FEATURE
Analytics:
The Real-World Use of Big Data How innovative enterprises extract value from uncertain data.
A global telecommunications company collects billions of detailed call records per day from 120 different systems and keeps them for at least nine months. An oil exploration company analyses terabytes of geologic data, while stock exchanges process millions of transactions per minute. For these companies, the concept of big data is not new. So, what is new then? And how have big data activities evolved? The most notable change is the advancement in technology. Leaps in technology have made it possible for almost everything to be digitised, allowing more industries across the spectrum to analyse larger and realtime data, including non-standard data like stream, geospatial, and even sensor-generated data. Technology has also made analytics techniques better, making it possible to extract insights with previously unachievable levels of sophistication, speed, and accuracy. That aside, how are organisations viewing big data today – and to what extent they are using it to benefit their businesses?
A Landmark Study To find answers, the IBM Institute for Business Value partnered with the Saïd Business School at the University of Oxford to conduct the 2012 Big Data @ Work Study. A total of 1,144 business and IT professionals from 95 countries participated in this survey, while more than two dozen academics, subjectmatter experts, as well as business executives were interviewed. These are some of their key findings:
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THE IT SOCIETY — ISSUE TWO 2013
• Develop an enterprise-wide big data blueprint A blueprint encompasses the vision, strategy, and requirements for big data within an organisation. At the same time, it helps to align the needs of business users to the IT roadmap implementation.
• According to 63 percent of respondents, the use of information (including big data) and analytics is creating a competitive advantage for their organisations. This is a 70 percent increase compared to a separate study done in 2010. • Respondents whose organisations had implemented big data pilot projects or deployments are 15 percent more likely to report a significant advantage from information analytics, compared to those who rely on traditional analytics.
• Start with existing data to achieve near-term results The most logical and cost-effective place to start looking for new insights is from within the enterprise. Adopting this pragmatic approach will help your organisation build the necessary momentum and expertise to sustain a big data programme, while keeping in mind its near-term objectives.
• Only 7 percent of respondents viewed social media data as a part of big data. And fewer than half of respondents with active big data initiatives reported collecting and analysing social media data. Understanding the impact of big data is one thing, but knowing how to use it to your advantage is a whole different ball game altogether. How can these results help your business gain competitive advantage?
Key Recommendations for Businesses Insights of the study have led to five key recommendations for organisations to progress their big data efforts and seek the greatest business value from big data: • Commit initial efforts to customer- centric outcomes Focus big data initiatives on areas that bring the biggest value to the business. For many industries, this means starting with customer analytics. Doing so will lead to a better understanding of your customers’ needs and their future behavior, which, in turn, will lead to better service.
• Build analytics capabilities based on business priorities Organisations are facing a growing variety of analytics tools while also facing a critical shortage of analytical skills. Big data effectiveness hinges on addressing this significant gap. In short, organisations will have to invest in acquiring both tools and skills. • Create a business case based on measurable outcomes In order to develop a comprehensive and viable big data strategy, a solid and quantifiable business case is required. Therefore, it is important to have the active involvement and sponsorship from business executives throughout this process. With these recommendations, you can start developing your big data solutions. Begin by identifying your business requirements first. Then, tailor the infrastructure, data source, and quantitative analysis to support that business opportunity. (Continued on next page)
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