Big Data Market
It has been predicted that in 2021, the big data market will grow from $28.65 Billion in 2016 to $66.79 Billion at a Compound Annual Growth Rate (CAGR) of 18% which is relatively high. The year 2015 was considered as the base year with 2016 was predicted for performing market forecasting and estimation which spans from 2016 to 2021. The demands of analyzing big data are growing with the increase in the number of mobile apps and devices paving way for the acceptance of big data services and solutions across many organizations. The big data market includes services and software, which eventually were segmented into big data analytics, visualization, data discovery and big data management software; as well as training and support, consulting and system integration, and managed services. Not too long ago, big data market showed excellent growth in its rate of adoption and is widely segmented by big data type, component (services and software), vertical, deployment model and region. The global big data market also is segmented across five major regions: Europe, North America, Middle East, Africa and Latin America and Asia-Pacific.
The methodology of research used for estimating and forecasting the big data market starts with data capturing on important vendor revenues via secondary research. Also taken into consideration are the vendor offerings in determining the market segmentation while the procedure employed to arrive at the total market size of the global big data market was the bottom-up procedure from the revenue of the major players in the market. After getting the overall market size, it was split into various segments and sub-segments that were then verified through primary research. This was achieved by conducting extensive interviews with important persons like executives, directors, VPs and CEOs. The market breakdown and data triangulation procedures were adopted for completing the overall market engineering process and obtain the exact statistics for all the segments and sub-segments.
The ecosystem of big data comprises of big data solution, and demand side and service providers. The major vendors are Microsoft Corporation, International Business Machines (IBM), Hewlett-Packard Enterprises, Oracle, SAS Institute, SAP SE, Dell Incorporation, Amazon Web Services, Splunk, and Teradata, etc. Other major innovators like Hitachi, Gooddata, Palantir, Mongo DB and Cloudera offer relatively narrower but locally effective distribution networks and solutions in the big data market ecosystem. On the demand side, we have the end users of big data services and solutions for government and defense, BSFI, manufacturing, healthcare and life sciences, transportation, retail and consumer goods, academia and research, energy and utility, media and entertainment, IT and telecommunication, etc.
Big Data Analytics and the Future of Marketing and Sales
Big data is known to be the largest game-changing opportunity in the global market today since the Internet went mainstream about two decades ago. This statement has gotten much approval from many executives but followed with a question asking how it can be made possible.
A certain eBook Big Data Analytics and the Future of Marketing and Sales makes an attempt to answer the question. These days, organizations face intimidating amount of data, a rise in competitive pressures, customer behaviors that keep changing and organizational complexity. Thanks to new technologies alongside rapidly proliferating channels and platforms, they have created a very complex environment. Simultaneously, the emergence of digital technologies and data has paved way for an unprecedented array of insights into the needs and behaviors of customers.
There are a couple of companies that are using Big Data to create opportunities and its use along with analytics show rates of productivity and profitability of 5-6% higher than their competitors. There is an analysis on over 250 engagements for more than five years which shows that companies who put data as the main contention of sales and marketing decisions so as to improve their MROI (marketing return on investment) by 15-20%. These sums up to $150-$200 billion of additional value depending on global annual marketing spend of approximately $1 trillion.
However, data is just 0s and 1s and companies that use data and succeed well do three things properly:
1.) Use analytics in identifying valuable opportunities
The extraction of data set from both within and outside a company gives it an advantage and would aid in successful discovery. However, relying on the mass analysis of such data could be of disservice and therefore analytics leaders develop what is known as “destination thinking,” which comprises of writing down the business challenges to be solved or questions that need to answered in simple sentences. This requires them to go beyond the regular goals like “increase wallet share” and get all the specifics that are meaningful.
This approach goes beyond the usual way of doing things. For instance, most sales leaders would deploy resources depending on the historical or present performance of a particular sales region. Data can be used for specifically unlocking new opportunities but requires that such data has to be looked in a new way. For example, a certain chemical company decided to take a look at the market share within customer industry sections in US counties, specifically as against the current sales within that region as it was previously done. It was discovered from this micro-market analysis that although the company possessed 20% of the overall market, it had about 60% in some other markets but as low as 10% in others which included those of the fastest growing sectors.
2.) Begin with the journey of consumer decision
Consumers today can be said to be channel-surfing because they are comfortable with various tools, devices, and technologies just to get a task done.
A good understanding that the journey of decision is very significant for identifying battlegrounds to either keep existing customers or win new ones over competitors. For example, 35% of B2B pre-purchases are digital which implies that B2B companies would have to invest more in websites that will help them communicate the value of their products, SEO to ensure potential customers find them, and social media to obtain more opportunities for sales. For example, an online retailer will design its offers and discounts according to the predictions of how its valued customer is likely to defect.
Sales and marketing leaders have to need to come up with pictures of their customers so as to create products and messages that would be relevant to them. Research shows that personalization is very effective and will deliver 5-8 times the return on investment on the amount spent on marketing and push sales up to 10 percent or even more. This kind of targeting will more effective and would likely end the issue of spamming.
3.) Let it remain fast and simple
All over the world, data grows by 40 percent every year; this growth rate is daunting for any sales and marketing leader. Companies would have to invest in automated algorithm making, a kind of approach which allows the processing of large amounts of data via a process that is known as “self-learning” to create better and more relevant interactions with consumers. This can include machine learning, predictive statistics, and natural language mining while such systems are able to automatically track keywords and make updates every 15 seconds, depending on changing search terms used, customer behavior and ad costs. This could lead to price changes across several thousands of products depending on the preferences of customers, inventory, predictive analysis, and price comparisons. A certain bank somewhere in Latin America transformed itself from an unknown player into an established institution that ranked 11th in global market capitalization via algorithmic marketing. ATM interactions were captured and next-product-buy algorithms were fed to call centers, which allowed service operators to make use of them for providing suitable offers during the next interaction with their customers.
This level of personal interaction brings to light another critical point about automation, which doesn’t mean that people will go away. Advanced analytics would need to serve front-line from massive analytical complexity and get simple guidelines delivered along with recommended actions. For instance, a certain cargo airline developed a complex model which analyzed the frequent change in the cargo industry’s dynamics and negotiating strategies depending on demand and supply. What was delivered to its sales staff was just a “dashboard” with simple flight capacity guidelines, competitor options as well as corresponding pricing. This result boosted the share of wallet by 20 percent.
This untapped area of data is a very strong application for sales and marketing leaders who are able to drive sales above market growth but can only be done by those that can take advantage of this untapped area.
Big Data Market in India
India’s big data analytics sector is expected to grow in multiples by 2025 and should reach as high as $16 billion from the present $2 billion according to the National Association of Software and Services.
Currently, India is among the world’s top 10 big data market with NASSCOM predicting the big data market in India should project her to be among the world’s top three in the next few years. The VP of NASSCOM, K.S. Viswanathan predicted the sector growing at compounded annual growth rate (CAGR) of 26% in the next five years. He said the sector possessed a huge potential to grow and by 2025, India should have 32% share of the global big data market. He also said NASSCOM was partnering with other members so as to build a multi-pronged approach which encompasses thought leadership, skills development, platforms and products to achieve this goal.
NASSCOM states that there about 600 analytics firms in India from which 400 of them are within their start-up stage with about 100 companies joining the fold in 2015. At the moment, there is about $700 million worth of funds for start-ups over the last two and a half years. Also, analytical firms are seeing India as a hub emerging for analytics solutions all over the world. The big data and analytics industry is experiencing a drastic growth which is powered by the increase in the demand for cloud-based and predictive analysis solutions provided by industries like BSFI, healthcare, telecom and retail. The big data segment, currently employing more than 90,000 people in several data analytics role will need massive manpower in the next five years.
Also, industry experts are of the opinion that analytics is getting a major boost since there is an exponential growth in big data. A report states that the last few years witnessed decent moderation due to the global recession with the industry’s potential being unquestionable with opportunities in both emerging and mature services and verticals.
NASSCOM also stated the BPO industry will be helped by big data to move forward in evidence-based decision making for clients which has a great impact on business operation. Indian BPO industry is at a steady 37 percent of overall global sourcing BPO revenues. Also, the ecosystem of big data will continuously evolve through sustained investments so as to strengthen the current technologies and creating a strong talent pool.
By 2020, global big data market is expected to grow at a CAGR of about 37 percent and this will be as a result of the increase in penetration of big data in diverse sectors, analytics services increase and the availability of big data services and solutions which are affordable to end users.
All over the world, organizations are focusing more on big data as an important means to obtain insights from massive amounts of data that was obtained from different sources. NoSQL databases and MapReduce/Hadoop are technologies which are at the core of solutions producing a paradigm shift.
The major driver for the big data market growth is the large volume of data that is generated across the many industries because of the dynamic business environment. One challenge in this industry is growth inhibitors which have slow down its growth in the world economy, a reduction in Research and Development investment and the lack of quality in employment and resourcing.
The importance of Big Data can’t be overstated and organizations who tap into it will surely reap its benefit in the nearest and distant future.