New research released by Hitachi Data Systems reveals that almost half of the firms surveyed in Asia Pacific believe that big data can improve revenue by 25% or more, with HDS projecting a potential US$250 billion revenue increase among the more than 500 companies surveyed. However, more than half of firms have made little or no progress in their Big Data strategies.
Executives at HDS believe it is essential for business executives to adopt a new approach where they think of “data as a capital asset” and to define a holistic big data strategy that will deliver insights and intelligence. This change in focus will enable organizations to innovate with information and generate incremental income.
“Today, most organisations have a limited data-capital ‘budget ‘that prevents them from realising the full potential of the information they hold,” said Neville Vincent, senior vice president and general manager, Asia Pacific, HDS. “Staff members long for more information and realise its revenue potential, but lack access to it. It is time for C-level executives to ensure cultural alignment throughout their organisations, and to treat data like a capital asset that can bring a significant impact to their business.”
“Our vision is for businesses of all shapes and sizes to use advanced technologies to realise the value of their organization’s data. Members of the IT department need to be involved in the business planning cycle much earlier and more tightly integrated to the business in order to deliver essential information and insights to the people who can use it to drive business innovation and realize incremental income,” adds Vincent.
Slow Adoption but Promising Benefits of Big Data
The survey results were published in an Economist Intelligence Unit (EIU) Asia Pacific Big Data Survey, sponsored by HDS, titled The Hype and the Hope:The Road to Big Data Adoption in AsiaPacific. The survey was conducted with over 500business executives in Asia Pacific. Results show that Asia Pacific firms have had limited success so far in implementing big data practices. While a third say they are well advanced, more than half say they have made only limited progress. Some 80% of front-line employees said that they believe improved access to data is critical, with only 19% able to access the data they need.
Despite the lack of progress, respondents believe in the ability of big data to improve their businesses: more than 70% say that it can deliver gains in productivity, profitability, and innovation.
The reasons for slow adoption of big data strategies are diverse. Respondents cite poor internal communication and information sharing as well as a lack of in-house skills and software. Nearly two-fifths say their company’s big data strategy has not been well communicated. The limited take-up also flies in the face of the wider belief that effective use of data matters; more than three-quarters believe it is critical to success.
Telecommunications (67%), consumer goods (57%) and financial services (52%) industries are leaders in recognising that Big Data can greatly improve their understanding of customer needs. However, more than 60% of the firms in the financial services and consumer goods industries haven’t started any big data programs. Healthcare and life science are lagging further behind; 72% of them haven’t started any big data programs.
HDS believes that organisations have to address the issues and maximize the value of big data by turning it into business intelligence.
According to HDS, C-level executives should realise the significant impact of Big Data on their revenue and competitiveness, and take ownership for defining a big data strategy. Organisations should adopt policies that help break down silos, improve internal communications, and establish advanced technology platforms that can support information management and analysis.