Big Data: Exploiting the Information Explosion

Summary

In this insightful discussion, Professor Joe Peppard explores the complexities of big data, emphasizing its increasing volume, variety, and velocity as significant challenges for businesses. He debunks the myth that technology alone can solve big data issues, highlighting the need for a paradigm shift in how companies approach business intelligence and analytics. Peppard suggests that true business intelligence emerges from employees' collaborative efforts to construct meaning from data, rather than being a product of software or databases.

Takeaways

• 📈 Big data is characterized by a dramatic increase in volume, variety, and velocity of data, which poses new challenges for organizations.
• 💡 The concept of big data is highlighting the complexity of data management issues, making the size of data a significant part of the problem.
• 🔍 Big data conversations are shifting the focus from managing information to exploiting information, which is a fundamental change in approach.
• 🚫 The belief that technology alone can solve big data problems is a fallacy; a more nuanced approach is needed.
• 🛠 Companies often approach business intelligence and analytics tools in the same way as other IT investments, which may not be effective for big data.
• 🤔 There are two paradigms for approaching big data: one views information as residing in databases and reports, while the other sees it as a construct of meaning by people.
• 🌐 The alternative paradigm for big data suggests that information is not in artifacts but is constructed by people, which affects how IT projects should be managed.
• 🔑 Business intelligence does not reside in a data warehouse; it emerges in the minds of employees when they combine data with their experiences.
• 🤝 Collaboration and the sharing of experiences are crucial for generating new insights and knowledge, which is the essence of business intelligence.
• 📊 The future of data generation is expected to continue growing, emphasizing the need for managers to understand that business intelligence is not a product but a process.
• 👥 The key takeaway for managers is that business intelligence is generated through the collaborative process of employees identifying, accessing, and combining data with their experiences.

Q & A

What is the primary issue highlighted by the concept of Big Data?

The primary issue highlighted by Big Data is the increasing complexity in managing and exploiting the volume, variety, and velocity of data that organizations face.

How does the conversation around Big Data differ from traditional approaches to managing information?

The conversation around Big Data is moving the focus from managing information to exploiting information, which is fundamentally different and presents new challenges.

What is the common misconception about technology solving the Big Data problem?

The common misconception is that purchasing business intelligence or analytical tools will automatically solve the Big Data problem, which is considered a fallacy by experts.

What are the two approaches companies take when implementing BI and analytical tools?

Companies either approach the implementation like any other IT investment, treating information as a corporate resource, or they adopt a paradigm where information is seen as the outcome of people constructing meaning from data.

Why is the traditional IT investment approach not suitable for BI and analytics?

The traditional approach is not suitable because it views information as residing in databases and reports, whereas BI and analytics require a paradigm shift to see information as a result of people's interpretation and meaning-making.

How should the IT projects addressing Big Data challenges be different from traditional IT projects?

IT projects addressing Big Data should be fundamentally different, focusing on how information is constructed and interpreted by people, rather than just manipulating data in databases.

What is the key message for managers regarding business intelligence?

The key message is that business intelligence does not reside in a data warehouse; it emerges in the minds of employees when they combine data with their experiences and collaborate.

How does the amount of data being generated impact the future of business intelligence?

As the amount of data continues to grow, the future of business intelligence will increasingly rely on the ability to interpret and exploit this data, rather than just managing it.

What is the role of employees in generating business intelligence?

Employees play a crucial role in generating business intelligence by identifying, accessing, and combining data with their experiences and the experiences of others to create new insights and knowledge.

How can companies ensure that they are effectively exploiting information rather than just managing it?

Companies can ensure effective exploitation of information by adopting a paradigm that views information as a result of human interpretation and meaning-making, and by fostering a collaborative environment for employees.

What are some of the challenges that organizations face with the increasing volume of data?

Challenges include managing the increased volume, dealing with a wider variety of data types, and keeping up with the velocity at which data is generated and needs to be processed.

Outlines

00:00

📈 Big Data's Impact on Business

In this paragraph, the discussion centers on the escalating volume of data generated by companies and the challenges it poses. Joe Peppard, a professor of information systems, is introduced to elucidate the concept of Big Data and its significance for businesses. He emphasizes that organizations have always faced difficulties with data management, but the current situation is exacerbated by the sheer volume, variety, and velocity of data. The conversation is shifting from managing information to exploiting it, which presents a fundamentally different set of challenges. Peppard suggests that the belief that technology alone can solve the big data problem is a fallacy, and instead, companies need to rethink their approach to business intelligence and analytical tools.

Keywords

💡Big Data

Big Data refers to the large volume of structured and unstructured data that inundates a business on a day-to-day basis. It is characterized by the three Vs: Volume (amount of data), Velocity (speed at which data flows), and Variety (range of data types). In the script, Joe Peppard discusses how big data has become a significant issue for businesses due to its increasing complexity and the challenges it poses in managing and exploiting information.

💡Information Systems

Information Systems are the study and application of computer systems and technology to manage, process, and store information. Joe Peppard is a professor of information systems, and in the video, he emphasizes the traditional struggle organizations have with their data and how big data has amplified these issues.

💡Volume, Variety, and Velocity

These are the three key characteristics used to describe big data. Volume refers to the sheer amount of data, variety to the different types of data, and velocity to the speed at which data is generated and updated. In the transcript, Joe Peppard highlights that these attributes are increasing dramatically, making the management of data more complex.

💡Business Intelligence (BI)

Business Intelligence is the process of analyzing data to help inform business decisions. In the script, Joe Peppard mentions BI as one of the analytical tools that companies consider to address big data challenges, but he also points out the misconception that technology alone can solve big data issues.

💡Analytical Tools

Analytical tools are software applications used to analyze data and extract insights. Joe Peppard discusses the common belief that these tools can be a 'magic bullet' for big data problems, but he argues that this is a fallacy and that a more nuanced approach is needed.

💡IT Investments

IT Investments refer to the financial resources allocated to information technology within a company, such as purchasing new systems or upgrading existing ones. In the video, Joe Peppard contrasts the traditional approach to IT investments with the approach needed for BI and analytical tools to effectively address big data.

💡Data Warehouse

A data warehouse is a system used for reporting and data analysis, designed to support management's decisions. Joe Peppard mentions that business intelligence does not reside in a data warehouse, implying that BI is not a product that can be bought but rather a process that emerges from the interaction of employees with data.

💡Data Management

Data management involves the processes, policies, and systems that govern the availability, usability, integrity, and security of the data used in an organization. The transcript discusses how the traditional approach to data management is being challenged by the complexities of big data.

💡Insights

Insights are the understanding or knowledge gained from the analysis of data. In the script, Joe Peppard explains that business intelligence emerges in the minds of employees when they combine data with their experiences and collaborate, leading to new insights.

💡Collaboration

Collaboration is the act of working together to achieve a common goal. The transcript emphasizes that true business intelligence is generated through a collaborative process where employees combine data with their experiences and the experiences of others.

💡Data Exploitation

Data exploitation is the process of using data to gain a competitive advantage or to inform strategic decisions. Joe Peppard notes that the conversation around big data is shifting from managing information to exploiting it, which presents new challenges for businesses.

Highlights

The volume of data generated by companies has increased dramatically in recent years, making big data a significant issue for businesses.

Big data is characterized by the increasing volume, variety, and velocity of data, which complicates traditional data management.

The concept of big data highlights the complexity of data management challenges faced by organizations.

Research indicates a shift in focus from managing information to exploiting information, which is a fundamentally different approach.

There is a common misconception that technology alone can solve big data challenges.

Companies often approach big data solutions with the same mindset as other IT investments, which may not be effective.

A different paradigm suggests that information is not just in databases but is constructed by people's interpretation of data and messages.

The approach to big data should consider information as an outcome of human meaning-making rather than just a corporate resource.

The future of data generation is expected to continue growing, with significant implications for how businesses handle big data.

Business intelligence is not something that can be bought or stored in a data warehouse; it emerges from the minds of employees.

BI is generated through a collaborative process where employees combine data with their experiences and insights.

The key message for managers is that business intelligence is not a product but a process that involves human interaction and analysis.

The transcript emphasizes the importance of understanding the human aspect of big data and its role in generating business intelligence.

The conversation around big data is evolving, moving away from traditional data management towards more strategic exploitation of information.

The transcript suggests that the challenges of big data require a fundamentally different approach to IT projects and investments.

The future growth of data implies that companies need to adapt their strategies and technologies to effectively leverage big data.

The transcript concludes with the notion that new insights and knowledge, or business intelligence, are generated through a collaborative and interpretive process.

Transcripts

the volume of data being generated by

companies is all increased almost

immeasurably over recent years and big

data is now an important issue joining

me today is Joe Peppard professor of

information systems Joe can you tell me

what big data is and what the

significance is for business I think

there are a number of issues to consider

when we talk about Big Data the first

one is to make the point that you know

organizations have have always struggled

with their data and I think that the

concept of big data is really just

highlighting that the problem has got it

ever more complex because what we're

seeing is that the volume variety and

velocity of data is is increasing

dramatically to such an extent now that

actually the size of the data is

actually part of the problem and now in

the research that I'm doing what I'm

seeing is that this conversation that is

occurring around big data is really

moving the goal posts and it's moving

the goalposts away from looking at how

we may manage information to warn where

the challenges around how we might

exploit information and that is that is

fundamentally different and how could

companies use technology safe to address

the challenges of big data there is kind

of a magic bullet thesis that dominates

lots and lots of companies and that is

that you know somehow technology is

going to solve the problem and in this

case that you know there is technology

out there whether that's you know

business intelligence or analytical

tools that companies will just purchase

and and somehow the problem around big

data will be addressed I think that's a

fallacy and I think generally when I

look at what companies are doing I think

they fall into two camps that the first

one is that they approach the

implementation of bi and analytical

tools in exactly the same way that they

approach the implementation of other IT

investments like for their enterprise

system or for supply chain optimization

or if you're let's say a hospital for a

you know a new system to support patient

administration because that is one

paradigm and that is based on a paradigm

where information is seen as a corporate

resource and as such it's seen as

residing in databases on reports in

dashboards and as such therefore it's

capable of being manipulated now the

alternative paradigm which I believe is

more suited for bi and analytics

investments and other initiatives to

address big data takes the view that

information does not reside in artifacts

but actually information is the result

of help the outcome of people

constructing meaning error messages and

data that's fundamentally different and

that dictates that how we run the

Associated IT project to address the

challenge of big data should be

fundamentally different and what the

implications end for the future because

presumably the amount data were

generating is only going to continue to

grow absolutely and I think you're

absolutely right and I think if there is

a key message for managers it is that

business intelligence does not reside in

a data warehouse so by that I mean you

cannot actually buy business

intelligence although vendors will claim

that they can actually send it sell you

business intelligence software you know

bi

emerges in the minds of employees when

they identify and access data combine

that data with their experiences and

also the experiences of others and

therapy and begin to work

collaboratively it's only through that

process that new insights new knowledge

or whatever you refer to as business

intelligence it will actually be

generated Thank You Joe some useful

insights into a growing issue thank you