BIG DATA LECTURE

What is Anthropogenic Climate Change?

Climate change caused by human activity.

Difference between biggest emitter vs. biggest historical cost of CO2.

Biggest Emitter: China

Biggest Historical Cost: US (since China responds to their consumer needs)

Key Risks of Climate Change on Business

Supply Chain Disruption, Property Damage, Insurance Losses, Firms Reconsidering where to locate operations.

What does the shift from shareholder capitalism to stakeholder capitalism mean?

Shareholder Capitalism

• Goal: Maximize short-run profits for owners.

• Focus: quarterly earnings, cost-cutting, short-term returns.

Stakeholder Capitalism

• Goal: Balance long-run interests of all stakeholders:
  Employees, customers, communities, suppliers, shareholders, AND the planet.

• Focus: sustainable value creation, long-term resilience.

Why Climate Change Requires This Shift

• Climate change creates systemic risks (physical damage, regulations, carbon costs, reputation loss).

• Firms can no longer externalize environmental costs—these risks directly threaten future operations and even shareholder value.

• Therefore, protecting the planet becomes essential to protecting the firm itself

Describe the shift in sustainability models:

Old model: Sustainability = intersection of environment, equity, economy (3 circles)
New model: Environment as the outer circle, supporting society → economy inside it.
(If the environment collapses, society & economy fail.)

example: During COVID: “If the workforce is sick, the economy doesn’t work.”
Environment → Society → Economy are dependent.

Describe the role of technology in addressing climate change: with obvious, less obvious, out of left field

Obvious technologies: solar power, EV

Less Obvious - lab grown meat, hydrogen fuels

Out of left field - eating insects, turning poop into power

What is Big Data?

• Big data = extremely large, fast-moving, diverse datasets. (5 V’s: Volume, Variety, Velocity, Veracity, Value.)

• Data alone ≠ information.
  Lecture emphasized: information = interpreted data that becomes meaningful.

What are uses for big data?

• Predict demand

• Identify gaps (missing products on shelves)

• Turnout analysis (speed up problem resolution from 3 weeks → 20 min)

• Online vs in-store retail insights

• Targeted advertising

What are the challenges of Big Data?

• Capital intensive (costly systems)

• Too much data → difficult to extract relevant information

• Recruitment challenges → need specialized talent

• Training and development of teams

What are the security risks for big data?

• Data breaches

• Cyberattacks

• Unauthorized access

• System failures and downtime

What is the role/responsibilites of a CIO?

S T a C C S
✔ Strategic Planning
✔ Technology Management
✔ a (and)
✔ Cost Management
✔ Communication (Stakeholders)
✔ Security & Compliance

What are impacts on businesses from climate change?

• Property Damage

• Disruption of Business

• Insurance Claims

What is machine learning and what is its relationship to big data?

Algorithims whose performance improve as they are exposed to more data, enabling systems to learn from data patterns and make predictions.

Big Data is an input for machine learning.