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GLOBAL
BIG
DATA
2013
March 2013

Based on new research to 469 global IT and Marketing professionals
this report provides a simple strategic overview of Big Data in 2013
and beyond
Contents
           Introduction .......................................................................................................... 3

           What is Big Data? ................................................................................................ 3

           The Marketing and IT Disconnect ................................................................. 4

           Perception Problems for IT and Marketers .................................................. 5

           Big Data: The Opportunity ............................................................................... 6

                    How to Maximize Big Data ..................................................................... 6

                    Create a New Strategic Team ................................................................. 6

                    Find the Talent and Keep It ..................................................................... 6

                    Human Element ........................................................................................ 6

           Big Data: The Challenge .................................................................................... 7

                   Lack of Communication Between Top Managers .............................. 7

                   People not Technology .............................................................................. 7

                   Perceived Skills Gap? ................................................................................. 7

           Big Data: The Future .......................................................................................... 8

                   Legal ............................................................................................................... 8

                   Industries ...................................................................................................... 8

                   Geographical Differences ......................................................................... 8

                        - Consumers in US and Europe .................................................................... 8

                        - North America .......................................................................................... 9

                        - Asia-Pacific Region .................................................................................... 9

           Big Data: Up until 2030 ...................................................................................... 9

           Conclusion ............................................................................................................. 9



                                                                                                                                             2
Introduction

Big Data is becoming a Big Problem. Dan Gardner, author of ‘Future Babble: Why Expert Predictions Fail and Why We
Believe Them Anyway’, says, ‘’In this ocean of data is a frighteningly complete picture of you. Where you live, where
you go, what you buy. What you say. What you feel and believe. It’s all there.’’ The problem is companies do not know
what to do with it. Furthermore, the traditional role of IT has changed and has blurred the boundaries between IT and
Marketers.

IDG Connect conducted a Big Data survey of 469 Marketers and IT professionals to find out whether they see Big Data
as a challenge or opportunity and whether it should be handled by IT or Marketing. The results showed that although
58% of Marketers and 51% of IT professionals think it should be handled by both departments; in practice, this is not
being achieved.

The aim of this short report from IDG Connect is to examine some of the factors causing the disconnect between
Marketers and IT professionals and the implications for Big Data.




What is Big Data?
According to McKinsey Global Institute, “Big Data refers to datasets whose size is beyond the ability of typical
database software tools to capture, store, manage and analyze.” In simpler terms, as IT guru, Buck Woody says, “Big
data is the data that you aren’t able to process and use quickly enough with the technology you have now.”

To get a fuller picture of how massive Big Data actually is, IBM estimates that each day—every day—the world creates
2.5 quintillion bytes of new data. According to industry analyst firm IDC, if you are an adult between the ages of 45
and 59, you create 1.8 million gigabytes of data about yourself each year. This is on top of the 4.1 million gigabytes of
ambient information that already exists about you in the digital universe.

Perhaps, the most frustrating aspect for businesses everywhere is the fact that they know that they should be utilizing
the data, but the question remains how. From an IBM study of more than 1,700 Chief Marketing Officers in 2011, 71%
say they are under-prepared to deal with the ‘data explosion’ they face in the marketing arena, even as 79% say that
customer analytics influence their strategy decisions.



IBM study of 1700 Chief Marketing Officers 2011



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                           71%                                                     79%
              say they are under-prepared to deal                         say that customer analytics
                    with the ‘data explosion’                          influence their strategy decisions



                                                                                                                        3
The Marketing and IT Disconnect
The findings of our Big Data survey show that out of 469 respondents, 58% of Marketers and 51% of IT professionals
believe that strategic data should be handled by IT and Marketing. Yet, when asked about how much collaboration
there is between IT and Marketing in their organizations, only 19% of Marketers and 13% of IT professionals think
there is full collaboration. When asked to what extent they see Big Data as a challenge or opportunity in their
organization, only 3% of Marketers and 6% of IT saw it as a massive challenge. 26% of Marketers and 29% of IT see Big
Data as a complete opportunity.


 Big Data Survey

 Should strategic data be handled by IT or Marketing               How much collaboration is there between IT and
                                                                                    Marketing
        Marketng
              i                         IT                              Marketng
                                                                              i                             IT




          58%                          51%                                19%                              13%
    believe it should be          believe it should be               think there is full             think there is full
     handled by both               handled by both                     collaboration                   collaboration




 Is Big Data seen as a challenge or opportunity?

                  Massive Chanllenge                                                Complete Opportunity

       Marketng
             i                          IT                              Marketng
                                                                              i                              IT




          3%                           6%                                 26%                               29%
    see it as a massive         see it as a massive             see Big Data as a complete        see Big Data as a complete
         challenge                   challenge                          opportunity                       opportunity




These results make it clear that both sides would like to see more collaboration in handling Big Data. But they also
show that the two sides are not working as closely together as they should be. As Kimberly Whitler, contributor at
Forbes notes, “Big Data requires math, stats, and problem solving skills.” Marketing on the other hand, is hard to
measure. It is more ‘art’ than ‘science’.




                                                                                                                           4
Perception Problems for IT and Marketers

The IT guys are perceived as being too ‘research focused’ and unable to relate the numbers to ‘human behavior and
insights’. On the other hand, Marketers are criticized for relying too much on ‘intuition’ and not using the data to
understand their audience. A recent study by Infogroup Targeting Solutions and Yesmail Interactive, found that 45% of
Marketers identified analyzing or applying customer information as the biggest data-related challenge they will face
this year. Only 11% said data collection will be their most difficult task.

The surge of Big Data has been a recent development and organizations are now struggling with having too much
data and not enough insight. In the past, Marketers couldn’t always prove a direct relationship between marketing
and growth. Now, for the first time (thanks to Big Data), they are able to. Marketers can now use analysis to back up
their insights. The data can provide accountability for marketing initiatives. Marketers are known for being the experts
when it comes to customer experience, but now they can use data and analytics to understand precisely how the
customer experience relates to revenue.

The stats show that marketers are struggling. A Nucleus Research study shows that an incremental 241% ROI can
be generated by applying data to business decisions. However, only 11% of marketers use data to make business
decisions today.

According to infochimps, 55% of Big Data projects don’t get completed, and many others fall short of their objectives.
A recent survey from Neolane and the Direct Marketing Association, found that many marketers don’t have a specific
strategy in place to handle the amount of data their organization is collecting. 60% of the more than 250 mid-and
executive level marketers who responded to the survey said they weren’t ready for the challenges of Big Data, and
more than half said they were augmenting their marketing team and technology investments to become better
prepared. 81% percent reported they are either somewhat or not very prepared when it comes to the new rules and
regulations of marketing data governance.

As Tony Mooney, Deputy Managing Director of Sky IQ says, ‘There is an assumption across the board that ‘more data
is better’ but we are in danger of forgetting that the only aim of data collection is to deliver better insights and make
better decisions’.

One of the questions in the survey asked if they had unlimited power, how would they handle big data? It was found
that both parties shared similar views on what they would do. Both agreed that they would hire Data Scientists and
invest in ‘technology and resources’ to ‘realize the full value of Big Data’. Other commentators also shared similar
opinions, agreeing that mining experts should be used with use of the social networks.




                                                                                                                            5
Big Data: The Opportunity

According to our survey, only 26% of marketers and 29% of IT see it as a complete opportunity. Considering all the
benefits associated with utilizing Big Data, this is a surprisingly low figure. So why aren’t more marketers and IT
profesionals embracing it? According to Dun & Bradstreet CIO Walt Hauck the companies that ‘get’ big data and use it
to better serve their customers will be the ‘haves’. Those that don’t might as well open a corner bookstore.


How to Maximize Big Data
Our own survey asked IT and Marketers: if they had unlimited power, how would they handle Big Data? The
responses were varied with some interesting crossovers between the two departments. For instance, both sides
agreed that more investment in Data Scientists is needed with a few of our commentators saying ‘hire the best in the
field’. There was also agreement in investing in more technology to ‘realize the full value of Big Data’. One Marketer
said to ‘invest or develop infrastructure’ and an IT commentator said to ‘purchase the best tools available’. However,
there were also some differing opinions. For instance, one IT commentator said to ‘create a new strategic team to
resolve the Big Data challenge.’


Create a New Strategic Team
Perhaps finding the ideal ‘Data Scientist’ is not possible but creating a powerful team with the mixture of the right
skill-set is. Big Data initiatives could bring together individuals with equal expertise in data, analytics and business.
Ideally, this team approach should be built to enhance collaboration between business units with self-organizing,
cross-functional teams.



Find the Talent and Keep it
According to Randy Bean and Steve Maxwell of NewVantage Partners, many major employers are losing Big Data
talent to startups with ‘cool’ locations. There have also been many stories of major companies finding the right
candidate - only to lose out to a startup that offered more money and a better work environment. Employers need to
modify their expectations, build the right teams in the right location and compensate talent adequately if the region is
to establish itself as the pre-eminent Big Data capital of the world.



Human Element
So what is the correct way to go about handling Big Data? Is it best to overhaul the entire department or simply hire
the right leader? According to Graham Clark, Director of CRM & Multichannel Experiences and Max Fresen, Vice
President & Executive Director of Roundarch Isobar, the key in both lies in rethinking the way that data relates to the
human element of our work. Any organization that hopes to make it in the future needs to: make the data actionable,
develop a creative process that incorporates data analysis, and bring different members of the team together early on
in the process.




                                                                                                                            6
Big Data: The Challenge
Infochimps’ recent survey of more than 300 IT department employees identified the top items that IT team members
would like their CIOs to understand concerning their big data projects. 76% of respondents said that the most
significant challenge they face when working with big data is accessing the data siloed in various business applications
across the organization. When asked for the top reason why IT projects in general fail, 58% listed inaccurate scope as
the top reason.


     Top items that IT would like their CIOs to understand                           Top reasons why IT projects fail
              concerning their big data projects



    76%                             5           1                         58%
     said the most                                                         listed
     significant challenge                                                 innaccurate
     is accessing the                                                      scope as the top
     data siloed in                                                        reason
                                                    2
                                4




     various business
     applications across
     the organization
                                          3




Lack of Communication Between Top Managers

According to some commentators, one of the biggest factors is lack of communication between top managers who
provide the overall project vision, and the data scientist and other IT staff charged with actually implementing it.
According to infochimps’ findings, far too frequently their opinions are taken as an afterthought, and consequently
only considered when projects veer off-course. Given the stakes, it is imperative that CIOs have a 360-degree of all
that Big Data project will involve.


People not Technology?
There seems to be a widely held belief that the only way to deal with the surge of Big Data is to invest in bigger
resources. However, some argue that more technology is not necessarily the correct answer. Some believe that the
biggest obstacle to Big Data is people – not technology. There are challenges around organizational development and
change. Organizations are looking to create new roles, processes and programs to leverage Big Data. Yet expanding
their teams with new leadership that understands Big Data is not as easy as it sounds.


Perceived Skills Gap?
According to a report by the McKinsey Global Institute, the research arm of the consulting firm projected that the
United States needs 140,000 to 190,000 more workers with ‘deep analytical’ expertise and 1.5 million more data-
literate managers, whether retrained or hired. However, according to a Big Data Executive survey, nearly 64% of
respondents stated that it was ‘very difficult to find or hire’ or ‘impossible to find or hire’ data scientists. Nine out of
ten are actively seeking out data scientists, while two-thirds are trying to restrain personnel.

Our own survey found that both marketers and IT professionals agree that there needs to be investment in Data
Scientists. So how can this be done? At the M.I.T. conference, Ms Schutt was asked what makes a good data scientist.
She replied the requirements should include computer science and math skills, but you also want someone who has a
deep, wide-ranging curiosity, is innovative and is guided by experience as well as data.
                                                                                                                     7
Big Data: The Future


Legal
It is not only marketing and IT professionals who have been impacted by Big Data. Companies have many challenges
to deal with regarding how to utilize Big Data. But that is the least of their problems. The laws and regulations
regarding Big Data internationally are blurry. The added complexity of managing information in the form of
documents, spreadsheets and email spread across physical and virtual networks only exasperates the problem. The
proliferation of tablets and smartphones means data can be accessed anywhere. As Dave Einstein of Forbes says, ‘it’s
practically impossible for big companies to keep track of it all’.


Industries

In a new report from Transparency Market Research, the financial services, healthcare and the public sector are
currently the top three drivers of growth in the big data market. Growing demand for data analysis tools is expected
to see big data become increasingly prominent in many different sectors, particularly healthcare, media and
entertainment.



Geographical Differences

The Big Data market is set to only get bigger. The global big data market will be worth $48.3 billion in five years’ time,
expanding at a compound annual growth rate (CAGR) of 40.5% between 2012 and 2018. According to Transparency
Market Research, rapid development in the sector is predicted as more organizations seek to manage surging
volumes of unstructured information. The research firm also believes storage will be the fasted-growing segment
over the next five years. Between 2012 and 2018, this area of the market will post a CAGR of 45.3%.

“This can be attributed to the exponential increase in the amount of data across different sectors,” the report stated.



- Consumers in the U.S. and Europe?

A survey by the analyst house Ovum has found a similar antipathy towards online tracking on both sides of the
Atlantic. And that, they say, could have big implications for big data. Ovum, in a recent survey of about 11,000 people
across 11 countries, found that 68% said they would use a do-not-track feature if it was easily available on a search
engine. Just 14% of respondents said they believe internet companies are honest about their use of personal data. In
addition to consumer concerns about online privacy, governments in Europe and North America are looking at new
ways to protect consumer data through regulation.




                                                                                                                             8
- North America

According to the stats, North America will lead the way. The region generated nearly 55% of Big Data revenues last
year. By 2018 it will still remain the leader, with a projected 54.5% share of the worldwide market.
But the fastest growth will take place on the other side of the globe.



- Asia-Pacific region

The Big Data technology and services market in the Asia-Pacific, excluding Japan, is expected to grow from US$258.5
million in 2011 to $1.76 billion in 2016, on the back of a 46.8% five-year compound annual growth rate. The highest
growth for the individual segments of the market is expected to come from storage (56.1 %), followed by networking
(55.8%) and services (48.3%).

Additional findings from IDC's study show that the Asia-Pacific region has markets with unique traits, such as
population mega-centres, distributed manufacturing hubs, and fluid regulations on data sharing, which are creating
significant new opportunities with Big Data.

In Asia-Pacific, many organisations are starting to investigate the new technologies in order to capture, manage, and
analyse data that are high in volume, velocity, or variety in an affordable way. Although there are multiple scenarios
that could unfold and many demand and supply variables remain in flux, IDC expects the market to exhibit strong
growth over the next five years.



Big Data: Up until 2030
What does the future hold for Big Data? Will data continue to grow exponentially or will it all amount to a Big
Nothing? Jim Whitehurst, CEO of Red Hat looked has predictions about Big Data that are two decades ahead.
Whitehurst predicts that in 20 years Big Data will have gone mainstream. We will increasingly be able to use analytics
to better orchestrate how a business collects, analyzes and distributes information. CMOs and CIOs aside, Data
Scientists will be the ones in charge, although which department they will be working in is a bit blurry.




Conclusion
There is no doubt that Big Data offers many opportunities for Marketers and IT. But overcoming the perceptions
associated with these two very different departments is an obstacle that will prove challenging. Our survey revealed
that Marketers and IT believe that the two should handle Big Data together. However, due to different methods of
working and various other obstacles, a big change needs to happen in order to bring the two sides together. While
this seems like an impossible task, there is hope on the horizon. Interestingly, our survey did reveal shared opinions on
how IT and Marketers would like to handle Big Data. Perhaps if we start implementing some of these shared solutions,
then the gap can be filled and two different minds can finally come together.




                                                                                                                         9
About IDG Connect
IDG Connect is the demand generation division of International Data Group (IDG), the world’s largest technology
media company. Established in 2005, it utilises access to 38 million business decision makers’ details to unite
technology marketers with relevant targets from any country in the world. Committed to engaging a disparate global
IT audience with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on
behalf of its clients, and produces research for B2B marketers worldwide. For more information visit:
http://www.idgconnect.com/




                                                                                                                  10

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Getting Strategic with Big Data

  • 1. GLOBAL BIG DATA 2013 March 2013 Based on new research to 469 global IT and Marketing professionals this report provides a simple strategic overview of Big Data in 2013 and beyond
  • 2. Contents Introduction .......................................................................................................... 3 What is Big Data? ................................................................................................ 3 The Marketing and IT Disconnect ................................................................. 4 Perception Problems for IT and Marketers .................................................. 5 Big Data: The Opportunity ............................................................................... 6 How to Maximize Big Data ..................................................................... 6 Create a New Strategic Team ................................................................. 6 Find the Talent and Keep It ..................................................................... 6 Human Element ........................................................................................ 6 Big Data: The Challenge .................................................................................... 7 Lack of Communication Between Top Managers .............................. 7 People not Technology .............................................................................. 7 Perceived Skills Gap? ................................................................................. 7 Big Data: The Future .......................................................................................... 8 Legal ............................................................................................................... 8 Industries ...................................................................................................... 8 Geographical Differences ......................................................................... 8 - Consumers in US and Europe .................................................................... 8 - North America .......................................................................................... 9 - Asia-Pacific Region .................................................................................... 9 Big Data: Up until 2030 ...................................................................................... 9 Conclusion ............................................................................................................. 9 2
  • 3. Introduction Big Data is becoming a Big Problem. Dan Gardner, author of ‘Future Babble: Why Expert Predictions Fail and Why We Believe Them Anyway’, says, ‘’In this ocean of data is a frighteningly complete picture of you. Where you live, where you go, what you buy. What you say. What you feel and believe. It’s all there.’’ The problem is companies do not know what to do with it. Furthermore, the traditional role of IT has changed and has blurred the boundaries between IT and Marketers. IDG Connect conducted a Big Data survey of 469 Marketers and IT professionals to find out whether they see Big Data as a challenge or opportunity and whether it should be handled by IT or Marketing. The results showed that although 58% of Marketers and 51% of IT professionals think it should be handled by both departments; in practice, this is not being achieved. The aim of this short report from IDG Connect is to examine some of the factors causing the disconnect between Marketers and IT professionals and the implications for Big Data. What is Big Data? According to McKinsey Global Institute, “Big Data refers to datasets whose size is beyond the ability of typical database software tools to capture, store, manage and analyze.” In simpler terms, as IT guru, Buck Woody says, “Big data is the data that you aren’t able to process and use quickly enough with the technology you have now.” To get a fuller picture of how massive Big Data actually is, IBM estimates that each day—every day—the world creates 2.5 quintillion bytes of new data. According to industry analyst firm IDC, if you are an adult between the ages of 45 and 59, you create 1.8 million gigabytes of data about yourself each year. This is on top of the 4.1 million gigabytes of ambient information that already exists about you in the digital universe. Perhaps, the most frustrating aspect for businesses everywhere is the fact that they know that they should be utilizing the data, but the question remains how. From an IBM study of more than 1,700 Chief Marketing Officers in 2011, 71% say they are under-prepared to deal with the ‘data explosion’ they face in the marketing arena, even as 79% say that customer analytics influence their strategy decisions. IBM study of 1700 Chief Marketing Officers 2011 111001111011 111001 11101 1 000011001110001110 000011001 111000111 0100011100111101110010 01000111001 1111011100 00100001100111000111000 001000011001 1 11100011100 0 0 10100011100111101110010 1010001110011110111001 0 000111001 1 0 00100001100111000111000 0010000110011100011100 0 1 0 10 10100011100111101110010 1010001110011110111001 0 10 1 0100001100111000111000 010000110011100011100 100111000 000111001111011100 00011100111101110 0011001110001 0011001110001 71% 79% say they are under-prepared to deal say that customer analytics with the ‘data explosion’ influence their strategy decisions 3
  • 4. The Marketing and IT Disconnect The findings of our Big Data survey show that out of 469 respondents, 58% of Marketers and 51% of IT professionals believe that strategic data should be handled by IT and Marketing. Yet, when asked about how much collaboration there is between IT and Marketing in their organizations, only 19% of Marketers and 13% of IT professionals think there is full collaboration. When asked to what extent they see Big Data as a challenge or opportunity in their organization, only 3% of Marketers and 6% of IT saw it as a massive challenge. 26% of Marketers and 29% of IT see Big Data as a complete opportunity. Big Data Survey Should strategic data be handled by IT or Marketing How much collaboration is there between IT and Marketing Marketng i IT Marketng i IT 58% 51% 19% 13% believe it should be believe it should be think there is full think there is full handled by both handled by both collaboration collaboration Is Big Data seen as a challenge or opportunity? Massive Chanllenge Complete Opportunity Marketng i IT Marketng i IT 3% 6% 26% 29% see it as a massive see it as a massive see Big Data as a complete see Big Data as a complete challenge challenge opportunity opportunity These results make it clear that both sides would like to see more collaboration in handling Big Data. But they also show that the two sides are not working as closely together as they should be. As Kimberly Whitler, contributor at Forbes notes, “Big Data requires math, stats, and problem solving skills.” Marketing on the other hand, is hard to measure. It is more ‘art’ than ‘science’. 4
  • 5. Perception Problems for IT and Marketers The IT guys are perceived as being too ‘research focused’ and unable to relate the numbers to ‘human behavior and insights’. On the other hand, Marketers are criticized for relying too much on ‘intuition’ and not using the data to understand their audience. A recent study by Infogroup Targeting Solutions and Yesmail Interactive, found that 45% of Marketers identified analyzing or applying customer information as the biggest data-related challenge they will face this year. Only 11% said data collection will be their most difficult task. The surge of Big Data has been a recent development and organizations are now struggling with having too much data and not enough insight. In the past, Marketers couldn’t always prove a direct relationship between marketing and growth. Now, for the first time (thanks to Big Data), they are able to. Marketers can now use analysis to back up their insights. The data can provide accountability for marketing initiatives. Marketers are known for being the experts when it comes to customer experience, but now they can use data and analytics to understand precisely how the customer experience relates to revenue. The stats show that marketers are struggling. A Nucleus Research study shows that an incremental 241% ROI can be generated by applying data to business decisions. However, only 11% of marketers use data to make business decisions today. According to infochimps, 55% of Big Data projects don’t get completed, and many others fall short of their objectives. A recent survey from Neolane and the Direct Marketing Association, found that many marketers don’t have a specific strategy in place to handle the amount of data their organization is collecting. 60% of the more than 250 mid-and executive level marketers who responded to the survey said they weren’t ready for the challenges of Big Data, and more than half said they were augmenting their marketing team and technology investments to become better prepared. 81% percent reported they are either somewhat or not very prepared when it comes to the new rules and regulations of marketing data governance. As Tony Mooney, Deputy Managing Director of Sky IQ says, ‘There is an assumption across the board that ‘more data is better’ but we are in danger of forgetting that the only aim of data collection is to deliver better insights and make better decisions’. One of the questions in the survey asked if they had unlimited power, how would they handle big data? It was found that both parties shared similar views on what they would do. Both agreed that they would hire Data Scientists and invest in ‘technology and resources’ to ‘realize the full value of Big Data’. Other commentators also shared similar opinions, agreeing that mining experts should be used with use of the social networks. 5
  • 6. Big Data: The Opportunity According to our survey, only 26% of marketers and 29% of IT see it as a complete opportunity. Considering all the benefits associated with utilizing Big Data, this is a surprisingly low figure. So why aren’t more marketers and IT profesionals embracing it? According to Dun & Bradstreet CIO Walt Hauck the companies that ‘get’ big data and use it to better serve their customers will be the ‘haves’. Those that don’t might as well open a corner bookstore. How to Maximize Big Data Our own survey asked IT and Marketers: if they had unlimited power, how would they handle Big Data? The responses were varied with some interesting crossovers between the two departments. For instance, both sides agreed that more investment in Data Scientists is needed with a few of our commentators saying ‘hire the best in the field’. There was also agreement in investing in more technology to ‘realize the full value of Big Data’. One Marketer said to ‘invest or develop infrastructure’ and an IT commentator said to ‘purchase the best tools available’. However, there were also some differing opinions. For instance, one IT commentator said to ‘create a new strategic team to resolve the Big Data challenge.’ Create a New Strategic Team Perhaps finding the ideal ‘Data Scientist’ is not possible but creating a powerful team with the mixture of the right skill-set is. Big Data initiatives could bring together individuals with equal expertise in data, analytics and business. Ideally, this team approach should be built to enhance collaboration between business units with self-organizing, cross-functional teams. Find the Talent and Keep it According to Randy Bean and Steve Maxwell of NewVantage Partners, many major employers are losing Big Data talent to startups with ‘cool’ locations. There have also been many stories of major companies finding the right candidate - only to lose out to a startup that offered more money and a better work environment. Employers need to modify their expectations, build the right teams in the right location and compensate talent adequately if the region is to establish itself as the pre-eminent Big Data capital of the world. Human Element So what is the correct way to go about handling Big Data? Is it best to overhaul the entire department or simply hire the right leader? According to Graham Clark, Director of CRM & Multichannel Experiences and Max Fresen, Vice President & Executive Director of Roundarch Isobar, the key in both lies in rethinking the way that data relates to the human element of our work. Any organization that hopes to make it in the future needs to: make the data actionable, develop a creative process that incorporates data analysis, and bring different members of the team together early on in the process. 6
  • 7. Big Data: The Challenge Infochimps’ recent survey of more than 300 IT department employees identified the top items that IT team members would like their CIOs to understand concerning their big data projects. 76% of respondents said that the most significant challenge they face when working with big data is accessing the data siloed in various business applications across the organization. When asked for the top reason why IT projects in general fail, 58% listed inaccurate scope as the top reason. Top items that IT would like their CIOs to understand Top reasons why IT projects fail concerning their big data projects 76% 5 1 58% said the most listed significant challenge innaccurate is accessing the scope as the top data siloed in reason 2 4 various business applications across the organization 3 Lack of Communication Between Top Managers According to some commentators, one of the biggest factors is lack of communication between top managers who provide the overall project vision, and the data scientist and other IT staff charged with actually implementing it. According to infochimps’ findings, far too frequently their opinions are taken as an afterthought, and consequently only considered when projects veer off-course. Given the stakes, it is imperative that CIOs have a 360-degree of all that Big Data project will involve. People not Technology? There seems to be a widely held belief that the only way to deal with the surge of Big Data is to invest in bigger resources. However, some argue that more technology is not necessarily the correct answer. Some believe that the biggest obstacle to Big Data is people – not technology. There are challenges around organizational development and change. Organizations are looking to create new roles, processes and programs to leverage Big Data. Yet expanding their teams with new leadership that understands Big Data is not as easy as it sounds. Perceived Skills Gap? According to a report by the McKinsey Global Institute, the research arm of the consulting firm projected that the United States needs 140,000 to 190,000 more workers with ‘deep analytical’ expertise and 1.5 million more data- literate managers, whether retrained or hired. However, according to a Big Data Executive survey, nearly 64% of respondents stated that it was ‘very difficult to find or hire’ or ‘impossible to find or hire’ data scientists. Nine out of ten are actively seeking out data scientists, while two-thirds are trying to restrain personnel. Our own survey found that both marketers and IT professionals agree that there needs to be investment in Data Scientists. So how can this be done? At the M.I.T. conference, Ms Schutt was asked what makes a good data scientist. She replied the requirements should include computer science and math skills, but you also want someone who has a deep, wide-ranging curiosity, is innovative and is guided by experience as well as data. 7
  • 8. Big Data: The Future Legal It is not only marketing and IT professionals who have been impacted by Big Data. Companies have many challenges to deal with regarding how to utilize Big Data. But that is the least of their problems. The laws and regulations regarding Big Data internationally are blurry. The added complexity of managing information in the form of documents, spreadsheets and email spread across physical and virtual networks only exasperates the problem. The proliferation of tablets and smartphones means data can be accessed anywhere. As Dave Einstein of Forbes says, ‘it’s practically impossible for big companies to keep track of it all’. Industries In a new report from Transparency Market Research, the financial services, healthcare and the public sector are currently the top three drivers of growth in the big data market. Growing demand for data analysis tools is expected to see big data become increasingly prominent in many different sectors, particularly healthcare, media and entertainment. Geographical Differences The Big Data market is set to only get bigger. The global big data market will be worth $48.3 billion in five years’ time, expanding at a compound annual growth rate (CAGR) of 40.5% between 2012 and 2018. According to Transparency Market Research, rapid development in the sector is predicted as more organizations seek to manage surging volumes of unstructured information. The research firm also believes storage will be the fasted-growing segment over the next five years. Between 2012 and 2018, this area of the market will post a CAGR of 45.3%. “This can be attributed to the exponential increase in the amount of data across different sectors,” the report stated. - Consumers in the U.S. and Europe? A survey by the analyst house Ovum has found a similar antipathy towards online tracking on both sides of the Atlantic. And that, they say, could have big implications for big data. Ovum, in a recent survey of about 11,000 people across 11 countries, found that 68% said they would use a do-not-track feature if it was easily available on a search engine. Just 14% of respondents said they believe internet companies are honest about their use of personal data. In addition to consumer concerns about online privacy, governments in Europe and North America are looking at new ways to protect consumer data through regulation. 8
  • 9. - North America According to the stats, North America will lead the way. The region generated nearly 55% of Big Data revenues last year. By 2018 it will still remain the leader, with a projected 54.5% share of the worldwide market. But the fastest growth will take place on the other side of the globe. - Asia-Pacific region The Big Data technology and services market in the Asia-Pacific, excluding Japan, is expected to grow from US$258.5 million in 2011 to $1.76 billion in 2016, on the back of a 46.8% five-year compound annual growth rate. The highest growth for the individual segments of the market is expected to come from storage (56.1 %), followed by networking (55.8%) and services (48.3%). Additional findings from IDC's study show that the Asia-Pacific region has markets with unique traits, such as population mega-centres, distributed manufacturing hubs, and fluid regulations on data sharing, which are creating significant new opportunities with Big Data. In Asia-Pacific, many organisations are starting to investigate the new technologies in order to capture, manage, and analyse data that are high in volume, velocity, or variety in an affordable way. Although there are multiple scenarios that could unfold and many demand and supply variables remain in flux, IDC expects the market to exhibit strong growth over the next five years. Big Data: Up until 2030 What does the future hold for Big Data? Will data continue to grow exponentially or will it all amount to a Big Nothing? Jim Whitehurst, CEO of Red Hat looked has predictions about Big Data that are two decades ahead. Whitehurst predicts that in 20 years Big Data will have gone mainstream. We will increasingly be able to use analytics to better orchestrate how a business collects, analyzes and distributes information. CMOs and CIOs aside, Data Scientists will be the ones in charge, although which department they will be working in is a bit blurry. Conclusion There is no doubt that Big Data offers many opportunities for Marketers and IT. But overcoming the perceptions associated with these two very different departments is an obstacle that will prove challenging. Our survey revealed that Marketers and IT believe that the two should handle Big Data together. However, due to different methods of working and various other obstacles, a big change needs to happen in order to bring the two sides together. While this seems like an impossible task, there is hope on the horizon. Interestingly, our survey did reveal shared opinions on how IT and Marketers would like to handle Big Data. Perhaps if we start implementing some of these shared solutions, then the gap can be filled and two different minds can finally come together. 9
  • 10. About IDG Connect IDG Connect is the demand generation division of International Data Group (IDG), the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision makers’ details to unite technology marketers with relevant targets from any country in the world. Committed to engaging a disparate global IT audience with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of its clients, and produces research for B2B marketers worldwide. For more information visit: http://www.idgconnect.com/ 10