Most people are familiar with the old adage that knowledge is power. In our digital economy that means that data has become a pivotal area of focus for businesses, utilized for its value in driving growth and increasing revenue. In fact, 73% of businesses that report using big data analytics report its benefits significantly outweigh the associated costs.
If 99% of companies plan on implementing data driven initiatives, and 90% of businesses believe that extracting value from data is critical to success, why aren’t they all doing so?
Transforming data into value is the difficult part. It involves more than just collection and storage - it requires that big data is processed and analyzed. Without this, data can't be transformed into actionable knowledge. A survey conducted in 2016 by IDG found that the biggest difficulty in implementing data driven initiatives was in analysis (38% of respondents). This is complex, and requires skills, specialized staff, and infrastructure that smaller under-resourced companies often can’t afford, and results in a competitive advantage for large enterprises that can leverage their revenue to generate more. Big companies get bigger and smaller companies wither.
The markets for this industry are growing at a rapid pace. When it comes to global supply chain analytics, the size of the market is expected to reach $16 billion USD by 2028 and in the broader picture the big data analytics market, globally, will increase to $68 billion by 2025. An annual growth rate of almost 25%. As more businesses realize that data-mined insights could gain them an edge in their industries over their competitors this rate will increase. This growth is being driven in large part by the banking sector, which is capitalizing on customer's financial and transactional data, and examining historical data to reduce investment risk.
But big data has a lot of other applications too. In healthcare, more than just increasing revenue and productivity, it has the potential to increase the accuracy of diagnoses, and improve patient outcomes by providing targeted healthcare. It also reduces cost - in America, an integrated system termed HealthConnect reduced costs by an estimated $1 billion by integrating data across facilities. This addresses part of the problem - data silos, where data is stored in a location that only a fraction of the organisation has access to, and as the number increases so does inefficiencies.
So what’s to be done? For smaller businesses, it’s recommended they take a proactive approach in data analytics, investing in solutions that are designed for smaller data sets, like the Fasade platform, and for bigger organisations, it’s advisable that they structure their “dark” data and integrate their silos so they have complete access to their information.