As the 2012 IBM Institute for Business Value survey indicates, big data analytics is evolving. More and more companies see the power of building big data solutions to better understand and optimize various aspects of the business. Sixty-three percent of survey respondents in 2012 report that the use of information (including big data) and analytics is creating a competitive advantage for their organizations. This represents a seventy percent increase since IBM’s 2010 New Intelligent Enterprise Global Executive Study and Research Collaboration. Executives are becoming more data driven and systems are being built to make recommendations based on data such as current market conditions, supply chain, customer sentiment, and more. Big data analytics is becoming a core component of many enterprise IT departments.
Predicting Business Success:Going beyond simple analysis to develop expert systems that advise future course of action, such as how to shift in response to a supply chain disruption.
Organizations at the forefront of big data analytics continuously re-evaluate and re-define the strategic decisions that have gotten the company where it is today. More than three-quarters of survey respondents indicated that they use analytics to guide future strategy. Many organizations manage strategic risk using big data analytics programs to provide better line of sight into the organization and its markets. This allows them to develop the ability and processes to anticipate and act ahead of events that might derail corporate progress.
Analytics Driven Business Decisions: Skills, competencies and methods used by survey respondents to transform their business decisions so that they are analytics driven.
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, surveying 1,144 business and IT professionals in 95 countries, and interviewing more than two dozen academics, subject matter experts and business executives. This is the third year in a row that IBM has conducted the survey, so it holds some insight into ongoing trends in big data.
Big data doesn’t exist in a void. Collect all the data you want and without analytics capacity it won’t have much value. A good analytics program requires a combination of software, developers, and the skills and knowledge to use them. In a recent survey conducted by IBM, more than 75 percent of respondents reported using core analytics capabilities such as query, reporting, and data mining. More than sixty-seven percent reported using predictive modeling.
With 2012 coming to a close, CIOs should think about how and where to budget for 2013. But this time around, prioritizing resources for the future may require more foresight than a year’s time. We stand on the precipice of a mobile and cloud technology wave that will require more forward-thinking attitudes, such as thinking about how technology in the near-future will lay the foundation for the far-future.
Since 2010, the IBM Institute for Business Value and MIT Sloan Management Review have fielded a study gathered from interviews with more than 4,500 managers and executives. These studies provide insight into how IT leaders can develop analytics programs that are successful. And by successful, I mean programs that provide information and assistance that can be used to power a data driven business.