Big Data Solutions in the Line of Business in 2014; Heightened Customer Engagement Will Advance Industry Behavior, Says IDC
06 Dec 2013
Singapore and Hong Kong, December 6, 2013 – International Data Corporation (IDC) announces today that executive requirements to drive heightened customer and citizen engagement and the need to protect that information in 2014 are the basis of its annual Asia/Pacific excluding Japan (APeJ) Top 10 Big Data Predictions for 2014.
The market messaging around Big Data in 2013 has had a substantial impact on the discussions of analytics among business users. A continuous stream of ideas coming from industry peers and from media has created a misled sense that if enough data is analyzed by the right people, anything can be predicted.
The reality will set in as more organizations attempt Big Data and analytics initiatives. The opportunities are real, but still involves quite a bit of trial and error, and experimentation. IDC believes the drive for heightened customer and citizen engagement will be strong enough to compel organizations to push through these challenges.
Amassing personal behavior data will be at the center of many risks and rewards in this coming year. More insights will be revealed in a forthcoming report, “IDC Asia/Pacific (excluding Japan) Big Data 2014 Top 10 Predictions".
"People don't want to feel marketed to, we want better levels of service. Organizations that are stuck in the old mentality of only maximizing wallet share will risk brand reputation and losing out to those organizations that personalize services based on what they know about that person,” says Craig Stires, Research Director for Big Data, Analytics and Security Software, IDC Asia/Pacific.
Emerging trends in Big Data have spread quickly into both mainstream and niche plays. The key trends going into 2014 can be grouped into three domains.
• Key industry opportunities for customer and citizen engagement
• Technologies gaining broadest adoption, if not media attention
• Market and regulatory impacts of enriching and monetizing data
“In the coming year, expect to see strong interest in the insights encoded in geolocation information, when tied to personal behavior. Efforts to enrich and leverage these insights will push all legal boundaries and expectations of privacy. Expect this to be a discussion that spreads across the markets in APEJ. More mature markets, like Australia and Singapore will be most prominent in leveraging Big Data and analytics for heightened customer engagement," says Stires.
Against the backdrop of a stable economic outlook for 2014, IDC expects that companies in the region will invest in Big Data solutions, particularly given options to leverage cloud-based services. Shortened time to get started, paired with lower initial costs will make pilot projects feasible for a broader set of organizations.
IDC expects Big Data spending in the APEJ region to reach US$1.02 billion in 2014, which is a 36.3% growth over 2013. IDC expects growth rates to hold strong at these levels over the next 4-5 years, with a compound growth rate of 34.1% through 2017.
Drawing from the latest IDC research and internal brainstorming sessions amongst IDC's regional and country analysts, the top 10 key Big Data predictions in 2014 have been defined. These trends are what IDC believes will have the biggest commercial impact on the APEJ ICT market for Big Data.
Provided are three of these predictions that will impact organizations implementing their first Big Data projects in 2014.
Prediction 1 - Geolocation matched to individuals will see Telcos and Retailers attempting personalized services, while pushing the boundaries of consumers' expectations of privacy
Two different standards are in place for the protection of consumer and citizen privacy, government-defined legal regulations and individual expectations. Legal regulations are extremely limited, particularly in the face of data marketplaces, blurred lines of what people meant to share, and mass accumulators of otherwise disconnected personal data. Telcos, retailers, and to some extent banks, stand to fundamentally change their relationships with customers, based on the kind of insights afforded with joining and enriching various sources of personal data. If done correctly, they can move to a model of personalized and relevant services, and away from more traditional blast marketing of products.
The game changer on the privacy side will be geolocation information. When it comes to geolocation data, the majority of people have no idea how their data is being collected and shared. Mobile phones are currently the biggest source, with network triangulation, GPS, and wifi all providing streaming updates of where a device is, and by association, the owner of that device. As more cases surface of who has access to that data, and how it is being used, there will be an increase in awareness that individual expectations of privacy are being overrun.
Prediction 2 - High profile data breaches will drive regulators to draft specific new policy measures
Individuals are generally unaware or misinformed about how much of their behavior data is being collected, and by whom. Recent revelations about government spying are offensive, but only mildly surprising to most. But, discovery that companies have been collecting, buying, enriching, and profiling our very personal lives elicits a stronger response. Organizations that have built highly personalized profiles of individuals do not always treat those enriched views with the level of care needed.
In 2014, IDC anticipates a number of high profile data breaches that will expose how much information has been captured and enriched by some organizations. This will result in damage of brand reputation, a serious effect for an Asian organization, but more broadly will raise awareness that citizens are not as protected as they assume. This discovery will put pressure on governments and regulators to attempt clearer protection through new policies.
Prediction 6 - Infrastructure investments will outpace software and services, with storage for Big Data growing rapidly by 45% from the previous period
Volumes of data being created are unprecedented in our history. With IDC estimates showing that data will double about every two years, the infrastructure to store and analyze that data will grow rapidly. Particularly in emerging markets, the share of the data will grow from 36% in 2012 to 62% in 2020.
IDC envisions that storage will consistently be one of the fastest growing Big Data and analytics investments in the coming year and beyond, with at least a 45% growth from 2013. The question asked by organizations that will guarantee a continual growth in data captured is simple: "What is the worst that could happen, if I don't have this data when I need it?"
For more information about this report, “IDC Asia/Pacific (excluding Japan) Big Data 2014 Top 10 Predictions" (forthcoming), please contact Madhura Moulik at email@example.com.
About IDC’s Predictions
IDC’s annual Predictions in APEJ draws upon the latest IDC research and a worldwide brainstorming exercise among IDC’s 1000+ analysts. This was followed by an extensive regional review to weigh in on key industry events, user trends, vendor strategies and economic measures that promises to uniquely define the technology trends that would impact and drive the market in APEJ for 2014. Across the globe, following the release of IDC’s global top ten predictions, IDC’s geographic, technology and industry teams will be releasing their own specific predictions in the coming months.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
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