability; i.e., develop company-specific and operationally-specific business cases in order to enable and develop business value. This is because, in most companies, Big Data analytics just can’t be widely used to deliver broad-based business benefits across the full portfolio – because user enterprises have huge challenges finding and managing their own data, let alone analyzing it.
Why is it Happening?
No one having any familiarity with business IT can recall many complaints about an overall lack of data. Inexpensive, Cloud-based software and services, the explosion of sensor-delivered data, the increasing integration of mobile devices into consumer and business life, and the expanding linkage of business systems globally have ensured that there will always be larger and larger mountains of business data.
But while most Big Data analytics systems are robust enough to tackle challenging and disparate types of data, it usually takes a unique combination of Development and Data to make their use beneficial. Development is a substantial challenge for many firms, because it is custom to the project at hand, and there isn’t yet enough cross-project code standardization to significantly reuse development efforts. But a challenge of equal or greater size is that too many user enterprises do not know what data they have, or even where it is, even when it comes to critical and tightly-regulated data.
For example: A recurring theme in HR / HCM software provider briefings with Saugatuck is that companies can’t easily find or effectively manage HR data. Given that HR data tends to be some of the most-regulated data regarding knowing what exists, where it is, and how it is used, the fact that this is a key value proposition for HR providers is telling.
The continuing news regarding customer credit card data security breaches is more telling. Retailers such as TJX, SuperValu, and Target, for example, indicate that they may not be able to even learn, let alone report, what data is missing or has been compromised, even weeks, months and years after incursions. The lack of data knowledge and governance goes deeper; in the case of the recent SuperValu breach, news reports indicate that the company is offering a year of credit protection services to affected customers – but is unable to contact those customers, because it cannot determine what customer data it possesses.
Market Impact
While there is great potential business value in Big Data and associated analytics, the value today is typically limited to situations where companies have specific, known data sets with known characteristics in known locations, used in known contexts. Frankly, that’s where things have to start anyway. And given its current, project-specific nature, we don’t yet know where the greatest business value of Big Data analytics is or will be.
The good news for providers is that there are many such opportunities, with more emerging. SAP’s HANA boasts some very strong cases that include Burberry, Bangkok Airways, ConAgra, John Deere, Mercedes AMG, and the NBA. But even these successes tend to be purpose-built applications that utilize (in most cases) existing, well-defined, SAP software and databases.
What’s going to make Big Data analytics solutions and platforms (including HANA) most useful will be their improved integration into the rising tide of Cloud-based business management software and services. Ongoing Saugatuck survey and interview research confirms that at least half of all new business software is Cloud-based, and the tide of acquisition is rising quickly. By YE2015, more than 50 percent of all new business IT – not just software – will be Cloud-based.
SAP, for one, understands that the long-term growth and influence of Big Data analytics will be part of Cloud-based business management solution platforms, and has emphasized that HANA is just that. But through at least 2016, the business benefits for most user enterprises will be limited, because they must build on company-specific, well-defined data sets until more, and better, data management solutions and practices are the norm.
That said, there are benefits in Big Data analytics right now, and those benefits can be substantial. But what is considered substantial today will be considered minimal when (if?) improved data management solutions and practices become widespread.
Obviously, this presents a strong and mounting case for improved data management solutions and practices on the user enterprise side, especially Master Data Management services that enable simplified and streamlined data visibility, awareness of data, location of data, and of course data protection, within and across enterprise systems. Given this, MDM-focused providers such as Alteryx, Dell Boomi, HP Autonomy, IBM InfoSphere, Informatica, Pentaho, and SAS have a practically unlimited opportunity in front of them. Providers that offer integrative business and IT consulting services, like Accenture and IBM, will see at least as much opportunity. Even more value will be added as solutions become more adaptable and repeatable across situations, and as providers get better at helping buyers/users to determine what specific business goals – including ROI – are most likely attainable. Until then, the success of Big Data analytics and providers will depend on specific business needs, in specific processes, with easily-definable business results.
What are the risks and rewards of Big Data in real-world business? Attend the 2014 Cloud Business Summit in New York City on November 12 to learn more, including the changing role(s) of Big Data in the trend toward Digital Business.
What is Happening?
Recent software analyst and IT media reports, including insights from a recent SAP Americas User Group (ASUG) survey, suggest that SAP’s HANA Big Data service / platform is not yet seen by a majority of ASUG members as benefiting their business (relative to the implementation cost of implementing), or driving enough revenue growth for SAP. SAP has, very smartly, issued a careful rebuttal explaining how, where, and why customers see value in HANA – and more importantly, offering to work with any customer to help them understand and realize business benefits from the offering and its associated apps.
We believe that, through at least 2016, this type of approach is the most effective way of getting user enterprises to understand the value of any Big Data analytics capability; i.e., develop company-specific and operationally-specific business cases in order to enable and develop business value. This is because, in most companies, Big Data analytics just can’t be widely used to deliver broad-based business benefits across the full portfolio – because user enterprises have huge challenges finding and managing their own data, let alone analyzing it.
Why is it Happening?
No one having any familiarity with business IT can recall many complaints about an overall lack of data. Inexpensive, Cloud-based software and services, the explosion of sensor-delivered data, the increasing integration of mobile devices into consumer and business life, and the expanding linkage of business systems globally have ensured that there will always be larger and larger mountains of business data.
But while most Big Data analytics systems are robust enough to tackle challenging and disparate types of data, it usually takes a unique combination of Development and Data to make their use beneficial. Development is a substantial challenge for many firms, because it is custom to the project at hand, and there isn’t yet enough cross-project code standardization to significantly reuse development efforts. But a challenge of equal or greater size is that too many user enterprises do not know what data they have, or even where it is, even when it comes to critical and tightly-regulated data.
For example: A recurring theme in HR / HCM software provider briefings with Saugatuck is that companies can’t easily find or effectively manage HR data. Given that HR data tends to be some of the most-regulated data regarding knowing what exists, where it is, and how it is used, the fact that this is a key value proposition for HR providers is telling.
The continuing news regarding customer credit card data security breaches is more telling. Retailers such as TJX, SuperValu, and Target, for example, indicate that they may not be able to even learn, let alone report, what data is missing or has been compromised, even weeks, months and years after incursions. The lack of data knowledge and governance goes deeper; in the case of the recent SuperValu breach, news reports indicate that the company is offering a year of credit protection services to affected customers – but is unable to contact those customers, because it cannot determine what customer data it possesses.
Market Impact
While there is great potential business value in Big Data and associated analytics, the value today is typically limited to situations where companies have specific, known data sets with known characteristics in known locations, used in known contexts. Frankly, that’s where things have to start anyway. And given its current, project-specific nature, we don’t yet know where the greatest business value of Big Data analytics is or will be.
The good news for providers is that there are many such opportunities, with more emerging. SAP’s HANA boasts some very strong cases that include Burberry, Bangkok Airways, ConAgra, John Deere, Mercedes AMG, and the NBA. But even these successes tend to be purpose-built applications that utilize (in most cases) existing, well-defined, SAP software and databases.
What’s going to make Big Data analytics solutions and platforms (including HANA) most useful will be their improved integration into the rising tide of Cloud-based business management software and services. Ongoing Saugatuck survey and interview research confirms that at least half of all new business software is Cloud-based, and the tide of acquisition is rising quickly. By YE2015, more than 50 percent of all new business IT – not just software – will be Cloud-based.
SAP, for one, understands that the long-term growth and influence of Big Data analytics will be part of Cloud-based business management solution platforms, and has emphasized that HANA is just that. But through at least 2016, the business benefits for most user enterprises will be limited, because they must build on company-specific, well-defined data sets until more, and better, data management solutions and practices are the norm.
That said, there are benefits in Big Data analytics right now, and those benefits can be substantial. But what is considered substantial today will be considered minimal when (if?) improved data management solutions and practices become widespread.
Obviously, this presents a strong and mounting case for improved data management solutions and practices on the user enterprise side, especially Master Data Management services that enable simplified and streamlined data visibility, awareness of data, location of data, and of course data protection, within and across enterprise systems. Given this, MDM-focused providers such as Alteryx, Dell Boomi, HP Autonomy, IBM InfoSphere, Informatica, Pentaho, and SAS have a practically unlimited opportunity in front of them. Providers that offer integrative business and IT consulting services, like Accenture and IBM, will see at least as much opportunity. Even more value will be added as solutions become more adaptable and repeatable across situations, and as providers get better at helping buyers/users to determine what specific business goals – including ROI – are most likely attainable. Until then, the success of Big Data analytics and providers will depend on specific business needs, in specific processes, with easily-definable business results.
What are the risks and rewards of Big Data in real-world business? Attend the 2014 Cloud Business Summit in New York City on November 12 to learn more, including the changing role(s) of Big Data in the trend toward Digital Business.
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