I am in discussion with a few folks in closed groups on the next disruptive opportunities in tech. There is so much noise that we are working on the “signals”.
The real questions are how will farmers in Ethiopia get a better yield and productivity, while lowering crop cycle inputs and getting farm gate pricing for their output and mitigate risks of climate change in real time, within 5 ha farmer land grids? Except we are talking of millions of hectares of land and tens of thousands of farmers!
Or how will eCommerce or retail companies drive better inventory turnover, reduce Cash Conversion Cycles and map in real time what consumers need and buy to drive their value for their demand-supply chains to commerce within 10miles and leverage consumer social networks on FaceBook? Except we are talking about a few hundred billions dollars of commerce and millions of consumers!
Or how will governments drive better policies for citizens in a local areas in China to enhance the value of responses to an outbreak of a disease that needs all the best minds to work in real-time to identify and respond to the challenge that will potentially impact 5m citizens in 20m radius? Except we are talking about a response time of days or else people die in the thousands?
Or how will the US Marines in Djibouti working on containing terrorism across the Horn of Africa map their entire mission in real-time to all variables of weather, social, weapons, enemy movement and intelligence analytics, so as to achieve their mission goals in a war gaming exercize with a special forces team in a highly populated neighborhood in Somalia to stop piracy? Except that how to identify the situation before it arises and respond to plan when it does, else risk loosing lives and tends of millions of dollars per ship and fuel the next attack?
Insights from Analytics and not data is the “Holy Grail”! This is where the real competitive advantage is and the stakeholder value is captured and unlocked.
“The next holy grail is about decision support and analytics,” GE CEO Jeffrey Immelt
Climate Corp., a 117 person team creates an analytics engine around weather data. Imagine the potential value? Monsanto did at $1B!
Quick history of data.
So much has been talked about Data (Big & Small) that it’s exactly what happened in the 70s, 80s and 90s with the evolution of database and network technology with software applications largely in the enterprise.
From late 90s to current the explosion of “Unstructured” data (Multimedia, text, graphics, animation, audio, video), multiplied with the growth of the www and from last 2000s the explosion of “mobile” times the population growth, saw the massive volume, velocity and variety of data.
Where’s the Big V, Value?
Pyramid of Analytics and Data.
How do we see Analytics?
So we believe that the Analytics will enable the core and that is the real competitive advantage. Some examples below in retail, mCommerce, Agriculture, Defense & Military, as examples of where the “Value” of analytics is.
mCommerce & Retail Analytics: Enhancing GMROI within 10 mile radius
Analytics in Agriculture: Yield and Productivity to Downstream markets
Defense & Military: Real-time mission awareness and response
The very clear focus is the Who, Why, What, When, Where & How of Analytics and that is what is being done.
What analytics is expected to solve is providing “Actionable Intelligence” based on the IP of the business so that a company like Monsanto or Cargill or ADM can work with small holder farmers in Ethiopia on that specific 60th day of the crop cycle with the right fertilizer to drive productivity at an aggregated price.
Or “Actionable Intelligence” on how a specific manager in Wal Mart on Almaden Expressway will make a decision on Nov 5th, 2013 at 1000hrs to map reorder levels for 200 SKUs that moved from Slow moving to fast Moving and “C” category inventory that will drive $20m sales by December 2013.
The rest is noise and after Big Data everyone’s searching for the next cycle. Some are already at it. I am working with a group on the next disruptive opportunities and the cycle for a startup(s), investing and collaborating. End of the day Analytics is about “Relevance”, Who, Why, What, When, Where & How with the key is decision making across the workflow, consumer, enterprise or government.
The key will be the business models that will connect as Analytics (IP) driven Marketplaces + Services that will disrupt the value chain and profit pool. The rest is all commoditized, sensors, networks, processing, storage, computing, as middleware. Now you know what we are thinking and where potentially to invest.The ROI and IRR for consumers, stakeholders, entrepreneurs, business and investors alike will reap this multi-hundred billion dollar opportunity. Palantir as an example should summarize “Value” of Analytics.
- The Big Data Dilemma (gfi.com)
- Hadoop is not enough for ‘big data’, says Facebook analytics chief (techworld.com.au)
- Business Models 101, the real competitive advantage of business and equity! (gerardjrego.com)
- Big Data + Analytics : A $200 billion market | #IBMIoD (siliconangle.com)
- How John Deere & Agri OEMs can disrupt Agriculture? Apple, Google, BlackBerry & Appstores maybe the answer? (gerardjrego.com)
- GE Aviation Announces Customers for Flight Efficiency Services. (linkybird.com)
- GE CEO Jeff Immelt’s Analytics Lessons Learned (starbridgepartners.com)
- Monsanto Acquires Weather Big Data Company Climate Corporation For $1.1B (techcrunch.com)
- The Economist: Google Buys Israeli Company “Waze” (jugraphia.wordpress.com)
- How to build a billion+ dollar business in big data: the Palantir case study (lsvp.com)