According to a newly published study by Telsyte, Big Data analytics is fast becoming the ultimate way to “empower CEOs and boards” to drive innovation, amid a growing realisation that the information era is leaving traditional decision making methods behind.
“We are seeing a new generation CEO, who no longer relies on a hunch or gut feel to determine the future direction of their organisation,” Telsyte senior analyst Shayum Rahim says.
Telsyte predicts that if the CEO is not a data scientist themselves, the organisation will certainly have one on the executive team within the next few years.
This Telsyte study found that more than 70% of large Australian organisations - those with 200 employees or more - will become “data-driven” by 2019, increasing from today’s figure of around a third of large businesses, mainly found in the retail, manufacturing and government sectors.
And, according to research conducted with CIOs, CMOs and other business and technology leaders, 38% of large businesses are currently using Big Data analytics, albeit with many organisations still at the early stages of maturity.
Telsyte’s Big Data Maturity Model evaluated organisations through six stages of maturity based on a range of factors including infrastructure, skills and knowledge, budgets and deployment.
While the research found that there are still many barriers to Big Data analytics adoption in Australia, such as the ongoing skills shortage, and infrastructure and data integration challenges, the desire by today’s leaders to use data to transform their businesses is such that many are looking to external service providers to overcome such barriers.
According to Telsyte, big data investments outside of the remit are fuelling the growth of IT spending - around 5% of organisations have Line of Business (LOB) spending on technology surpassing that of the IT department.
Telsyte expects this IT spending trend to continue, driven by solutions that utilise data from Internet of things, social media and digital marketing, while the main spenders outside of IT were Management (63%), Operations (62%) and Marketing (54%).
For many organisations, Telsyte says the Big Data journey has begun with their e-commerce, CRM and marketing data, and this is creating a more empowered CMO.
“Data does not just inform; ideally, it persuades,” Telsyte senior analyst and digital marketing lead Steven Noble says.
“Data-driven leaders in fields like marketing, eCommerce and executive management use insights to craft inspiring stories that bathe the company, its customers and its competitive environment in a whole new light.”
The study also profiles a number of vendors across Big Data infrastructure, data management and analytics products including Cloudera, Hortonworks, MAPR, EMC, Hitachi Data Systems, NetApp, IBM, Oracle, Pivotal, Microsoft, SAS, Splunk and Tableau Software.
Telsyte also reviewed a range of new entrants which it says are taking the challenge to the traditional data management vendors.
“The new entrants are an important part of the landscape because they bring a more flexible approach that can lower the barriers to entry, such as subscriptions and pay per use,” Rahim said.
Rahim says the study has determined that on average, two thirds of organisations investigating Big Data solutions are also looking to increase technology OPEX spending in the next 12 months, creating lucrative opportunities for vendors and service provider alike.