How to Monetize Data: Strategies for Creating Data-Driven Applications By Wayne W. Eckerson | Mai oa _ Arvssres FOOMDATA :Been — Orb kt the A dthks ‘Wayne Wi Eckerson has been a thought leader inthe business intelligence and analytics ld since the early 1990s. He Is a soughtafter consultant, noted speaker, and prolific author who thinks eriicaly, writes clearly, and presents persuasively about complex topic. Eckerson has conducted many groundbreaking research studies, chaired numerous conferences, and written two widely read books on performance dashboards and analytics. Eckerson the founder and principal consultant of Eckerson Group, a research and consulting frm that helps business and analytics leaders use data and technology to dive better insights and actions. About Eckerson Group technical leaders succeed with business intelligence, analytics, data management, data governance, performance management, and data scence. vwirweckersoncom | 6 Eclerson Group 2016| Page?Geen tors nts Editor’s Notes Data sno longer a backroom artifact guarded by the information technology (7) department. Data is now viewed asa critical business asset, and some executives arerow eager to monetize data using new generation of analytes tls ‘There are many ways to monetize data, Some approaches reduce cost by streamlining process, while others increase customer satisfaction or improve decisions and planning. stl others augment existing products with analytics features or provide fee-based add-ons that generate direct revenue. Finally, someproductize the ata itself, aggregating customer activity data foresale to third partes. This e-book provides a rationale and framework for monetizing data and explains the key success factors for developing the data-driven applications that are the backbone of any data monetization strategy. The ebook is geared to business and technical executives who want a concise guide to harnessing data for business alt Chapter one sets the stage by describing the rise ofthe data-deven applications outlines five approaches for monetizing data Chapter two defines @ maturity model for data monetization and describes the five data monetization strategies in deal along with key iss to consider when implementing them, chapter three decries the characteristics of a data-driven organization. It defines ten step for optimizing data to reduce cost, improve customer satisfaction oF generate revenue. sincerely, 1 = | oa 1 = SS a WayneW. Eckerson 1 a Founder and Principal Consultant JZ , Eckerzon Group i Pes vwirweckersoncom | © Elerson Group 2016| Page© Bae Table of Contents CHAPTERS Chapter. The New Data Landscape: How to Profit From Anayes 5 ‘Chapter 2. Five Strategies for Monetiing Data 8 ‘Chapter 3. en Steps to Becoming Data Driven Organization B ILLUSTRATIONS AND TABLES Table 1 ive Strategies for Monetizing Data 6 Figure24. Data Monetization Matty Model 8 RESOURCES AND FURTHER READING 19Bae Chapter One | The New Date Landscape: How to Profit From Analyt Chapter One | The New Data Landscape: How to Profit From Analytics ‘SUMMARY: Leading companies now use data as a competitive lever to Improve customer satsfocton and loyalty and improve the vlue ond eppeal of outword-focing opplications. There are five ways ‘organizations can monetize data, ranging from distributing oF ‘embedang analytics to augmenting products with analytic functions or selling aggregated customer dota. ‘The business world fs awash with data, Some say it's the curren of the new digital economy. Organizations that exploit data become. market leaders, wile those that don't fall behind, Data-drven companies knowhow to harness data of all shapes, sizes, and formats and tun it into insights that business users can act an in a timely fashion. These data. suppliers streamline intemal processes, anticipate customer needs, nd respond quickly tomarket events and ‘opportunities. For example, Progressive Insurance tailors auto insurance premiums to a customer's actual driving behavior by analyzing sensor data, Wind turbine manufacturer Vestas optimizes the placement of turbines by mining large volumes of weather data. And Amazon mines customer transactions, activity data, and demographicinformation to create highly personalized buying recommendations that increase cross-sell revenues Nonprofits are also aggressively using data to better serve thet constituencies, Improve outcomes, and anticipate events that will Impact the Ives of people. For example, Global Vial analyzes data ‘om global listening posts around the world ta detect the outbreak of disease and take action to prevent pandemics. And Seatte Children's Research institute analyzes large volumes of genomic data in a quest to fight muscular dystrophy in children. aTA PRODUCTS Data-driven leaders recognize that the information they collect about their products, customers, partners, or supply chain is just as valuable if not more so—than the products they market and sell, ‘These gitalcognoscent compete onthe quality, depth, and breadth of data they collect, as well asthe processes they use to convert that data into cigital products and services for both internal and external consumption, Dato-driven leaders recognize that the information they collect ‘about their products, customers, partners, or supply chain isjust as valuable—ifnot more so—as the products they market and sel. ‘An auto insurance company might use customer profile and premium data. to develop new informationrich services, such as a bbenchmarkingtoolthat helps customers compare their coverage with ‘other people ust ke ther, Similarly, a software manufacturer might ‘use trouble tieket data to enhance customer support offerings, such 5 providing automated alerts or recommendations that help vwirwecherson.com | © Elerson Group 2016| PageBae Chapter Oe |The ew Data andscae:How tot rem Aas costomeroptinie the confevration oftheir appictons Table. Fv Strategies for Monetizing Data For-Profit Services. Some organizations go a step further and sell aud asl ies Gay mats ee uni ie Gos cue acl | eet |r| ener | ee ee Nansas Cy converted Is itemal data warehouse and enayical | men came | erect tow-how into a foro conpany called Cabal Talon, which sels o— arate aves to eater ues and prodders.Eplon, | datacrven mareting xgnization, now sels a visit analytes | zmmmmori [ows!|zrsanmerts [veces [nar fetion to Ay Harmony, ts matichanel, ight maretng | Poet —__ solution. Customers are more than willing to pay for the new | menyertem” treat Seomcente, dtarven ad-on becalze It ghes them greater vty into ‘ct ie anpaignperomanc a : eseeeagas eur [Sera DATA MONETIZATION STRATEGIES ee “These examples show that there are multiple waysto monetize data, | SSnageetttta | uri Josvatecenn, | stennanremce |i Host datsdiven organizations (ets all hem dota supple) start erator small by harnessing data for internal consumption But as they gain ‘experience building data-driven applications and see positive returns, they tun thelr sights outward to customers, suppliers, and the broader industry. ‘There are ive asic strategles fr monetizing data (See table 1-1.) Al ‘but two can be applied internally for employees or externally for customers and supplies. Some drive revenue indirectly by educing costs oF improving customer satisfaction, while others generate ‘revenue diectly by tuning data and analytes from acost center into profit center. The next chapter, "Five Strategies for Monetizing Data describes these strategies in deta Data Products Table 1-1 als shows diferent types of data products salytics” The most common data products are static or Interactive reports and dashboards, But a data product can alzo be a chart, atable,amap,analert,orevenasell-serice analytics tool that ‘enables business users to explore and visualize data and create thelr ‘own reports and dashboards. ‘tan advanced level, a data product can also be an analytical model built with a statistical or data-mining algorithm that delivers personalized recommendations atthe point of customer interaction and suggests the next best action. Orit can be a data service that vwirwechersoncom | © Elerson Group 2016| Page 6c c scien dz supplies customer transaction, activity, or profile data to buyers in a particular industry or field. It can even be a consulting service or managed service that helps companies design, bullé, and manage theirown data monetization strategies, CONCLUSION If data Is the currency ofthe new digital economy, then organization that know how to monetizedatawill generate the highest returns. They will make better decisions that lwer costs, grow customer loyalty, and increase revenues, Some will even transform thei data arcts into products and services that generate revenue directly. For more detalis, read the next chapter, “Five Strategies for Monetizing Data.” Be WRAY ABae Chapter Two | Five strstegiesfor Monetizing Dts Chapter Two | Five Strategies for Monetizing Data “SUMMARY: The five strategies for monetizing data outlined in chapter fone form a useful maturity model for eveluating date-diven organizations Thischopter describes each strategy in deal alongwith {technicol ond business issues to consider. Data-riven organizations use data to reduce costs, increase customer satisfaction, streamline supply chains, and boost revenues, By recognizing the value of data and building an analytes competency, these data suppliers tap into an underutilized resource that can provide great value. Such leaders monetize data by creating ‘new analytics products that deliver data to customers and suppliers, ‘andin some cass, an enteindusty. ‘As outlined inthe previous chapter, there are fe basic strategies for ‘monetizing data. The strategies form a maturity model for evaluating the analytics capablities of data-driven organizations. (See figure 2-1) Although many organizations have invested heavily in data and “analytics since the 1990s, most have nat moved beyond the fist stage fof the model. That's primarily because building an analytics competency is not easy, and many companies don't have the resources or time to extend analyticsto customers and supplier. (See the ext chapter, “Ten Steps to Becoming 2 Data-Driven (Organization) Figure 2-1, Data Monetization Maturity Model i wl] iS TR ime in “Analyteal Maturity Hece ace detailed descriptions ofeach stage inthe data monetization ‘maturity model. ‘STAGE 1: DISTRIBUTE ANALYTICS INTERNALLY The fist step in monetizing data is to hamess data for internal consumption. That means creating a data analytics program with dlecicated specialists who know how to collect, clean integrate, and ‘model data as well a create a data delivery environment geared to lfferent types of business user, Once the specialist build a suitable data foundation, they create reports and dashboards on behalf of lfferent business units and departments vwirweckersoncom | © Elerson Group 2016| PsBae Chapter Two | Five strstegiesfor Monetizing Dts With therse of elfservce analytes, more business units are building thet own reports and dashboards with the help of developers they bire and manage. Meanwhile resident power users—financial sales, and operations analysts—publish ad hoc reports that contain insights about business issues they've been asked to explore. This leaves the corporate business intelligence (Bt) team along with data architects and administrators to maintain a corporate repository of integrated data (eg, 2 data warehouse) that contains standard. metrics, dimensions, and hierarchies as wells create cross-functional reports for business units toconsume. ‘Once an organization arms employees with trustworthy timely data and easy-to-use analytics tools tailored to thelr needs and references, business performance improves dramatically (Once an organization aims employees with trustworthy, timely data and easy-to-use analytics tools tailored to their needs and preference, business performance improves dramatically. Fits, they ‘achieve cost savings by streamlining the process of collecting, analyzing, and disseminating data internally. Second, they reduce costs and risks by making beter, faster decisions and reacting more ‘quickly to market events ‘STAGE 2: DISTRIBUTE ANALYTICS EXTERNALLY ‘Mter developing an analytics competency, an organizations ready to take thernextstepin the data monetization maturity curveand deliver data externally and benefit rom a data network economy. To start, these early stage data suppliers send statie actity reports to customers and supplies For example, banks and investment companies have along history of sending customers monthly statements that list transactions and summarize gains and losses, Some have moved these paper statements online and converted them into engaging, interactive reports and dashboards. Customers can analyze thelr holdings and portfolios by clicking on filters, sing ime frames, togling charts, sorting columns, and soon, nce a data supplier opens the data spigot, itis ficult to turm it off ‘Self-Service Analytics. Once a data supplier opens the data spigot t 's dificult to tur fof, Although most individuals are satisfied with standard reports and dashboards, a small minority want more, Thisis especially ruein a business-o-business (828) market wherein-house analysts dive into report data, combine it with other data sets, and apply custom logic (e.., metrics, ters, and groups}. Data. suppliers might provide these individuals with online selservce analytics tools 0 they can freely lice and dice the data (they can establish automated data feeds that push report data ‘across the Internet into thei analytics tool of choice If appropriate, data suppliers can charge customers for these analytics services oF ‘use them to justify higher prices Security and Capacity Planning. Shipping customer data outside the corporate firewall or providing customers access to internal data systems isnot forthe faint of heart. Data suppliers must develop a tigorous data and application security strategy to prevent data fom vwirweckersoncom | © Elerson Group 2016| PagesBae Chapter Two | Five strstegiesfor Monetizing Dts fending up in the wrong hands. They must also estimate customer trafic and upgrade system capacity to handle peak loads to ensure customers don't experience system delays or errors. Finally, they must design reports and dashboards that deliver a delightful ‘experience and build customer satisfaction and loyalty. ‘STAGE 3. EMBED ANALYTICS INTO APPLICATIONS Rather than using email to disseminate POF reports and dashboards {or links to online versions), many data suppliers now embed reports and components inside core business applications. This saves users from having to toggle between applications to analyze data and puts critical data and analytics at ther fingertips. Embedding analytes preserves business context and enhances the value of the applications for business users Data suppliers can embed a variety of analytical components into applications depending on user requirements: + Components. A data supplier might embed a chart, table, or map Inside a Web page ona corporate portal or news ste. + Visualizations. & company might embed an interactive chart intoa ‘mobile sales application so salespeople can show clients spend activity in person. + Reports, & softvare provider might embed an entre catalog of reports into an accounting package so customers can track every aspect of thelr finances. + Dashboard. An application might contain a cote dashboard that «consolidates data from every module and becomes the focal point for + Analytics tool. A data provider might embed a self-service analytics tol so customers can create thei own custom reports and dashboards. + An analytics application. Here, the analytics isthe aplication, ‘but ts highly customized based onthe unique needs and worklows ofthe target user. Build or Buy? Hany data suppliersuse inhouse developers to embed analytes into applications. But they an quickly get bogged down with requests for custom reports and analytics functionality Consequently they may opt to embed a commercial analytics too {oma third-party provider Many analytes products can be customized to look andfel like the host application, and supporting bidirectional workflows that te analytics into its fabric. In some «cases, developers can build a custom graphical interface ontop of an analytical engine, creating a unique analytics application. Designing a pricing strategy for embedded analytics is challenging it ‘requires mapping customer requirements to business objectives. For Instance, some data supplies might bundle all analytics features Into an application but charge higher overall fe. Others might, allocate analytics functionality across several pricing tiers so customers pay extra for premium capabilities such as ad hoe ‘reporting, alerts or collaboration, till others might offer “freemium’ service witha cap on the numberof users, data ‘connections, or reports and charge users only if they wantto i the cap, ‘uweckerson cam | © Eckerson Group 2016) Page 10Bae Chapter Two | Five strstegiesfor Monetizing Dts ‘STAGE 4, ENRICH PRODUCTS WITH ADVANCED ANALYTICS. The next stage moves beyond activity reporting and provides customers with timely, relevant insights gleaned from historical data _acrossanentirecustomer population. Here, analytics goes from being, reactive to proactive Here, analytce goes from being reactive to proactive. Rather than displaying a customers historical activity the embedded analytics solution provides customers with benchmark data that shows how their activity compares to peer companies or actions taken by other customers in thelesuation, Orit might use analytical ‘madels to generate personalized recommendations about how they an improve performance, reduce cost, or make better use of the software. For instance, 9 telecommunications application might inform a Customer that its volume of overseas calls exceeds the average for companies ofits size, industry, and reglon by 30 percent. tight then recommend steps to save money by consolidating lines or switching, to‘ new plan, These suggestions might come from a combination of explicit rules created by humans and implicit rules generated by analytical algorithms that identify customers with similar spending patterns and the steps they took to reduce costs ‘To suppor this typeof proactive analytic, 2 data supplier needs to bie statisticians or data scientists to mine historical data using analytical techniques such as clustering, segmentation, regression, association, and decision trees. The data supplier then nesde to operationalize the analytical models, embedding them into applications so customers receive timely, accurate recommendations fr comparisons. This involves creating scripts that explain model ‘utputin natural language and writing custom code that riggers the recommendations and scripts dynamically. it also requires the ‘organization to monitor and detect application errors, maintain ‘model accuracy, and provide customer support. Data suppliers can use advanced analytes to increase the curb appeal ‘oftheir applications, justifying higher prices or making them easier to sll Orthey might include the analytics capabilities ina higher-priced, premium version of the produc. ‘STAGE 5. CREATE AND SELL DATA PRODUCTS ‘The final stage in monetizing data involves seling data or analytics setvices as standalone products, turing analytics from a cost center Into a dedicated profit centr. Data suppliers can do this in several ways: + Data syndication. They can aggregate and anonymize customer data (with permission) and turn it into a subscription service. Third parties pay to access and analyze the data using an online tool or {perhaps for an extra fee) download it into an analytics tool oftheir choice. + Consulting services. 8y pooling its collective knowledge about data and analytics, a data supplier can offer systems integration oF consulting services to external parties. However, this require freeing Lup internal data specialists to work on a forproft venture. ‘unecersoncam | © Eekerson Group 2016) Page 1Bae Chapter Two | Five strstegiesfor Monetizing Dts 4 + Managed analytics services. Rather than just help customers design and ‘bulld data monetization strategies, a data supplier can operate the system, providing an end-to-end managed service. Because most analytics professionals have little experience selling or running commercial products, data suppliers need to recruit experienced business professionals to overse or assist in the endeaver. concLUSION Monetizing datas the newest wave in business analytic. Not surprisingly, ‘many companies are stil atthe starting gate. Thats not to say that data ‘monetization is entirely new many forward-thinking companies already ship teports to customers or embed charts and reports into applications. What Is new is that a growing number of executives view data as a key corporate asset that can deliver high value {not outright revenues. ‘But what's cutting-edge today fsa simplecostof doing business tomorrow. As customers and supplies: experience datavich applications, they come to ‘expect them from all suppliers. Companies that want to monetize their data and keep pace in the digital ‘economy need to build an analytics competency. And thats the focus ofthe next chapter. ‘neckersonzam | © Eekerson Group 2016) Page 12Eckerson Chapter Three | Ten Steps to Becoming a Data-Driven Organization ‘SUMMARY: To monetize dota, organizations frst need to know how to ‘monoge it. That requires having the right people to oversee dota through its ing dto-chiven initative—people who krow how to complet lifecycle fom capturing dota to operational iesmeverbeeneasierto become a data riven organization. Thee are more business and technical people who have the knowledge and ‘experience to launch and run a data analytes program. And there has been arevalutionin analytics technology inthe past 10 years, making it easier to build and deploy data-driven applications that tease insights out of ata and help organizations make better decisions and ‘optimize performance, Infact, atecomers to data analytics may have an advantage. Modern analytics technologies are more powertl, flexible, easier to use, and less expensive than prior generations. There are many new agile ‘approaches and techniques that promise to speed deployments and increase busines satisfaction and returns Given rapid innovation in the fed, it’s possible for analytics latecomers to leapfrog past early adopters bogged down with older technology. However, organizations that want to monetize data need to adress the holy tlfecta of people, process, and technology. They need businesspeople versed in technology and technology folks who are business sauny. Data-deven organizations can follow the 10 steps below to tun thelr data into god SES ear aleeeet} Cee re Capture the data Manage and model the d Access the data es) end i Coe eee ee Coe PRN eS Rooke to Sa Coe programBae ‘Chapter Thee | Ten Steps to Becoming a Dae-Diven Organization 7 4. HIRE THE RIGHT PEOPLE (Organizations that want to monetize data should fist hire data-driven ‘executives who understand the business value of data and, most Importantly, are willing to invest time and money to launch and sustain a data analytics program. Next, they should hire seasoned data and analytics professionals who know how build team, partner With the business, and leverage te latest technologies, techniques, and tools to deliver the biggest bang for the buck. AS business ‘consultant Jim Collins says, getting the right people “onthe bus" (and the wrong people of it isthe key to greatness in business. That's doubly true where business meets technology. 2. CAPTURE THE DATA, 1 estimated that 23 trlion gigabytes of data are generated each day, and many US. businesses have 100 terabytes of stored data, Data floods in from a variety of systems In every concevable shape, Size, and format. Although most data is generated by in-house sjstems—operational applications, transaction systems, email servers files, and documents—a growing amount now comes from ‘outside corporate valls—socal media sites, cloud applications, and ‘networked machines and sensor fields ‘To keep from drowning in data orgaizations need to invest in data capture and storage systems that can keep up with growing data volumes. Many companies now supplement tried-andetre relational databases with Hadoop, NoSQL, in-memory, and stream data processing systems that promise greater scalability, flexibility, and affordability and can handle the growing variety of data flooding in {rom call enters cloud applications, data centers, social media sites, and sensor fields. This diversity of data and systems creates challenges for analytes tools and applications that need to develop ‘new methods for acessing and querying mult-structured data, ‘To addres this problem, some analytics vendors extract subsets of data, load them into @ high-performance database that business ‘users query. Others, the Zoomdata, which sponsored this e-book, pushes data processing tothe source system, eliminating the need to ‘move data. f business users requ data from multiple systems, oomdata Federates queries across those systems and generates a result. 3. MANAGE AND MODEL THE DATA [A major challenge today is managing the flow of data between the different data. processing systems that comprise a big data environment. ts diffcult to map workleads to the right processing systems, especially when systems are spread across cloud and ‘on-premises environments and support diferent acces, loading, and data interchange methods. Some experts advocate building a data lake to minimize the complenity and cost of moving data between varlous systems. But the industry needs the big data equivalent of ‘extract, transform, and load (ETL) software to manage the flow of rmulthstructured data within data. lakes or heterogeneous ‘environments, which exst in most organizations. ‘Second, i's challenging to govern the quality and consistency ofthe data in a big data environment and prepare it for business use, Data architects, engineers, and analysts need to work together to examine, the our of i Dat 1 gape ‘ueckersoncam | © Eekerson Group 2016) PageCA Eckerson Coco ‘chapter Thee | Ten Steps to Becoming a Dae-Driven Organization 7 prepare, integrate, map, sort ile, and ageregate data so it can be queried by business users, though IT professionals. have traditionally done this work, new data preparation and cloud-based Integration tools allow business analysts, data engineers, and data sclentists to handle much of the work themselves of to work collaboratively with the IT department to prototype and test more. complex integration workflows. 4, ACCESS THE DATA ‘There are powerful new analytics tools that give business analysts Unprecedented power to access, visualize, analyze, and meclty data In winatever system it may i be stored, whether relational, NoSQL, Hadoop, file systems, search engines, or cloud applications. These tools support high-performance query interfaces so business users ‘anconnect to and query any data to perform an analysis. Sm tools query data in multiple systems and jin the ests onthe fy, creating 2 single view of multiple backend data systems. This is a big advantage ina heterogeneous big data environment. Scale versus Speed. In a world where a table of data can easily ‘exceed a billion rows, big data analytics tools must optimize both scalability and performance, Users want to query all the data at the speed of thought not piece together results from multiple subsets of data, To optimize both scalability and performance, vendors have developed a variety of innovative technologies. For example, Zoomdata, which isthe sponsor of this e-book, has patented an Innovative technique called “data sharpening” that uses micro queries to immediately render a patil result so users can view, analyze, andeven interatwith data inside chart, table, or map Without having to walt for all the data to be processed, in the background, the tool continues to resolve the query, updating projections in realtime, even as users manipulate the visualization, Data DVR, Zoomdata also supports another innovative feature called “Data DVR" which ets uses view streaming and time series data in the same way they watch television using a DVR (digtat video recorder. With Data DVR, users can pause, rewind, and reply lve data as it streams into their browser via Zoomdatas web sockets Interface. They can even replay historical time series data from a data warehouse or data lake and the visualization Immediately switches data sources, Zoomdata is one of the few analytics tools te support tive, streaming data S.ANALYZE THE DATA ‘The value of data isin the eyes of the beholder. In every organization, there are many types of data consumers each of which has unique requirements for accessing, analyzing, and sharing data. Organizations need to give each type of user the right analytics tool With the right level of features and functionality to support thet needs. Aah level, there are casual users, who generally want to consume prebuilt reports and dashboards tallored to thelr rles—mostly to monitor key metrics, but also to dil into deal iter views, and aggregate data to investigate a problem or develop a plan. They need analytes tools that expose functions as they need them and make Intelligent suggestions about which chart to use, related reports to ‘eckersoncam | © Eekerson Group 2016) Page 15Bae ‘Chapter Thee | Ten Steps to Becoming a Dae-Diven Organization 7 view, and actions to take, Casual users prefer Googlestke tools that fenable them to type words into a search box to create or find a suitable dashboard, chart or visualization. Power users recoll rom the idea of guided analytics. Conversely, power users recol rom the idea of guided analytics. They want to create their vm datasets with custom calculations and views ‘that shed light on new issues, Power users want a data catalog that provides a directory tall data in an organization so they can quickly find the data they need fora specific analysis. They also want data preparation tools that make it easy to mash together data from different systems and collaborate with other analysts to improve ‘reuse, They also need ad hoc visualization and query tots to explore data, investigate anomalies and trends, and develop detailed analyses 6. GOVERN THE DATA 1 good analytics tool supports multiple types of users through a Aleible permissions system based on granular security controls. Tis enables administrators to tailor every use's analytics experience with their analytical skis roles, and personal preferences. This avoids ‘overwhelming casual users with too many features and underwhelming power users with to litle functionality. Without trustworthy, consistent date, analytics isnot possible. Governance Is also important for optimizing selF-service analytics, Without adequate controls, power users may publish large numbers fof reports and dashboards that contain conflicting data, metrics, dimensions, and hierarchies. This hodgepodge of conflicting reports confuses casual users, who cantfind the information they need to do ‘thet jobs,anditinfuiates the CEO, who can't get straight answer to 2 simple question such as “How many customers do we have?” Without trustworthy, consistent data, analytics isnot possible With modern governed discovery tools, administrators set privileges ‘that define who can share custom content with whom. Most users can editor create reports and save them toa virtual, private workspace, (Only authorized users have permission to share the output with predefined individuals or groupe. Addtions or changes to enterprise ‘report models are adjudicated by a business governance team that ‘ensures data consistency at a corporate level. 1T.SECURE THE DATA Inthe age of big data and the cloud, applications containing sensitive data have skyrocketed and many are moving outside the corporate firewall. Analytics increases security concerns, since the value of analytics s proportional tothe amount of data that users can access ‘Companies tha lack down data assets make't diffcult for employees to: make data-driven decisions, Conversely, companies that don't apply adequate security measures risk glving unauthorized users access to sensitive information, ‘Most analytes tools integrate witha corporate identity management system that specifies which users and groups can access which data and application functionality. Many analytes tools also rely on the. Lnderiying database to contol user access to tables and rows and ‘weckerson cam | © Eckerson Group 2016) Page 16Bae ‘Chapter Thee | Ten Steps to Becoming a Dae-Diven Organization 7 2 colurms within those tables, The best tools append “where” clauses ta SQL queresto reset access to fine-grained data, However, what happens if an anabyties tool extracts data from its sources and deposits nan in-memory database, application cache, ‘OLAP cube, or search index? The secuty controls associated with those data assets have to be recreated in the new environments. A company that locks down credit card information in 9 secure ‘elational database doesn't want users tobe able to acces that data bytyping a numberin the company’s search box. Fortunately, in the past 10 years, the industry has developed robust federated security standards that make it possible for users to login ‘once witha strong authentication password. They can then access resources spread across a diverse set of applications—ither inside oF outside corporate firewalls—from any device, including mobile ‘hones and tablet computers owned by individuals oF employers There is also data-masking software that enables companies to Identity sensitive information across systems and either encrypt of ‘maskit without making t unusable fr certain analytical tasks. 8. COLLABORATE AROUND THE DATA Decisions donot happen in a vacuum, Users need to discuss results, ‘exchange ideas, and tease out assumptions before making decisions ‘and truth be told, data should not be the only input to decision Individuals must weigh a decision from multiple angles, including ther own experience and intuition a well as that of others, The best decision makers use data to validate thelr intuition and intuition to validate the data Decisions do not happen ina vacuum, To collaborate around data, analytics tools must let users publish results a8 @ report or dashboard, Some tools let users compile @ “storyboard” that presents data objects sequentially, much ike @ PowerPoint presentation. In addition, a good analytics tol allows users to annotate charts, dashboards, tables, and reports and respond to other's annotations with comments. Some tools apply social media techniques that let users rate and tke reports, mark favorites, and follow report creators, among other things. 9, EMBED ANALYTICS ‘The best analytics exis inthe context ofthe business prablem they are designed to address. That is, they are embedded in a business application so business sersdon'thavet sitch contests to analyze data, To become pervasive, analyties must ultimately become an Integral pat of other applications, assuming their look and feel and Integrating with their workfows, The best analytics exist in the context of the business problem they ‘re designed toaddress. Developers can embed a single chart or dashboard inside another application or suite of reports. n some cases, they might embed an ‘wecersonzam | © Eekerson Group 2016) PageBae ‘Chapter Thee | Ten Steps to Becoming a Dae-Diven Organization 7 entire sel service analytics tool so users can do ad hoe analysis and publish their own reports and dashboards, Developers can elther build or buy analytics to embed in an application, If analytics requirements are minimal or highly customized to the application, developers might opt to bulld analytics capability. But increasingly, data supplers embed oftthe-shelf analytics tools, which provide state-oftheart functionality and are increasingly easier to integrate with host applications 10, OPERATIONALIZE THE PROGRAM ‘To eap the benefits of the data analytics environment, data suppliers ‘need to operationalize the analytics program, whether is focused Internally, external, or both. To roll out an internal analytics program, a data supplier needs to train busines users, establish a support process, promote the offering, and rolloutitsapabiltiesina graduated way to minimize risk In an embedded scenario where analytics is part of a commercial offering, ferent departments need to coordinate efots, including sales, marketing, operations, billing, training, support, legal, and development. It helps to get representatives. from all these departments together in a room to step through the customer cycle and define new processes to support a data monetization strategy For instance, marketing needs to price and position new analytes features, create marketing text and campaigns to promote the new ‘offerings, and develop videos to educate people about the capabilites. The sales team needs to train salespeople on the new features and pricing and figure out go-to-market strategies that wil ceneure adequate lit, Operations needs to figure out howto provision analytes functions to subscribers. coNcLUSION Monetizing data requires that organizations and their executives fst recognize the value of data and its role In helping the organization achieve its strateple objectives. Then the organization must marshal the people, processes, and technologies needed to turn data into Insights and action. Organizations that have mastered thelr data resources enjoy hefty retuns in cost savings, revenues, profits, customer satisfaction, and customer loyalty. ‘wweckersonzam | © Eckeson Group 7016) Page 18Geen scores ander Reding 4 Resources and Reading | From ZoomData: “gle: Streaming Oat: Why It Makes Sens and How to Work With ‘Demo: Data Driven Analytics: Visual Analytics for Any Application ‘Embed Zoomdata into your application: Welcome to Zoomdata Developer Network Wane to Play? Zoomdata interface and Sample Custom Interface Free Trial: Pick which one is right for your needs. Resources and Reading | From Eckerson Group: ‘Report: Embedded Analytics: The Future of Business Intelligence This report defines embedded analytics, chats is evolution, and discusses whether to build or buy embedded analytics solutions. Report: Which Embedded Analyties Product is Right for You? This report outlines key criteria for evaluating embedded analytics solutions. It discusses three types of analytics technology that can be embedded (le, Bl components, Bl tools, and Bl platforms) and five approaches to embedding Finally It describes 12 criteria for evaluating, ‘embedded analytics lutions, White Poper: Big Data Analytics Tools: Ten Critical Characteristics With tis ten step guide, Bl Leaders can learn how to successfully embed Bl and analytics software into ther applications. The fist three steps describe things to consider before selecting and implementing Bl software. The next seven steps encapsulate bes practices for designing, building, and operating successful Bl enviconment that your customers wil love, wenceckersoncom | © Eekerson Group 2016] Page 19