the big data market: a real business opportunity?

When talking about business and innovation, big data is the fashionable subject. Revolutionary and bearer of a market with strong growth or next economic bubble, there are multiple opinions on the subject. Let us review the sectors that are the most advanced in its use and what slows down the least developed sectors in the field.

Where do these data come from? Internet penetration is now estimated at 80% in developed countries. Champion of emerging countries, China equips at high V speed: In 2012, 42.4% of households had access to the web, they are 52.1% in 2016 (source EMC-IDC). More than 2.4 billion people use the Internet in the world. By 2020, the number of data produced globally will be multiplied by 30 to 35 zettabytes. These data are also complex to process: they are poorly structured (50% according to a study by Tata Consultancy Services), of different types, sources and formats. They require treatment prior to any use by a non-specialized company.


Promising growth
So, are they a real manna? The big data market is valued at $54.3 billion in 2017 (5 times more than in 2013) with an estimated growth of more than 30% (according to Mushroom Networks). The use of big data first became obvious for the finance market that perceived its potential first. Then health developed the first diagnostic aids, and finally the public sector seized the opportunity offered by the knowledge of its users on a large scale. The sector can expect a saving of 15% to 20% of its operating costs, fight against fraud and improve the payment of taxes (source McKinsey). In Europe, this would represent a savings of 250 billion Euros. Large retailers would benefit on average by 60% additional operating profitability. In the United States it is almost $ 300 billion in revenue each year – twice the amount of a year spent in health care in Spain, for example, that would supply the sector.

 

Unequal sectors facing big data

However, all economic sectors are not at the same level of result of additional performance and assimilation of big data in their practices. McKinsey mapped those who maximized their productivity by taming mega data. McKinsey mapped those who maximized their productivity by taming mega data. In the first place, information technology and the information sector are preparing to earn significant profits. Then follows finance services, insurance companies and administrations, but they are already hampered by barriers to use. The firm, however, points out the sectors still in “fallow”: utilities, water management, health or the trade of consumer goods, has not always had good productivity growth. We noticed today that the political will and the marketing targeting of the specialists in the treatment of big data come together in these domains. We can therefore expect a strong growth in these sectors.

 

The obstacles to the appropriation of big data in companies

However, it is now estimated that only 5% of the data produced is actually exploited. A study made by IBM aggravates this finding and provides an explanation: one out of three business leaders make regular decisions without using the information they need and half do not have access to information. They need to do their job to the maximum. By refining the sector, one realizes that the structural problems that prevent the correct use of the data (which nevertheless exist!): In the health sector, the low rate of IT investment results in a lack of technical tools, the public and education have little or no culture of Data (source McKinsey).

To the technological barriers are also human constraints in full exploitation of big data by the business managers in the companies. For example, 82% of companies surveyed by McKinsey believe that they do not have the appropriate profiles to process and use their own data. There is also the need to change perceptions: for 81% of companies, performance indicators do not contribute to better sales. Finally, the last obstacle to full deployment of big data culture in companies is finance. The investment costs to acquire the necessary IT infrastructure are perceived as too high, that is 40% of companies (source IDC). To avoid missing this opportunity in times of budget restrictions, 46% of DSI opt for a sophisticated selection of data to be used.

Enfin, le dernier obstacle à un plein déploiement de la culture big data dans les entreprises est financier. Les coûts d’investissements pour acquérir les infrastructures IT nécessaires est perçu comme trop élevé par 40% des entreprises (source IDC). Pour ne pas passer à côté de cette opportunité en période de restriction budgétaire, 46% des DSI optent pour une sélection affinée des données à utiliser.
The fall of the cost of cloud will therefore be one of the levers for deploying Big Data solutions.

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