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.