Big Data, Big Data, Big Data. Know any trendier term? I don’t.
As the digital age progresses and more information becomes accessible, it is only natural that new methods of accessing, analyzing and understanding this data will need to be developed.
Enterprises are constantly seeking new ways to improve efficiency and ROI, and are actively courting Big Data startups. Whether using old-school methods of networking events and meetups or relying on modern technology, enterprises are changing the way they perceive startups and are recognizing their potential contribution to their overall bottom line.
Startups recognize the big potential inBig Data, and many have entered this field in hopes of making a significant impact on an industry that is growing at a rapid rate with no end in sight.
“Enterprises are constantly looking for solutions to help perfect their analysis and extract the most business value from their data,” Toby Olshanetsky, co-founder ofprooVtells me, “Managers understand the importance of data-driven decision making as a pivotal tool for growing business and establishing a competitive edge. Big Data is one of the most popular categories in our platform.“
How Much Data is Enough?
The problem, or advantage (depending on where you are in terms of integration of Big Data technology) is that there is never enough data and there will always be more. Data volumes are growing at a rate faster than companies are able to comprehend andthat is why they need Big Data technology to try and make sense of the mess. Enterprises without any Big Data technology will quickly find themselves buried under a flood of information, with no way of processing, analyzing and understanding how it could be used to their advantage.
By 2020,1.7 megabytesof data will be createdevery single second per person on the planet; Over 40% of that data will be machine generated data and enterprises will be liable for 85%of the digital universe.
As more information becomes available, and more of the available information is at the hands of enterprises, the forward thinking enterprises will be able to understand their customer better, improve overall business cycles, reduce inefficient processes and better target themselves to the exact needs of their target market audience.
To prep for the influx of data, enterprises have already begun investing in IT hardware, software and Telco solutions to contain the vast digital universe. However, without modern technology to improve the time it takes to understand the data and the meaning extrapolated from it, enterprises risk falling behind to smaller and smarter startups.
One Term – Many Applications
The reason Big Data is appealing to many startups, aside from the quick access to the information, is that Big Data technology can be easily integrated into a wide range of industries and assist in growth and development of many verticals.
Big Data can be used to understand consumers and gain insight into their buying habits – information that, when gather, analyzed and understood, can help companies improve their marketing and operational strategies, understand what developments they need for their products and increase their overall revenue.
Big Data can help companies predict future trends with higher accuracy in order to improve ROI and reduce overall spending. By usingpredictive analyticscompanies are able to understand trends, predict risks with higher certainty, and make better long term business decisions.
Enterprises, regardless of the industry in which they operate, are focusing their efforts on understanding their information and figuring out new ways to process it and leverage it to their advantage. Since startups tend to live up to their stereotype of being creative and outside-the-box thinkers, it is no wonder that enterprises are looking to radically innovate their Big Data capabilities with their help.
A Big (Data) Leap for Enterprises = a Big (Data) opportunity for startups
Despite setting up the infrastructure and increasing overall market spending on Big Data solutions, enterprises are not accessing as much information as they could, or should.
While the digital universe is busy doubling up every two years, not all of that information is analyzed or even a candidate for analysis. AnEMC reporton the digital universe stated that only 22% of information is even available to analysis, and only 5% is actually successfully analyzed.
This shocking revelation shows that despite having the information, companies don’t even know where to begin with analyzing it, and more often than not they don’t even set it up properly for future analysis.
What this means in the eyes of an innovative startup is that there is a Big (Data) market up-for-grabs; and the startups mean to grab every opportunity they can.
To ensure innovations reach enterprises and markets quicker, startups have started relying on data-rich platforms in order to connect and communicate directly with enterprises in a safer environment for both sides.
That way, instead of focusing funds on traveling to networking events, schmoozing industry leaders only to be directed to IT department after IT department in the hopes of testing out a new technology for viability, startups are able to focus their funds on R&D and spend minimal time on a PoC that could prove to be game changing for enterprises.