Businesses Are Investing Heavily in Big Data Analytics

big data analytics

New research shows businesses are investing heavily in Big Data Analytics; uncovers the pains of last-generation analytics tools.  Study findings reveal 96% of executives believe big data analytics is critical to business strategy; uncover ‘Fake Big Data’ problem among other issues.

Big data is more than a buzzword, as proven by how fast organizations are adopting new analytics technologies to obtain business value from it. That is the key takeaway from a Luth Research survey of large organizations currently using big data analytics software or planning to use it in the next 12 months.

Commissioned by Platfora, the Luth Research survey project involved 120 interviews with director-level or higher individuals who are decision makers and implementers of big data analytics tools and platforms at U.S.-based organizations of at least 1,000 employees.

“We knew that big data is one of the hottest areas of discussion in business circles, but prior industry research on technology adoption in these areas have shown mixed results,” said Becky Wu, Senior Executive Vice President, Luth Research. “So it was a surprise to see more than 63% of organizations interviewed are using big data analytics already. This signals that the technology sector is growing faster than we had assumed.”

Almost all those surveyed (96%) indicated that big data analytics is important or very important to driving their company’s business strategy. Many adopters of big data analytics are seeing significant improvements in their capabilities:

  • 69% are able to achieve insights within hours or days,
  • 68% have access to all the data sources they need and
  • 65% are able to deliver analytical results in visual form.

However, less than half of survey respondents who use big data analytics are very satisfied with their current tools (40%) and their organization’s execution of big data analytics (44%). Below are additional Luth survey findings that may explain why.

The market is full of ‘fake big data’ solutions:

  • More than half reported that there are many vendors attempting to sell re-branded “small data” technologies that are not capable of handling big data (55%).
  • About half indicated that they have to break big data into smaller pieces just to work with it (52%), which requires a significant investment in data preparation and other old-world processes that slow down time to insight.
  • Organizations are still struggling with big data complexity.The majority of respondents showed some uncertainty how to manage the 3V’s – volume, variety and velocity – at the same time. While big data analytics users were most confident of individuals surveyed, 55% had some doubt they will be able to keep up as big data continues to grow in complexity.
  • On average, respondents said they use big data analytics for an average of 6 data sources – certainly not the hundreds of new varieties of machine, sensor and digital customer interaction data that are available.

Industry experts are available for comment on the Luth Research project. They can provide deeper analysis on survey findings, in addition to cross-tabbed results that show differences in respondents’ opinions according to title and industry. Inquire at [email protected].

Peter Schlampp (@peteschlampp) is VP of Product at Platfora, where he leads the charge to put big data in users’ hands in a beautiful and easy way.

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