Time to Tap into the Burgeoning Data Economy

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Time to Tap into the Burgeoning Data Economy



IT providers that gather, aggregate, purify and redistribute big data are spawning a fresh economy. Deploying comprehensive, intelligent data analytics platforms helps decision makers gain untold ...

IT providers that gather, aggregate, purify and redistribute big data are spawning a fresh economy. Deploying comprehensive, intelligent data analytics platforms helps decision makers gain untold competitive advantages.



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Time to Tap into the Burgeoning Data Economy Document Transcript

  • 1. 24 2013 Issue 02 | dell.com/powersolutionsBusiness intelligenceSpecialsectionHorizontal segmentation inthe overall IT market todaytypically maps to five industryareas: semiconductors,hardware, software, telecommunicationsand professional services. Dell, forexample, participates in the hardware,software and professional services areas.But an anomaly buried in the usualsegmentation has existed for severaldecades, glossed over because dataproviders represented such a slender sliceof the IT market. That slice has widenedconsiderably since 2000, and now thetime has come to recognize that marketsegment: the data economy.Even though many of these IT suppliersoperate as not-for-profit entities, EnterpriseStrategy Group (ESG) estimates the aggregatedrevenues of data providers in the dataeconomy market now run in excess ofUS$100 billion in annual revenues. Bycomparison, ESG estimates that the softwareand core services revenues associated withbusiness intelligence (BI) and data analyticsplatforms are around US$20 billion.1BI analytics platforms, including theToad™ Business Intelligence Suite from therecent Dell acquisition of the Quest Softwareportfolio, are the foundational software forbig data. Altogether, the adjunct productsand services required to harness big data —such as servers, networking, storage andprofessional services — likely still trail thedata economy in terms of market size. ESGbelieves the data economy is growing evenfaster than big data.Time to tap into the burgeoningdata economyIT providers that gather, aggregate, purify and redistributebig data are spawning a fresh economy. Deployingcomprehensive, intelligent data analytics platforms helpsdecision makers gain untold competitive advantages.By Evan Quinn1 ”Is Big Data the Tail Wagging the Data Economy Dog?” by EvanQuinn, ESG blog, April 2013, qrs.ly/tz3bu3x.Reprinted from Dell Power Solutions, 2013 Issue 2. Copyright © 2013 Dell Inc. All rights reserved.
  • 2. dell.com/powersolutions | 2013 Issue 02 25Identifying key data providersA number of large providers populate thisexpanding data economy, including Acxiomand LexisNexis. Other large providers that maynot be as familiar are Interactive Data, focusedon the securities arm of the financial servicesindustry, and Zyme, focused on channel datafor global technology organizations. And somedata providers focus on a particular industryor role. DataLab USA, for example, offers dataspanning the insurance, credit, healthcare andreal estate industries.Organizations looking to classify industries —for example, to optimize search capability — canuse the World Access Network Directory (WAND).They can also consult the Bureau of Labor Statisticsof the U.S. Department of Labor to help gainan understanding of job taxonomies and datathereof. In addition, as part of the movement todemocratize data, Data.gov provides a portal forU.S. government–sourced data from 39 states,41 countries and a host of other governmentalorganizations. The Open Archives Initiativeis another example of data democratization.While not-for-profit organizations are importantparticipants in the data economy, the U.S. PostalService also offers data products for a price tohelp offset its rather notorious unprofitability.Provisioning comprehensiveinformation flowMany commercial providers such as LexisNexisoffer a variety of products to help understandthe data they provision. These offerings includemetadata, guidelines on how to efficientlyingest and use the data, and even tools toperform data analysis on a scale befitting bigdata. Many data providers offer informationabout the data they distribute, includingmetadata, or at least how to interpolatethe metadata. Data providers generally gather,aggregate, qualify, refine and distribute data,preferably with enhanced ease.In many ways, data can be referred to as thenew oil — a metaphor that can be extended toother raw materials or natural resources. Thebasic idea that data acts as the raw material foran increasing number of business, governmentand consumer pursuits is the fundamental driverbehind the data economy.Why should business professionals, dataanalysts or chief information officers (CIOs) careabout the data economy? One big reason isthat their competitors may have already jumpedahead of them by tapping into it. For example, anorganization that is highly dependent on channelpartners with little visibility into the performanceof individual resellers, other than some simplemonthly reports and word of mouth, may besignificantly over- or under-investing in variouschannels. Meanwhile, a competitor workingwith a BI platform to analyze data providedby Zyme might have a far clearer grasp ofreseller performance than the channel partner–dependent organization, and making effectiveworkflow and investment decisions accordingly.In this example, if an organization is not pluggedinto the data economy, what it doesn’t know mayindeed be hurting it.Capitalizing on data economy opportunitiesData analysts, with help from their IT departments,may have done a fantastic job culling all theinternal data available for BI and data analyticalpurposes. However, that internal data maylack context, or perhaps it could be furtherenriched with third-party data. Some big dataBI and data analytics platform vendors, such asAlteryx, make it easy to tap into data providersby offering relevant, built-in data services fromthose providers. The third-party data looks just“CIOs should think of the data economyas another external resource, likepublic cloud computing or professionalservices, that may be brought tobear to help the IT departmentdeliver the best possible informationtechnology for the business.”Data economyinsightsVisit the ESG Slice and Dice blogto follow Evan Quinn and readmore about his insights andfindings on the data economy,data management and theanalytics technology segment.bit.ly/slice-dice-blogReprinted from Dell Power Solutions, 2013 Issue 2. Copyright © 2013 Dell Inc. All rights reserved.
  • 3. 26 2013 Issue 02 | dell.com/powersolutionsBusiness intelligenceSpecialsectionlike an internal data source to data analysts using such afeature, except they may have to pay for the data. Regardless,the data analyst or scientist who regularly scans andpotentially uses external data for BI and data analytical modeldevelopment is using a best practice. Data analysts who mineonly internal data sources are potentially overlooking majorinsight opportunities.CIOs should think of the data economy as another externalresource, like public cloud computing or professional services,that may be brought to bear to help the IT department deliverthe best possible information technology for the business.If the CIO has a chief data officer (CDO), the CDO shouldcertainly track potential external sources for the data needs ofthe organization. If the organization has a chief digital officer,that individual should likewise be tapping into third-party data,as applicable, and perhaps consider using the organization’sinternal data as a revenue-generating asset.The big data movement has largely been technology-based. But the innovation for much of the core technologyfor big data, such as the Dell | Cloudera Hadoop Solution,was originally developed by Web 2.0 organizations includingYahoo and Google for business purposes. BI and dataanalytics platforms offer the tools to gain deeper insightsinto business performance, market opportunities, researchand development, and customer understanding. However,like an automobile, they are merely the tools. Data is the fuelthey need to run on, and expanding that data will come fromoutside the firewall.Overseeing data repositoriesFor IT departments, a technology stewardship role is nolonger enough. IT leaders and their data professional partnersin the lines of business increasingly carry the responsibility toensure that their enterprise has all the right data, from insideand outside the organization. This data helps accelerateorganizational outcomes, from daily tactical operations throughstrategic decision making.Learn moreEnterprise Strategy Group:esg-global.comToad Business Intelligence Suite:quest.com/business-intelligence-suiteAuthorEvan Quinn is senior principal analyst at Enterprise Strategy Group.Reprinted from Dell Power Solutions, 2013 Issue 2.Copyright © 2013 Dell Inc. All rights reserved.