In a way the IDC forecast this blog is linked to is as useful as saying the world population will grow to 10 billion by 2060. We all know it's growing but countries like Germany suffer from declining population with the opposite in India. And we probably won't test the actual forecast in 2060!
The IDC forecasted investment in analytics & big data projects of 56% by 2020 covers such a wide and varied range of use cases from simple visualisations to complex predictive analytics.
Analytics and big data are both a means to an end. In my opinion, one reason for continued rapid growth is a continual disappointment in the actual results achieved to date. Too many analytics projects are ill-conceived and still work on top of questionable data. So let's try this big data stuff (even though we have not mastered the basic data and analytics yet)
Beyond the vanity driving some of the C-Level suite to adopt the best looking visualisations, to impress peers and customer, should lie higher ideals.
Making and executing better decisions that will make a big & positive change in business, science, non-profits, central and local government.
Unless leaders clearly know:
- what decisions need to be made
- how they will be executed effectively
- what data is required to drive this decisioning process
they should not invest!
When deeply involved in product marketing at Cadbury I well remember the old saying "Half the money I spend on advertising is wasted; the trouble is I don't know which half."
I have a gnawing feeling that a similar worry may haunt many investors in analytics and big data projects today. The way to avoid that is to start at the right place, make sure the data is effectively prepared and managed before dipping the toe in yet more analytics technology.
And terminology- teke so called data lakes; they may hide monsters and swimming in them can be dangerous!
Services-related spending will also experience the strongest growth throughout the forecast, with a five-year CAGR of 14.9%. Software investments will grow to more than $60 billion in 2020, led by purchases of End-User Query, Reporting and Analysis Tools and Data Warehouse Management Tools. Content Analytics Tools and CRM Analytic Applications will see above-average growth (CAGRs of 18.5% and 10.4% respectively) as companies expand their big data and analytic activities. Hardware investments will grow at a CAGR of 8.7%, reaching $29.9 billion in 2020.