IW14 Session: Mike Gualtieri, Forrester Research

Mike Gualtieri
Principal Analyst
Forrester Research

Streaming Analytics Is Icing
On The Big Data Cake
Mike Gualtieri, Principal Analyst

Once, technology favored companies; now it
empowers customers
Before Now
© 2014 Forrester Research, Inc. Reproduction Prohibited

We have entered the age of the customer

Growth and customer experience are priorities
to business leaders

Trend
Consumers want to be treated like royalty.

Royalty experiences
have contextual
awareness and adapt to
serve a single consumer.

Treat consumers like royalty to get
their loyalty.

Quiz
How well do you know this consumer?
› Male
› 35 years old
› Single
› Resides in New York
City
› Makes $100,000 per
year
What do you predict he would do
if the bank accidently transferred
$5,000 into his bank account?
A. Give the money back
B. Take the money and run

Trend
Big Data means all your data.

Most technology decision makers get it; 30% of
business decision makers are confused.
30%
7%
12%
21%
30%
9% 8%
14%
35% 34%
The term “big data”
is very confusing; not
sure what it means
It’s a bunch of hype
with little substance
and few new ideas
It’s about new
technologies that
allow us to handle
more data
It’s an extension of
existing analytics and
BI practices suited
for data that is larger
or faster than we are
used to
It’s a whole new way
of thinking about the
value in data that
requires new
analytics and
leverages some new
technologies
Business Decision Makers Technology Decision Makers
Base: 452 North American technology decision-makers
Respondents answering “don’t know” are not shown
Source: Global Data and Analytics Survey, 2014
Base: 249 North American business decision-makers
Respondents answering “don’t know” are not shown
Source: Global Data and Analytics Survey, 2014

Big Data gushes from many sources…
• Data described by a schema
• Relational database, XML,
delimited flat file, system events
Structured
text
• Free-form text
• Email, documents, tweets, blog
comments, Facebook status,
genome
Unstructured
text
• Audio, images, video
• Surveillance cameras, geological
survey maps, Siri voice
Binary

eCommerce
MRP
Web analytics
eCommerce
Web
Mobile
Finance
Customer Service
CRM
Claims
BPM
Excel & Access Data
warehouse
Planning
Email
Customer Service
ERP
Marketing
Social
Media
POS
Field Operations
VOC

What percentage of enterprise data do firms
use for analytics?
A. 12%
B. 34%
C. 53%
D. 76%
Enterprise
Data
Quiz

What percentage of enterprise data do firms
use for analytics?
A. 12%
B. 34%
C. 53%
D. 76%
Enterprise
Data
Quiz
Source: Forrester Research

110010011011001
010010011011001
010011001101101
010010011011001
Historical
Transactions
Customer data
Ops

Gather all your data to breakdown silos and
prepare it for deeper analysis.
Data

Process
Now, analyze the heck out of it - every which way.

But, this elephant is so lonely.

Big data is not about one technology; it’s a
vast ecosystem of data tools and technologies
Source: March 6, 2013, “The Future Of Customer Data Management” Forrester report

Successful big data programs depend on
integrating all big data technologies together.

Momentum is strongest for streaming and predictive
analytics, but underadopted.
“What is your firm's/business unit's current use of the following technologies?”
13%
10%
24%
21%
20%
18%
20%
16%
21%
33%
29%
37%
57%
54%
50%
49%
58%
56%
81%
15%
21%
27%
32%
19%
33%
42%
35%
50%
59%
77%
Reporting
Dashboard
Web Analytics
Performance analytics
Embedded Analytics
Olap
Process Analytics
Location Analytics
Search/Interactive Discovery
Predictive Analytics
Metadata Generated Analytics
Text Analytics
Advanced Visualization
Streaming Analytics
Non Modeled Data Exploration And
2014
2012
+52%
+62%
Base: : Forrsights BI/Big Data Survey, Q3 2012: 634 Business Intelligence users and planners
Base: : Forrsights BI/Big Data Survey, Q2 2014: 452 Tech decision makers

Trend
Predictive models can predict customer
attributes and behavior.

FORRESTER Techniques, tools, and technologies that use
data to find models – models that can
anticipate outcomes with a significant
probability of accuracy.
DEFINITION

Predictive models can be very powerful
and profitable, but understand that:
› Predictive models are about probabilities, not
absolutes
› Predictive models may not exist for every
question
But, when they work they give you an
“unfair” advantage.

Data scientists use a
combination of statistical
and machine learning
algorithms to find
patterns and predictive
models.

Predictive analytics is very different from the
traditional analytics approach
Traditional Analytics Data Science
• Choose a business outcome to
improve
• Discuss and decide what data will
be relevant
• Develop a data model
• Design reports and dashboards
• Choose business outcome to
improve
• Assemble all possible data
• Run algorithms to find relevant data
& predictive model
• Use the predictive model

Recommend
How can you provide a perfect, individualized
product recommendation?

Turkey
How can you predict where customers will be
on Thanksgiving.

Trend
The velocity of business requires
in-memory computing.

Near latency-free applications enable a whole
new class of applications
› Detect, adapt, and act applications require
high-performance data access on the front-end
and the back-end.
› Reduce development time by simplifying the
architectural concerns of performance,
scalability, and availability.

Trend
Streaming data is flowing by,
and value is slipping away.

FORRESTER Software that can filter, aggregate, enrich, and
analyze a high throughput of data from
disparate live data sources to visualize business
in real time, detect urgent situations, and
DEFINITION
automate immediate actions.

. . . and thinking in streams is different
› Filtering
› Aggregation/correlation
› Location/motion
› Time windows
› Temporal patterns
› Enrichment
› Query and action interfaces

Streaming analytics can uniquely enable
three new tiers of app functionality
Source: April 22, 2014, “Use Sensors To Take Apps To The Next Level Of Customer Engagement” Forrester report

Apps are blind –
use sensors to make them see.

If you can measure it, then you can use it

Stop
What if you knew your customer was near your
store on a sunny day?

NFL
Sensors in every players’ shoulder pads will
change the way we analyze and watch the game.

Activity
How can Spotify use accelerometer data
generated by customers while they listen?

Magic
Fantasy becomes reality at Universal’s
Wizarding World with RFID sensor packed wands.

The Forrester Wave™
evaluates vendors on
differentiated features,
strategy, and market
presence using 50
streaming-specific
criteria.
Source: July 17, 2014, “The Forrester Wave: Big Data Streaming Analytics Platforms, Q3 2014” Forrester report

Each vendor is scored across 50 streaming-specific
criteria organized in 14 roll-up
categories

Vendors are scored using a transparent scale.

Source: July 17, 2014, “The Forrester Wave™: Streaming Analytics Platforms, 2014” Forrester report
“Software AG’s
vision puts real-time
customer experience
first.”
- Forrester Research

Streaming apps anticipate a customer’s intent
and adapts to serve them.
Trend

Design principles for streaming apps
› Learning who the customer really is
› Detect the customer’s intent in-the-moment
› Adapt functionality and content to match the
predicted intent
› Optimize for the device (human-computer
interface)
› Architect for low-latency (fast response)

Trip
1
Easy. Buy a copper tube ice maker kit.

Trip
2
Buy a shut-off valve for the copper tubing.

Trip
3
Buy a T-connector to tap the cold water
supply line.

Trip
4
Whoops. Also need to buy a hacksaw
to cut the copper pipe.

Trip
5
Finally. A special drill bit to make a hole
in the kitchen floor for the copper tubing.

Streaming apps can make your
customers feel intensely loyal.

Customers are ready.

Executives don’t believe they have a clear
vision for digital transformation

What kinds of apps could
you develop if you could
predict, detect and adapt
to what customers need
in-the-moment?

Thank you
Mike Gualtieri
mgualtieri@forrester.com

IW14 Session: Mike Gualtieri, Forrester Research

IW14 Session: Mike Gualtieri, Forrester Research

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IW14 Session: Mike Gualtieri, Forrester Research