Can Big Data Analytics Give You A Competitive Edge?

The new global report, ‘Big & Fast Data: The rise of Insight-Driven Business’, conducted by Capgemini shows that two thirds of companies believe that they can get ahead of their market competitors by using big data analytics.

The study analysed businesses from all over the globe and with 64% of businesses acknowledging that big data analytics can change “traditional business boundaries”, it is no wonder that more and more up and coming companies are putting big data analytics to good use, in a direct move to try and put themselves ahead of current market leaders.

On the other side of the coin, the study showed that one quarter of respondents are noticing increased competition from these newcomers, with 53% stating that they expected more from the emerging companies who were already utilising big data.

Head of Capgemini Insights and Data Global Practice, John Brahim, sums up his opinion on why companies must embrace big data, stating: “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.”

He reports how Capgemini’s research has shown that many companies are utilising big data to cut down on the amount they spend, as well as using the insight big data provides to improve organisational performance. Many more companies are using the learnings they gain from big data to push forward into new markets and “ultimately monetise data in its own right.”

The report shows that over half (59%) of those surveyed recognise how important data analytics is when considering their company’s market value. Some (43%) have even gone so far as to restructure their company in order to explore and capitalise on big data.

R “Ray” Wang is the Principal Analyst and Chairman for Constellation Research, a Silicon Valley research firm. He emphasises how “success requires the mastery of data to decisions.” He believes that the “ability to ingest all types of data, transform data to information, surface up insights and take action on insights” will result in companies being increasingly innovative and thus improve their products and/or services in ways that the industry does not expect; in other words the mastery of a big data analysis model will lead to ‘disruptive business models’.

Wang reinforces the idea that companies will not be able to gain a competitive edge in the marketplace without integrating big data into their business models. He firmly believes that “organisations must build for big data business models and insight economies”. With so many start-ups taking this view directly to heart and embracing big data, incumbents must therefore sit up and take notice, or risk falling way behind!