Weekly Business Review: US finance industry social media guidance, Domo, Netflix

Lots happened the past week in the social media, social business, big data and business intelligence world. Read below the most interesting happenings and developments that caught my particular attention. The Federal Financial Institutions Examination Council and its social media guidance, Deloitte COO on big data and Netflix aiming to find cloud computing gurus.  What news did you find the most interesting?

Social media and social business

Social media guidance for US finance industry

The Federal Financial Institutions Examination Council addressed this risk by proposing specific guidance for the use of social media by federally supervised banks, and certain nonbank entities, called “Social Media: Consumer Risk Management Guidance. “ In short, financial firms, both banking and non-banking firms alike, should refer to the FFEIC proposed guidance in order to build effective risk management programs for social media.

The seven key components of an effective risk management program are:

  • Governance Structure: clear roles for the board and senior management to set the bank’s strategy and set the controls
  • Policies and Procedures: These could be separate for social media or incorporated into existing policies and procedures.
  • Due Diligence Process: This is essential for selection and management of any third-party service providers.
  • Employee training
  • Oversight of Content: The bank is responsible for monitoring information posted by, or on behalf of, the bank at the social media sites.
  • Audit and Compliance Process: The additional risks posed to legal compliance by the new activity need to be managed.
  • Success Measurement: The procedures need to set the parameters to track effectiveness of the social media efforts and the timing for reporting on them back to the board and senior management.

World Economic Forum Names Hearsay Social Clara Shih to the Young Global Leaders Class of 2013

Hearsay Social, provider of a social sales and marketing platform, announced that its CEO and founder Clara Shih has been honored by the World Economic Forum as a Young Global Leader (YGL).

Clara Shih was granted this prestigious honor for her industry leadership and innovation in transforming the way global companies do business on social media. Shih demonstrated this game-changing approach to social media in 2007, when she developed the first social business application, Faceforce, and subsequently authored the New York Times-featured bestseller, The Facebook Era, now used as a marketing textbook at Harvard Business School.

Klaus Schwab, Founder and Executive Chairman, World Economic Forum said:

“The Forum of Young Global Leaders provides a unique effort to engage the younger generation into the management of global affairs, working together and being integrated into the larger Forum community. The Young Global Leaders have an exceptional opportunity to improve the state of the world.”

Ms. Shih said:

“Recognition by the World Economic Forum is a humbling experience for me. I believe in the transformative power of technology and am passionate about how social media will transform business-to-customer relationships worldwide. It is an honor to have the opportunity to share this passion with other leaders from around the world.

 

Big data

Manoj Singh (COO Deloitte) on big data

At the NASSCOM Summit in Mumbai Singh talks about big data, its impact and developments. In an interview published on IndiaTimes Singh further elaborates.

Everybody is talking is about big data, but how far are we into it?

Behind any new concept, there is a little bit of hype. Currently big data is primarily in the financial services and consumer businesses. And it is much bigger in the West than it is in India in terms of application. Having said that, it is rapidly expanding and most importantly, business executives around the world are talking about using big data. It’s in its early stages, but increasing rapidly. By the end of this decade, we’ll have about five million jobs created globally relating to big data.

Is big data already affecting our lives in ways that we do not know yet?

Eric Schmidt, the Chairman of Google, has said that if you look at the amount of information that has been generated from the dawn of civilisation to 2003, that much information is being generated every two days in the last decade. Technology processes are improving everyday and the cost of processing has declined. When those things converge then you basically have a very usable tool. The information is there, it is all about how you use it. Today, based on statistics and analysis, you can predict the probability of an engine malfunctioning over the water on a Boeing 747 traveling from North America to Latin America. This is just one example, there are lots of others. We have used Big Data quite effectively in our firm to predict attrition. We figure out the reasons why people leave and then we work on improving those factors to minimise the impact of attrition and increase employee satisfaction. Talent is a very major play in every organisation and my belief is that most companies that would distinguish themselves ten years from now, will do so on how well they handle the talent game.

What do the companies need to do to get the maximum benefit from Big Data?

The most important step is to identify the business problems that you are trying to solve. Number two is identifying the relevant technology that will be able to address that problem. The third thing is that for the application of Big Data to work, you have to break up organisational silos. You can think in terms of customer service, marketing, finance, HR, IT, the problems cut across all of those, so you have to think across the spectrum. You need a culture that has the perspective to solve a problem. The fourth thing is that we need to have what I call the right brain and left brain people to be able to deal with the situation. The left brains are the analytical types who can take a lot of information and make sense out of it. The right brains are those who can figure how to depict it so that it is easy to understand and use the information. I call it finding the signal through the noise of the information.

Read whole interview with Manoj Singh here.

Big data automation best practices guide by ISACA

Big data can save big money if leveraged effectively, the global non-profit IT body ISACA claims in the release of a set of guidelines for managing data. The Information Systems Audit and Control Association (ISACA) today announced the release of its ‘Big Data: Impacts and Benefits’ guide as organisations invest significant amounts of money in data handling software.

A recent McKinsey report found that value gained from data in the US healthcare sector alone could be more than US$300 billion every year, highlighting the benefits of using big data correctly.

Richard Chew, senior information security analyst at Emerald Management Group and a co-author of the white paper said:

“Enterprises are investing significant capital to develop and deploy big data analytics to obtain an early competitive advantage. While big data can reap big rewards, it also poses significant risk, including misleading data and unexpected costs. It is critical for enterprises to put in place a governance program to ensure that information remains accurate, consistent and reliable.”

 

Business intelligence

Mobile business intelligence set to grow at 27% through 2016

Mobile business intelligence is gaining tractions, GII reports on multiple mobile business intelligence researches out there that provides recommendations for enterprises and vendors from a market research perspective.

According to a new study, the global mobile business intelligence market is set to grow at 27.47% CAGR through 2016. One of the key factors contributing to this market growth is the increasing adoption of smartphones and tablets. The Global Mobile Business Intelligence market has also been witnessing the increasing usage of mobile business intelligence for sales activity. However, the incompatibility of mobile business intelligence applications with the mobile devices could pose a challenge to the growth of this market.

Ovum with its report “Mobile BI: Providing Intuitive Access to Business Data” identifies the key features required in a mobile BI solution, as well as where the supply side of the market is, and what type of questions an organization needs to ask before embracing mobility.

According to the report, “Global Business Intelligence Tools Market in the Financial Services Sector 2011-2015”, the global business intelligence tools market in the financial services sector is expected to grow at 9.17% CAGR through 2015. Key vendors dominating this market space are IBM Corp., Oracle Corp.

Domo, SaaS business intelligence startup by Omniture founder raises $60 million

Domo, the SaaS business intelligence startup launched by Omniture founder Josh James, has raised $60 million in new funding, Techcrunch learned exclusively. The round was led by GGV Capital with Greylock Partners; Bezos Expeditions, the personal investment company of Jeff Bezos; co-CEOs of Workday Aneel Bhusri and David Duffield; Founders Fund; and Mercato Partners all participating.

BYU’s student-run venture fund, Cougar Capital, also participated and Aneel Bhusri and GGV partner, Glenn Solomon, will become Domo board observers. Domo previously raised $63 million from Institutional Venture Partners, Benchmark Capital, Andreessen Horowitz, SV Angel, Marc Benioff, SuccessFactors founder Lars Darlgaard and Hummer Winblad.

In 2011, James debuted Domo, with $33 million in funding from Benchmark tackling the business intelligence space.

 

Cloud computing

Netflix aims at cloud computing gurus with $100,000 prize

Netflix, Inc. announced the Netflix Cloud Prize, a competition designed to make cloud computing better for everyone. With US$100,000 in available prize money, the Netflix Cloud Prize challenges developers around the world to do their very best to improve the features, usability, quality, reliability and security of computing resources delivered as a service over the Internet, popularly known as cloud computing. Contest submissions will be judged by a panel of experts. All submissions will be available freely to anyone.

Netflix is a cloud pioneer, starting adoption back in 2009. Today more than 33 million Netflix members worldwide benefit from Netflix cloud technology. Every piece of the Netflix experience that members see when browsing TV shows and movies to stream on any device is delivered from the cloud. The cloud also enables features such as advanced personalization, mobile capabilities, social features, and bookmarks that remember where members are in a show or movie.

Neil Hunt, chief product officer at Netflix said:

“Cloud computing has become a hot topic recently, but the technology is still just emerging. No doubt many of the key ideas that will take it to the next level have yet to be conceived, explored, and developed. The Netflix Cloud Prize is designed to attract and focus the attention of the most innovative minds to create the advances that will take cloud to the next level.”

Telcos will battle for cloud customers according to research firm Synergy

According to Synergy Research, market researcher in telecommunications, in their report, “Amazon Cloud IaaS and PaaS Investments Pay Off,” cloud infrastructure-as-a-service (IaaS) revenues grew 15% in 2012 to a total of $12.5 billion.

The figure reflects estimated revenues from cloud service providers, such as Amazon Web Services, not the total cloud market. The total market also includes software sold to enterprises for managing private clouds and services sold to consumers from the cloud.

Amazon Web Services leads the infrastructure market with revenues that are about seven times as large as its closest competitor’s, IBM. Synergy didn’t disclose specific revenue estimates for each but displayed their relative positions in a bar graph. Neither company lists its IaaS-specific revenue figures in its quarterly reporting.

Synergy Research Group’s John Dinsdale said:

“Traditional telcos are strong in the more mature managed hosting segment, where they account for eight of the top 10 operators, but their impact on the IaaS and PaaS segments has so far been muted.

There is a fascinating battle for market share developing. We have no doubts that they will more aggressively target those segments in the coming years.”

Leave a Reply