Post by Renee Real
Everywhere you turn, you hear the term “Big Data”. What does Big Data mean to you and how will it impact you and your business in the near future? Having access to high-quality channel data in real time can help you make smarter business decisions and allow you to be more agile than your competitors. Why? Because hidden inside the massive amounts of structured and unstructured channel data that is collected on a daily basis are key organizational, partner and end-customer insights.
On that note, below are some facts about big data that demonstrate its importance in today’s business environment.
- According to the 2015 IDG Enterprise Big Data Research study, businesses will spend an average of $7.4 million on data-related initiatives in 2016.
- According to McKinsey, a retailer using Big Data to its fullest potential could increase its operating margin by more than 60%.
- Bad data or poor quality data costs organizations as much as 10-20% of their revenue.
- A 10% increase in data accessibility by a Fortune 1000 company would give that company approximately $65 million more in annual net income.
- Big Data will drive $48.6 billion in annual spending by 2019.
- Data production will be 44 times greater in 2020 than it was in 2009. Individuals create more than 70% of the digital universe. But enterprises are responsible for storing and managing 80% of it.
- It is estimated that Walmart collects more than 2.5 petabytes of data every hour from its customer transactions. A petabyte is one quadrillion bytes, or the equivalent of about 20 million filing cabinets’ worth of text.
- By 2020 one third of all data will be stored, or will have passed through the cloud, and we will have created 35 zetabytes worth of data.
- A 2015 report by Cap Gemini found that 56% of companies expect to increase their spending on big data in the next three years.
- There will be a shortage of talent necessary for organizations to take advantage of Big Data. By 2018, the United States alone could face a shortage of 140,000 to 190,000 skilled workers with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use Big Data analytics to make effective decisions.
You can see from the above statistics that Big Data really is a big deal. However, don’t just collect data for the sake of collecting it. If you do, you’ll end up with a massive digital graveyard. To get the most out of your data, you need to have a clear plan in place for how you will manage and use your data along with a goal for what you want to accomplish with it. Remember, unlike wine, data doesn’t get better with age. So if you have invested resources to collect, store, and report data, then you need to put your data to work to get the most value out of it.
All of the above statistics emphasize the underlying fact that organizations need to have processes, systems, and tools in place to help them turn raw data into useful and actionable information. Do you have the right tools in place to get the most out of your channel data? Can you turn your channel data into channel intelligence? Please leave a comment below on what your company has done to make the most of Big Data.
For information on how to turn your channel data into channel intelligence, visit www.modeln.com/resources/product/channel-data-management for a variety of white papers, customer success stories and educational webinars that can help you do just that.