Why big data is
"the new natural
resource"

We can use it to make faster, smarter decisions

Businesses are grappling with how to gain better insights from the big data explosion so they can move faster and better serve their customers. C-suite executives are mostly sold on big data’s potential to add value to their operations. The challenge is to find fast, efficient ways to glean knowledge from all that information to create a smarter company.

Having the right analytical tools to make sense of it all gives executives and managers powerful new insights to drive profitable growth. Companies getting it right are using smart infrastructure and servers to manage that data and transform their business processes.

Big data sources are multiplying

  • In 2013, available storage capacity held 33% of the digital universe—by 2020, that same capacity will be able to store less than 15%.

    The digital universe will grow from 4.4 trillion gigabytes in 2013 to 44 trillion in 2020.

  • In 2013, less than 20% of all data was destined for cloud storage or processing. By 2020, that share will grow to 40%.

    Data from embedded systems will grow from 2% of the digital universe in 2013 to 10% in 2020.

  • Data from embedded systems will grow from 2% of the digital universe in 2013 to 10% in 2020.

    In 2013, less than 20% of all data was destined for cloud storage or processing. By 2020, that share will grow to 40%.

  • The digital universe will grow from 4.4 trillion gigabytes in 2013 to 44 trillion in 2020.

    In 2013, available storage capacity held 33% of the digital universe—by 2020, that same capacity will be able to store less than 15%.

Sources: Wikibon and IDC
Sizing up the market

Sizing up the market

The volume of big data is soaring, and emanates from a dizzying array of sources, with 2.4 quintillion new bits being created each day. On its current pace, total big data is expected to grow from 4.4 trillion gigabytes in 2013 to 44 trillion gigabytes by 2020.

The extraordinary growth stems from the fact that information is being generated non-stop by everything from mobile devices, video, social media and cameras to RFID readers and sensor data from ubiquitous networks feeding the Internet of Things.

Sizing up the market
Brave new world for leadership Brave new world for leadership

Brave new world for leadership

The need to secure transformative business outcomes from the big data deluge is changing IT. Conventional architectures are giving way to powerful new, cloud-based platforms and tools. Business leaders must collaborate in new ways with their IT counterparts to take full advantage.

Big data’s journey to enterprise value has four parts—capture, storage, analysis and action. Mobile devices, sensors, smart tags, chip readers and other hardware collect and transmit data to on-premises, cloud or hybrid servers.

Intelligent platforms, such as IBM’s Watson Analytics engine or POWER8 servers, help companies interpret the data for use in disciplines including marketing, human resources, finance and risk management. Line-of-business managers use the knowledge to spot new opportunities and identify inefficiencies.

"Data is one of the most valuable assets the company has," said Bryan O’Neil, director of data architecture at Allegiant Air, a discount carrier that is using big data and analytics to transform its operations.

The new processes are changing how workers collaborate within organizations. Executives recognize that deriving the most value from big data requires eliminating silos and creating enterprise-wide, cross-discipline, big data teams.

The results include new business models in which IT vendors and corporate clients partner to make smarter, faster decisions that translate to breakthrough procedures and brand growth. The goal is to create open, scalable architectures that can support faster and better decision making, enabling a "cognitive business." Key to that are analytics tools that can reveal hidden connections, provide visualizations and support a broad user base.

Flexibility is also key. IBM POWER8 offers a range of analytics packages tailored for various environments, and supports technologies designed for machine learning and Internet of Things.

Big data's price tag

  • Big data vendor revenue grew 23.5% in 2015. It’s expected to grow from $18.3 billion in 2014 to a projected $92.2 billion by 2026.

    Big data vendor revenue grew 23.5% in 2015. It’s expected to grow from $18.3 billion in 2014 to a projected $92.2 billion by 2026.

  • Big data tech and services revenue will grow at a 26.4% compound annual rate to $41.5 billion through 2018.

    Big data tech and services revenue will grow at a 26.4% compound annual rate to $41.5 billion through 2018.

Source: IDC
Putting big data to work

Putting big data to work

Discount airline Allegiant is one example of how businesses are capitalizing on big data as a value enhancer. Big data has played a pivotal role in repositioning Allegiant’s business. Like many fast-growing businesses, Allegiant was looking at lengthy, inefficient and costly throughputs for system-level reporting, including routine IT tasks.

When Allegiant set out to remake itself from an airline into a full-service travel company, it faced numerous IT challenges. Among other things, it had to integrate its internal systems with partner companies in the travel, auto rental and hospitality industries. It also wanted to capture social data to measure customer sentiment. And it wanted to track passenger journeys in real time to respond immediately to disruptions like flight delays.

Analytics also enables Allegiant to cull data from call centers to see which flights have the best track records for customer satisfaction, and which may need closer monitoring.

Putting big data to work
Better customer service Better customer service

Better customer service

Big data and analytics have given Allegiant fresh insights into its operations. It’s become a smart airline and travel company.

The solution meant rethinking its approach to big data, with broad ramifications for its IT platform and overall computing horsepower. Adding IBM Power Systems’ POWER8 platform increased the company’s performance and scale, saving more than $1 million over x86-based solutions. Exhaustive run times shrank dramatically, some to 15 minutes from six hours.

"By allowing us to perform a host of routine tasks much more rapidly and efficiently, we’re able to increase our R&D activities and work on things that will differentiate us from other travel companies and serve customers better," O’Neil said.

Changing businesses, inside and out

Changing businesses, inside and out

As businesses begin to fully harness big data's power, they are developing new capabilities. Big data-enabled companies are applying more sophisticated analytics from disparate data sources, more widely across their organizations and at a faster than ever pace. They are shifting the status quo to grow their customer bases and deepen customer engagement, transform financial and operational processes, improve risk management and create new business models.

Learn more about how IBM Power Systems can help your business thrive with big data.

Changing businesses, inside and out