The Internet of Things: Our Bright Future or Inevitable Downfall

Post written by Blake W., Management Consultant at Ideaca. Read more on his blog: Blake Watson.

The Internet of Things (IoT), essentially a future-focused concept where everyday devices connect and communicate data in an intelligent fashion is a highly contested topic. Will it mark the beginning of a new era in our civilization or a catastrophic detriment to the world as we know it? Skipping over the possibility of our technology becoming self-aware and “terminating” us, these two polar opposites are often portrayed in the discussion of this topic. This post will broadly summarize the IoT and discuss the positives and negatives in relation to our daily lives.

So what is the IoT? It is a term that has been vaguely used since the 1990’s and has gained traction since its initial public proposal by Kevin Ashton in 1999. It is a term that suggests a heavy increase in device-to-device and device-to-Internet connectivity. By equipping these devices into a worldwide network of miniscule identification devices the IoT could transform our daily lives.

Is this interconnectivity even possible? Simply put, yes. Technology is growing at a rapid pace, confirming Moore’s Law, wherein Gordon E. Moore’s observed that the transistors, and thus the processing power of our devices, double approximately every two years. Although many have debated the staying power of this observation, the exponential potential of this theory is astounding. If the past few decades are any indication, the IoT is a highly probable (and sometimes frightening) reality.

As mentioned before, the IoT could transform life as we know it. A simple scenario: You get home from a busy day at work. Monitors in your home identify you and let you in. Immediately, the room taps into a wealth of your personal information and preferences…climate control, music, lighting, and digital décor. These sensors may even be able to determine what you want for dinner and start preparing it for you based off of what is in your refrigerator. Some of these devices are already available through “smart” technology. Within the next 20, the possibilities are endless.

THE GOOD:

For the individual, the IoT integration arguably increases our standards of living. No longer are we plagued by menial tasks that take up our days. The IoT essentially frees up time and energy that could be better spent productively or recreationally. It doesn’t necessarily mean that as a collective we will be healthier, happier individuals. However, we will have more opportunity to achieve this lifestyle.

From the business perspective, greater analytic capabilities are accessible to management and supervisors. Asset tracking, inventory controls, and financial drilldowns are far more accurate. Location services, automation, and device interconnectivity eliminate a great deal of the “guess-timation” involved in these operations. Sectors such as consulting, financial services, and even health could benefit greatly from these advancements.

Businesses also have access to a huge amount of data. Big Data will be a simple task compared to the vast amount of information that corporations will be able to collect from client usage and habits. We will have to start considering XXXL Data as opposed to Big Data. Billions and even trillions of source data will give business owners the tools to minutely tailor their products and marketing to individuals in the most literal sense of the word.

THE BAD:

The IoT has a dark side to it. Many people feel a sense of unease when they consider the privacy concerns the IoT imposes. If you are the slightest bit afraid of “Big Brother”, then the IoT is not for you. The amount of information that can be collected by governments and corporations through the billions of personal, business, and home devices is astounding. These devices sometimes know more about you than you do.

Another hot topic at the moment is job security; for low income earners, the IoT could make things especially tough. A number of unskilled tasks (and even some higher level analytics) might easily be replaced by a network of devices connected to the IoT.

Another concern is the effect that this new world order may have on our physical health. When all of our devices are communicating, making decisions, and essentially managing our lives for us, the opportunity to become complacent with that level of comfort is tempting. The World Health Organization estimates that over 65% of the world’s population currently lives in countries where obesity kills more people than being underweight. This upward trend isn’t expected to slow down anytime soon, especially with the continued introduction of technology that makes our lives even easier.

OVERALL:

Although there are many negatives that could affect reception of the IoT, it is my belief that reactions will be mostly positive. Although some aspects of these new technologies are to our detriment, there is a great deal of benefit that can come from an increased awareness of the IoT. As younger generations are brought up with modern day technologies, we may begin to see society move away from a privacy-centric culture. This shift would effectively reduce public outcry for greater privacy rights in this changing environment.

Although malicious Internet hackers and identity thieves may pry on the wealth of information available, we are facing no greater threat in the future than we are now. Security safeguards are in place and continue to develop. At the same time, data thieves are growing their methods for subverting such safeguards. This struggle for access and security will continue with no real definitive end in sight. Therefore, data security should not be considered within scope of this discussion.

The main problem moving towards our ideal vision of the IoT is that it will depend heavily upon data sharing and corporate cooperation. Think of all of the different products in your home… appliances, personal devices, clothing, and climate control. Seamless integration is necessary to ensure the IoT is able to function effectively in your daily life. If your devices cannot access the personal information it needs it will not function properly. It is hard to imagine companies (For example, Apple and Samsung) sharing customer data and integrating their products out of the box. Cooperation will be mandatory and it is something that companies will have to be overcome as we move forward with the IoT.

As briefly mentioned above, consulting firms such as Ideaca Knowledge Services will benefit greatly from the wealth of information available to them. The greater availability of information resources will allow their consultants to better assess client needs. Having clear needs from both the client and end consumer is essential. Better data means better solutions and ultimately better deliverables.

Whatever your take is on the IoT, there are a lot of variables to take into account. The changes that it will bring to our society are truly hard to imagine 20 years out. For good or for bad, the world is growing and developing towards the IoT. Will we try to hold on to our present state of technology or embrace these changes when they come?

The Future (IS) Worker

Post written by Chris S., Project Manager at Ideaca. Read more about project management on his blog: The Outspoken Data Guy.

If the lines have not already been blurred, they will be…Over the next 10 years business and IS work will undergo a major transformation, largely driven by the Cloud and Data Analytics.

In the next 10 years, internal IS staff will act solely as advisers and managers of cloud services.

As more and more businesses embrace cloud services, IS will be called upon to act as advisers to ensure that these services are managed as efficiently as possible. As a consequence, this will push IS Governance further into the limelight. For years IS has had the notion of charge-back to the business to help manage costs and allocate them to those that use services. This approach has been mired in political push back and logistical challenges around how this would be done in a fair and equitable manner. As we move towards a “Pay for Usage” model in the cloud, these costs will be far easier to allocate back to those that use and hence IS will get a more accurate picture of costs of services and a far better allocation model.

This likely will not sit well with legacy users but the notion of “pay for usage” is so common place with Generation Z that this will be a virtual non issue. With this political hurdle out of the way, the focus can shift to more efficient use of IS resources and to ensure that businesses are getting value.

It is hard to argue with the value of using cloud services. At present there are the usual security and performance questions but over the next few years these concerns will be addresses and we will all have our heads in the clouds.

The new beast - hybrid IS and Business Person

Who is the future (IS) worker? And what skills will they need to bring to the table?

In my opinion the niche where people will have the most success will be with a hybrid of IS and business skills. There is no real debate that the world is increasingly becoming more data driven and the ability to turn data into actionable insights will become more in demand. So what does that mean? It means that workers will need to have 2 very key kills:

a) A deep understanding of the business and b) the ability to analyze data and derive insights.

This phenomenon, coupled with the cloud will allow Business Intelligence services to move closer to the business with IS once again acting as advisers, which is where BI needs to be currently in organizations. Unfortunately it gets stuck into an unnecessary tug of war between IS and the Business.

Bottom line: Business users will have to become more technically savvy as is articulated in Thomas Davenports “Keeping up with the Quants.”

Business Intelligence is weaving its way into our daily lives - it is the age of data.

Building on the above, on a daily basis we are increasingly faced with data that we use to guide our actions, personal or otherwise. Real time traffic signs that tell us how long it takes to get somewhere, integrated budgeting software in our banking site that monitor our daily spending and alert us to certain conditions that we are interested in and feedback about restaurants that we may want to have lunch at. These are just a few examples of where data is used daily to guide our decisions.

 Bottom line: Data and analysis are becoming a way of life and will continue to forge its way into the mainstream.

Big Data: A Mysterious Giant IT Buzzword

Post written by Niaz T., Senior Solution Architect/SAP BW Consultant at Ideaca. Read more about SAP HANA on her blog: Discover In-memory Technology.

In the world of technology there are a hundred definitions for “Big Data.” It seems confusing to come up with a single definition when there is a lack of standard definition. Like many other terms in technology, Big Data has evolved and matured and so has its definition. Depending on who we ask and what industry/business field they’re in, we will get different definitions. Timo Elliott summarized some of the more popular definitions of Big Data in “7 Definitions of Big Data You Should Know About.”

You may be familiar with three “V’s” or the classic 3V model. However, this original definition does not fully describe the benefits of Big Data. Recently, it has been suggested to add 2 more V’s to the list such as Value and Verification or Veracity which are resulted from “Data Management Practices.” As a BI expert who is been involved in Big Data, my approach is to have a practical definition for my clients by emphasizing the main characteristics of data and purpose of Big Data related to each specific area. I like Gartner’s concise definition. Gartner defined Volume, Velocity and Variety characteristics of information assets as not 3 parts but one part of Big Data definition.

Big data is high-volume, high-velocity and high-variety information asset that demands cost-effective, innovative forms of information processing for enhanced insight and decision making. (Gartner’s definition of big data)

The second part of the definition addresses the challenges we face to take the best of infrastructure and technology capabilities. Usually these types of solutions are expensive and clients expect to have cost effective and appropriate solution to answer their requirement. In my opinion this covers the other V which is related to how we implement Data Management Practices in Big Data Architecture Framework and its Lifecycle Model.

The third part covers the most important part and ultimate goal which is Value. Business value is in the insight to their data and to react to this insight to make better decisions. To have a right vision, it’s important to understand, identify and formulate business problems and objectives knowing practical Big Data solutions are feasible but not easy. So when I define Big Data for my clients, I use Gartner’s definition and explain the journey we need to take together to achieve their goal.

In any Big Data project, I start with BDAF or Big Data Architecture Framework which consists of Data Models, Data Lifecycle, Infrastructure, Analytic tools, Application, Management Operation and Security. One of the key components is having high performance computing storage. Since Big Data technologies are evolving and there more options to be considered, I’m focusing on SAP HANA capabilities which enable us to design practical and more cost effective solutions. HANA could be one part of overall Big Data Architecture Framework but it’s the most essential part. The beauty behind SAP HANA is that it is not just a powerhouse Database but it is a development platform to provide real time platform for both analytics and the transactional systems. It enables us to move beyond traditional data warehousing and spending significant time on data extraction and loading. In addition we’re able to take advantage of hybrid processing to design more advance modeling. Another big advantage of HANA is the capability of integrate it with SAP and non-SAP tools.

So, why am I so excited about it? Looking around I see tons of opportunities and brilliant ideas which could get off the ground with some funding. So far, HANA has been more successful in large enterprises with big budgets and larger IT staff. However I’m also interested to encourage medium size enterprises to see the potential of HANA to provide a solution for their problems. The majority of businesses don’t spend their budget to develop a solution. They are eager to pay to solve a particular problem. Now, our challenge as SAP consultants is to help businesses see this potential and how HANA can address their challenges. The good news is SAP supports by providing test environment and development licenses for promising startups.

Got your attention? Well, just to give you a glimpse, take a look at some of the success stories. In addition there are many many other cases if we look around. For instance, these days many applications capture Geo-location data like trucking company, transportation, etc. it means capturing data every 10 seconds or so from every section, every piece of equipment, every location. This could add up to a Petabyte of data! This is an excellent way to bring insight into data and drive intelligence out of it and have it circulated back to scheduling and movement processes. Another example could be companies needing to mine information from social media regarding to their products and connecting this intelligence back to their back end processes to increase customer engagement and satisfaction.

So, do you have any Big Data Challenge? With some funding, we’re able to provide cost effective and practical solution for your challenge to add value to your business.

Is Big Data Only About…Big Data?

Post written by Wade W., BI Consultant at Ideaca. Read more about BI on his blog: Pragmatic Business Intelligence.  

If nothing else, IT is all about buzzwords, and “Big Data” is one of the new arrivals to the party.
It is, however, a descriptive one. “Big Data” evokes images of enormous relational databases, providing analytical (or operational) reporting.

Big Data is not only about size however. Rather, it refers to attributes of the data that together challenge the constraints of a business need or system to respond to it. Those attributes can include any or all of attributes such as size/volume (of data), speed (of generation), and number and variety of systems or applications that simultaneously generate data. Another thing that is unique about Big Data is how it varies in structure. Elements of “structure” would include the diversity of its generation (eg. Social media, video, images, manual text, automatically generated data, such as a weather forecast, etc), information interconnectedness and interactivity.

I heard somewhere a thumbnail statistic that 80% of data in companies is unstructured or semi-structured. Just to clarify the meanings of those terms, an unstructured data artifact would be a document, an email, a video or audio clip. A semi-structured data artifact would include data that does not conform to the norms of structured data but contains markers or tags that enforce some kind of loose (or not so loose) structure. XML documents would be an example of semi-structured data.  Tagged documents in a Knowledge Management system would also fit into this definition.

Structured data is what we would find in any database – a Data Model has been defined and the data is physically arranged within this model into tables. The data in these tables is described with metadata (i.e. data types (such as “character”) and the maximum length of that data (number of bytes)).

The methods of data creation are multiplying and the velocity of its creation are increasing. And that, in itself is a complicating factor. Some analysts (IDC, for example), predict that the Digital Universe -  that is, the world’s data – will increase by 50x by 2020. There will be in the same period, a growing shortage of storage, which will drive investment in the cloud as both individuals and corporations look for scalable, ubiquitously accessible, lower-cost and environmental data storage options. In addition, the same study predicts that of all that data, unstructured data, especially video, will account for 90% of that data.

There is also an important historical dimension to Big Data. For decades, companies have been hoarding structured, semi-structured and unstructured data in hopes of one day being able to extract value from it at some point in the future.

A large percentage of all this data will come with a wrapper of automatically generated Metadata – that is, (as indicated above), data about (or that describes) that data. A practical example could be the generation of a data artifact coming wrapped with metadata from those GPS enabled, media rich, socially linked mobile devices we all carry with us that transparently capture location, GPS coordinates, time, weather conditions and a plethora of other data elements when you click that holiday photo with your mobile phone. IDC predicts that such metadata is growing twice as fast as data.

It is clear from the last three paragraphs that Big Data describes explosive growth in data and metadata and an equally explosive opportunity to capture, tame and corral that data to extract value from it.

So the case has been made that we have a lot of data today and we will have even way more tomorrow, but should your organization be investing in Big Data today?

In a sense, probably you already are. Enterprise Business Intelligence environments lay a solid foundation for the next phase of Big Data. EBI is an earlier iteration of Big Data and, married to tools such as Hadoop and NoSQL databases for example, enable a natural evolutionary growth curve to your mastery of your information ecosystem.

Big Data has a requirement for a new way of thinking, new tools, clustered commodity hardware and probably, substantial investment. It comes down to your business, and if there is a clear value-based case to present that data to your company’s brainpower. The actual needs for this will be radically different depending on your industry. Oil and Gas may be interested in leveraging real time alerts in wellhead data or analyzing petabyte seismic datasets.  Packaged Goods multinationals may be interested in monitoring and engaging advocates, detractors and influencers across multiple Social Media platforms, mining and understanding sentiment and identifying problem areas in real time in order to identify opportunity or identify and avert potential brand-damaging events. Financial institutions may be interested in monitoring international money traffic to identify fraud or illegal activity. Government entities may mine extremist forums, or other unstructured data traffic to identify national threats.

Big Data can serve these needs in real time, enabling rapid (or even automated) response to flagged events. Whether it is a fit for your organization today would be determined through viewing your industry and business through a critical lens on your current Information Intelligence maturity, a strategic assessment of the data and information assets currently owned or available to your organization, and a prioritization of potential initiatives. How much data you harness and convert into information should be a key outcome required from this exercise. The opportunities are legion, but initiatives should have clear objectives and success metrics understood prior to a project kickoff.
Whether it is today or tomorrow, Big Data is becoming mainstream through necessity. Whether that is a road your organization wants, or needs to drive today, is something all medium and large organizations should be considering now.

What are your thoughts on Big Data? Is your organization currently considering Big Data as a strategic imitative or Proof of Concept?

Project Management and Big Data – as a project

Post written by Jason Z., Project Manager at Ideaca. Read more about project management on his blog: Unnatural Leadership.

As part of this month’s Ideaca blogging network challenge, we were tasked with discussing our thoughts on Big Data.

This is going to be a 2 part post:

• The first part will cover how you, as a project manager, should approach a project that carries the mantle of “Big Data.”
• The second part will cover how you, as someone in a Project/Program Management Office, can use Big Data without getting snookered by the hype.

Part 1 – So you’ve been asked to “implement Big Data”… what now?

Defining Your Terms
I am going to assume that you – like me – tend to be baffled by the marketing speak until you can speak with someone intelligently about a topic. In the case of Big Data, I have heard a few definitions. The one that seems to stick the most for me is the one from Wikipedia:

• Data sets that are too big for traditional database management systems to handle
• Data sets that comprise information from multiple sources to try to infer correlation

Sounds easy enough, right?
Where it starts to get complicated (thanks Wade!) is when you try to integrate “unstructured and semi-structured data with our 'traditional' structured data.”

You will never “implement Big Data”
When it comes to Big Data, you do not implement it. You may be implementing a technology to support the analysis, but you will never actually implement this “thing.” A project of this sort relies on understanding the user requirements, selecting the right technology, and taking an exploratory approach when developing reporting capabilities.

Understanding the User Requirements
In the case of a new process and technology, such as this, your user requirements may be fairly light. "We want to correlate information from disparate sources to identify predictive trends” or “I don’t know – but I really want some cool looking reports” may be common lines that you hear. Like all projects, the user requirements are your definition of success. Because “Big Data” is still a technology in the exploratory stage, though, expecting detailed requirements may be the wrong sorts of requirements. The ones that you should be really focused on are the data sources and ensuring that the information being presented is right.

To wit, if I were to ask you to present the information on the average CEO compensation for the top 50 companies in North America, how would you start? How would you define the Top 50?  By Market Capitalization? By Environmental Performance? By Stock Price? By Revenue? What about getting access to private company information? All of the sudden, a fairly simple question about the average CEO compensation gets a little more complex.

The same will be true of your Big Data project. Start by understanding that to present the information your users want, you will either have to ask a whole lot of detailed questions, or provide a platform to enable them to answer their own questions.

Understanding the available technology
As Project Managers, we know that when we are asked to Implement something, it’s never that simple. Understanding what the technology can and cannot do is critical to ensuring that your project can meet the user’s definition of success.

One might want to satisfy the guiding principles of a company’s Enterprise Architecture. A quick scan of the landscape will reveal that tools like SAP HANA, Oracle’s Exadata, and Amazon’s AWS can all fulfill the technology requirements quite nicely and potentially support a company’s Enterprise Architecture. However, since this is a new application of technology, fulfillment of requirements needs to trump Enterprise Architecture.

Take an Exploratory and Iterative Approach to reporting
Some organizations will judge success of your project by its ability to deliver a load of reports. If this sounds like your organization, be realistic as to what can be delivered. Deliver a robust and reliable dataset, some transactional reports, and one report that really helps demonstrate the art of the possible.

Smarter organizations will judge the success of your project by its ability to deliver analytic capabilities to the user base. The robust and reliable dataset is still mandatory, but the ability for users to generate their own reports will satisfy all of the “what about …?” requirements that would blow your project budget and schedule out of the water.

In the end… it’s the people that matter
If we believe all of the marketing hype, Big Data will help us explore all the myriad of ways our world is constructed. But from the perspective of a Big Data as a project, an empowered user base will produce much more value than some canned reports.

Have you been asked to “implement big data”?
If so, what did your project look like? Let me know in the comments down below. Stay tuned for another post on making the most of Big Data in a PMO.


Special thanks to Wade Walker and Chris Sorensen for keeping me honest with this post.

Just Imagine...

Post written by Chris S., BI Consultant at Ideaca. Read more about BI on his blog: The Outspoken Data Guy.

For quite some time I have been imagining what the possibilities of Big Data might be. I am certainly no expert in the area but being the data guy that I am, I often wonder what might be able to be done with data that may be being collected at any point in time. Face it, we are so connected now that our every move generates some form of data and often multiple pieces of it.

For example, if a marketer wanted to know everything about Chris Sorensen in a given day, chances are that most of that data is logged somewhere. What time I leave my house is available via my cell phone, my driving directions and speed are also available there as well. When I sit on the train I surf the web, send emails and organize my task list, all of these actions generate recorded data. What time I log into work, how often I am active on my computer and what I am do all day long is logged. Where I shop, what I buy (if I have a rewards card) is all tracked. My Facebook views, tweets all contain things that could be used to build a personality model of myself and my habits.

It is not really that big of stretch to think that this data could be used in one gigantic model to predict my next move and perhaps even entice me to make a different one. Maybe instead of stopping at Home Depot to get my painting supplies, an app could suggest the best place for me to go based on what I am doing. Sound like a stretch? Not really…Think about the labor that gold miners went through just to get a few stones. Now gigantic machinery does the same thing. The same thing is happening with Big Data where machines are able to gather information from a variety of sources and store large volumes of it in order to form predictive models. We are only at the tip of the iceberg but just imagine what the possibilities might be

Sliced or Shaved? Avoiding spreading your BI team too thin

 Post written by Chris S., BI Consultant at Ideaca. Read more about BI on his blog: The Outspoken Data Guy.

As a consultant with a background in Agile, I often get questions about how Agile can be used to solve certain problems that people are having with their Business Intelligence Programs.

I recently sat with a client to listen to some of the issues that they are currently having with their BI program. One of the biggest issues that this client is facing is what I would classify as a simple supply and demand problem. Basically their team of around 8 people cannot keep up with the demands of developing and sustaining their BI/DW environment in what is a large organization. The main question for me was could Agile help solve this problem. In my experience, Agile cannot solve the problem directly but it can be used to highlight the root cause.

This is a very common problem that BI programs face. It is the fact that teams are often small relative to the size of an organization and are also too small to manage the tasks that they need to perform to grow and maintain a BI portfolio. And in certain circumstances it is compounded by the fact that teams are often staffed with the wrong skills sets needed to grow and manage a BI offering.

So how can Agile help?

With proper tracking and monitoring of what the team does on a daily basis, teams can begin to gather data on what types of work the team is doing on a daily basis. What we often find is that at a certain point new development will stop coming from small teams charged with both the development and sustainment of a program as they cannot keep up with both. The ironic thing is that most BI managers have no real data to back this up. So taking advantage of some of the rigor around agile in terms of tracking what is done on a daily basis and how slowly new work burns down, one can begin to understand and report better on how time is spent and in fact how little time is available to delivering new functionality.

Social Analytics meet Business Intelligence

 Post written by Wade W., BI Consultant at Ideaca. Read more about BI on his blog: Pragmatic Business Intelligence.

If your company is a well-known brand, somebody, somewhere is publicly talking about it. Right now. It may be on your own Social channels, in an Internet forum, a blog or other user-generated content site. Social Media Monitoring, which put simply is keeping a constant eye on Social sites including Twitter, Facebook and hundreds of other platforms to monitor what is being said about your brand, has become a necessity for most large organizations, and it is an art and a science to manage this well.  Manage it badly, and you can have a catastrophic image issue (i.e. the 2010 Nestle Palm Oil debacle on Nestle’s own  Facebook page).  Handle it well, and you can cement a solid relationship with existing clients and convert new clients to your brand (i.e. HP’s little-known but truly brilliant efforts to provide temporary replacement HP hardware to certain individual users on social platforms complaining of broken computers).

From a commercial aspect, companies are increasingly looking at Social Media to contribute to driving revenue, largely through lofty concepts such as “engagement” and “conversion.” Social is unique in not only the speed of the communication, but also the intimate nature of content.  In addition, and importantly, what companies must understand is that in the Social realm, the customer controls the conversation. The implication here is a fundamental paradigm shift for Customer Relationship Management and Marketing, to understand the customer on a personal level, and to handle – with great sensitivity – both the positive and negative sentiment expressed on Social platforms.

(Social) Business Intelligence
A growing and compelling new flavor of Business Intelligence is attempting to tap into the unstructured content on social platforms and attempt to structure that data into a format that can be analyzed and mined using new methods such as Sentiment Analysis, which measures the aggregate sentiment across user posted content. Social Business Intelligence uniquely sits in the convergence of Knowledge Management, Social Media Monitoring, Collaboration, Social Networking, Analytics , Customer Relationship Management (CRM) and Business Intelligence (BI).

Social Business Intelligence is at a unique convergence point between several key technologies.

First, there is an important roadblock to get out of the way. Today there are a selection of tools to do everything I am discussing below in one way or another.  With a simple sentence I have rendered technology irrelevant for the purposes of this blog. So let’s focus on what Social BI is, how it is done and what it means because that is what is important to business.

I’m not really a catch-word kind of guy, but this is Big Data in its truest form. There are thousands of platforms and sites, of course, but if we only talk about  the current Big Guys (Facebook, Twitter and Foursquare for example), this would add up to billions or trillions of conversation segments over a given  (even conservative) time horizon. To put this in context: that customer data warehouse you have built over all these years probably doesn’t come close…

Social Business Intelligence offers both Internal and External Opportunity
There are both internal and external opportunities to be realized through Social Media Business Intelligence, and many tools are evolving to support these, some even going so far as to adopt a “Facebook-like” or “Twitter-like” interface, mimicking social interaction and Social Networking site features.

Social Business Intelligence applied internally to an organization could be termed Social Collaboration. For example, certain tools might feature collaborative review where colleagues can ask questions and link those answers to specific reports, or collaboratively comment and markup objects such as Business Intelligence ad-hoc analytics,  graphs or reports. This functionality to comment in real time on powerful business intelligence (even if it is only based on Traditional data sources that exclude Social Media data) has the potential to add value to interpretation of the reports that companies produce and use today to base key decisions upon, thereby potentially improving decisions made from today’s Decision Support Systems. Many traditional software vendors already have adopted such functionality.

Of course, where Social Business Intelligence as a disruptive technology becomes particularly interesting is when we start gathering and analyzing that unstructured user-generated content, or even more compelling, when we combine it with our existing “traditional” Enterprise Analytics environments. This empowers organizations to produce new innovative products that target user segments more accurately and respond better to customer support or relationship development opportunities. The value of Social Business Intelligence is not really “about” the frequency of words and phrases users post on social platforms. The value is in segmenting, categorizing, mining and understanding the aggregate of the users’ behavior, and the sentiment of those posts across products, segments and channels.

Social Media has its own unique segments, which include Employees, Partners, Influencers, Detractors and Advocates. We can analyze social network traffic, understand and identify our segments, and tailor personalized/semi-personalized interaction to individuals or one of these segments,  flagging key comments, monitoring Likes, +1’s, trending subjects and use of hashtags, enabling rapid and targeted response to user comments to avert public relations crisis, measure success of our Social Marketing programs or capitalize on new opportunities.

It’s all about the conversation. And you don’t control it.
Again, companies need to understand that the customer controls the conversation. However, the tools exist that can arrange and present structured knowledge from unstructured noise, providing key information input to areas such as Marketing and Manufacturing to be responsive and agile, acting on data that correlates highly to real-life fact.

At its root, Social Media is about the conversation. This implies new requirements for how to manage our link to the customer, and how to most effectively target and market to them. Increasingly, consumers are mistrustful of the marketing messages and advertising. They are more likely to find more relevance and see more value in the reviews and purchasing of their friends and peers.

Social Business Intelligence in Practice
I thought to finish, I would provide two examples that support the claim that through mining user-generated content, we can correlate with very high level of confidence, to known and validated facts.

Google Flu Trends
An example of single-source user generated content analysis is  Google Flu Trends.  Google has been analyzing aggregated web search terms to see if it is possible to correlate geographic frequency of user search terms on Google’s search engine to real data on flu epidemics.

While I recognize this is not Social Media  per se, this example is very relevant to the argument that user-generated content can be tied to sentiment and can also be used as a predictor for future events, when we clearly understand and define the objective, then identify and measure indicators supporting that objective.

Google’s site http://www.google.org/flutrends/ca/#CA provides up-to-current-day results to allow tracking of current and developing flu incidents and epidemics. In addition, on this site there are historical graphs over a multi-year period for regions around the globe that prove, using known, validated historical data, that reality and future events can indisputably be predicted by user-generated content.

United Nations Global Pulse.
Between 2009 and 2011, the United Nations and SAS studied how Social Media and other user-generated content from public internet sources such as blogs, Internet forums, and news published in Ireland and the US could be correlated to validated statistics and leveraged as a compliment and an qualitative indicator of real-life events.

For Global Pulse, the focus was on employment status. To summarize from the document found at http://www.sas.com/resources/asset/un-global-pulse.pdf,  the UN identified keywords indicating changes in employment status (i.e.”fired”), level of anxiety (i.e.  “depressed”) or economic indicators (i.e. loss of housing or auto repossession, cancellation of vacations) in order to  monitor sentiment.  The results were astonishing. The analysis of sentiment allowed them to predict  increases in unemployment as much as four months in advance of an uptick in unemployment claims with a 90-95% level of confidence. Further, they were able to predict precisely, again with a 90-95% confidence, how long after an uptick in unemployment that there would be an increase in clear economic indicators in the form of talk of loss of, or negative changes to housing, changes of transport method or cancellation of travel plans.

These two examples underscore that user-generated content in the social realm represents a new and potentially highly accurate source of knowledge when tied to clearly defined objectives and supporting metrics (leveraging appropriate keywords). Indeed, Social Media Business Intelligence has the potential  to facilitate very personal customer understanding and when backed by a well defined strategy, to strengthen the relationship with our customer, avert PR disasters and increase customer engagement and conversion.

What are your thoughts? Is the world ready for Social Business Intelligence? Has your company thought about imposing order and structure to the chaos that is Social Media user-generated Content?