Why Data Is the New Business Currency
The majority of surveyed business execs said big data is a driver of revenue and is becoming as valuable to their businesses as existing products and services.
A universal truth in business is that all roads lead to data. In an increasingly complex and connected world, the ability of an organization to collect, manage and analyze data effectively separates the winners from the runners-up.
A report from Capgemini and co-sponsored by EMC, Big & Fast Data: The Rise of Insight-Driven Business, has put a microscope to the topic. The research and consulting firm surveyed more than 1,000 C-suite and senior decision-makers around the globe. Overall, 65 percent of respondents indicated that their organizations are at risk of becoming uncompetitive due to the highly competitive data landscape. More than one-half (52 percent) believe that such efforts are hampered due to limitations in their IT development processes.
Among the key insights:
*36 percent said that, due to the strategic importance of big data, they have had to circumvent IT teams to carry out the necessary data analytics required to gain business insights.
*64 percent indicated that big data is changing traditional business boundaries and enabling new providers to move into their industry.
*54 percent reported that their big data investments over the next three years will outstrip past investments.
*43 percent already have or are currently reorganizing in order to exploit new big data opportunities.
*61 percent acknowledge that big data is now a driver of revenues in its own right and is becoming as valuable to their businesses as their existing products and services.
*24 percent of companies reported disruption from new competitors moving into their industry.
CIOs and other business and IT executives should take note. Any discussion about data must start with the realization that it is now an extreme disruption point on the path to progress. In fact, some observers believe that data could soon emerge as a bona fide currency. As the report points out: "The real battle is for the data that delivers the most relevant and pertinent insights -- the combination of data sets that enable effective and more rapid monetization of data."
This means combining data from customers, social media, machines and the Internet of things. It means finding new ways to transform the data into information and knowledge. In the end, Capgemini CEO John Brahim noted, organizations that do not act…and react appropriately, face a "serious threat to survival."