SYDNEY, AUSTRALIA – More than 70 per cent of large Australian organisations, those with 200 employees or more, will become data-driven by the year 2019, according to a new study released today by emerging technology analyst firm Telsyte. This will increase from today’s figure of around a third of large businesses, mainly found in the retail, manufacturing and government sectors.
Telsyte research shows that Big Data analytics is fast becoming the ultimate way to empower CEOs and boards to drive the innovation agenda. There is also a growing realisation that the information era is leaving traditional decision making methods behind.
“We are seeing a new generation CEO, who no longer relies on a hunch or gut feel to determine the future direction of their organisation,” Telsyte senior analyst Shayum Rahim says.
Telsyte predicts that if the CEO is not a data scientist themselves, the organisation will certainly have one on the executive team within the next few years.
“The data-driven CEO uses numerous sources of data to make decisions with precision, which is now essential in being able to study to the board and ultimately shareholders,” Rahim says.
Telsyte research conducted with CIOs, CMOs and other business and technology leaders shows that 38 per cent of large businesses are currently using Big Data analytics, however many organisations are still at the early stages of maturity.
Telsyte’s Big Data Maturity Model evaluates organisations through six stages of maturity based on a range of factors including infrastructure, skills and knowledge, budgets and deployment.
Telsyte found that there are still many barriers to Big Data analytics adoption in Australia, such as the ongoing skills shortage, and infrastructure and data integration challenges. However, the desire by today’s leaders to use data to transform their businesses is such that many are looking to external service providers to overcome such barriers.
Telsyte research shows that Big Data investments outside of the remit of are fuelling the growth of IT spending. Around 5 per cent of organisations have Line of Business (LOB) spending on technology surpassing that of the IT department. Telsyte expects this trend to continue driven by solutions that utilise data from “Internet of things”, social media and digital marketing. The main spenders outside of IT were Management (63%), Operations (62%) and Marketing (54%)
For many organisations the Big Data journey has begun with their e-commerce, CRM and marketing data, and this is creating a more empowered CMO.
“Data does not just inform; ideally, it persuades” Telsyte senior analyst and digital marketing lead Steven Noble says.
“Data-driven leaders in fields like marketing, eCommerce and executive management use insights to craft inspiring stories that bathe the company, its customers and its competitive environment in a whole new light,” Noble says.
The study also profiles a number of vendors across Big Data infrastructure, data management and analytics products including: Cloudera, Hortonworks, MAPR, EMC, Hitachi Data Systems, NetApp, IBM, Oracle, Pivotal, Microsoft, SAS, Splunk and Tableau Software.
Additionally, Telsyte has reviewed a range of new entrants who are taking the challenge to the traditional data management vendors.
“The new entrants are an important part of the landscape because they bring a more flexible approach that can lower the barriers to entry, such as subscriptions and pay per use” Rahim says.
The study has determined that on average, two thirds of organisations investigating Big Data solutions are also looking to increase technology OPEX spending in the next 12 months, creating lucrative opportunities for vendors and service provider alike.
About the Telsyte Big Data and Analytics Study 2015
The Telsyte Australian Big Data & Analytics Study 2015 is a comprehensive 102-page study which provides subscribers with key market insights across many aspects of Big Data adoption in Australian organisations. This includes how it is driving the IT and business agenda; challenges that organisations are facing; the maturity stages of Australian organisations to Big Data; market overview; usage and intentions; budget and spending; a comprehensive vendor SWOT analysis; and recommendations.
For further information on the study or media inquiries contact:
Tel: +61 2 9235 5851
For sales and consulting enquiries please contact Foad Fadaghi on +612 9235 5851 (email@example.com).
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au
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