Article

Arun Chinnadurai
Arun Chinnadurai 6 June 2017

Why is there a huge buzz around Analytics today though the field has been there for decades?

Price discrimination and downward demand spiral are widely used analytical concepts/practices long before the term Big Data Analytics was even coined. So, how come Analytics, which has been there in practice for decades experience a meteoric rise suddenly?

To answer this question, we need to get the 'Big Picture'. Given below are key factors that have led to the huge buzz around analytics today.

  • Proliferation of Data Sources – Every day we create 5 quintillion bytes of data. This comes from digital footprints left on social media platforms, IoT sensors, wearables, transactions to name a few. The interesting fact is that only 1% of data collected is ever analyzed. To put into perspective all that innovation and insights driven by analytics are from analyzing just 1% of the data collected globally.
  • Change in Customers’ expectations – Today connected customers expect personalized service on-demand based on their digital journey and personal preferences anytime, anywhere and on any device. Google’s context-aware search engine results, AI powered personal assistants from Google and Apple, Amazon’s recommendation engine have all made today’s unforgiving connected customers to expect the same level of customer experience from all brands they interact with.
  • “Race to Zero” by Cloud Computing giants – The cloud computing price war between Amazon’s AWS, Google and Microsoft dubbed “race to zero” is well known. By late 2016, AWS has already made 52 price reductions and more price cuts are expected.
  • Advent of Hadoop – Hadoop, open source distributed filesystem with framework for data analysis and transformation with high fault tolerance and reliability has broken barriers to entry for start-ups and significant cost reductions for enterprises like Yahoo Inc., whose Hadoop clusters span 40,000 servers.
  • Every company is a technology company – Today every company is a technology company. One prominent example is how Domino’s is turning more into a digital e-commerce player from a traditional quick service restaurant through its Domino’s AnyWare As part of the program Domino’s collects data from 85,000 different customer touchpoints, to derive insights and drive growth. As a result, Domino’s was able to process about 55% of its orders online. 
  • Urge to join the ‘Big Data Analytics’ bandwagon – Media is inundated with Analysts reports with impressive projected and actual CAGR of Big Data Analytics investment, and reports on how data-driven insights helped enterprises solve real-life business problems and drive growth. This has pushed Top Management of many Enterprises to jump the Big Data Analytics bandwagon, before it’s too late.

Open source distributed platform coupled with massively discounted storage & compute costs (cloud) have given Start-ups equal footing with Enterprises in developing and launching innovative products leveraging Big Data and Analytics, which was possible only by firms with deep pockets until few years ago. On the other hand, heightened customers’ expectations have led to the digital transformation of Enterprises that target to replace instincts-driven decisions with insights-driven decisions. Both trends driven by factors mentioned earlier have led to the explosive growth of Big Data Analytics witnessed today.

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
How to Review a Website — A Guide for Beginners

How to Review a Website — A Guide for Beginners

A company website is crucial for any business's digital marketing strategy. To keep up with the changing trends and customer buying behaviors, it's important to review and make necessary changes regularly...

Digital Doughnut Contributor
Digital Doughnut Contributor 25 March 2024
Read more
The World Is Shrinking: 6 Degrees of Separation Is Now 2!

The World Is Shrinking: 6 Degrees of Separation Is Now 2!

Six degrees of separation is not just a party game, it's a reality. Everyone is the world is interconnected, and thanks to social media, that connectedness gets tighter and richer each day. See the research...

Scott Christley
Scott Christley 9 August 2017
Read more
The Impact of New Technology on Marketing

The Impact of New Technology on Marketing

Technology has impacted every part of our lives. From household chores to business disciplines and etiquette, there's a gadget or app for it. Marketing has changed dramatically over the years, but what is the...

Alex Lysak
Alex Lysak 3 April 2024
Read more
10 Factors that Influence Customer Buying Behaviour Online

10 Factors that Influence Customer Buying Behaviour Online

Now is an era where customers take the center stags influencing business strategies across industries. No business can afford to overlook factors that could either break the customer experience or even pose a risk of...

Edward Roesch
Edward Roesch 4 June 2018
Read more
What Marketing Content Do Different Age Groups like to Consume?

What Marketing Content Do Different Age Groups like to Consume?

Today marketers have a wide choice of different content types to create; from video to blogs, from memes to whitepapers. But which types of content are most suitable for different age groups?

Lisa Curry
Lisa Curry 21 October 2016
Read more