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    Posted February 18, 2014 by
    amoran3
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    Tech talk

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    Fewer enterprises using power of big data analytics

     

    Is big data the “next big thing” for governments and private enterprises? If one speaks to a technology enthusiast and business professional, the answer is a resounding yes.

     

    Late last year, Gartner revealed the results of a study that found close to two-thirds of organizations have invested or have generated plans to invest in big data in 2013. This figure is up from 58 percent in the previous year. Despite the buzz that big data technology has garnered, only eight percent of survey participants have actually launched its initiatives.

     

    A wide variety of industries are getting involved in big data, such as media and communications, financial institutions and consumer goods services. At least one-third of private firms associated with the aforementioned industries have already invested in big data.

     

    Within the next two years, other industries will be putting their money into the matter. Investments over the next two years are being facilitated by those involved in the transportation (50 percent), healthcare (41 percent) and insurance (40 percent) sectors.

     

    “The hype around big data continues to drive increased investment and attention, but there is real substance behind the hype," said Lisa Kart, research director at Gartner, in a statement. "Our survey underlines the fact that organizations across industries and geographies see 'opportunity' and real business value rather than the 'smoke and mirrors' with which hypes usually come."

     

    Although companies have invested or are investing in big data, are they allocating budgets for big data analytics? According to a study published by management consulting firm Bain & Company, not necessarily.

     

    The survey consisted of interviews from executives in more than 400 companies across the globe and a majority of the enterprises earned revenues of at least $1 billion. Only a small number of businesses are transferring their resources into “analytics insights to change operations and to improve products and services.”

     

    For those that have used the power of big data and analytics, such as DealPly, Nordstrom and Amazon, the results are tremendous. CIO Insights notes that “these private firms are twice as likely to be in the top quartile of financial performance within their industries, three times more likely to implement decisions as intended and five times more likely to make decisions faster.”

     

    In addition, the report discovered that these companies that have invested in big data analytics are more likely to be more effective in each element of analytics, like capturing, collecting and storing data as well as perusing and coming to certain conclusions.

     

    Here is an encouraging statement from Bain:

     

    “But it isn’t too late. A good first step is to benchmark your industry and determine your company’s current position in Big Data analytics and capabilities, compared with that of your chief rivals. This exercise will help you determine the investment necessary to improve your relative position. If you are significantly behind the competition, you will have the kind of burning platform that is often required to create and sustain change. You can then begin experimenting, testing hypotheses to learn where and how advanced analytics is most likely to help your business. This type of review will help you determine your Big Data ambition, embed a culture of analytics and decide where Big Data’s organizational home should be.”

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