Data Driven Marketing

This info graphic based on a recent survey conduct with almost 1000 digital marketer and analysts by folks at Econsultancy provides a great insight into the importance of data in the entire whelm of marketing paradigm. This while advocates the fact that in any organization which is serious about marketing in this data age needs to elevate up on how they use or rather utilize their data to make the marketing decision. Further, the importance of data and its ability to understand and further base marketing decision and/or investment dollar base on deeper data analysis is not only good to have rather a fundamental element in today marketing world. The more you invest in understanding the data the better conversion yield you will get out of it.

And yes organizations need to invest in building these resources as its apparent by this graphic that alludes to skill shortages in areas like digital analytics tool, statistical modeling and conversion rate optimization.

Roundup Of Analytics, Big Data & Business Intelligence Forecasts And Market Estimates, 2014

From manufacturers looking to gain greater insights into streamlining production, reducing time-to-market and increasing product quality to financial services firms seeking to upsell clients, analytics is now essential for any business looking to stay competitive.  Marketing is going through its own transformation, away from traditional tactics to analytics- and data-driven strategies that deliver measurable results.

Analytics and the insights they deliver are changing competitive dynamics daily by delivering greater acuity and focus.  The high level of interest and hype surrounding analytics, Big Data and business intelligence (BI) is leading to a proliferation of market projections and forecasts, each providing a different perspective of these markets.

Presented below is a roundup of recent forecasts and market estimates:

• The Advanced and Predictive Analytics (APA) software market is projected from grow from $2.2B in 2013 to $3.4B in 2018, attaining a 9.9% CAGR in the forecast period.  The top 3 vendors in 2013 based on worldwide revenue were SAS ($768.3M, 35.4% market share), IBM ($370.3M, 17.1% market share) and Microsoft ($64.9M, 3% market share).  IDC commented that simplified APA tools that provide less flexibility than standalone statistical models tools yet have more intuitive graphical user interfaces and easier-to-use features are fueling business analysts’ adoption.  Source: http://www.idc.com/getdoc.jsp?containerId=249054

• A.T. Kearney forecasts global spending on Big Data hardware, software and services will grow at a CAGR of 30% through 2018, reaching a total market size of $114B. The average business expects to spend $8M on big data-related initiatives this year. Source: Beyond Big: The Analytically Powered Organization.

• Cloud-based Business Intelligence (BI) is projected to grow from $.75B in 2013 to $2.94B in 2018, attaining a CAGR of 31%. Redwood Capital’s recent Sector Report on Business Intelligence  (free, no opt in) provides a thorough analysis of the current and future direction of BI.  Redwood Capital segments the BI market into traditional, mobile, cloud and social business intelligence.   The following two charts from the Sector Report on Business Intelligence  illustrate how Redwood Capital sees the progression of the BI market through 2018.

• Enterprises getting the most value out of analytics and BI have leaders that concentrate more on collaboration, instilling confidence in their teams, and creating an active analytics community, while laggards focus on technology alone.  A.T. Kearney and Carnegie Mellon University recently surveyed 430 companies around the world, representing a wide range of geographies and industries, for the inaugural Leadership Excellence in Analytic Practices (LEAP) study.  You can find the study here.  The following is a graphic from the study comparing the characteristics of leaders and laggards’ strategies for building a culture of analytics excellence.

• The worldwide market for Big Data related hardware, software and professional services is projected to reach $30B in 2014.  Signals and System Telecom forecasts the market will attain a Compound Annual Growth Rate (CAGR) of 17% over the next 6 years.  Signals and Systems Telecom’s report forecasts Big Data will be a $76B market by 2020.  Source: http://www.researchandmarkets.com/research/s2t239/the_big_data

• Big Data is projected to be a $28.5B market in 2014, growing to $50.1B in 2015 according to Wikkbon. Their report, Big Data Vendor Revenue and Market Forecast 2013-2017 is outstanding in its accuracy and depth of analysis.  The following is a graphic from the study, illustrating Wikibon’s Big Data market forecast broken down by market component through 2017.

• SAP, IBM, SAS, Microsoft, Oracle, Information Builders, MicroStrategy, and Actuate are market leaders in BI according to Forrester’s latest Wave analysis of BI platforms. Their report, The Forrester Wave™: Enterprise Business Intelligence Platforms, Q4 2013 (free PDF, no opt in, courtesy of SAS) provides a thorough analysis of 11 different BI software providers using the research firm’s 72-criteria evaluation methodology.

• Amazon Web Services, Cloudera, Hortonworks, IBM, MapR Technologies, Pivotal Software, and Teradata are Big Data Hadoop market leaders according to Forrester’s latest Wave analysis of Hadoop Solutions. Their report, The Forrester Wave™: Big Data Hadoop Solutions, Q1 2014 (free PDF, no opt in, courtesy of MapR Technologies) provides a thorough analysis of nine different Big Data Hadoop software providers using the research firm’s 32-criteria evaluation methodology.

• IDC forecasts the server market for high performance data analysis (HPDA) will grow at a 23.5% compound annual growth rate (CAGR) reaching $2.7B by 2018. In the same series of studies IDC forecasts the related storage market will expand to $1.6B also in 2018. HPDA is the term IDC created to describe the formative market for big data workloads using HPC. Source: http://www.idc.com/getdoc.jsp?containerId=prUS24938714

• Global Big Data technology and services revenue will grow from $14.26B in 2014 to $23.76B in 2016, attaining a compound annual growth rate of 18.55%. These figures and a complete market analysis are available in IDC’s Worldwide Big Data Technology and Services 2012 – 2016 Forecast.  You can download the full report here (free, no opt-in): Worldwide Big Data Technology and Services 2012 – 2016 Forecast.

• Big Data technology and services will grow from $1.95B in 2013 to $9.83B in 2020, attaining a CAGR of 26%. These and other market forecasts and projections are in a report Huawei sponsored titled Big Data & Advanced Analytics in Telecom: A Multi-Billion-Dollar Revenue Opportunity.  A chart from the study is shown below that shows Big Data analytics market size by business category.

• Financial Services firms are projected to spend $6.4B in Big Data-related hardware, software and services in 2015, growing at a CAGR of 22% through 2020. Software and internet-related companies are projected to spend $2.8B in 2015, growing at a CAGR of 26% through 2020.  These and other market forecasts and projections can be found in Bain & Company’s Insights Analysis, Big Data: The Organizational Challenge.  An infographic of their research results are shown below.

• The World Economic Forum, INSEAD and Cornell University published The Global Information Technology Report 2014 Rewards and Risks of Big Data (369 pp., free, no opt-in), providing a thorough global analysis of technology trends.  This book provides a thorough overview of the Networked Readiness Index and in-depth analysis by national ICT adoption levels.  One of the more valuable sections is on Big Data adoption, with a summarized analysis presented below. You can download the entire book in PDF form here.

Courtesy – Louis Columbus