Data’s more influential than ever, but just how much data is there? In The Wide World of Data, we dig into astonishing facts and trends about the size and growth of the datasphere, how data is being used, and how it truly makes up the entire world around us.
Information about the size and growth of data is abundant. Previously, we collected some of the most hair-raising examples to show just how much of it there is. These statistics highlight how large the task is to extract, transform, and load data that will be ready for analysis.
Data engineers have their hands full and will continue to do so as data grows exponentially. But what should we do with all this data? To get value from it, organizations of all kinds need to make it work for them. Just what is it that they want to achieve? To find out, let’s take a look at what leaders say, and then crunch some numbers in a new infographic.
Every company is a data company
Sisense CEO, Amir Orad, has said that every company is a data and analytics company or must become one soon. In his article in Forbes, he discussed how some of the biggest names in global business — Nike, Burger King, and McDonald’s — and progressive newer entrants to huge sectors like insurance, are embracing data and analytics technology as a platform on which to build their competitive advantages. “Data analytics is reshaping business operations and enabling new revenue streams all across the global economy,” Amir wrote. “Soon, data itself will become a primary product for nearly every business, and data analytics (some use the loose term “AI”) will form the core of every company’s business model. Nearly every product on the market will be forced down one of two paths, becoming either ‘smart’ (i.e., analytics- and data-driven) or obsolete.”
Nike’s appointment of CEO John Donahoe exemplifies this trend. Previously president of eBay Marketplaces and CEO of cloud computing company Service Now, he represents the shift towards businesses becoming data-driven organizations. In Amir’s words, “Those [companies] who cling to outdated paradigms will become obsolete.”
According to an Accenture study, 79 percent of enterprise executives say that not embracing Big Data will cause companies to lose competitive position and risk extinction.
Organizations must adapt or die
In order to get any value from it, 95 percent of businesses say they need to manage unstructured data. Businesses that use Big Data enjoyed increases in profits of between eight and ten percent as well as a ten percent reduction in overall costs. So it’s unsurprising that 83 percent of enterprise executives say they’ve pursued Big Data projects to gain a competitive advantage.
In the retail sector, 62 percent of businesses see competitive advantages from information and analytics. As long ago as 2011, the McKinsey Global Institute estimated that retailers using data analytics at scale could increase their operating margins by more than 60 percent.
The healthcare sector is rapidly adopting Big Data analytics for better diagnostics, more efficient responses and treatment strategies, and better targeting of treatment to different populations. Almost 100% of sales reps at construction companies that adopted analytics and geographic data reported dramatic decreases in their timeframe for providing price quotes. Furthermore, the current COVID-19 virus has highlighted how important accurate data is, updated in real-time, to develop treatments as well as assign and distribute resources that will optimize life-saving care.
Transportation organizations like Transport for London (handling 5 million passengers per day on the London Underground, 9,300 buses across 675 routes, much of London’s road network and more) use Big Data and analytics to map customer journeys, manage unexpected circumstances and keep hugely populous cities like London moving. And increasingly, banking uses this technology to manage risk, fight fraud, analyze customers’ habits, provide them with financial advice, and help them manage money.
Across the full spectrum of sectors, almost 50% of businesses in a McKinsey survey said that analytics and Big Data have fundamentally changed business practices in their sales and marketing functions, and 30% said the same about R&D. In Accenture’s survey, businesses say that in the next five years, the transformative effects of big data will have a major impact on customer relationships, product development, operational organization, supply chain optimization, and sharpening the data-focused nature of their organizations. According to NewVantage Venture Partners, Big Data delivers the most value to enterprises by decreasing expenses (49.2%) and creating new avenues for innovation and disruption (44.3%).
Getting your BI and analytics right.
These numbers speak for themselves. No surprise, then, that 97.2% of organizations are investing in Big Data and AI. But to maximize the potential benefits, choosing the right BI and analytics platform is crucial. And this choice must make data-driven insights accessible to as many people across any organization.
With accessibility in mind, we’ve worked with Google to create the Google Sheets Analytics template built by Sisense. It offers analytics-based insights to everyone, regardless of technical know-how. This is a challenge we love to address because we know how significant good data-driven decision making can be. But don’t take our word for it, check out our infographic that gives you a compelling snapshot of why organizations’ leaders say big data and analytics is so important.
Adam Murray began his career in corporate communications and PR in London and New York before moving to Tel Aviv. He’s spent the last ten years working with tech companies like Amdocs, Gilat Satellite Systems, and Allot Communications. He holds a Ph.D. in English Literature and when he’s not spending time with his wife and son, he’s preoccupied with his beloved football team, Tottenham Hotspur.