Business Leaders Who Don’t Embrace Big Data Could Find Themselves Replaced By Those Who Do
Latest Findings Present View That Big Data Will Unleash Mass Innovation, Boost GDP and Productivity, But Market for Products and Services and Operational Changes Will Be Slow
Big Data will drive mainstream management strategy and executives slow to embrace it will lose competitive advantage to those who aren’t, according to just- released findings from a recent survey conducted by industry information consultancy, Knowledgent. The survey of 100 IT, financial services, insurance, life sciences and other industry executives shows that while respondents believe Big Data will unleash the next big wave of business innovation, a bottom-up approach within organizations will drive the impact.
When asked whether Big Data will elevate data-driven management practices from ‘best-practices’ into the mainstream, forcing business leaders to “embrace the paradigm or be replaced by others who do,” 83% of executives surveyed agreed. Another 71% of those surveyed said Big Data will unleash mass innovation leading to a positive impact on GDP in the next two decades as process automation did in the last three decades through productivity improvements.
However, while the majority of executives agreed that Big Data would have an enormous affect on the way they manage their organizations and on macro economic growth overall, they were more measured in their outlook on the pace of adoption cycles.
For instance, 95% agreed the value release promised by Big Data will occur bottom- up. The real value will not come from one big insight that is transformative, but from a lot of small insights that provide operational level improvements for customers and in the areas of product and risk management. This suggests an environment favorable to innovation around how Big Data-based changes can be implemented, how funding for Big Data initiatives can be structured and how quickly the market for Big Data products and services can be made to grow.
Knowledgent’s survey also confirms that unlike digitally born businesses, skepticism among traditional enterprises remains prevalent in the Big Data discussion, with 72% of respondents agreeing with the assertion that “for the most part Big Data is a solution looking for a problem,” meaning enterprise clients are still looking for business cases to justify expenditures on the technology. Finally, 74% of executives held the common view that significant consolidation over the next three to five years will reduce the over 100 small technology and service contenders in the market today to only a handful of survivors.
Of the executives surveyed by Knowledgent, 40% identified themselves as working in IT, 30% in financial services, and 30% in insurance, life sciences and other industries. The survey was conducted online for three weeks ending October 19th, 2012.