Why businesses will spend $189b on big data and analytics this year
Organizations that pilot AI and other emerging technologies seem to make headlines, however, a solid data analytics platform is the key enabling all other technologies.
It’s why IDC’s latest forecast suggests that the big data analytics solutions market will be worth US$189.1 billion this year and see double-digit annual growth for the next few years up to 2022.
Between 2018 and 2022, IDC’s analysts forecast that this segment will see a compounded annual growth rate (CAGR) of 13.2 percent.
In contrast, worldwide spending on AI systems is estimated to be growing at a CAGR of 37.3 percent between 2017 and 2022 but spending on AI and cognitive products only reached US$24 billion last year and is expected to only total US$77.6 billion by 2022.
The difference between the spending on big data and analytics platforms and AI and cognitive solutions is quite significant because the former is the base for the latter and all other digital transformation projects.
“Digital transformation is a key driver of big data and analytics spending with executive-level initiatives resulting in deep assessments of current business practices and demands for better, faster, and more comprehensive access to data and related analytics and insights,” said IDC’s Analytics and Information Management Group VP Dan Vesset.
“Enterprises are rearchitecting to meet these demands and investing in modern technology that will enable them to innovate and remain competitive.”
Whether you’re running a supermarket, a petrol pump, or even working in the public sector, understanding data is critical to gaining visibility into the future, harmonizing processes, building synergies, and gaining efficiencies.
Tech Wire Asia recently spoke to supermarket chain owner Mydin’s Head of Business Reporting and Analysis Alwan Ahimmat who emphasized the need to get analytics right as a fundamental first step to digital transformation.
“Supermarkets don’t need more technology, they need to learn to use the technology they already have,” claimed Ahimmat.
The discussion with the Reporting and Analytics professional shed light on the fact that Supermarkets (and all other businesses) need to learn how to make the most of the data they have by analyzing it and putting those insights to use before rushing out to invest in other technologies.
At the end of the day, data analytics is what helps businesses understand the customer and provide them with products and services that match their expectations.
It’s also what helps delight customers with an experience that not only matches the brand’s ideals and ethos but also provide a degree of tailoring and customization.
This year, as more organizations get moving with their digital transformation agenda, analytics solutions will not only see significant growth in terms of revenues but will also see more interesting use cases as creativity is unlocked by leaders who leverage the platform to create smarter solutions for employees and customers.