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Posts Tagged ‘business strategy’

Research Report Reveals How Top Companies Use Big Data

BoardroomThe Silicone Angle blog recently covered some of the insights to be found in an SAS and International Institute for Analytics report called “Big Data in Big Companies.” The report is available as a free download on the SAS website.

Each of the companies that the report covered spoke of using data to make smarter business decisions. Big data, when it’s functioning properly, creates real value for the companies who choose to make use of it.

One case study came from UPS. It’s a good study, one that comes with impressive numbers.

“UPS has more experience with Big Data than most, given that it first began tracking the movements of its vehicles and the packages it delivers back in the early 1980s. The firm reckons it tracks in the region of 16.3 million packages a day, whilst dealing with 39.5 million tracking requests from its customers each day. To date, the company has now accumulated over 16 petabytes of Big Data.

UPS’s ORION (On-Road Integrated Optimization and Navigation) initiative is said to be one of the largest operations research projects in the world. The majority of its data comes from telematics sensors installed in its vehicles, together with mapping data and other real-time reports of drop offs and pick-ups from drivers.

According to UPS, the ORION initiative has helped it to shave around 85 million miles off its daily routes during 2011, something that saved it more than 8.4 million gallons of fuel. The company estimates that this has led to $30 million in savings.

GE provided another great example. They use data to prevent mechanical failure.

“Bill Ruh, Vice President and Corporate Officer for GE’s Global Software Center…highlights GE’s industrial business as a prime target for big data, referencing the health of blades on the jet engines the company manufactures. “Our sensors collect signals on the health of blades on a gas turbine engine to show things like ‘stress cracks.’ The blade monitor can generate 500 gigabytes per day–and that’s only one sensor on the turbine. There are 12000 gas turbines in our fleet.” The value in integrating all the sensor data onto a big data platform can reveal patterns on when blades break, allowing GE to time its manufacturing and repair process before a break occurs.

The big companies all use data in ways that are as unique as their businesses are. However, they each have something in common, as well. Each company has set sensible targets for their business which allows them to create real, actionable results.

This kind of effectiveness starts with the proper training about data analytics. If you’re ready to put data to work for your business, start with TMA’s free webinar. Then, take a look at any of The Modeling Agency’s predictive analytics training courses to get more insight about what big data can do to help your business.

Are You Giving Your Data the Attention it Deserves?

Data Strategy is an Executive ResponsibilityIncreasingly, companies are seeing a need for executive-level attention paid to their data and the valuable wisdom it contains. But some struggle with understanding who’s “in charge” of data management, and just how important a role data manager should be within the organization.

Smart Data Collective recently tackled these concepts in a piece entitled “Who’s in Charge of Your Data?”. The Smart Data Collective piece cites 8 key needs that all organizations have when it comes to their data:

  • Data governance policy and procedures
  • Determination of data needs
  • Data collection
  • Data management
  • Data security
  • Data flow
  • Analysis of data and modeling
  • Data reporting

And, according to Smart Data Collective, as companies delve into these needs they find that data doesn’t really fit nicely into the realm of IT. Instead, companies looking to make the most of their data may find their best bet is to elevate data management to the executive level where it can impact multiple branches of business operation. The article quotes Thomas C. Redman from the Harvard Business Review, “Different kinds of assets, people, capital, technology, and data demand different kinds of management. You don’t manage people assets the same way you manage capital assets. Nor should you manage data assets in the same way you manage technology assets.”

It also quotes Data Blueprint’s Data Management and Data Administration academic paper, “Management should recognize the DM is continuing to move towards a model in which it is moving away from the inclusion of low-level operations and towards more managerial functions.”

All this is to say that if your aren’t giving your company’s data an important role in your business strategy with executive-level attention, you should be!

Ready to get started with data mining? Join The Modeling Agency for a free hour-long data mining webinar, or delve deeper with one of The Modeling Agency’s predictive analytics training courses.