CIO Straight Talk - Issue 2 - 38

DAVENPORT: Yes, I blame people for it, too. It’s people
who typically have to say that the world has changed and
the assumptions behind our models are no longer correct.
People have to make the decision to change the model.

Tom, can you think of the business equivalent of not
wanting your doctor’s decisions to be fully automated? That is, are there situations in business that
have similar critical overtones of judgment?
DAVENPORT: It’s funny; I was talking about that today. I
was with a big customer of Vivek’s, Procter & Gamble,
who is very enthusiastic about the TIBCO Spotfire tools.
They’re doing a lot of great things with visual analytics on
how the business is performing, sales, share, price, etc. I
said, “Are you working at all on what the former CEO of
P&G would call the big swing decisions? You know –
should we acquire Gillette? Should we enter aggressively
into China?” I think these types of decisions still require
lots of human judgment due to a lot of unstructured data
that computers have a tough time processing.
RANADIVÉ: I think that more and more you will find that
a lot of decisions are being made by computers. But for the
big strategic moves and decisions, the data will simply
support the human end of the decision process.

Vivek, have you made an attempt to define or characterize the types of decisions where automation does
trump human judgment?
RANADIVÉ: I am not trying to replace human judgment.
If you are on a retail banking website and you click on a
mortgage calculator, you’re screaming to the bank that you
are shopping for a mortgage. The bank wants to make you
an offer before you leave the site. Those are things that
have to be automated. If you are a telecommunications
provider and you have 70 million people on your phone
network and calls are being dropped, the response should
be an automated function. You drop five calls, you make
the customer an offer before the sixth call drops; otherwise,

For a retailer in the U.K., we found that if
somebody buys razor blades, champagne
and diapers, they are probably using a
stolen credit card to do that. For a telco
in India, we found that if they drop six
calls made by the same customer in a
24-hour period, the customer will
switch services. With that knowledge, after the fifth dropped
call, they can offer free SMS
messages to keep the customer
from switching.
38

// CIO Straight Talk

he is going to switch. Or, if you are an insurance company
and you find that somebody has made five calls looking for
a doctor and they haven’t found one. They’re going to
switch. These are examples of decisions that need to be
made in real-time and you really can’t have humans
involved in that. What humans can do is come up with the
policies and the strategy for the machines to execute on.
DAVENPORT: Vivek, I have a question for you. Do you
think it is possible that we might get to the point where
things are so automated, so interconnected that humans can
fail to even understand how they interact with each other,
resulting in negative consequences?
RANADIVÉ: Just because you give somebody a word
processor does not mean that they are going to write poetry
or prose or that they are going to become Shakespeare.
Certainly, when you have these kinds of tools there is the
potential for using them in ways that could have bad
outcomes, but I think that that is kind of an age-old concern
anytime you move things forward. Remember that there
were people opposed to using the web for doing any kind of
commerce. They said that it was too risky. And it’s true.
The amount of cybercrime that takes place on the web now
surpasses the value of the illegal drug trade worldwide, so
there is truth to that. But it does not mean that I’m not
going to go buy a book on Amazon.

Is the new world in which we live different simply in
terms of the magnitude of the data – or is there a
change in the kind of data available to us? That is, I’m
wondering if it’s just a deluge, or if it’s snow rather
than rain.
RANADIVÉ: I think it is three factors. One is that there is
absolutely more data. The second is that the shelf-life of the
data has gotten shorter. The third is that the amount of time
that you have to do something about it has gotten smaller
than ever before. All these things sound obvious, but in fact
most people are still not connecting the dots in this manner.
If your passport gets stolen and some guy with your
passport shows up at a border crossing somewhere, it’s
probably a sure thing that he’s a bad guy. Yet most border
crossings can’t determine that today.



CIO Straight Talk - Issue 2

Table of Contents for the Digital Edition of CIO Straight Talk - Issue 2

CIO Straight Talk - Issue 2
Contents
So What Do CIOs Want
Innovation at the Periphery
The CIO as Thought Leader
Career Move: From Managing Technology to Managing Change
Every CIO is in the Information Business
Analytics and Decision Making
Putting IT at the Center of the Customer Experience
Pick n Pay Focuses on Delivering Value to Customers
Bringing "Lean" to IT
Whither the Cloud in a Stormy IT Enviroment?
Management by Driving a Stake in the Ground
From Data Processing to Orchestrating Knowledge
Extreme Collaboration
Enterprise Mobility: Delivering the Connected Customer Experience
CIO Straight Talk - Issue 2 - CIO Straight Talk - Issue 2
CIO Straight Talk - Issue 2 - Cover2
CIO Straight Talk - Issue 2 - 3
CIO Straight Talk - Issue 2 - Contents
CIO Straight Talk - Issue 2 - 5
CIO Straight Talk - Issue 2 - So What Do CIOs Want
CIO Straight Talk - Issue 2 - 7
CIO Straight Talk - Issue 2 - 8
CIO Straight Talk - Issue 2 - 9
CIO Straight Talk - Issue 2 - 10
CIO Straight Talk - Issue 2 - 11
CIO Straight Talk - Issue 2 - 12
CIO Straight Talk - Issue 2 - 13
CIO Straight Talk - Issue 2 - 14
CIO Straight Talk - Issue 2 - 15
CIO Straight Talk - Issue 2 - 16
CIO Straight Talk - Issue 2 - 17
CIO Straight Talk - Issue 2 - Innovation at the Periphery
CIO Straight Talk - Issue 2 - 19
CIO Straight Talk - Issue 2 - 20
CIO Straight Talk - Issue 2 - 21
CIO Straight Talk - Issue 2 - The CIO as Thought Leader
CIO Straight Talk - Issue 2 - 23
CIO Straight Talk - Issue 2 - 24
CIO Straight Talk - Issue 2 - 25
CIO Straight Talk - Issue 2 - Career Move: From Managing Technology to Managing Change
CIO Straight Talk - Issue 2 - 27
CIO Straight Talk - Issue 2 - 28
CIO Straight Talk - Issue 2 - 29
CIO Straight Talk - Issue 2 - Every CIO is in the Information Business
CIO Straight Talk - Issue 2 - 31
CIO Straight Talk - Issue 2 - 32
CIO Straight Talk - Issue 2 - 33
CIO Straight Talk - Issue 2 - Analytics and Decision Making
CIO Straight Talk - Issue 2 - 35
CIO Straight Talk - Issue 2 - 36
CIO Straight Talk - Issue 2 - 37
CIO Straight Talk - Issue 2 - 38
CIO Straight Talk - Issue 2 - 39
CIO Straight Talk - Issue 2 - Putting IT at the Center of the Customer Experience
CIO Straight Talk - Issue 2 - 41
CIO Straight Talk - Issue 2 - 42
CIO Straight Talk - Issue 2 - Pick n Pay Focuses on Delivering Value to Customers
CIO Straight Talk - Issue 2 - 44
CIO Straight Talk - Issue 2 - 45
CIO Straight Talk - Issue 2 - 46
CIO Straight Talk - Issue 2 - Bringing "Lean" to IT
CIO Straight Talk - Issue 2 - 48
CIO Straight Talk - Issue 2 - 49
CIO Straight Talk - Issue 2 - 50
CIO Straight Talk - Issue 2 - Whither the Cloud in a Stormy IT Enviroment?
CIO Straight Talk - Issue 2 - 52
CIO Straight Talk - Issue 2 - 53
CIO Straight Talk - Issue 2 - 54
CIO Straight Talk - Issue 2 - 55
CIO Straight Talk - Issue 2 - Management by Driving a Stake in the Ground
CIO Straight Talk - Issue 2 - 57
CIO Straight Talk - Issue 2 - 58
CIO Straight Talk - Issue 2 - From Data Processing to Orchestrating Knowledge
CIO Straight Talk - Issue 2 - 60
CIO Straight Talk - Issue 2 - 61
CIO Straight Talk - Issue 2 - Extreme Collaboration
CIO Straight Talk - Issue 2 - 63
CIO Straight Talk - Issue 2 - 64
CIO Straight Talk - Issue 2 - 65
CIO Straight Talk - Issue 2 - Enterprise Mobility: Delivering the Connected Customer Experience
CIO Straight Talk - Issue 2 - 67
CIO Straight Talk - Issue 2 - 68
CIO Straight Talk - Issue 2 - 69
CIO Straight Talk - Issue 2 - 70
CIO Straight Talk - Issue 2 - 71
CIO Straight Talk - Issue 2 - 72
CIO Straight Talk - Issue 2 - 73
CIO Straight Talk - Issue 2 - 74
CIO Straight Talk - Issue 2 - Cover3
CIO Straight Talk - Issue 2 - Cover4
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