DC Velocity - June 2019

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3422

Big data analytics’ growing pains

Six years ago, the terms “big data” and “analytics” were ubiquitous— a key part of every conference, webinar, and trade publication. One book even proclaimed that it would “transform ho w we live, work, and think.” 1 But that has yet to happen. While some companies have made great strides toward harnessing the power of big data, many others are still struggling.

A new study by DC VELOCITY’s sister publication, CSCMP’s Supply Chain Quarterly, offers some insights into why that might be and what the future may hold. Here’s a look at some of the findings.

Implementations are up Satisfaction is down

The “Second Annual Big Data Analytics Study” found that the number of companies conducting big data analytics projects increased significantly in 2018 over the previous year.

Although implementations were up, respondents were less satisfied with their big data analytics efforts in 2018 than in 2017.

“Have you implemented big data analytics or are you conducting a proof-of-concept test?”

In 2017,

77%
said “YES”
In 2018,
90%
said “YES”
Implementations
up 13%

4. 1 4. 2 4.0

4. 4

4. 2

3. 8

4. 4

4. 1

3. 9 3. 9

3.7

4. 1

3. 8

3. 3

3. 9

3. 6

Profitability Inventory
Management
Visibility
to Total
Cost-to-Serve
Customer
Service
Demand
Planning
Risk and
Resiliency
Management
Supply Chain
Visibility
End-to-End
Supply Chain
Collaboration

2017 2018

Survey respondents were asked to rank on a scale of 1 to 7 how much of a beneficial impact they had already received from big data analytics in the following areas.

Are unsophisticated tools to blame?

That lack of satisfaction may reflect the fact that many companies are still using relatively unsophisticated analytics tools.

Survey respondents were asked to rank on a scale of 1 to 7 the extent to which they are using the following analytics to support supply chain decision-making, where 1 equals no use, 7 equals heavy use, and 3 equals occasional use.

Definitions of data analytics types from least to most sophisticated: • Descriptive: Analytics that describe what is happening/has happened.

• Diagnostic: Analytics that describe why something happened.

• Predictive: Analytics that predict what will happen.

• Prescriptive: Analytics that tell users what they should be doing.

• Cognitive: Analytics that use machine learning to tell users what should or could be done.

The study found the following correlations between the types of analytics and the benefits.

The bottom line

Although the survey respondents seem underwhelmed by the results of their big data projects to date, that shouldn’t be seen as a sign of failure. Technology experts say it’s normal for companies to experience gro wing pains with the implementation of any new technology. Fixing the problems will take time and work. But as they begin to address issues like the limitations of their existing analytics tools, there’s a good chance they can get their projects back on track.

SOURCE: “SECOND ANNUAL BIG DATA ANALYTICS STUDY” BY CSCMP’S SUPPLY CHAIN QUARTERLY IN CONJUNCTION WITH ARIZONA STATE UNIVERSITY, COLORADO STATE UNIVERSITY, COMPETITIVE INSIGHTS LLC, AND THE LHARRINGTONGROUP. THE STUDY WAS BASED ON THE RESPONSES OF 125 SUPPLY CHAIN PROFESSIONALS FROM NORTH AND SOUTH AMERICA.

1. Viktor Mayer-Schonberger and Kenneth Cukier,

Big Data: A revolution that will transform how we live, work, and think, Houghton Mifflin Harcourt, 2013.

2017 2018

4.74

4. 20

3.63

4.61

4.02

3. 16

3.60 3. 56

Descriptive
Analytics
Diagnostic
Analytics
Predictive
Analytics
Prescriptive
Analytics
Cognitive
Analytics

2.81

2. 27

Analytics Type
Customer
Service
Demand
Planning
Risk
Management
Supply Chain
Visibility
End-to-End
Collaboration Productivity
Analytics
yes no no no no no
no no no yes no Diagnostic
Analytics
slightly
positive
no yes no slightly
positive
noPredictive
Analytics
yes
no no no no no Prescriptive
Analytics
slightly
negative
slightly
positive
yes slightly
positive
yesCognitive
Analytics
no slightly
positive

DC Vi nf og r ap hi c

44

news

13 \ newsworthy \

Tariffs trigger April container boom at ports of Los Angeles, South Carolina E2open acquires Amber Road for

$425 million J.B. Hunt to launch trailer pool to bolster its freight-matching platform Accolades: awards and recognition Shippers won’t blow their freight budgets in

2019, Coyote predicts Supply chain tasks weigh heavy in health care, Cardinal Health survey shows Kion to continue investing in automation, innovation Warehouse demand in urban areas remains sky-high, report says Alliances: who’s sealed a deal?

Zipline expands medical drone delivery program to Ghana Newsmakers: people on the fast track Verizon: Hackers are targeting C-level execs with social engineering attacks Postal woes continue as USPS racks up

$2.1 billion loss in Q2

Short takes

in every issue

1 \ inbound \

Boxes and briefs: Industry news at a glance

39 \ inPerson \

An industry insider looks at the supply chain

46 \ rollouts \

Spotlight on mobile tech

55 \ adindex \

How to reach our advertisers

voices

11 \ bigpicture \

Ch-ch-ch-changes \

DAVID MALONEY

56 \ outbound \

Free ride \

MITCH MAC DONALD

EDITORIAL ADVISORY BOARD

n Jim Bowes
Peach State Integrated
Technologies
n Earl Boyanton
Independent Consultant
n George Clopton
Polo/Ralph Lauren
n John White III
Fortna
n John A. Gentle
John A. Gentle & Associates, LLC
n Brian Gibson, Ph.D.

Auburn University
n Steve Inacker
Cardinal Health
n Richard Jackson
Mast Logistics
n C. John Langley Jr., Ph.D.

Penn State University
n Clifford Lynch
C.F. Lynch & Associates
n Karl Manrodt, Ph.D.

Georgia College & State University
n Scott Mc Williams
Geodis
n Christopher D. Norek, Ph.D.

Chain Connectors
n Richard H. Thompson
JLL
n Kate Vitasek
University of Tennessee

DC VELOCITY is committed to accuracy We are committed to accuracy and clarity in the delivery of important logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please contact Editorial Director David Maloney at dmaloney@dcvelocity.com.

inside

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