3 Big-Data Mistakes to Avoid

Cormac Foster, Journalist, Analyst, Tech Manager | 1/16/2013 | 19 comments

Cormac Foster
CIOs and other IT leaders are increasingly being asked to work with colleagues across the organization to develop ways to mine structured and unstructured data in order to draw actionable business insights.

More data is available to enterprises than ever before, and analysis tools have never been cheaper. There's plenty of upside to undertaking these types of big-data projects, but there are also some big traps that can hurt your career and derail your funding for future projects.

Here are three procedural problems to avoid:

Putting the wrong people in charge of your big-data project
Big-data projects touch each part of your enterprise, requiring input, support, funding, and information from nearly every department. The resulting insights can ultimately benefit everyone in the company. Regardless of what it takes to get your numbers crunched and come up with clear answers, you need a strong leader for each big-data initiative. This leader might not be the person who automatically comes to mind.

Since the breadth and depth of data required is so large, big-data projects carry the potential for unprecedented scope creep. To avoid an endless string of "one more thing" bolt-on projects, your project leader needs to be firm, well respected, and operating with the very public support of executive management. Without these qualities, your project leader will flounder.

While the marketing department is probably your company's biggest consumer of data analysis, it's generally a mistake to put a pure marketer in charge of a big-data project. A CEB study quoted by the Harvard Business Review noted that many marketers are notoriously data averse. The handful of marketing executives who are data driven may veer too far in the opposite direction, over-relying on data over all other information sources.

You might be compelled to put a data scientist in charge. This is also ill advised, as these executives tend to lack the necessary political understanding to nurture relationships across the organization. They may also have difficulty handling the gut-level marketing requirements needed to produce useful end results.

Ideally, your big-data project leader should come from your company's program management department. This type of executive is the most likely to offer the necessary project management skills, far-reaching internal relationships, knowledge of the corporate culture, and an understanding of technology.

Letting your data analysis run amok
If analyzing big-data couldn't help your executives glean additional insights about customers and business, there wouldn't be much reason to do it. With that said, you can't go into a project without a clear focus, otherwise you'll be overwhelmed and distracted by too much information. Down the line, your analysis will pay off in unexpected ways, but that's a bonus. If you want your mining to generate a return, you have to start by looking to answer a specific question, or a very clearly defined set of questions. Develop your focus and refine your queries first. Then stick to the plan. Are you trying to get a better handle on your true customer acquisition and costs? Are you looking at ways to reduce churn? Do you want to identify the prospects with the greatest likelihood of becoming customers? Focus on the primary questions first. After you've addressed these priority questions, you can process the exciting accidental discoveries that are sure to emerge during your analysis. Getting distracted chasing new tangents as they arise will only dilute your results and slow down your project.

Failing to anticipate dirty data
Your data is probably a lot dirtier than you think. Big-data implementations usually pull together multiple data sources that have never before been combined. In some cases, the data has never been analyzed, even on its own. De-duping your data, standardizing your formatting, and otherwise cleaning your data takes time. The smaller your test run, the faster you can work. After your data is clean, you can still expect to encounter procedural issues. Once again, working with small data sets allow you to tweak the system in a timely manner.

These are just some of the mistakes I've seen made by companies as they undertake big-data projects. I'd like to hear more about your experiences -- are they similar in nature? Are there other big-data pitfalls that come to mind? Tell us all about it in the comments section below.

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Cormac Foster   3 Big-Data Mistakes to Avoid   1/17/2013 11:04:34 PM
Re: Marketing people lead analysis
That also keeps everyone honest by putting the destiny of the project in the hands of the people who will use the results.
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singlemud   3 Big-Data Mistakes to Avoid   1/17/2013 10:32:31 PM
Marketing people lead analysis
With the analysis reporting to marketing people, it should be able generate meaningful data.
Cormac Foster   3 Big-Data Mistakes to Avoid   1/17/2013 11:23:41 AM
Re: Not what I expected.
The title will change from company to company, depending on what you do and how technical your product is. At IBM, a Program Manager might be the right person. At a media company, it might be a Technical Product Manager or a Technical Producer. You also might find a Business Analyst who fits the bill.

I think the important thing is to find a person who can straddle the tech and business worlds, and understand both. If you happen to have the "developer with an MBA" dream on staff, that's great, but he or she is probably doing something else, and you don't need to go that heavy. The person who writes your functional specs is probably a good place to start. That usually shows an ability to work with both sides of the line and bridge any gaps that come up.
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Sara Peters   3 Big-Data Mistakes to Avoid   1/17/2013 10:30:20 AM
Re: Make sure the data you input into your system is good
@Sunita @tekedge  In order to make sure that 95% of the data coming in is relevant, as tekedge wants, perhaps you need to start the project with a wide net, then determine which data entry points fit are most important, then narrow the net accordingly.
Sara Peters   3 Big-Data Mistakes to Avoid   1/17/2013 10:26:44 AM
Not what I expected.
Well I find this idea fascinating, Cormac:  "Ideally, your big-data project leader should come from your company's program management department." I have great respect for my company's project managers. They're experts at the art of "getting things done." And you make a good case -- good PMs certainly know all the moving parts within an organization and all the political relationships between them. However I wouldn't assume that PMs have enough technical know-how to lead a big-data project... maybe in an ideal world it would a PM who makes it her job to learn as much about the technological side as possible.
SunitaT   3 Big-Data Mistakes to Avoid   1/17/2013 2:45:49 AM
Re: Make sure the data you input into your system is good
One other pitfall I can see is at the entry point of the data itself.

@tekedge, you are right. Its very important to make sure that the data is coming from the right sources but then how will you implement it ? How will make sure that the data that is being recieved is necessary or not if you dont process the data ?

tekedge   3 Big-Data Mistakes to Avoid   1/16/2013 4:32:33 PM
Make sure the data you input into your system is good
One other pitfall I can see is at the entry point of the data itself. For any meaningful data analysis, the leader needs to make sure that 95% of the data that is coming in is the right one and not  junk.
Cormac Foster   3 Big-Data Mistakes to Avoid   1/16/2013 12:33:19 PM
Re: best questions?
I think the single best thing you can do is put one person in charge, and have a mandate in place that states a very specific target aimed at a very specific department. It can't be "How do we make the product better?" If you work in a less traditional, more Agile-focused shop that's handled change well in the past, you may actually have a tougher time, culturally, than in a large monolithic organization used to change requests taking forever.
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kstaron   3 Big-Data Mistakes to Avoid   1/16/2013 12:23:16 PM
best questions?
I can definitely see how scope creep could be an issue given how large most of these data sets are as well as the squishy questions often asked about the data where there might be multiple answers depending on the person approaching it. For companies new to using big data, what do you think are the best questions to ask to avoid scope creep and get solid answers that could benefit the company?
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