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The human
side of data
October 2015
Contact: Colin Strong
c.strong@addverve.com
@colinstrong
+44 (0) 7494 529311
Through 2017, 60% of data projects will fail to go
beyond piloting and experimentation and will be abandoned
Gartner
72% of business and analytics leaders aren’t
satisfied with how long it takes to retrieve the
insights they need from data Alteryx
65% of CEOS think their organisation is able to
interpret only a small proportion of the
information to which they have access
The Economist
Only 27% the executives surveyed
described their data initiatives as successful
Capgemini
Is the big data enterprise struggling?
90% of digital start-ups fail
Mashable
2
Is the answer technical?
Better integration
of legacy systems
More data
scientists
Better tools
Necessary but not sufficient conditions?
3
Or is it something more fundamental?
I have lost count of the times I have been presented
with some amazing fact that data has told us through
the use of some incredible new technology, to be left
thinking “so what?” or “isn’t that obvious”?
Caroline Morris Sky IQ
4
Three aspects of humans in data:
Data does not
speak for itself
The human hand in
the big data machine
Finding the human
behind the data
5
Data does not speak for itself
Does big data = big insights?
7
•  More data does not automatically equal
more insight
•  Statistical value does necessarily reflect real
relationships.
•  Increase in number of false positives
What is significance?
8
•  In 1967 a professor spent much of the year
flipping a coin 300,000 times
•  Found it came up heads 50.2% of the time
•  Deemed this to be ‘statistically significant’
•  John Ioannidis:
“Most published research findings are false”
“…more likely to happen in fields that chase
subtle, complex phenomena”
So what do we do?
9
•  Undertaking due diligence such as:
•  using ranges rather than directional
predictions
•  establishing multiple corroboration
•  comparing models
•  But ultimately it is contextual expertise:
“An understanding of consumer behaviour and
category expertise is often the litmus test to
determine whether a statistically significant
result has any real validity.”
Otherwise risk of ‘cargo cult analytics’:
10
•  The illusion that something is scientific when it
has no basis in fact
•  Leads to the use of ‘vanity metrics’
•  Calls for:
•  Much closer relationship between data
analytics and consumer insights
•  A structured approach to framing the
questions to ask
The human hand in the big data machine
The analytics industry fails to question its
assumptions of how humans ‘work’:
12
VS
The big debates
Are our thoughts dictated by neurons
or vice-versa?
VS
Are our behaviours shaped at an
individual level or by our social
circumstances?
But these assumptions shape our analytics:
13
Our implicit thinking abut how humans operate will
influence the way in which we:
•  Chose which questions to ask
•  Select the data we look at
•  Determine how we clean the data
•  Shape our choice of analytics
•  Influence the way we interpret patterns
And a simplistic understanding of peoples’ lives
generally does not work:
Fitness devices:
Owned < 6 months: 88% use ≥ once a week
Owned > 6 months: 62% use ≥ once a week
14
The human side to the analytics process:
29 different teams of analysts asked to determine
whether soccer refs more likely to give red cards to
players with darker skin tones.
•  Each team was given an identical dataset.
•  21 different sets of variables chosen for analysis.
•  Different teams used different statistical models.
No surprise that teams came to fundamentally
different conclusions
15
And we are all susceptible to biases:
16
Calls for:
•  Greater awareness of implicit
assumptions about human behaviour
•  Use of behavioural science to help
frame questions / catch potential
biases
•  Greater reflexivity in the analytics
process
Finding the human behind the data
18
Who you are What you are like
Where you are now Where you are going
What you are doing Why you are doing it
The data analytics environment is fundamentally
changing:
From: To:
Outer lives Inner lives
Customer interactions moving from physical to
digital:
19
§  More of our lives played out online – revealing
more about ourselves
§  Facebook Likes: Highly predictive of wide
range of human attributes where Like did not
necessarily explicitly referenced the outcomes
§  Opportunity lies in exploring the human
characteristics that can be derived from
corporate data
“The present time is a very special
time in the history of social science
because we are witnessing a
dramatic transformation in our
ability to observe and understand
human behaviour.”
Duncan Watts, Microsoft
Offers a real opportunity to optimise the
customer experience:
•  Identify the key psychological
attributes that could make a
difference
•  Develop appropriate measurement
tools (psychometrics)
•  Test impact
•  Predict attribute from data to roll-out
20
Analytics is a human endeavour:
Companies need to invest in understanding
this to really generate value from their data
assets
Thank you:
Drop me a line
@colinstrong
c.strong@addverve.com
www.addverve.com
www.colinstrong.net
22

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The Human Side of Data By Colin Strong

  • 1. The human side of data October 2015 Contact: Colin Strong c.strong@addverve.com @colinstrong +44 (0) 7494 529311
  • 2. Through 2017, 60% of data projects will fail to go beyond piloting and experimentation and will be abandoned Gartner 72% of business and analytics leaders aren’t satisfied with how long it takes to retrieve the insights they need from data Alteryx 65% of CEOS think their organisation is able to interpret only a small proportion of the information to which they have access The Economist Only 27% the executives surveyed described their data initiatives as successful Capgemini Is the big data enterprise struggling? 90% of digital start-ups fail Mashable 2
  • 3. Is the answer technical? Better integration of legacy systems More data scientists Better tools Necessary but not sufficient conditions? 3
  • 4. Or is it something more fundamental? I have lost count of the times I have been presented with some amazing fact that data has told us through the use of some incredible new technology, to be left thinking “so what?” or “isn’t that obvious”? Caroline Morris Sky IQ 4
  • 5. Three aspects of humans in data: Data does not speak for itself The human hand in the big data machine Finding the human behind the data 5
  • 6. Data does not speak for itself
  • 7. Does big data = big insights? 7 •  More data does not automatically equal more insight •  Statistical value does necessarily reflect real relationships. •  Increase in number of false positives
  • 8. What is significance? 8 •  In 1967 a professor spent much of the year flipping a coin 300,000 times •  Found it came up heads 50.2% of the time •  Deemed this to be ‘statistically significant’ •  John Ioannidis: “Most published research findings are false” “…more likely to happen in fields that chase subtle, complex phenomena”
  • 9. So what do we do? 9 •  Undertaking due diligence such as: •  using ranges rather than directional predictions •  establishing multiple corroboration •  comparing models •  But ultimately it is contextual expertise: “An understanding of consumer behaviour and category expertise is often the litmus test to determine whether a statistically significant result has any real validity.”
  • 10. Otherwise risk of ‘cargo cult analytics’: 10 •  The illusion that something is scientific when it has no basis in fact •  Leads to the use of ‘vanity metrics’ •  Calls for: •  Much closer relationship between data analytics and consumer insights •  A structured approach to framing the questions to ask
  • 11. The human hand in the big data machine
  • 12. The analytics industry fails to question its assumptions of how humans ‘work’: 12 VS The big debates Are our thoughts dictated by neurons or vice-versa? VS Are our behaviours shaped at an individual level or by our social circumstances?
  • 13. But these assumptions shape our analytics: 13 Our implicit thinking abut how humans operate will influence the way in which we: •  Chose which questions to ask •  Select the data we look at •  Determine how we clean the data •  Shape our choice of analytics •  Influence the way we interpret patterns
  • 14. And a simplistic understanding of peoples’ lives generally does not work: Fitness devices: Owned < 6 months: 88% use ≥ once a week Owned > 6 months: 62% use ≥ once a week 14
  • 15. The human side to the analytics process: 29 different teams of analysts asked to determine whether soccer refs more likely to give red cards to players with darker skin tones. •  Each team was given an identical dataset. •  21 different sets of variables chosen for analysis. •  Different teams used different statistical models. No surprise that teams came to fundamentally different conclusions 15
  • 16. And we are all susceptible to biases: 16 Calls for: •  Greater awareness of implicit assumptions about human behaviour •  Use of behavioural science to help frame questions / catch potential biases •  Greater reflexivity in the analytics process
  • 17. Finding the human behind the data
  • 18. 18 Who you are What you are like Where you are now Where you are going What you are doing Why you are doing it The data analytics environment is fundamentally changing: From: To: Outer lives Inner lives
  • 19. Customer interactions moving from physical to digital: 19 §  More of our lives played out online – revealing more about ourselves §  Facebook Likes: Highly predictive of wide range of human attributes where Like did not necessarily explicitly referenced the outcomes §  Opportunity lies in exploring the human characteristics that can be derived from corporate data “The present time is a very special time in the history of social science because we are witnessing a dramatic transformation in our ability to observe and understand human behaviour.” Duncan Watts, Microsoft
  • 20. Offers a real opportunity to optimise the customer experience: •  Identify the key psychological attributes that could make a difference •  Develop appropriate measurement tools (psychometrics) •  Test impact •  Predict attribute from data to roll-out 20
  • 21. Analytics is a human endeavour: Companies need to invest in understanding this to really generate value from their data assets
  • 22. Thank you: Drop me a line @colinstrong c.strong@addverve.com www.addverve.com www.colinstrong.net 22