Tech Analysis / Big Data Plus IoT: Opportunities Too Big to Ignore

Big Data Plus IoT: Opportunities Too Big to Ignore

By Michael Vizard | Posted 2014-10-20

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Investments in Big Data Analytics Already Substantial

Just over half (51%) reported that 21% to 30% of their IT budget is allocated to big data analytics. Another 22% said it's more than 30%.
Analytics Tops Big Data Investments

On average, organizations report that analytics consumes about 36% of their big data budgets.
Big Data Analytics Investments to Increase

A full 76% said big data analytics investments will increase next year. The other 24% say they will stay the same.
Big Data Plus IoT Equals Big Money

The "industrial Internet" is projected to be worth $500 billion by 2020 and account for $15 trillion of the global GDP by 2030.
Influencers of Big Data Analytics Adoption

The CEO and board of directors clearly wield the most influence. Line-of-business executives and chief financial officers have less influence than CIOs.
Top Drivers of Big Data Analytics Adoption

Avoiding the potential loss of market share and investor confidence leads the list. The threat of losing talent and the inability to catch up to competitors investing in big data are also major concerns.
Big Data Capabilities

Most companies said they can already collect big data, but only 40% said they can make predictions based on that data. Only 36% said they currently use big data to optimize operations.
Big Data Business Goals

The top goals were increased profitability, followed by gaining a competitive edge and reduced environment impact. Regulatory compliance was lowest on the list.
Big Data Organizational Impact

Half of the respondents reported that a centralized analytics group would be formed; the other half said a group within IT would be formed. Almost half said they would appoint a chief analytics officer.
Big Data Talent Gaps

Analyzing data (56%), interpreting results (48%) and gathering data (48%) were cited as major areas where there are talent gaps. Only 9% of the respondents said they have no talent issues.
Filling the Big Data Talent Gaps

A full 63% said they will make new hires, but 55% will partner with other organizations. More than half (54%) said they will rely on big data providers.
Big Data Impediments

Only 10% said they are experiencing no issues whatsoever. Having separate silos of data and issues with security and data collection topped the list of obstacles.
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Companies are invested heavily in big data but often need help from outside organizations, according to a new study conducted by Accenture and GE. The study, based on a survey of 250 business and IT executives at organizations with revenue of more than $150 million, found that 73 percent already allocate a substantial amount of their IT budgets to big data. Those investments are set to increase in the coming year as companies leverage the data they have to improve profitability and market share. From a solutions provider perspective, the most compelling aspect of those investments is that more than half the respondents said they will look outside their organizations for big data help. The "industrial Internet"—the combination of big data analytics with the Internet of things (IoT)—is projected to be worth $500 billion by 2020 and continue growing. "Are companies ready for more predictive and innovative kinds of value-creating solutions? The answer here is mostly "not yet," but they are actively positioning themselves for such solutions," the report said. For many solution providers, that means big data and the IoT will be just too big an opportunity to ignore. Here are key takeaways from the study.