In the last two posts from this IDC research series, we spoke about the IT challenges when implementing a Big Data solution and, the top ten business areas driving Big Data growth. In our final post, we look at the findings that some industries are becoming clear adopters of Big Data and Analytics. This can be due to a number of reasons but we believe this is mainly down to how organisations in these industries perceive the value of their data in not only responding to the demands of their customers, but for forward business planning and continuous improvement.
The top ten verticals:
1. Discrete Manufacturing and 2. Process Manufacturing
At the top of the adopters list are two manufacturing sectors. According to a recent study from the Aberdeen Group: on complex decision making and big data, top manufacturing performers are building up their Big Data and advanced analytics activities to help them take control of manufacturing complexity.
Manufacturing, especially in the UK, has had a rough ride over the past few years but a recent survey from the SMMT showed UK car manufacturing grew 7% in July, and year-to-date volumes are up 1.9%. Although this is only one area from the manufacturing sector, it is a great to see that after a number of rough years – through a double dip recession, UK manufacturers are seeing this uptick in the economy as a good time to invest in technology which can help them achieve many process improvements.
Government organisations are well known for their huge volumes of data and, according to the Policy Exchange, the UK government could save up to £33 billion a year by using public Big Data more effectively. Governments are investing heavily in this new technology and in the many different areas they cover, such as; Tax and Revenue collections, Security, Fraud, Healthcare, Citizen Management and many others. Technology innovation adoption within the Public Sector normally lags behind the private sector so it is refreshing to see Government as number 3 on this list.
4. Communications and Media
While the digital age has been hard on almost every segment of the media, it also offers significant opportunities for forward-thinking organisations to harness the masses of online data to help uncover new revenue streams and improve the utilisation of existing assets. With Big Data, media companies are embracing a culture of data-driven decision-making to make the most of their digital assets. For a more in-depth view of how analytics can support media companies in an ever-changing digital world please click here.
5. Banking and 6. Professional Services 7. Insurances
We group these three verticals together under the banner of “Financial Services” owing to the similarities in the ways that these sectors use Big Data. A survey published in June 2013 by the University of Oxford revealed that 71% of financial services organisations already use Big Data and Analytics – almost double the number of just two years ago. For these firms, Big Data delivers much needed competitive advantage in an industry that’s still feeling the effects of the worldwide financial crises. For example, Big Data can help improve profit margins using insights extracted from many disparate sources including daily transactions, market feeds, customer account and service information, location data and click streams. The result is real-time intelligence and insight that can be used to transform go to market strategies and to create new business models and services.
With the vast amounts of data gathered by retailers every day, Big Data opens up new opportunities for organisations to improve operations in almost every area of the business. Large retailers can use Big Data to streamline operations, improve the customer experience, analyse marketing campaigns, increase sales and maximise profitability. According to a report by Mckinsey, a retailer using Big Data and Analytics to the fullest extent could increase its operating margin by more than 60 percent.
As healthcare costs continue to rise, private hospitals and healthcare organisations are looking to apply Big Data to help improve care, reduce readmissions and increase the effectiveness of treatments. Data in the healthcare industry resides in multiple places like individual EMRs, lab and imaging systems, physician notes, medical correspondence, claims, CRM and finance systems. Improving access to this data and using it for advanced analytics can help healthcare organisations to improve patient care and outcomes, incentivise the right behaviour for staff and clinicians and drive internal operating efficiencies. Not only will this benefit the healthcare organisations financially, but the benefits to the patients’ health should also rise.
Big Data can offer dramatic business improvements to companies in the utilities industry. Advanced metering infrastructure (AMI), commonly known as “smart metres” are now replacing aging, traditional meters that require manual readings. With years of historical customer data combined with smart metre data, a utility company is in possession of the data that’s needed to improve efficiencies, reduce downtime and improve customer service. Big Data and Analytics will offer utilities companies a way to intelligently exploit masses of smart metre data to better monitor and forecast energy consumption patterns, identify inefficient energy use and improve customer segmentation to tailor service offerings based on customer behaviour.
As the story of Big Data transformation continues to grow we’ll no doubt see other industriesAnalytics and Big Data embracing the benefits of this new technology too. Mathematician Lord Kelvin was famously quoted “If you cannot measure it, you cannot improve it.” Which is exactly the premise of Big Data. Without a doubt, Big Data will improve the customer experience and will provide richer, more informative analysis instantly. The only question that remains, is when will you embrace it?
The IDC is a global provider of market intelligence and advisory services for the IT and telecoms industries. These three blog posts represent research from the IDC, sponsored by SAP.