What is on the minds of enterprise executives as we head into 2015? According to a recent study by Accenture and GE, big data analytics. The study found that 84 percent of enterprises believe “…that big data analytics has the power to shift the competitive landscape for their industry in the next year.” Not only that, 89 percent said that companies who fail to embrace a big data analytics strategy in the next year risk losing market share and momentum.
This combination of the potential for a competitive advantage versus risk of losing market share is powerful, and enterprises have taken notice. The vast majority of respondents (80 to 90 percent) have placed big data analytics as either a top priority or a top three priority.
Why big data analytics, and why now? The study focused largely on the industrial and healthcare sectors as they relate to the potential of the “Industrial Internet” or the so-called “Internet of Things.”
What Is the Industrial Internet?
GE coined the term Industrial Internet to describe the integration of sensors, software, machine-to-machine learning and communication, complex physical machinery, big data analytics, and other technologies. The Industrial Internet brings with it the ability for connected machines, sensors, and software to better understand data from machines, analyze it, and adjust it — often in real time.
An article on Forbes.com cited data from WikiBon, which projects the value of the Industrial Internet at $500 billion in worldwide spending by 2020.
Which Sectors Is Most Interested in Big Data Analytics?
The study found that big data analytics has become a top priority in certain sectors with Aviation, Wind, Manufacturing, Rail, Oil and Gas, and Power Generation all indicating a strong interest in prioritizing big data analytics. For example, 61 percent of aviation executives said big data analytics was their top priority while 29 percent said it was in the company’s top three priorities. Wind executives were evenly split at 45 percent listing big data analytics as a top priority and 45 percent saying it was in their top three priorities.
How Are Enterprises Using Big Data Analytics Right Now?
According to the survey, the most common uses for big data analytics are as follows:
- Monitoring equipment for more proactive maintenance (65 percent)
- Connecting equipment and collecting operating data (58 percent)
- Analyzing data for useful insights (58 percent)
- Gaining operational insights for better decision making (57 percent)
- Consolidating and correlating data to feed analytical insights (48 percent)
- Making predictions based on existing data (40 percent)
- Optimizing (36 percent)
Why Is Big Data Analytics Important to Industry?
Enterprise executives expressed their beliefs that big data analytics has the potential to shift the competitive landscape and that a lack of a big data analytics strategy comes with the risk of losing both market share and momentum (Source: InetSoft). According to the survey, the top priorities of adopting big data analytics were to increase profitability, (60 percent) gain a competitive advantage for the company, (57 percent) and improve environmental safety and emissions compliance (55 percent).
- Forbes, ” 84% Of Enterprises See Big Data Analytics Changing Their Industries’ Competitive Landscapes In The Next Year,” – https://www.forbes.com/sites/louiscolumbus/2014/10/19/84-of-enterprises-see-big-data-analytics-changing-their-industries-competitive-landscapes-in-the-next-year/
- Accenture, “How the Industrial Internet is Changing the Competitive Landscape of Industries,” – https://www.accenture.com/us-en/Pages/insight-industrial-internet-competitive-landscape-industries.asp