In the era of big data, only the smart will survive

Over the last two years, we’ve created 90 per cent of the world’s total data. We’re now generating 15 petabytes of data each day: the equivalent all of the words ever spoken since the beginning of time. And it’s coming from all over the place and in all forms, from smart phones to flip cams to social media. It’s not a mountain of data; it’s a continental divide that can lead to either a new frontier of information technology or a wasteland of cost and mismanagement. 

To be sure, the winners in this new frontier, the era of big data, will be the businesses that tap into and leverage this information to make better choices, find innovative solutions and respond to trends better and faster than their competitors. But they can only succeed if the overall architectures of their computing systems are smart enough to keep up. 

A recent study from IBM shows that 89 per cent of CEOs want better insight via business intelligence and analytics. One in three business leaders frequently makes decisions without all the information they need and half don’t have access to the information they need to do their jobs. But those who have gotten smart about information technology – tapping into more mature business analytics and optimisation – outperform their peers, with 49 per cent higher revenue growth, 20 times more profit growth, and 30 per cent higher return on invested capital. 

To succeed in an era of big data, businesses need IT infrastructures that can leverage big data, tune to specific tasks, and provide quick, easy, and scalable access through the cloud.

 

Dealing with data

Businesses can improve existing services and pioneer new ones by integrating and analysing data in any form, and from any source without overwhelming their IT systems.

Businesses can start by examining their data requirements, assessing quality, accuracy, and security needs and then figuring out what they can consolidate, virtualise, or get rid of completely. With cleaned-up data and a crystal-clear view of their information across applications, businesses can get a leg up on the competition by performing analysis in real-time, drawing insights to make faster decisions and better connecting with their customers’ needs. 

For example, Kelley Blue Book, a company providing vehicle values to the automotive marketplace, decided to make data analytics a key component of its strategy. Investing in a new data warehouse more than paid for itself, resulting in a 67-per-cent reduction in time to process valuations; increased ad revenue from better analysis, improved profitability from optimised advertisement pricing and search engine marketing; and improved customer satisfaction from faster, more accurate publication of auto valuations. 

 

Tuning in to the task

Harnessing data that is big in both volume and variety requires optimised systems that are architected for specific workloads and tuned to specific tasks. The trick is to do so without adding complexity or cost. An optimised IT system stores data where it makes the most sense and in a way that meets unique requirements, such as accessibility, security, or capacity.

Catalina Marketing, which provides shopper-driven marketing solutions to global retailers, knew there was an opportunity for a more targeted approach, but IT issues held the company back from running more complex queries and bringing on new clients. Catalina deployed a new optimised system that reduced query times by 98 per cent, increased speed of campaigns by 85 per cent and helped its customers achieve a 30 per cent increase in redemption rates. 

 

Going to the cloud

It must support specific functions, but also be flexible enough to respond to changing needs, such as normal versus peak demand. Cloud computing enables on-demand network access to a shared pool of adaptable resources that can be acquired quickly and easily over the Internet. Cloud is essential to making big data useful because it provides anytime, anywhere access for customers, employees, and partners. 

Lego, a leading toy manufacturer, needed faster product development and deployment to stay relevant in its market. Lego engaged in a phased, multi-year IT transformation to build a flexible infrastructure that could easily scale. Lego’s IT now supports a private cloud that quickly responds to changing needs. For example, during peak sales periods, Lego can now easily access additional resources through its cloud and then release those resources for other workloads after peak seasons. From this transformation, Lego estimates business benefits worth US$150 million on technology investments of approximately $45 million that have been made to streamline its IT.

Given the deluge of data created by today’s Internet of things, organisations have no choice but to get smarter about their IT. The businesses that will succeed will be those with IT systems that are big data ready, tuned to the work at hand, and managed in the cloud. These organisations will be empowered to beat their competition by doing more with less, delivering faster results, and using data to create game-changing innovation.

 

Parnsiree Amatayakul is managing director of IBM Thailand. Her article is published every third Friday of the month.