Thursday, October 20, 2016

Big Data, Analytics Market To Hit $203 Billion In 2020

According to International Data Corporation's (IDC) article, "Worldwide Semiannual Big Data and Analytics Spending Guide", there is expected to be a compound annual growth rate of 11.7% in the big data and analytics market growing from $130 billion to $203 billion by the year 2020. The largest player contributing to this growth is predicted to be the banking industry, spending about $60 billion on software such as reporting and analysis tools, as well as data warehouse management systems. Furthermore, the IDC claims that banking, discrete manufacturing, process manufacturing, federal/central government, and professional services will account for about 50% of all spending in this market during this time. Investors are believed to utilize big data and business analytics for various reasons such as security and compliance-related issues as well as just getting more information from the customers.

I believe, and it is evident, that big data and analytics are very important and are changing the world around us. The importance lies in both defense and offense in the sense of security and progressive tools. Companies all throughout the world use big data and analytics to protect themselves as well as their valuable information with a focus on risk management, fraud prevention, and compliance related activities. Big data is also very important for storing company information. For example, if a company is called to be audited/investigated they are to share their financial records with the IRS, FBI, etc. When that time comes the company wants to be sure that they are capable of passing along company information to avoid further conflict. For this reason, companies will invest in highly securitized and large storage capacity databases to avoid any valuable information from being deleted/stolen/misplaced by destructive forces and/or unwanted actions from unauthorized users.


Big data and analytics are also progressive tools that influence speed and efficiency ultimately awarding companies a competitive edge. It allows companies to strategically gather their data and foresee possible opportunities based off of customer and or report information. Furthermore, big data and analytics add value to three main areas of focus: cost reduction, faster/better decision-making, and new products and services. Big data technologies such as “the cloud” have incredible cost advantages when it comes to storing large amounts of data. Not only does this form of technology eliminate the cost from using physical servers and reduce the need to maintain infrastructure but, it essentially allows companies to increase profits by focusing on strategy and innovation. With big data and analytics, businesses can immediately analyze information and therefore make better faster decisions based on the output of their analysis. Tying in with that, companies are capable of gauging customer needs and satisfactions which ultimately allows them to meet customers needs and or exceed them by creating new products and services that are designed based off of trends seen in their analysis. Big data analytics is changing the world and more specifically the business world. Companies can now be more efficient, faster, and ahead of the game.

http://www.informationweek.com/big-data/big-data-analytics-market-to-hit-$203-billion-in-2020-/d/d-id/1327092?

4 comments:

  1. After reading’s Jack’s post I can definitely see how Big Data and analytics will reach $203 billion by the year 2020. In my opinion, I wouldn’t be surprised if this industry reached that plateau before 2020. The demand, and need for Big Data and Analytics is huge right now, and with technology always improving I can definitely see it reaching that mark sooner than 2020.
    Another aspect of Jack’s post that doesn’t surprise me is how the banking industry is the largest player contributing $60 billion to this industry. In today’s world everything is done online or through apps. The need for improved safety and security within the banking industry is pivotal. With the increase in technology security comes improved hackers. Thieves are always looking for ways to beat the latest and greatest security systems. When any company gets hacked and client information, or money, is stolen it is an absolute disaster for that company. Especially in the society we will live in where everything is driven by social media, the word of this disaster will spread which is basically a disaster for business.
    In Jack’s last paragraph, I thought he brought up a very important topic, which is speed and efficiency. In our world today which is filled with smartphones, data, and fast wireless, speed is critical. Most millennials have never had to experience dial up internet and have only known internet that loads right away. Our generation most likely couldn’t fathom having to wait for internet longer than thirty seconds, and I could even argue that even thirty seconds is too long. A company having a fast and efficient product can be a huge game changer. It is what can put one company clear cut in front of another. With Big Data and Analytics, companies can focus on being bigger, faster, and stronger. As Jack mentioned, being up to date with wireless technologies such as the cloud, it can be incredibly cost efficient. When companies are creating such huge savings for themselves they are able to put that money towards other aspects of their business allowing them to continue to grow.
    I also believe that the information that Big Data and Analytics provides to companies will be a huge force of why this industry will reach the $203 billion plateau before 2020. As I previously stated everything is online today. The information that this data can tell companies about consumers, and potential clients can be huge. Finding out exactly what the consumer responds well or bad too can be a key business strategy. Tailoring to the consumers’ needs is key and with the big data information companies can focus their strategies on who exactly they are trying to target. Between this sort of consumer information and security I would not be surprised at all if this plateau is reached before 2020. Technology has been advancing so rapidly that it’s difficult to predict an accurate time frame.

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  2. Jack chose a very interesting article for his blog post. As big data continues to grow as a field of study, so does the market for big data. Jack explained the main reason for the growth of this industry is within banking, and more specifically reporting and analysis tools in addition to data warehouse management systems. Jack brought up the point of spending more money for security and compliance-related issues. Expanding on his point, I believe companies should be concentrating the vast majority of their big data money in these sectors. In the news it is becoming more and more common to hear of cyber security breaches. In my opinion, I believe it is vital to protect against these breaches due to the implications these breaches have on a company. These breaches tarnish the reputation of a company as well as hurting the stock price of the company (if it is publically traded). Additionally, it is important for a company to have all of their files on record in the case of E-Discovery, which we talked about in detail in class. For this reason, it is important for companies to put a large amount of their money into storage of big data to ensure they are able to produce this information at a moments notice by the FBI, the IRS, or any other governing agency.

    While Jack explained that big data is valuable to cost reduction, faster and better decision-making, along with the development of news products and services, I think his most important point was when he said, “…companies are capable of gauging customer needs and satisfactions which ultimately allows them to meet customers needs and or exceed them by creating new products and services that are designed based off of trends seen in their analysis.” Expanding on this point, I believe this is how companies should utilize big data to the fullest, due to the fact that this benefits not only the companies, but their consumers as well. If companies can predict trends more accurately, they can then offer better products and services to their customers. In the future I believe companies will be able to predict what consumers want even before they know what they want! This will make the customers happier as well as the companies because products will fly of the shelves along with having services be in high demand. In the grand scheme of things big data analytics is relatively new, which leaves plenty of room for expansion in the future, and I believe the market could even extend beyond $203 billion by 2020, but only time will tell how it really plays out.

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  3. Jack's post does a great job of analyzing the growing trend of business and governments investing in big data. The 11.7% growth figure Jack quotes from the IDC shows that decision makers are aware of the need for their organizations to better store, protect and understand the troves of data they poses on various segments of their business from consumer behavior to industry trends.

    Jack's explains the major financial strains that go along with housing and protecting this type of data, but because of the value at risk, firms are willing to invest in the necessary infrastructure, be it hardware or cloud solutions to support and secure their data. While big data analytics and analysis is not a new practice, the value and benefits businesses see from implementing these strategies is changing every day. Due to the nature of our digitally connected generation, firms are able to collect metrics that they never had access to before. This allows them to make highly educated decisions about product development, marketing engagement and operations management in an ever fluid environment.

    In life, if you don't adapt and try to make yourself better, you will be left behind. The same can be said in the business world when talking about big data analytics investments. The firms that see the value and put their money behind it will continue to reap the benefits, while those who don't will quickly find it difficult to compete. Jack's article shows that many businesses understand this concept and racing to get be the leader in their respective industry.

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  4. Jack’s blog post does a good job at providing new insight into Big Data and Analytics. Especially, when he mentioned how there is an expected 11.7% growth in the Big Data and analytics market. This tremendous growth rate should not be surprising, since most corporations implement the use of Big Data and analytics within their infrastructure.

    Especially, how Jack mentioned that the banking industry would be the largest player contributing to this growth. Big Data and Analytics will be crucial to the banking industry since everything is online-based services and the need for brick and mortars are declining. Banks will need Big Data and analytics when it comes down to risk management and providing better and more efficient infrastructures to serve their clients. I like how Jack gave an example of a firm being audited and they will need to present their financial records to the IRS, FBI, etc.

    The whole point of implementing Big Data and analytics is to aggregate information and then use that information to reduce costs, make better decisions, and develop new products/services that will hopefully improve efficiency for their clients. I agree with Jack that companies will use the data found from their analysis to create new products and services based off of trends.

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