A paper on analytics helps the utility industry understand "how to think about" gleaning business value from Big Data. We bring you a few salient points and links to resources.
I had a great conversation with a data analytics practitioner in the utility industry the other day and will deliver a column on that shortly. Meanwhile, I'll use today's column to bring you a few concepts in data analytics that I think will stimulate your thinking.
The key with data analytics, as with cyber security, is the discussion around "how to think about" the subject, not the nitty gritty "how to" do it.
The article, "Big Data, Analytics and the Path from Insights to Value," by Steve LaValle et al., was first published in the MIT Sloan Management Review (Winter 2011) and is a joint effort by LaValle, global strategy leader for IBM's Business Analytics and Optimization service, and co-authors at IBM and the Review. The report is serialized in blogs , so you absorb its findings in digestible portions. (The study surveyed 3,000 executives in 30 industries across 100 countries and leavened the results by consulting academics and subject matter experts.)
"Organizations that effectively adopt data-driven management are likely to become leading performers in their industries," according to LaValle et al.
Note the catch: "effectively adopt." Therein lies the rub. So, what does effective adoption look like, what are the challenges and steps?
Turns out you need the right people, processes and tools. People who understand how to set up a strategic, enterprise-wide plan, who can provide centralized oversight and who can assist in identifying the single more daunting problem to which analytics can be applied.
In a neat parallel with grid modernization, a utility must identify the business challenge and determine what questions to ask of associated data in order to begin the process. In grid modernization, the mantra has been to determine the forward-looking business case for the enterprise and create a technology roadmap to enable that business case.
The paper makes the case for executive buy-in a