White Paper The Essential Human Role in Decision Making for the Digital Enterprise The user interface for the enterprise. The Essential Human Role in Decision Making For The Digital Enterprise “Ninety percent of all the data in the world has been generated over the last two years” (SINTEF, 2013). According to IBM, the world’s population collectively generates 2.5 quintillion bytes of data every day. From the sensors in our homes to the GPS signals in our phones to retail transaction records to photos posted on Facebook, IoT sources are producing data at an extraordinary rate through a growing number of channels. Anything and everything “smart,” from smart homes to smart grids, means greater data volumes at exponentially accelerating speeds. 2 The Essential Human Role in Decision Making For The Digital Enterprise As data becomes bigger, people become even more important. Here’s why: More data does not necessarily lead to better decision making. In fact, it often multiplies missed opportunities hidden under a deluge of numbers. Even when you have the world’s best data, you still need people to make it work. To survive the data deluge and thrive in this new era of sensors, interconnected devices and constant unstructured informational streams, decision makers at all levels need a new class of interoperable analytics solutions that lets workers see and understand all of their data where and when they need it. Empowered workers with the right data collaborate effectively, make smarter decisions and transform disembodied data from bits and petabytes into the competitive advantage it was always meant to be. 3 The Essential Human Role in Decision Making For The Digital Enterprise 4 Data is exponentially expanding. Businesses must figure out how to manage it. Growth of Global data - Zettabytes 2010 Stored data* - Petabytes 40 4000 30 3000 20 2000 10 1000 0 0 2009 2011 2015 2020 rth No rica e Am pe ro Eu n pa Ja st ina Ch le idd Ea M ia Ind h ut So rica e Am Zettabyte=one million petabytes Sources Nasscom-CRISIL GR&A analysis *greater than / Sources Nasscom-CRISIL GR&A analysis The pronouncements about just how much data from how many sources vary far and wide, but they all agree on two things—the data will be big and the sources will be many. Gartner, argues that the Internet of Things (IoT) installed base will grow to 26 billion by 2020 (Rivera & Meulen, 2013). Wireless World Research predicts that the number of wireless sensing devices will outnumber people by a factor of 1000:1 by 2017 (Sørensen & Skouby, 2009). GE asserts that the “Industrial Internet” has the potential to bolster global GDP by ten to fifteen trillion over the next twenty years (GE Reports, 2013). Cisco forecasts a nineteen trillion-dollar value creation by IoT in 2020 (Chambers, 2014). Consumers are becoming increasingly knowledgeable about and comfortable with for-profit companies aggregating and analyzing their data as well. Consumers know and expect that companies will collect data about them and appear to be just fine with this, as long as the data collected is being put toward enhancing their consumer experience. As Forrester argues, consumers’ rapid embrace of IoT technology brings with it a deluge of data that retailers can and should use to better serve their customers (Maple, 2015). All of this data should be transformative—on businesses, employees, operations, consumers and the bottom line. In fact global management consulting firm A.T. Kearney argues, developing an organization’s data capabilities can and should greatly improve performance, while simultaneously opening up the possibility to expand offerings and services (Hagen, et al., 2013). The Essential Human Role in Decision Making For The Digital Enterprise 5 2011 and 2017 Big Data Analytics Adoption Rates Forecast 2011 and 2017 Big Data Analytics Adoption Rates Forecast 70% 2011 60% 2017* 50% 40% 30% 20% 10% 0% t en g stm kin e n Inv Ba s e om nc a ur Ins Source: Wikibon 2015 c ele T * Estimated il & le re ta rt sa e ca Re ing po tics lth ole rad s k a h s n i n T a W He Ba Tr Log il & ta e R l ra nt t Ce men n er ov r he Ot ties i tiv Ac G l na ing y& ur sio ices rg ties t s e c e fa En tili of rv U nu Pr Se Ma Big Data Market Forecast, 2011-2026 ($US B) $90.00 $80.00 $81.78 $84.69 $78.53 $70.00 $74.88 $70.76 $66.11 $60.00 $60.91 $50.00 $55.22 $49.28 $40.00 $43,40 $37.97 $30.00 $33.31 $27.36 $20.00 $19.60 $10.00 $12.25 0 $7.60 2011 2012 Source: Wikibon 2015 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 The Essential Human Role in Decision Making For The Digital Enterprise 6 The Evolution of Data Data size and complexity Data driven 3 Very Complex, Unstructured Structured data Unstructured data Multimedia Relational+ 2000s and beyond Data utilization 2 Complex Relational Data generation and storage Primitive and Structured 1 Relational databases Data-intensive applications Relational 1980s and 1990s Mainframes Basic data storage Pre-relational 1970s and before Computing timeline Source: A.T. Kearney Analysis Exponential growth in data volume The Essential Human Role in Decision Making For The Digital Enterprise 7 Gleaning insights from vast arrays of data will be a key business differentiator in the coming decades. How important is Big Data to your organization? Overall More than $10B $5B-$10B $1B-$5B $500M-$1B $250M-$500M 59% 34% 67% 28% 61% 36% 58% 36% 59% 34% 43% Extremely Important 4% 43% Important 12% Moderately Important Non Very Important Source: http://smartdatacollective.com/bigdatastartups/201286/why-ups-spend-over-1-bilion-big-data-annually Source: Accenture Big Success with Big Data Survey, April 2014 However, as companies continue to rapidly advance data collection, most of them have not altered how they work with and in this data rich environment. The International Data Corporation estimates that approximately 33% of all data contains useful information, awaiting for proper analysis (Mearian, 2012). Organizations face myriad and multiplying issues analyzing the data, though. In an Avanade survey, more than sixty percent of C-level executives said their employees need to develop new skills in order to translate data into business value (Avanade, 2012). Moreover, McKinsey believes the only remedy for this dearth will be creating hundreds of thousands of new data analysis experts (Lohr, 2012). As the Harvard Business Review indicates, the growth in data means that analyzing large, messy and unstructured data will become a fundamental aspect of how most of us work (Harris, 2012). Organizations that are effective and efficient at analyzing large data sets will form a foundation of organizational growth and innovation (Manyika, 2011). Yet, while nearly every private and public sector organization—from retail to healthcare—has been impacted by these changes, finding a common playbook on how to address these data dynamics remains elusive. The Essential Human Role in Decision Making For The Digital Enterprise 8 Data growth = New ways of working As things currently stand, many organizations don’t know where to begin in dealing with such large amounts of data. To many, it simply doesn’t seem possible that a typical office worker, still working with bar charts and Excel graphs, will ever have the tools necessary to actually exploit the purported power in all of this data. Because of this, artificial intelligence could be a catalyst to harness data’s power. As Babson professor and analytics expert Tom Davenport says in the Harvard Business Review, machines will soon go from mere support tools to actually replacing humans as decision makers, “Now companies have needs for greater productivity than human quants can address or fathom. They have models with 50,000 variables. These [AI] systems are moving from augmenting humans to automating decisions” (Power, 2015). Some even go so far as to argue that it is “impossible” for humans to understand the data. Technology executive Mark Jaffe maintains, “It’s simply impossible for humans to review and understand all of this dataand doing so with traditional methods, even if you cut down the sample size, simply takes too much time.” In light of all of this, we need new ways to work. Those advocating for a full-fledged shift to AI decision making make very important points in this regard. Most organizations do not have systems in place to handle all of these data streams, and AI certainly can process information with a velocity humans simply cannot match. These conclusions depend on two assumptions: that the tools people use to understand data, and the organizations that utilize them, remain as they are. Which Artificial Intelligence Categories Are Seeing The Most Innovation? 179 Machine Learning (Applications) 127 95 90 38 0 Computer Vision (General) Machine Learning (General) 71 Computer Vision (Applications) 70 Virtual Personal Assistants 65 50 Speech Recognition Recommendation Engines Smart Robots 30 Gesture Control 28 Context Aware Computing 15 Speech to Speech Translation 14 Video Content Recognition 20 by Venture Scanner 40 Natural Language Processing 60 80 100 120 140 160 180 200 Company Counted The Essential Human Role in Decision Making For The Digital Enterprise Is artificial intelligence our only means to harness data’s power? Humans are and will continue to be vital to organizations because of two key factors that machines cannot ever replicate or supersede: judgment and accountability. No matter the number of correlations one discovers– and machines can certainly detect a great many– judgment will ultimately determine the meaning of data points and how to act on them. Machines won’t tell us which correlations are meaningful (Marcus & Davis, 2014). Moreover, accountability gives decisions weight and value. Without an accountable party, organizational chaos would ensue. What we need is a way to integrate data into daily decision-making processes (Shah, Horne, & Capella, 2012). Many businesses fail not because their data was necessarily faulty or incomplete, but because they failed in judgment. Take Blockbuster, now widely seen as having missed out on the changes wrought by competitors like Netflix. Blockbuster went down not for lack of data, but rather a lack of judgment over what to do with the data. To Blockbuster executives, the data suggested the company’s core customers were middleaged parents who had little interest in streaming or the niche movies. As a result, Blockbuster focused on the issue of providing parents something quick for the kids. So this was the experience Blockbuster tried to improve on—ultimately mistaking the trees for the forest. It was impaired judgement that led them to focus on the wrong data. Data solutions should give users the power to make better decisions. More data certainly would not have hurt the Blockbuster executive team. However, no solution can ever make the decisions for them. An ideal data solution manages data as well as an AI platform, but acknowledges the necessity of human judgment and accountability. In essence, the ideal data platform should include: The ability to bring all data sources, no matter the format or type, together into a single view Allow for quick sifting and sorting The ability to rapidly iterate with large amounts of data in order to develop multiple perspectives, models and hypotheses quickly Allow for quick collaboration and sharing across an organization Provide for application of judgment and accountability 9 The Essential Human Role in Decision Making For The Digital Enterprise Human judgment and accountability are vital to getting the most out of data. Only one solution accomplishes all of these objectives: Conduce. Conduce offers the first immersive operational data visualization platform. Leaders and teams can see and interact with all their data instantly using a single, intuitive interface. With Conduce, decision makers see internal and external data from any source, explore it fully and unlock real value. No other solution combines secure, transactional business tools with advanced gaming technology to activate the power of data across any enterprise, no matter how global or complex. Conduce technology traces its origins to the unforgiving environments of defense and intelligence. This sector has critical specialized requirements to provide immediate, comprehensive situational awareness necessary to make vital life and death decisions. Conduce architected its first technology to provide decision makers with informational depth and agile analysis on a single pane of glass to allow military and intelligence professionals to make smarter decisions by exercising better informed judgment. Conduce’s original military and intelligence platform served three fundamental contexts: operational monitoring and analysis, rapid data synthesis of all available sources to enable better planning and decision making, and spur-ofthe-moment tactical management for critical tasks amid the fog of war. Recognizing that these contexts were inextricably interwoven, Conduce built fluid movement between these three modes into the system, given that contexts and situations are always shifting. Although civilian organizations may not face the same types of life and death decisions, their requirements are no less complex or critical. As this paper has emphasized throughout, businesses of all types and sizes face similar requirements and informational needs, from bringing siloed data together into a single platform to enabling quick and effective decision making and collaboration. Conduce transferred its proven performance in synthesizing operational, strategic and tactical contexts to a wide variety of enterprises outside defense and intelligence including retail, CPG, energy, travel, manufacturing and more. Conduce technology unifies data from any internal or external source in a single, intuitive operational interface. Some of the key features of Conduce include: Collaborate instantly and securely. Any and all team members are able to view and act on the same data at the same time — all securely in the cloud. Drive measurable business outcomes by viewing the entire picture in real-time — assets in motion, changing KPIs, IoT telemetry — to learn what is happening locally or across the enterprise. Explore many data sources simultaneously by moving freely through time and space with infinite zoom. Realize value from previous technology investments by using existing tools to view data in a new way. 10 The Essential Human Role in Decision Making For The Digital Enterprise Conduce is battle management for business that increases worker and AI productivity alike. Current decision making complexity demands the same level of battle management control for any organization, no matter the sector. General McChrystal makes this point in his book on organizational strategy, Team of Teams, wherein he argues that all organizations, not merely the military, must move beyond siloed data and hierarchical decision-making structures, to interoperable data systems and empowered decision making throughout. Conduce readies any organization to make any decision, whether on the battlefield or elsewhere. As McKinsey argues, while IoT opens up the potential for new business models that can fundamentally alter the competitive landscape, companies cannot succeed without the tools to take advantage of it. Tools like Conduce make them battle ready. According to McKinsey, a full forty percent of IoT’s value lies in the interoperability that tools like Conduce provide. Moreover, McKinsey believes that an even greater piece of value resides in enabling an organization to make decisions and ultimately act on IoT data, which is exactly what Conduce is built for (Manyika & Chui, 2015). Conduce allows businesses to comprehend data in ways that have never been previously possible. With Conduce, organizations are able to harness the full power of AI platforms, while multiplying the capabilities and talents of their human workforce. IoT elements are made interoperable with one another; AI resources are able to perform their sifting, sorting and calculation; and people are ultimately empowered to make the necessary decisions. With data reporting diversity, decision makers will find themselves favoring information that comes from fancier machines. Conduce levels the playing field by accessing all the data and presenting it uniformly. Less bias = smarter decisions. Data’s value will continue to increase into the future. But the even bigger opportunity is to improve the effectiveness and impact that people will have with access to the right resources and tools. The real question is not the false dichotomy of human or machine, but how best to create a structure that can undergird the inherent powers found in each. The creative judgment that only people can exercise in concert with the calculation speed of computers creates a mutually reinforcing system between information, machine, and human. A system animated through tools like Conduce. How people maximize the value of data: Understanding Creativity People develop shared awareness through an ongoing process of collaborating to solve ever-shifting objectives. People have the ability to ask questions of data sets in completely new and unexpected ways, which maximizes data’s value. Judgment Accountability The human ability to select from alternatives based on the context of an organization and environment is irreplaceable. Only people can be held accountable for the decisions made by and within an organization. 11 The Essential Human Role in Decision Making For The Digital Enterprise 12 Works Cited Avanade . (2012, June). Global Survey: Is Big Data Producing Big Returns? Retrieved from http://www.avanade.com/~/media/documents/research%20and%20insights/avanade-big-data-executive-summary-2012.pdf Chambers, J. (2014, January 15). World Economic Forum. Retrieved from Are you ready for the Internet of everything?: https://agenda.weforum.org/2014/01/areyou-ready-for-the-internet-of-everything/ GE Reports. (2013, October 7). Retrieved from Analyze This: The Industrial Internet by the Numbers & Outcomes: http://www.gereports.com/post/74545267912/ analyze-this-the-industrial-internet-by-the Hagen, C., Ciobo, M., Wall, D., Yadav, A., Khan, K., Miller, J., et al. (2013). Big Data and the Creative Destruction of Today’s Business Models. Retrieved from A.T. 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Retrieved from Science Daily: www.sciencedaily.com/ releases/2013/05/130522085217.htm Conduce.com 1180 Eugenia Place Suite 103 Carpinteria, CA 93013 +1 805 755 4545 © 2016 Conduce Inc. The user interface for the enterprise.
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