Chief information officers who want to position their companies on a successful path for years to come will likely have to focus on advanced analytics as a way to gain insight into their firms' targeted markets. The ability to understand customer and client preferences, as well as specific industry trends before shifts even occur, fosters a true competitive advantage over the closest rivals.
Alexander Linden, research director at Gartner, explained all industries are experiencing growing data volumes. The burgeoning internet also contains a vast store of marketing and demographic data. CIOs will have to look at their data in new ways to achieve cross-selling opportunities, acquire new customers and effectively predict demand and potential failures before they happen. This means placing an increasing emphasis on data analytics.
Analytics, other innovative IT solutions driving spending
With more emphasis on analytics, cloud computing, social networking and mobile devices, IT budgets are projected to surge. It is clear that businesses realize the potential of using all of these tools to drive operational efficiency across the entire organization.
"With more emphasis on analytics, cloud computing, social networking and mobile devices, IT budgets are projected to surge."
Market research firm IDC expects these four technologies to contribute to an IT marketplace projected to exceed $330 billion by the end of 2017, expanding at a compound annual growth rate of 7 percent between 2012 and the end of the forecast period. The enterprise IT sector will enjoy a CAGR of nearly 2 percent during this time frame, increasing from $213 billion to roughly $234 billion.
Eileen Smith, program manager at IDC, asserted the bond between businesses and technology is growing at a rapid rate, as more companies adopt what the research firm dubs the "four pillars," which are mobile, social, cloud and analytics.
"Investments in these key areas are driving business-funded technology to reach $275.2 billion in the United States in 2014, accounting for 55 percent of total technology spending," Smith noted.
Businesses will require new skill sets to leverage advanced analytics
Companies cannot simply decide they want to use advanced analytics and immediately expect results. These innovative solutions require custom development and/or users with new skill sets to become valued assets, according to Linden. Through 2017, Gartner expects the number of citizen data scientists to expand five times faster than "highly skilled" personnel in this field.
Linden noted data scientists are traditional analysts in certain respects. These employees employ mathematics to view information and how this content can improve "hard-hitting business benefits."
Using data to their employers' advantage is just one trait of data scientists. These staff members must also possess other traits that enhance their companies' operations. Linden explained such personnel have to work with various business departments to identify "goals, constraints, processes, available data and analytical possibilities."
The newness of advanced analytics will likely test organizations in the short term. Companies that possess the internal skill sets to effectively maximize their use of these solutions will be able to keep their distance from the competition, achieving greater market share as a result.
Gain the Pinnacle advantage
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Our team provides an exclusive combination of industry-certified experts, doctorates in data science, and vast real world experience. We've developed custom solutions for organizations of all sizes and industries including local establishments and Fortune 500 companies.
Organizations with advanced analytics and reporting solutions are viable competitors in their industries, oftentimes becoming leaders in their respective markets. With an intelligent solution from Pinnacle, your company can make more informed business decisions and achieve greater operational feats. Contact us today to schedule an appointment to discuss your analytical and business intelligence needs.