Real-time Analytics and BI: Part 1 – Singing for my Dinner

Several months ago I was invited to a dinner attached to a data science summit… with the price being that I had to deliver a 5 minute talk… I had to sing for my dinner. The result was this thinking on real-time analytics and the Toyota Prius.

Real-time analytics implies two things:
 
  1. Changes in the data are evaluated continuously; and
  2. The results of the analysis are used or displayed continuously.
In a Toyota Prius we can see two examples of real-time analytics.
 
The first is in the anti-lock braking system. There data reflecting the pressure on the brake pedal and on rotation of each wheel is sent to a computer that analyzes the results and adjusts the brake pressure on each wheel so that all four wheels turn at the same rate and the car stops in a straight line.
 
Note that the analytics are real-time and the results are used immediately without human intervention. This is important. It makes little sense to spend the money to capture and analyze data in real-time if the results are not actionable in near-real-time.
 
Think for a moment about the BI systems built over the last 20 years. First we captured and analyzed monthly data… and acted on that data within a 30-day window. Then we increased the granularity of the data to weekly and slightly adjusted the reports to reflect the finer granularity… and acted on the data within 7 days. Then we adjusted the data to daily and acted on the results each day. Then we adjusted the data to hourly and reacted even more quickly. These changes often did not fundamentally change the business processes driven by the data… they just made the processes more sensitive to the fine-grained information.
 
But if the data-driven business process takes ten minutes to complete… for example it takes ten minutes for staff to pick inventory, package the results, and load a delivery truck; could there be a return on the investment expense of developing a continuous, real-time analytic? I think not. There may, however, be ROI associated with a new robotic pick, package, and load process…
 
There is another possibility… If sometimes the pick, package, and load takes ten minutes and sometimes it takes fifteen minutes then the best solution is to perform the analytics on the current state on-demand… when there are resources to support the process. This maximizes the use of the resources without changing the business process.
 
The point here is that real-time requires a re-think… or at least a deep-think. The business process may have to change significantly to support real-time analytics.
 
The second real-time system in the Prius illustrates the problem. On the dashboard the Prius displays, in real-time, the state of the hybrid gas-electric system. It shows whether the battery is charging or discharging… it shows whether the car is being driven using the electric or the internal-combustion engine. It is one of the most beautiful dashboard displays you have ever seen… and executives everywhere must look at it and wonder why they cannot get such a beautiful display of the state of their business… after-all…  BI dashboards are “the thing”.
 
But the Prius display is useless. There is no action you would take while driving based on this real-time display.From a decision-making view it represents useless and expensive flash (that helps to sell the Prius…).
 
So… approach real-time analytics with a deep-think. Look for opportunities like the anti-lock braking system where real-time analytics can be embedded into automatic business processes. Avoid flashy dashboards that do not present actionable data.
 
In-memory databases (IMDB) such as SAP HANA, Oracle TimesTen, and VMWare SQLFire promise to enable real-time analytics… and this promise is real… the opportunities can and will revolutionize the enterprise over time…  but a revolution is not the same old BI at a finer granularity… it is much more significant than that. Heads will roll.