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Wake Up and 
Smell the Data
February, 2013
Mark Madsen
www.ThirdNature.net
@markmadsen
Caveat
The focus of this talk is on information processing 
and delivery, leaving out many aspects of big data 
in the automation / execution sense.
Big Data, Big Hype
$876 Gajillion (analyst estimates of the big data market)
We’ve been here before
Bill Schmarzo, EMC
Big Data, Big Nonsense
Big data is subjective, based on bigness at a point in time?
McKinsey focused on the least interesting aspect of big data.
Source: McKinsey
Data volume is the oldest, easiest problem
Image courtesy of Teradata
Technology Capability and Data Volume
Source: Noumenal, Inc.
Origin of BI and data warehouse concepts
The general concept of a 
separate architecture for BI 
has been around longer, but 
this paper by Devlin and 
Murphy is the first formal 
data warehouse architecture 
and definition published.
8
“An architecture for a business and
information system”, B. A. Devlin,
P. T. Murphy, IBM Systems Journal,
Vol.27, No. 1, (1988)
Slide 8Copyright Third Nature, Inc.
Our ideas about
information and
how it’s used are
outdated.
Metadata catalog
Report
Report library
BI is using broken metaphors
We think of BI as publishing, which it isn’t.
When you first give people access to information 
that was unavailable…
OH GOD
I can see into forever
After a while the response is more measured
User autonomy is a tradeoff
Autonomy is a tradeoff in 
most data warehouses: 
control at the expense of 
complexity.
Complexity for casual users 
can lead to messes.
So we err on the side of 
simplifying user access in 
three ways…
Centralize: that solves all problems!
Creates bottlenecks
Causes scale problems
Enforces a single model
In some organizations and areas of business “data warehouse” is a bad word.
Standardize: it’s simpler for everyone
The “E” in EDW
was a lie…
Measurement started with the convenient data
The convenient data is 
transactional data.
▪ Goes in the DW and is used, even 
if it isn’t the right measurement.
The difficult and misleading data 
is declarative data.
▪ What people say and what they 
do require ground truth.
The inconvenient data is 
observational data.
▪ It’s not neat, clean, or designed 
into most systems of operation.
We need to build data systems 
that integrate all three.
Value: There’s a pony in there somewhere
Many current views miss the point
Using Big Data
It’s not about “big”
Using Big Data
And “big” is often not as big as you think it is.
It’s not really about data, either
Using Big Data
If there’s no process for applying information in a specific
context then you are producing expensive trivia.
Two keys to making big data worthwhile
Value:
Goal  solution
not
Solution  goal
Actionability:
Simple “value” isn’t enough.
Information has to be actionable, somehow.
Planning data strategy means understanding the 
context of data use so we can provide infrastructure
Monitor
Analyze
Exceptions
Analyze
Causes
Decide Act
No problem No idea Do nothing
We need to focus on what people do with data as the
primary task, not on the data or the technology.
Copyright Third Nature, Inc.
General model for organizational use of data
Collect
new data
Monitor
Analyze
Exceptions
Analyze
Causes
Decide Act
No problem No idea Do nothing
Act on the process
Usually days/longer timeframe
Act within the process
Usually real-time to daily
You need to be able to support both paths
Collect
new data
Monitor
Analyze
Exceptions
Analyze
Causes
Decide Act
Act on the process
Act within the process
Conventional BI
Causal analysis, i.e. “data science”
How do you manage the business in today’s environment?
Our simplistic notions of BI with stable models, ordered data 
and predictability are being replaced by concepts from 
decision support and complex adaptive systems (CAS).
Simple Complicated Complex
Assumption: Order Assumption: Unorder Assumption: Disorder
Cause and effect is repeatable 
& predictable 
Cause and effect is separated 
in time & space, repeatable, 
learnable
Cause and effect is coherent 
in retrospect only, modelable
but changing
Known Knowable Unpredictable
Standard processes, clear 
metrics, best practice
Analytical techniques to 
determine options, effects
Experiment to create possible 
options
Sense, categorize, respond Sense, analyze, respond Test, sense, respond
Reporting, dashboards Ad‐hoc, OLAP, exploration Data science, casual analysis
Situational context governs data useCopyright Third Nature, Inc.
BI/DW environment support varies for these contexts
Handles this really well 
(most of the time).
Basic BI Analysis Data science, analytics
Assumption: Order Assumption: Unorder Assumption: Disorder
Cause and effect is repeatable 
& predictable 
Cause and effect is separated 
in time & space, repeatable, 
learnable
Cause and effect is coherent 
in retrospect only, modelable
but changing
Known Knowable Unpredictable
Standard processes, clear 
metrics, best practice
Analytical techniques to 
determine options, effects
Experiment to create possible 
options, test hypotheses
Sense, categorize, respond Sense, analyze, respond Test, sense, respond
Reporting, dashboards Ad‐hoc, OLAP, data discovery Casual analysis, simulation
Handles this sort of 
ok, sometimes.
This, not so much.
Copyright Third Nature, Inc.
TANSTAAFL
Technologies are not 
perfect replacements for 
one another.
When replacing the old 
with the new (or ignoring 
the new over the old) you 
always make tradeoffs, 
and usually you won’t 
see them for a long time.
The usage models for conventional BI
Collect
new data
Monitor
Analyze
Exceptions
Analyze
Causes
Decide Act
No problem No idea Do nothing
Act on the process
Usually days/longer timeframe
Act within the process
Usually real-time to daily
This is what we’ve been
doing with BI so far: static
reporting, dashboards,
ad-hoc query, OLAP
The usage models for analytics and “big data” 
Collect
new data
Monitor
Analyze
Exceptions
Analyze
Causes
Decide Act
No problem No idea Do nothing
Act on the process
Usually days/longer timeframe
Act within the process
Usually real-time to daily
Analytics and big data is
focused on new use
cases: deeper analysis,
causes, prediction,
optimizing decisions
This isn’t ad-hoc,
reporting, or OLAP.
Analytics embiggens the data volume problem
Many of the processing problems are O(n2) or worse, so 
moderate data can be a problem for DB‐based platforms
New and growing use cases drive the need to expand
The use cases are now interactive applications, lower latency 
data, complex analytics and discovery rather than reporting.
Big Data Shift in a Nutshell
The old model for data
▪ Centralized publishing
▪ Read only
▪ Integrate before use
▪ Record only important data
▪ Retrieval‐focused
▪ Single method of access
▪ Human‐level latency
The new model for data
▪ Community creation
▪ Read‐write
▪ Integrate at time of use
▪ Record all the data
▪ Processing‐focused
▪ Multiple methods of access
▪ Machine‐level latency
It’s an architectural reconfiguration, just like web 2.0
“The future, according to some scientists, will be exactly like 
the past, only far more expensive.” ~ John Sladek
About the Presenter
Mark Madsen is president of Third 
Nature, a research and advisory firm 
focused on analytics, business 
intelligence and data management. 
Mark is an award‐winning author, 
architect and CTO whose work has been 
featured in numerous industry 
publications. Over the past ten years 
Mark received awards for his work from 
the American Productivity & Quality 
Center, TDWI, and the Smithsonian 
Institute. He is an international speaker, 
a contributor at Forbes Online and 
Information Management. For more 
information or to contact Mark, follow 
@markmadsen on Twitter or visit  
http://ThirdNature.net 
About Third Nature
Third Nature is a research and consulting firm focused on new and
emerging technology and practices in analytics, business intelligence, and
performance management. If your question is related to data, analytics,
information strategy and technology infrastructure then you‘re at the right
place.
Our goal is to help companies take advantage of information-driven
management practices and applications. We offer education, consulting
and research services to support business and IT organizations as well as
technology vendors.
We fill the gap between what the industry analyst firms cover and what IT
needs. We specialize in product and technology analysis, so we look at
emerging technologies and markets, evaluating technology and hw it is
applied rather than vendor market positions.
CC Image Attributions
Thanks to the people who supplied the creative commons licensed images used in this presentation:
Outdated gumshoe.jpg – http://flickr.com/photos/olivander/372385317/
Card catalog – http://flickr.com/photos/deborahfitchett/2372385317/
book of hours manuscript2.jpg ‐ http://flickr.com/photos/jeffrey/89461374/
royal library san lorenzo.jpg ‐ http://flickr.com/photos/cuellar/370663920/
uniform_umbrellas.jpg ‐ http://www.flickr.com/photos/mortimer/221051561/
ponies in field.jpg ‐ http://www.flickr.com/photos/bulle_de/352732514/
caged_tower_melbourne.jpg ‐ http://www.flickr.com/photos/vermininc/2227512763

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