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The Data Economy: 2016 Horizonwatch Trend Brief

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The slides provide a quick overview of the Data Economy trend. The slides provide summary information, a list of trends to watch and links to additional resources

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The Data Economy: 2016 Horizonwatch Trend Brief

  1. 1. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. The Data Economy IBM HorizonWatch 2016 Trend Brief – External Version Bill Chamberlin, Principal Client Research Analyst / IBM HorizonWatch Community Leader May 9, 2016
  2. 2. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. About This HorizonWatch Emerging Trend Brief 2 The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016  Purpose: The slides provide a quick overview of the Data Economy trend. The slides provide summary information, a list of trends to watch and links to additional resources  How To Use This Report: Use these slides as a learning document and a springboard to further research and reading on this trend. You may want to view the slides in slideshow mode so you can easily follow the links  Available on Slideshare: The latest version of this file (and other HorizonWatch Trend Reports for 2016) will be available publically on Slideshare at http://www.slideshare.net/horizonwatching  Please Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
  3. 3. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Defining the Data Economy Definition: The data economy refers to the ability of enterprises to leverage big data and analytics as a corporate asset to make strategic business decisions, improve operational efficiencies and drive revenue growth as well as create new and innovative business models. The data economy also refers to the increasing effort by enterprises to monetize data as a saleable organizational asset as organizations increasingly seek to harness data for business decision making. 3 Enabling Technologies: • Networks, protocols and basic software for the Internet of Things (IoT) • IoT devices including sensors, low power processors, hubs/gateways and cloud computing platforms. • Embedded analytics • Cloud Computing • Emerging Big Data and data storage technologies, such as MapReduce, Hadoop, Apache Spark, NoSQL databases, etc. • Data Governance & Integration tools InformationWeek: 8 Ways to Monetize Data “Information has economic value that organizations can "turn into money" in two ways: 1) By selling, bartering or licensing it, 2) By using it to reduce costs or increase revenue.” Gartner: Seven Steps to Monetizing Your Information Assets The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016
  4. 4. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Characteristics of the Data Economy: • Explosion in creation, capture and dissemination of increasingly granular and substantially more personal data • Value in data, metadata and derived data enhanced by situational, contextual, historical, and temporal factors and user dependent. • Growth in data sharing across organizational, business process and enterprise silos increases business impact. Key Takeaways: • Possession of data provides power and control in the insight value chain • Insight on combined data delivers the highest return The Data Economy: Data is a primary driver of value Source: 451 Research “Many organizations do not manage customer data as a corporate asset, and the monetary value of that data is often ignored” - Gartner 4 The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016
  5. 5. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. The Data Economy – 4 trends to watch in 2016 1. Data emerges as revenue source. Some leading edge companies believe monetization of data could become as important as their current offerings. 2. Cross-enterprise integration unlocks data monetization opportunities. As more enterprises invest in cloud, IoT and big data solutions, they will seek solutions to integrate and harmonize data. Enterprises that are able to overcome data complexity and achieve integration will be able to identify and capitalize on opportunities to monetize data. 3. Rise in connected devices and IoT platforms create new feeds. Enterprise IT decision makers turn to analytics solutions for connected devices. The ability to optimize IoT analytics to identify true value, and translate valuable data into saleable assets, will be key to differentiation. 4. Personalization will be a key data economy driver. Delivering personalized, contextually relevant customer experiences will remain a key driver of data economy growth, particularly as enterprises aim to unlock value from unstructured social media sources. Success stories in translating social media data to revenue will lead to data monetization opportunities. 5 “Gartner predicts that 30 percent of businesses will have begun directly or indirectly monetizing information assets via bartering or selling them outright by 2016.” Gartner How to Monetize Your Customer Data “By 2020, data monetization efforts will result in enterprises pursuing digital transformation initiatives increasing the marketplace's consumption of their own data by 100-fold or more.” IDC Worldwide Big Data and Analytics 2016 Predictions IBM - Driving Value Through IoT Data Monetization The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016
  6. 6. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. The Data Economy – Adoption Challenges  Getting started. One of the initial issues is figuring out where to start. Companies collect vast amounts of information about everything from prospects and customers to suppliers, processes, and operations Determining the most important data points and how to monetize them is often a big first hurdle.  Managing industry specific data needs. Big data requirements can vary significantly by industry and different audiences require information in different ways, posing a challenge to sellers and buyers of data.  A lack of sophisticated tools for data integration and analysis. Complex data sets are often poorly structured for big data analysis and integration. Any data monetization effort requires the integration, cleansing, securing, and governance of diverse data sets.  Finding and retaining data scientists and other related staff. Successfully managing vast amounts of data requires resources with unique skillsets and forward-looking mindsets. As the data economy is still nascent, finding, training, and retaining best-in-class data scientists to manage big data objectives poses a challenge. 6 “Through 2017, 60 percent of big data projects will fail to go beyond piloting and experimentation, and will be abandoned.” Gartner Press Release IBM - The top 7 challenges for data- driven CXOs The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016
  7. 7. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected links to additional resources • Accenture: Data Monetization: What’s Your Data Worth? • Digital Agenda For Europe: Worldwide Big Data Technology and Services - 2012-2015 Forecast • Digital Agenda For Europe: Towards a thriving data-driven economy • EMC: Monetizing your data to create new revenue streams • IBM - Driving Value Through IoT Data Monetization • IDC: Monetizing your data • InformationAge: The future of the data economy: how to measure the true value of your data assets • Information Builders: Data Monetization Strategies • InformationWeek: 8 Ways to Monetize Data • KPMG: Framing a winning data monetization strategy • McKinsey: Big data: The next frontier for innovation, competition, and productivity • Strategy&: The data gold rush • U.S. Chamber of Commerce Foundation: The Data-Driven Economy • Wikibon.org: The Data Economy Manifesto 7 “The increasing volume and detail of information captured by enterprises, the rise of multimedia, social media, and the Internet of Things will fuel exponential growth in data for the foreseeable future” - McKinsey Global Institute InformationAge: The future of the data economy: how to measure the true value of your data assets The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016

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