White Paper: Business Analytics and The Data Complexity Matrix
White Paper: Business Analytics and The Data Complexity Matrix
BUSINESS ANALYTICS
AND THE DATA
COMPLEXITY MATRIX
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Data Complexity Matrix
same time, the value of unlocking that data and using it SIMPLE DIVERSIFIED
to make business decisions is also increasing. For the
business user, understanding this complex data and
unlocking its potential is the key to staying ahead of the
competition. For IT organizations, complex data can be
the bane of many programs, causing all kinds of trouble Few Many
in data management and hindering system performance.
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the Business Analytics solution, such as a data warehouse
for analytic queries (e.g., Vertica), or a specialized data
warehouse appliance (e.g., Netezza). Other options
include running business analytics on Big Data using
in memory solutions. However, these solutions have
There are some challenges, though, when considering an inherent limitations in both size of data and number
a Business Analytics solution for Simple data. Will your of concurrent users. Additionally as size of data grows
data always be small? Will it grow over time with usage other challenges arise. Either the system costs increase
or will it expand to encompass additional data elements significantly because of the memory required to store
or data sources? If the size of your data or the number the complete data set or one has to give up on data
of data sources (tables) grow, how will your Business granularity to fit the data set in memory.
Analytics solution scale?
Creating a proper Business Analytics solution for Big
These challenges are magnified in the context of a real Data, presents some additional challenges. Third party
time connection to a transactional database. With a data warehouse and/or appliance tools create another
large number of users, executing sophisticated queries, step in the Business Analytics process. Introducing
performance impact can be significant. Poor performance another moving part has both direct costs for the
is still the #1 inhibitor to user adoption for business specific solution and also indirect costs in the overhead
analytics. Not only does such a connection put the to configure, maintain, and support both the new tool
business analytics solution at risk for poor performance, and its integration with other pieces of the Business
but it can hinder performance of the core transactional Analytics puzzle. Even with these additional tools in
system as well. Managing these performance issues place, the Business Analytics solution is still likely to
ultimately impacts an IT organization, and what was require data preparation and aggregation. With each
“simple” becomes less so.
Big Data
In the context of our Data Complexity Matrix, Big data
consists of larger data sets (100’s of millions of rows +)
that come from a limited number of data sources (tables).
This data needs special preparation because of its
size. You may need DBAs to work their magic, creating
indexes, aggregation tables, clusters, etc. in order to
query this data with reasonable performance.
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such aggregation, business users lose data granularity
and risk missing insights derived from that granularity
(a traditional OLAP problem). In addition, data
aggregation limits the agility of the business analyst,
forcing iterative cycles with IT, each time the analysts
wants to change the queries or data sets under review.
Diversified Data
Diversified data consists of smaller data sets that are
derived from multiple data sources (tables). Diversified
data requires special attention in the ETL step of the
Complex Data
process, in order to ensure correct relational structure In the context of our Data Complexity Matrix, Complex
between the various data tables. As the number of data consists of larger data sets that come from multiple,
data sources (and data tables) grows this ETL process disparate data sources. Complex data sets require special
becomes more and more complicated, requiring attention in both the ETL process and in managing the
the skills of a DBA to remodel data, creating new size of the data. Complex data combines the challenges
schemas or many different views of the data. Another of both Big and Diversified data. It takes a long time
consideration is the frequency with which new data to prepare because of both the modeling challenges
sources will be introduced. In order to keep analysis and the challenges in indexing and aggregation.
agile and current, the Business Analytics solution may Specialized skills and resources are needed throughout
need to absorb new data sources, forcing iterative the Business Analytics process, turning any project into
reviews of the data model and the ETL. For Diversified a cross department, lengthy effort. This manpower cost
data, this ETL step requires investment of time and is amplified each time a change in the data prep or ETL
resources from an IT team before any analytic output is necessary in order to investigate new analytic paths.
can be generated. The ETL process can become so Often additional third party tools are required as well (as
cumbersome that it may necessitate the purchase and detailed above).
use of a specialized ETL tool for automating this part of
the data preparation (e.g. Informatica). As a result Complex data often comes with a very high
total cost of ownership. License fees for the Business
Creating a proper Business Analytics solution for Analytics tool are typically just the tip of the iceberg.
Diversified data, presents some additional challenges. License fees for additional data warehouse and data
Third party data preparation tools create another step prep tools are additional hard costs in such cases. There
in the Business Analytics process. Introducing another are also additional costs created by the overhead and
moving part has both direct costs for the specific specialized skills needed to integrate and maintain
solution and also indirect costs in the overhead to multiple tools from different vendors that may or may not
configure, maintain, and support both the new tool work effectively together. With all of these challenges,
and its integration with other pieces of the Business agility for the business analyst is diminished and time to
Analytics puzzle. insight is longer.
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steps in the business analytics process. It eliminates the
need for aggregating, compacting, and indexing data
and eliminates the patchwork of multiple tools that are
typically needed to analyze Complex data.
Choosing a Business
Analytics Solution
Each quadrant in the Data Complexity Matrix has its
own unique aspects and challenges. When evaluating
different business analytics solutions, one must consider
the quadrant you reside in today and the one you will
reside in tomorrow.
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