CIOs May Embrace Big Data Or Become Irrelevant
Every organization must become a big data-driven business to succeed and survive in the modern market, according to a new report, which states at the same time, the good news is that 70% of CIOs consider their organization’s ability to exploit value from big data as critical to their future success.
The study states that 65% IT decision makers say they risk becoming irrelevant and/or uncompetitive if they do not embrace big data and an equal percentage of CIOs are seeing big data changing traditional business boundaries, enabling non-traditional providers to move into their industries.
Key takeaways of the study include:
-64% of senior executives said that big data is changing traditional business boundaries and enabling non-traditional providers to move into their industry. Companies report a significant level of disruption from new competitors moving into their industry from adjacent industries (27%), and over half (53%) expect to face increased competition from start-ups enabled by data.
- 56% believe their investment in big data over the next three years will outstrip past investment in information management. Of these, 15% expect investments in big data will significantly exceed past investment in information management.
- 65% of senior executives agree that they risk becoming irrelevant and/or uncompetitive if they do not embrace big data. In fact, well over half (59%) say that the data their organizations hold is becoming a core component of their market value. Data is already becoming as important as their traditional products and services for these enterprises.
- Nearly half (47%) of senior executives agree that their organizations’ IT systems are not optimized to enable business decision makers to effectively do their jobs. Of these, 16% strongly agree with that assessment, with just 26% disagreeing. CXOs see the need for increasing the cadence of their IT systems’ improvements to keep pace with the many customer, supplier and key stakeholder requirements outside their organizations.
- 45% view their current internal IT development cycles for new analytics to be too long and not matching their business requirements. Over half (52%) consider the speed of their organization’s insight generation based on successful analytics application development and implementation to be constrained by its existing IT development processes. This is why C-level executives are beginning to redefine senior management roles to include analytics and big data. Many are focused on getting ahead of the quickening pace of insights that big data analytics has the potential to deliver.
- 43% of organizations are restructuring and reorganizing their organizations to exploit big data opportunities. 33% have appointed C-level roles in order to exploit data opportunities, with an additional 30% planning to introduce C-level roles this year. The majority of senior executives interviewed are making significant structural changes to their businesses to gain greater insights from big data analytics. With so many senior executives seeing mastery of analytics critical to their survival and relevancy, these strategic shifts in enterprises will most likely accelerate in the next three years.
The study notes enterprises going through four distinct opportunity models as they transition investments into big data. These are efficiency and cost focus; growth of existing business streams; growth through market disruption from new revenue streams; and monetization of data itself, with the creation of new lines of business.
The study found that while every industry predicts potential new revenue streams based on monetizing data, healthcare, IT/ITeS and telecom will benefit the most from big data.
We have reached an inflection point in the market,” remarked John Brahim, head of Capgemini’s Insights & Data global practice. “Information is at the heart of every business decision and companies need to fully embrace the opportunities of big data or risk losing out in the market place.”
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