Big data is quoted a hype in the market. Companies have adopted it and have started to see huge benefits. There is an increasing trend of acceptance of big data and analytics alongside the manpower that is required to operate it efficiently. According to a Gartner study, 83 percent of the business leaders have pursued big data projects in order to seize competitive edge. Another study reveals more than 56 percent of enterprises will increase their investment in big data over the next three years. Indicative are the figures of an upsurge in acceptance of the technology at various levels of the enterprise. Not only are companies embracing it, the government as well is witnessing its potential and is implementing it across functions and dimensions.
In general, when companies adopt big data, they benefit in their operations in an enormous way, thereby gaining a competitive edge because of the insights technology provides it. The company thereby witnesses huge upsurge market share, revenue gain and profit making, subsequently attracting Foreign Direct Investment (FDI). According to research reports, 79 percent of the business leaders agree that companies that do not embrace big data will lose their competitive position and may even face extinction. This clearly indicates that this is definitely a concept and technology to watch for and invest in the coming years.
Why companies invest in Big Data?
With big data and analytics as part of the company and IT strategy, within no time one gets meaningful insights out of huge and complex data. This real time data provides a systematic and detailed view. These insights are available to different stakeholders on a periodic basis. The relevant analysis assist the various stakeholders to take better and effective business decisions, reduce risk and forecast trends for better product and business operations. With respect to product development the benefits are huge. The product development lifecycle shortens considerably as there is a better understanding of what the customer/ consumer wants. With analytics in place, the product is developed taking into consideration pre-calculated and pre-analyzed information.
Improved customer acquisition and retention are other advantages of big data. Issues related to customers are solved in no time. Greater flexibility and improved attention is given to each customer. The customer’s historical background and preferences are taken into account and strategies are thereby developed to deliver personalized customer experience. Business operations are affected in an enormously positive manner. In addition to that, risk management is done effectively as the information is timely and accurate. Also, predictive analysis helps minimize risks. With all of the above units and processes functioning effectively, the company is bound to experience growth and profit, develop better products and satisfy their customers.
Why is big data of interest to governments?
Countries are investing in huge amounts in the big data initiative. Japan has invested more than 90 million GBP while the US has allocated 200 million GBP in big data R&D initiative. All of the investments are bound to develop intelligent economies where these technologies have been implemented. Big data and analytics have been put to use and have been allocated in research as well. The domains that see major chunk of investments include and is not limited to defense, geological survey and predictions, better understanding of human disease, health & obesity and transportation.
India as well is keeping pace with the global developments and has announced to set up country’s first Center of Excellence in Big Data and Analytics in Hyderabad. Nasscom had announced recently that it will be setting up 20-odd centers across India through public private partnership (PPP) model to build the analytics capability in the country. With all of these announcements, research and development plans in place, these countries will see considerable traction from investors.
Similar to internet, big data will be accepted by small, medium and large enterprises and will revolutionize the way we do business. Changes in the way companies operate, restructured and reorganized organizations to support big data, up-scale of talent and upgrade of IT infrastructure are some of the changes which will be seen in the years to come, to accommodate big data as part of the organization’s strategy. As outlined above, as companies, governments and economies as a whole, are moving towards adopting and implementing big data, investments are bound to happen in countries that are in the acceptance curve of these technologies and those that are promoting companies to adopt big data and analytics.