Big Data at Work

241 Pages·2014·2.903 MB·English

by  Thomas H. Davenport

management big US$30.00 / CAN$34.50
“ Big Data at Work is the first and only book to describe how
real organizations are using big data, extracting value from it, Go ahead, be skeptical about big
and combining it with other forms of data and analytics. data. The author was—at first.
It’s an invaluable guide to planning and action.”
—Jane griffin, managing director analytics, deloitte canada and americas When the term “big data” first came
data on the scene, bestselling author tom
“ Is Big Data a buzzword or does it have practical applications in business? davenport (Competing on Analytics, Analytics
bell Big Data at Work goes beyond tech-talk to help businesspeople turn at Work) thought it was just another example
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ca Big Data into Big Decisions.” of technology hype. but his research in the
ruSS —Jonathan d. becher, chief marketing officer, saP b years that followed changed his mind.
thomas h. davenPort is a world- i now, in clear, conversational language,
g
renowned thought leader on business “B ig Data at Work provides a terrific foundation for thoughtful planning to exploit davenport explains what big data means—and

analytics and big data, translating important the business opportunities created by diverse and vast sources of information. d why everyone in business needs to know about
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technological trends into new and revitalized Davenport’s clear approach will enlighten managers about the need to carefully a it. Big Data at Work covers all the bases: what
management practices that demonstrate mine these resources to improve operations and products while driving new and big data means from a technical, consumer,
t Dispelling
the value of analytics to all functions of competitive strategies.” a and management perspective; what its
an organization. he is the President’s — gary L. gottLieb, md, mba, President and ceo, Partners healthcare system, inc.; the myths, opportunities and costs are; where it can have
distinguished Professor of information Professor of Psychiatry, harvard medical school @ real business impact; and which aspects of this
technology and management at babson hot topic have been oversold.
college, a fellow of the mit center for “T homas Davenport has supplied a smart, practical book for anyone looking Uncovering this book will help you understand:
w
digital business, cofounder and director to unlock the opportunities—and avoid the pitfalls—of big data.” work � W hy big data is important to you and your
of research at the international institute —rob bearden, ceo, hortonworks o the opportunities organization
for analytics, and a senior adviser to
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� What technology you need to manage it
deloitte analytics. davenport is the author “ Conversational, engaging, and an exceptional guide for decision making k
or coauthor of seventeen books, including in the big data world. Big Data at Work offers insight to the business � how big data could change your job, your
the bestselling Competing on Analytics, as and technology components of a big data strategy, a path to success, company, and your industry
well as the author of dozens of articles for and best practices from across industry sectors.”
� how to hire, rent, or develop the kinds of
Harvard Business Review. — adeLe K. sWeetWood, vice President, D
people who make big data work
americas marketing & support, sas a
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With dozens of company examples, including
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UPs, ge, amazon, United healthcare,
citigroup, and many others, this book will
help you seize all opportunities—from
improving decisions, products, and services to
jacket design: stephani finks strengthening customer relationships. it will
ISBN-13: 978-1-4221-6816-5 show you how to put big data to work in your
90000 Thomas h. DavenporT
Stay informed. Join the diScuSSion. own organization so that you too can harness
ViSit hbr.org/bookS
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follow @harVardbiz on twitter
find uS on facebook, linkedin, youtube, and google+ hbr.org/bookS 9 781422 168165 From the bestselling author of Competing on analytics
big
data
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work
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big
data
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Dispelling
the Myths,
Uncovering
the Owpportunioties rk
THOMAS H. DAVENPORT
Harvard Business Review Press
Boston, Massachusetts
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Find more digital content or join the discussion on www.hbr.org.
Copyright 2014 Harvard Business School Publishing Corporation
All rights reserved
No part of this publication may be reproduced, stored in or introduced into a retrieval
system, or transmitted, in any form, or by any means (electronic, mechanical,
photocopying, recording, or otherwise), without the prior permission of the
publisher. Requests for permission should be directed to [email protected]
.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard
Way, Boston, Massachusetts 02163.
The web addresses referenced in this book were live and correct at the time of the
book’s publication but may be subject to change.
Library of Congress Cataloging-in-Publication Data
Davenport, Thomas H., 1954-
Big data at work : dispelling the myths, uncovering the opportunities / Thomas H.
Davenport.
pages cm
ISBN 978-1-4221-6816-5 (alk. paper)
1. Business intelligence—Data processing. 2. Big data. 3. Business planning— Statistical
methods. 4. Data mining. I. Title.
HD38.7.D379 2014
658.4’038—dc23
2013039005
ISBN: 9781422168165
eISBN: 9781422168172
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Contents
Acknowledgments vii
1. Why Big Data Is Important to You and
Your Organization 1
2. How Big Data Will Change Your Job,
Your Company, and Your Industry 31
3. Developing a Big Data Strategy 59
4. The Human Side of Big Data 85
5. Technology for Big Data 113
6. What It Takes to Succeed with Big Data 135
7. What You Can Learn from Start-Ups and
Online Firms 153
8. What You Can Learn from Large Companies:
Big Data and Analytics 3.0 175
Appendix: Big Data Readiness Assessment Survey 205
Notes 211
Index 217
About the Author 229
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Acknowledgments
It would be wonderful if I were smart enough to come up with the ideas
in this book on my own, but I’m not. So I have to rely on the kindness
and wisdom of others who share with me what they are doing with big
data. I am therefore grateful to all those individuals who shared their
experiences and insights with me. Every story in this book—and there
are many of them—has a generous individual behind it.
I am also grateful to my friends at SAS Institute, which has spon-
sored much of my research on analytics. Two of the studies they
sponsored are described in this book. Mike Bright is my primary
contact at SAS, and Scott VanValkenburg was my first connection
there. Both continue to be good friends and advisers after almost
a decade of collaboration. Others at SAS deserving thanks include
Ken Blank, Jim Davis, Carl Farrell, Jim Goodnight, Deb Orton,
Adele Sweetwood, and too many others to mention.
I did some of the research in this book with the help of the Inter-
national Institute for Analytics, which I cofounded with Jack Phillips.
Thanks to Jack, Katherine Busey, Sarah Gates, Callie Youssi, and
everyone else at IIA for their help.
I’ve been a senior adviser to Deloitte Analytics for several years
now; Jane Griffin was a great supporter and friend. Thanks also to
Forrest Danson, Wendy DeHoef, Kelly Nelson, Tim Phillipps, and Fred
Roffman—all Deloitte Analytics folks—for their continued support.
Marcus Shingles at Deloitte led a research project on big data in the
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viii Acknowledgments
Grocery Manufacturers Association in which I participated, and some
of those ideas are undoubtedly in the book as well.
Finally, I began a research project on data discovery while writing
this book, and some of the research made it into the book before it was
completed. Teradata Aster supported that research, and I would like
to thank Tasso Argyros and Mary Gros for giving me access to their
customers and product capabilities.
I also work with a number of companies and organizations as an
adviser or affiliated researcher, and I learn a lot from all of them. They
include, in alphabetical order, First Analytics, MarketShare, Medi-
data Solutions, the MIT Center for Digital Business, Mu Sigma, Real
Impact, Signals Intelligence Group, and Via Science. I tell all of these
organizations that my primary goal in the relationship is to learn from
them, and they all have delivered on that request.
The other people who played important roles in making this book
a reality are at Harvard Business Review Press. Melinda Merino has
edited several of my books in the past, and she was in this case—as
always—a great pleasure to work with. I can’t remember for sure, but
I think writing this book was her idea. Certainly she had great sugges-
tions along the way for making it more compelling and e ngaging.
I have been remiss in past books in not thanking Julie Devoll, my
longtime publicist at the Press. Normally I don’t know who is going
to publicize the book when I write the acknowledgments, but Julie
assures me that I will get her expert and unflagging services on this
one. If anyone hears or reads about this book, it will probably be
thanks to Julie.
I love the jacket design for this book and my previous one with the
Press, and that’s due to the excellent work of Stephani Finks. Tracy
Williams led the marketing team for the book. Allison Peter ably and
smoothly handled the copyediting and artwork. Thanks also to Julia
Kirby, my old friend and frequent editor at Harvard Business Review,
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Acknowledgments ix
for helping me clarify my thoughts on this topic in a couple of articles
I wrote for the magazine.
My wife, Jodi Davenport, urged me to write a book on big data long
before I actually got started. My sons, Hayes and Chase, have at least
some interest in the topic as well—Hayes in terms of the entertain-
ment industry, and Chase in terms of education. Thanks to all of them
for the advice.
I have written more books than I have family, and I am now faced
with rededicating books to family members. My mother-in-law, Helen
Kubik, was the dedicatee for my book Competing on Analytics. Not only
did she get more enjoyment out of the dedication than anyone else in
the role does, but the book also sold quite well. So Helen, this book is
dedicated to you. Work your magic again, please!
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