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Global big data final
Global big data final
Global big data final
Global big data final
Global big data final
Global big data final
Global big data final
Global big data final
Global big data final
Global big data final
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Global big data final

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  • 1. GLOBALBIGDATA2013March 2013Based on new research to 469 global IT and Marketing professionalsthis report provides a simple strategic overview of Big Data in 2013and beyond
  • 2. Contents Introduction .......................................................................................................... 3 What is Big Data? ................................................................................................ 3 The Marketing and IT Disconnect ................................................................. 4 Perception Problems for IT and Marketers .................................................. 5 Big Data: The Opportunity ............................................................................... 6 How to Maximize Big Data ..................................................................... 6 Create a New Strategic Team ................................................................. 6 Find the Talent and Keep It ..................................................................... 6 Human Element ........................................................................................ 6 Big Data: The Challenge .................................................................................... 7 Lack of Communication Between Top Managers .............................. 7 People not Technology .............................................................................. 7 Perceived Skills Gap? ................................................................................. 7 Big Data: The Future .......................................................................................... 8 Legal ............................................................................................................... 8 Industries ...................................................................................................... 8 Geographical Differences ......................................................................... 8 - Consumers in US and Europe .................................................................... 8 - North America .......................................................................................... 9 - Asia-Pacific Region .................................................................................... 9 Big Data: Up until 2030 ...................................................................................... 9 Conclusion ............................................................................................................. 9 2
  • 3. IntroductionBig Data is becoming a Big Problem. Dan Gardner, author of ‘Future Babble: Why Expert Predictions Fail and Why WeBelieve Them Anyway’, says, ‘’In this ocean of data is a frighteningly complete picture of you. Where you live, whereyou go, what you buy. What you say. What you feel and believe. It’s all there.’’ The problem is companies do not knowwhat to do with it. Furthermore, the traditional role of IT has changed and has blurred the boundaries between IT andMarketers.IDG Connect conducted a Big Data survey of 469 Marketers and IT professionals to find out whether they see Big Dataas a challenge or opportunity and whether it should be handled by IT or Marketing. The results showed that although58% of Marketers and 51% of IT professionals think it should be handled by both departments; in practice, this is notbeing achieved.The aim of this short report from IDG Connect is to examine some of the factors causing the disconnect betweenMarketers and IT professionals and the implications for Big Data.What is Big Data?According to McKinsey Global Institute, “Big Data refers to datasets whose size is beyond the ability of typicaldatabase software tools to capture, store, manage and analyze.” In simpler terms, as IT guru, Buck Woody says, “Bigdata is the data that you aren’t able to process and use quickly enough with the technology you have now.”To get a fuller picture of how massive Big Data actually is, IBM estimates that each day—every day—the world creates2.5 quintillion bytes of new data. According to industry analyst firm IDC, if you are an adult between the ages of 45and 59, you create 1.8 million gigabytes of data about yourself each year. This is on top of the 4.1 million gigabytes ofambient information that already exists about you in the digital universe.Perhaps, the most frustrating aspect for businesses everywhere is the fact that they know that they should be utilizingthe data, but the question remains how. From an IBM study of more than 1,700 Chief Marketing Officers in 2011, 71%say they are under-prepared to deal with the ‘data explosion’ they face in the marketing arena, even as 79% say thatcustomer analytics influence their strategy decisions.IBM study of 1700 Chief Marketing Officers 2011 111001111011 111001 11101 1 000011001110001110 000011001 111000111 0100011100111101110010 01000111001 1111011100 00100001100111000111000 001000011001 1 11100011100 0 0 10100011100111101110010 1010001110011110111001 0 000111001 1 0 00100001100111000111000 0010000110011100011100 0 1 0 10 10100011100111101110010 1010001110011110111001 0 10 1 0100001100111000111000 010000110011100011100 100111000 000111001111011100 00011100111101110 0011001110001 0011001110001 71% 79% say they are under-prepared to deal say that customer analytics with the ‘data explosion’ influence their strategy decisions 3
  • 4. The Marketing and IT DisconnectThe findings of our Big Data survey show that out of 469 respondents, 58% of Marketers and 51% of IT professionalsbelieve that strategic data should be handled by IT and Marketing. Yet, when asked about how much collaborationthere is between IT and Marketing in their organizations, only 19% of Marketers and 13% of IT professionals thinkthere is full collaboration. When asked to what extent they see Big Data as a challenge or opportunity in theirorganization, only 3% of Marketers and 6% of IT saw it as a massive challenge. 26% of Marketers and 29% of IT see BigData as a complete opportunity. Big Data Survey Should strategic data be handled by IT or Marketing How much collaboration is there between IT and Marketing Marketng i IT Marketng i IT 58% 51% 19% 13% believe it should be believe it should be think there is full think there is full handled by both handled by both collaboration collaboration Is Big Data seen as a challenge or opportunity? Massive Chanllenge Complete Opportunity Marketng i IT Marketng i IT 3% 6% 26% 29% see it as a massive see it as a massive see Big Data as a complete see Big Data as a complete challenge challenge opportunity opportunityThese results make it clear that both sides would like to see more collaboration in handling Big Data. But they alsoshow that the two sides are not working as closely together as they should be. As Kimberly Whitler, contributor atForbes notes, “Big Data requires math, stats, and problem solving skills.” Marketing on the other hand, is hard tomeasure. It is more ‘art’ than ‘science’. 4
  • 5. Perception Problems for IT and MarketersThe IT guys are perceived as being too ‘research focused’ and unable to relate the numbers to ‘human behavior andinsights’. On the other hand, Marketers are criticized for relying too much on ‘intuition’ and not using the data tounderstand their audience. A recent study by Infogroup Targeting Solutions and Yesmail Interactive, found that 45% ofMarketers identified analyzing or applying customer information as the biggest data-related challenge they will facethis year. Only 11% said data collection will be their most difficult task.The surge of Big Data has been a recent development and organizations are now struggling with having too muchdata and not enough insight. In the past, Marketers couldn’t always prove a direct relationship between marketingand growth. Now, for the first time (thanks to Big Data), they are able to. Marketers can now use analysis to back uptheir insights. The data can provide accountability for marketing initiatives. Marketers are known for being the expertswhen it comes to customer experience, but now they can use data and analytics to understand precisely how thecustomer experience relates to revenue.The stats show that marketers are struggling. A Nucleus Research study shows that an incremental 241% ROI canbe generated by applying data to business decisions. However, only 11% of marketers use data to make businessdecisions today.According to infochimps, 55% of Big Data projects don’t get completed, and many others fall short of their objectives.A recent survey from Neolane and the Direct Marketing Association, found that many marketers don’t have a specificstrategy in place to handle the amount of data their organization is collecting. 60% of the more than 250 mid-andexecutive level marketers who responded to the survey said they weren’t ready for the challenges of Big Data, andmore than half said they were augmenting their marketing team and technology investments to become betterprepared. 81% percent reported they are either somewhat or not very prepared when it comes to the new rules andregulations of marketing data governance.As Tony Mooney, Deputy Managing Director of Sky IQ says, ‘There is an assumption across the board that ‘more datais better’ but we are in danger of forgetting that the only aim of data collection is to deliver better insights and makebetter decisions’.One of the questions in the survey asked if they had unlimited power, how would they handle big data? It was foundthat both parties shared similar views on what they would do. Both agreed that they would hire Data Scientists andinvest in ‘technology and resources’ to ‘realize the full value of Big Data’. Other commentators also shared similaropinions, agreeing that mining experts should be used with use of the social networks. 5
  • 6. Big Data: The OpportunityAccording to our survey, only 26% of marketers and 29% of IT see it as a complete opportunity. Considering all thebenefits associated with utilizing Big Data, this is a surprisingly low figure. So why aren’t more marketers and ITprofesionals embracing it? According to Dun & Bradstreet CIO Walt Hauck the companies that ‘get’ big data and use itto better serve their customers will be the ‘haves’. Those that don’t might as well open a corner bookstore.How to Maximize Big DataOur own survey asked IT and Marketers: if they had unlimited power, how would they handle Big Data? Theresponses were varied with some interesting crossovers between the two departments. For instance, both sidesagreed that more investment in Data Scientists is needed with a few of our commentators saying ‘hire the best in thefield’. There was also agreement in investing in more technology to ‘realize the full value of Big Data’. One Marketersaid to ‘invest or develop infrastructure’ and an IT commentator said to ‘purchase the best tools available’. However,there were also some differing opinions. For instance, one IT commentator said to ‘create a new strategic team toresolve the Big Data challenge.’Create a New Strategic TeamPerhaps finding the ideal ‘Data Scientist’ is not possible but creating a powerful team with the mixture of the rightskill-set is. Big Data initiatives could bring together individuals with equal expertise in data, analytics and business.Ideally, this team approach should be built to enhance collaboration between business units with self-organizing,cross-functional teams.Find the Talent and Keep itAccording to Randy Bean and Steve Maxwell of NewVantage Partners, many major employers are losing Big Datatalent to startups with ‘cool’ locations. There have also been many stories of major companies finding the rightcandidate - only to lose out to a startup that offered more money and a better work environment. Employers need tomodify their expectations, build the right teams in the right location and compensate talent adequately if the region isto establish itself as the pre-eminent Big Data capital of the world.Human ElementSo what is the correct way to go about handling Big Data? Is it best to overhaul the entire department or simply hirethe right leader? According to Graham Clark, Director of CRM & Multichannel Experiences and Max Fresen, VicePresident & Executive Director of Roundarch Isobar, the key in both lies in rethinking the way that data relates to thehuman element of our work. Any organization that hopes to make it in the future needs to: make the data actionable,develop a creative process that incorporates data analysis, and bring different members of the team together early onin the process. 6
  • 7. Big Data: The ChallengeInfochimps’ recent survey of more than 300 IT department employees identified the top items that IT team memberswould like their CIOs to understand concerning their big data projects. 76% of respondents said that the mostsignificant challenge they face when working with big data is accessing the data siloed in various business applicationsacross the organization. When asked for the top reason why IT projects in general fail, 58% listed inaccurate scope asthe top reason. Top items that IT would like their CIOs to understand Top reasons why IT projects fail concerning their big data projects 76% 5 1 58% said the most listed significant challenge innaccurate is accessing the scope as the top data siloed in reason 2 4 various business applications across the organization 3Lack of Communication Between Top ManagersAccording to some commentators, one of the biggest factors is lack of communication between top managers whoprovide the overall project vision, and the data scientist and other IT staff charged with actually implementing it.According to infochimps’ findings, far too frequently their opinions are taken as an afterthought, and consequentlyonly considered when projects veer off-course. Given the stakes, it is imperative that CIOs have a 360-degree of allthat Big Data project will involve.People not Technology?There seems to be a widely held belief that the only way to deal with the surge of Big Data is to invest in biggerresources. However, some argue that more technology is not necessarily the correct answer. Some believe that thebiggest obstacle to Big Data is people – not technology. There are challenges around organizational development andchange. Organizations are looking to create new roles, processes and programs to leverage Big Data. Yet expandingtheir teams with new leadership that understands Big Data is not as easy as it sounds.Perceived Skills Gap?According to a report by the McKinsey Global Institute, the research arm of the consulting firm projected that theUnited States needs 140,000 to 190,000 more workers with ‘deep analytical’ expertise and 1.5 million more data-literate managers, whether retrained or hired. However, according to a Big Data Executive survey, nearly 64% ofrespondents stated that it was ‘very difficult to find or hire’ or ‘impossible to find or hire’ data scientists. Nine out often are actively seeking out data scientists, while two-thirds are trying to restrain personnel.Our own survey found that both marketers and IT professionals agree that there needs to be investment in DataScientists. So how can this be done? At the M.I.T. conference, Ms Schutt was asked what makes a good data scientist.She replied the requirements should include computer science and math skills, but you also want someone who has adeep, wide-ranging curiosity, is innovative and is guided by experience as well as data. 7
  • 8. Big Data: The FutureLegalIt is not only marketing and IT professionals who have been impacted by Big Data. Companies have many challengesto deal with regarding how to utilize Big Data. But that is the least of their problems. The laws and regulationsregarding Big Data internationally are blurry. The added complexity of managing information in the form ofdocuments, spreadsheets and email spread across physical and virtual networks only exasperates the problem. Theproliferation of tablets and smartphones means data can be accessed anywhere. As Dave Einstein of Forbes says, ‘it’spractically impossible for big companies to keep track of it all’.IndustriesIn a new report from Transparency Market Research, the financial services, healthcare and the public sector arecurrently the top three drivers of growth in the big data market. Growing demand for data analysis tools is expectedto see big data become increasingly prominent in many different sectors, particularly healthcare, media andentertainment.Geographical DifferencesThe Big Data market is set to only get bigger. The global big data market will be worth $48.3 billion in five years’ time,expanding at a compound annual growth rate (CAGR) of 40.5% between 2012 and 2018. According to TransparencyMarket Research, rapid development in the sector is predicted as more organizations seek to manage surgingvolumes of unstructured information. The research firm also believes storage will be the fasted-growing segmentover the next five years. Between 2012 and 2018, this area of the market will post a CAGR of 45.3%.“This can be attributed to the exponential increase in the amount of data across different sectors,” the report stated.- Consumers in the U.S. and Europe?A survey by the analyst house Ovum has found a similar antipathy towards online tracking on both sides of theAtlantic. And that, they say, could have big implications for big data. Ovum, in a recent survey of about 11,000 peopleacross 11 countries, found that 68% said they would use a do-not-track feature if it was easily available on a searchengine. Just 14% of respondents said they believe internet companies are honest about their use of personal data. Inaddition to consumer concerns about online privacy, governments in Europe and North America are looking at newways to protect consumer data through regulation. 8
  • 9. - North AmericaAccording to the stats, North America will lead the way. The region generated nearly 55% of Big Data revenues lastyear. By 2018 it will still remain the leader, with a projected 54.5% share of the worldwide market.But the fastest growth will take place on the other side of the globe.- Asia-Pacific regionThe Big Data technology and services market in the Asia-Pacific, excluding Japan, is expected to grow from US$258.5million in 2011 to $1.76 billion in 2016, on the back of a 46.8% five-year compound annual growth rate. The highestgrowth for the individual segments of the market is expected to come from storage (56.1 %), followed by networking(55.8%) and services (48.3%).Additional findings from IDCs study show that the Asia-Pacific region has markets with unique traits, such aspopulation mega-centres, distributed manufacturing hubs, and fluid regulations on data sharing, which are creatingsignificant new opportunities with Big Data.In Asia-Pacific, many organisations are starting to investigate the new technologies in order to capture, manage, andanalyse data that are high in volume, velocity, or variety in an affordable way. Although there are multiple scenariosthat could unfold and many demand and supply variables remain in flux, IDC expects the market to exhibit stronggrowth over the next five years.Big Data: Up until 2030What does the future hold for Big Data? Will data continue to grow exponentially or will it all amount to a BigNothing? Jim Whitehurst, CEO of Red Hat looked has predictions about Big Data that are two decades ahead.Whitehurst predicts that in 20 years Big Data will have gone mainstream. We will increasingly be able to use analyticsto better orchestrate how a business collects, analyzes and distributes information. CMOs and CIOs aside, DataScientists will be the ones in charge, although which department they will be working in is a bit blurry.ConclusionThere is no doubt that Big Data offers many opportunities for Marketers and IT. But overcoming the perceptionsassociated with these two very different departments is an obstacle that will prove challenging. Our survey revealedthat Marketers and IT believe that the two should handle Big Data together. However, due to different methods ofworking and various other obstacles, a big change needs to happen in order to bring the two sides together. Whilethis seems like an impossible task, there is hope on the horizon. Interestingly, our survey did reveal shared opinions onhow IT and Marketers would like to handle Big Data. Perhaps if we start implementing some of these shared solutions,then the gap can be filled and two different minds can finally come together. 9
  • 10. About IDG ConnectIDG Connect is the demand generation division of International Data Group (IDG), the world’s largest technologymedia company. Established in 2005, it utilises access to 38 million business decision makers’ details to unitetechnology marketers with relevant targets from any country in the world. Committed to engaging a disparate globalIT audience with truly localised messaging, IDG Connect also publishes market specific thought leadership papers onbehalf of its clients, and produces research for B2B marketers worldwide. For more information visit:http://www.idgconnect.com/ 10

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