It’s Happening! Data is Exploding! How Are You Leveraging It?

By: Praveen
Srikantaiah, Blueocean Market Intelligence Sr. Market Research Manager
In 2016, there will be 5.5 million new things connected to
each other. By 2020, there will be 20.8 billion connected things, says Gartner.
There is a sudden increase in the amount of data being
generated everyday by people, machines, and things. All of this data, when
collected, stored and analyzed can reveal valuable insights for companies. For
example, a Boeing 737′s engine generates 10 terabytes of information during a
30-minute flight.[1]
Presently, this vast amount of information goes unattended. What if companies
could harness this information in real-time? Imagine the kind of insights they
would have access to. It could help the ground control center take corrective
actions in time, saving both lives and assets worth millions.
In a smart home, devices are connected to each other and can
communicate. This generates a lot of data that should be managed well for the entire
system to function effectively. This same data can also be used by retailers to
provide services like groceries, refills, and so on to create a seamless flow
of information between systems and security. In farming, John Deere is using internet
of things (IoT) installed in farm machineries to provide farmers with
information related to crops and best practices in farming.[2] In short, they
are now also selling data besides tractors. According to a report by McKinsey,
the IoT business will deliver $6.2 trillion of revenue by 2025.[3]
The challenge lies in harnessing ‘ storing, managing,
analyzing, and synthesizing ‘ this enormous amount of unstructured data that
will only grow every day. According to an IDC report, by 2019, service
providers will have to increase datacenter capacities by 750 percent, thanks to
IoT.[4]
Do organizations have the bandwidth to handle unstructured data at that scale?
What about storage? How do we manage the unstructured data that is coming in at
such a huge volume, speed, and variety? Can an organization’s current analytics
engine process this quantum of information? These are the questions every
organization looking to leverage the power of IoT should think about now.
To understand customers better and gain a competitive
advantage, it is important for companies to take charge of their data.  The major challenges that companies primarily face
are structured around data storage, management and analytics.

Data Storage ‘ SaaS or On-Premise?
A tough question that many face is where to store their
data.  Is it at the company’s data
centers on premise, or on the cloud or a mix of both?  Unfortunately, there is no one answer to that
question.  The answer depends on the company
business model, goals around harnessing data for decision-making and industry
regulation.

For example, for companies in the healthcare industry, regulation and
compliance it may be an issue, but for others in transportation, accessing data
real-time and taking action will be crucial.
Regardless of the choice companies make, they must focus on
some core areas of concern such as scalability, security, auditability and
access of data. 
Data Management ‘ Data as a Service?
When ‘data management’ comes to mind, people often think
about ‘database management.’ ‘Database management’ deals with managing the data
that gets stored in an organization’s systems. 
‘Data management’ on the other hand, deals with provisioning data to
internal parties such as stakeholders and decision makers. 

It is very important for companies to think of ‘data management’ through the
lens of the end data ‘consumer.’ 
Sorting, arranging and categorizing data, and making it consumable to
users is an important step that organizations often overlook.  If there is a lot of data that is not
organized in a specific pattern, sequence or a recognizable format, it is as
good as useless.  In fact, one can argue
that it is a drain on the budget and a waste of money to even collect that
data.
Companies must wisely choose who performs this function in
the organization and what tools and technologies are to be employed.  SaaS tools such as LiNK automate most ‘data management’ steps and
allows organizations to harness the power of an integrated view of multiple
data sets emanating from a variety of sources.
Data Analytics
Once data is stored, organized and made available comes the
last but very exciting step in the data lifecycle management. 
Historically, organizations have relied on one or two sources
of data as ‘sources of Truth.’  In
reality, organizations can benefit from having a 360 view
of their business by intelligently analyzing an ensemble of data from a variety
of sources.
Challenges around data analytics should not only focus on
the data sets or tools and techniques organizations should employ.  The future will be one where the analytics
departments will be forced to be agile and nimble in order to be more predictive,
and drive faster and better decision-making.
Blueocean Market
Intelligence is a global analytics and insights provider that helps
corporations realize a 360-degree view of their customers through data
integration and a multi-disciplinary approach that enables sound, data-driven
business decision. To learn more, visit www.blueoceanmi.com.