The Big Data Market

© 2013 IBM Corporation

The Big Data Market

© 2014 IBM Corporation2

45 49

80 86

3941

78

92

0

50

100

150

200

250

300

2015 2017

Ma

rke

t O

pp

ortunity

($

B)

Big Data & Analytics Served (Measured) Opportunity

GTS

GBS

SWG

STG

“A planet of data – Today, every discussion about changes in

technology, business and society must begin with data”– Ginni Rometty (2014)

NEW IT

ECONOMICS

NEW

SOURCES OF

DATA

NEW BUYERS,

NEW USERS,

NEW WAYS OF

WORKING

NEW

ACTIONABLE

INSIGHTS

• Digitization of everything and growth of content

• Instrumentation, Internet of Things

• Multiple data sources (structured, unstructured)

Transformational Market Drivers

• Cloud & Open Source

• In-memory computing

• Solid-state drives / Flash memory

• Accelerating storage and compute capacity

• Real-time contextual insight with action

• Enhanced 360 degree view of everything

• Industry domain focus

• Increasing LOB purchasing influence

• Consumable solutions for business users

• Emerging skill classes (e.g. data scientists,

domain experts, Chief Data Officers)

$242

$268

Total combined opportunity of

$270M by 2017 across Software,

Hardware, and Services


North America is the largest opportunity while GMU has strongest growth

Source: BAOPivot1H13, BAO opportunity based on MI Modeled 1H13 estimates and 2Q12 Strategic Solutions estimates


0 5,000 10,000 15,000 20,000 25,000

Telecommunications

Banking

Wholesale & CPG

Central Government

Industrial Products

Electronics

Local Government

Insurance

Retail

CSI

Media & Entertainment

Energy & Utilities

Financial Markets

Automotive

Transportation

Health Provider

Life Sciences

Petroleum

Travel

Higher Education

Chemical

Aerospace & Defense

Education(K-12)

Health Payor

Top six industries account for nearly 50% of both existing and growth

opportunity to 2015

50

%

BD&A Market Opportunity ($M)

Key:

Blue: 2012

Green: growth to 2015

Source: BAOPivot1H13, BAO opportunity based on MI Modeled 1H13 estimates and 2Q12 Strategic Solutions estimates


Sources: Business Wire: SAS Survey Signals Big Data Disconnect: only 12% Onboard;

Big Data Analytics, TDWI Research 4Q2011

Only a few organizations are currently executing against a big data strategy

in daily operations, despite the competitive advantage it offers

Reasons for Not Exploiting Big Data

1.21% Don’t know enough about big data

2.15% don’t understand the benefits

3. 9% lack business support

4. 9% lack data quality in existing systems

IDC estimates that 41% of clients

are not sure how to measure the

value of analytics

Only 28% of companies have a Big

data business plan with measurable

goals

Business Data Case:

1.With Proven ROI 14%

2.With projected ROI 14%

3.With intangible benefits only 15%

4.No case, but working on one 14%

5.Planning one in next 12 months 15%

6.No explicit business case 28%

Source: Forrsights BI/Big Data Survey, Q3 2012

Base: 176 Big Data users and planners


Big Data and Analytics initiatives are being driven by LOB, more so than

IT, with Marketing/Sales and BPO benefiting so far

The Big Data initiative is

primarily driven by:

Source: Talend: “How big is Big Data adoption?”, Summer 2012

To date, have you realized any

business benefits to Big Data?

N = 231 data professionals N = 95 data professionals


CEO CIO

CMOCFO

• Respond to the market

• Understand the customer

• Collaborate internally

• Drive insight & intelligence

• Partner to innovate

Leaders across the C-Suite are seeking assistance from Big Data &

Analytics to help them manage costs and risk while driving growth

• Handle market complexity

• Harness the power of the data explosion through analytics

• Capture & leverage unstructured data, including social data

• Enhance customer loyalty & advocacy

• Reduce costs

• Define KPI’s

• Manage risk

• Consolidate & integrate infrastructure

• Drive better decisions with analytics

• Manage security & compliance

• Manage IT costs

• Leverage IT to grow business, incl. new products & customers

Source: IBM CEO,CIO, CFO, CMO Studies

7 Source: 2H12 IM MPA, IBM MD&I, synthesis of primary and secondary research


• Cut costs, improve efficiencies

• Improve security, transparency, public

participation, and internal collaboration

• Analyze and predict events related to security,

reduce fraud and better serve population

• Manage proliferation of of text and numerical

data including customer data & transaction

information

• Optimize marketing spend, increase ROI

• Optimize inventory & supply chain

• Manage high volumes of customer data being

driven by operational systems

• Protect revenue and reduce customer churn

• Deliver value add services by having 'single

view' of customer and their changing behavior

• Optimize mobile data and network efficiency

• Consolidate data and datacenter

• Automate patient records & vendor payments

• Implement electronic health records

• Innovate - study the human genome

• Map the clinical value chain in an integrated

solution

• Manage risk & detect fraud

• Manage explosive growth in trade volumes and

shrinking trade size

• Increase customer focus for the business

• Reduce data management costs

• Optimize supply chain

• Synchronize data with suppliers for sourced

products and retailers for sales

• Create centralized view of product and parts

data for inventory control

• Reduce production downtime

• Improve processing speed of new applications

• Reduce inconsistencies in the increased manual

claims processing

• Customize sales campaigns by improving

claims segmentation

• Forecast /plan shutdowns

• Improve utilization of assets, reduce outages

• Improve integration of energy management

systems

To be effective, you must be able to discuss the industry-specific

needs and pain points of business leaders

Gov’t Retail

Telco Medical

Banking Manufact.

Insurance Utilities

Industry-Specific Pain Points

Source: 2H12 IM MPA, IBM MD&I, synthesis of primary and secondary research8


Where are we with Big

Data & Analytics in 2014?


30%Reduction in

heating bills

The Opportunities from Big Data &Analytics Are Infinite

15 minResponse time

to requests 150%Revenue

growth rate

95%Accuracy of 18+ month

sales forecasts

80%Less time required to open an account

98.5%On-time deliverytarget achieved

70%Counterparty

measurements changed

80%Reduction in

serious accidents

Every Industry can Leverage Big Data and Analytics

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Paradigm shifts enabled by big data

Leverage more of the data being captured

TRADITIONAL APPROACH BIG DATA APPROACH

Analyze small subsets of information

Analyze all information

Analyzedinformation

All available information

All available informationanalyzed



Reduce effort required to leverage data


Carefully cleanse information before any analysis

Analyze information as is, cleanse as needed

Small amount of carefully

organized information

Large amount of

messy information



Data leads the way—and sometimes correlations are good enough


Start with hypothesis andtest against selected data

Explore all data andidentify correlations

Hypothesis Question

DataAnswer

Data Exploration

CorrelationInsight



Leverage data as it is captured


Analyze data after it’s been processed and landed in a warehouse

or mart

Analyze data in motion as it’s generated, in real-time

Repository InsightAnalysisData

Data

Insight

Analysis


Actionable insight

Data Marts

Data types

Transaction andapplication data

Predictive analytics and modeling

Reporting and analysis

Operational systems

Archive

Enterprise Warehouse

Staging area

Traditional enterprise data and analytics environments


Where are we going with

Big Data ?


Watson Foundations

1

2

4

3

3

3 3

3

5

1

2

3

4

5

More Than HadoopGreater resiliency and recoverability

Advanced workload management & multi-tenancy

Enhanced, flexible storage management (GPFS)

Enhanced data access (BigSQL, Search)

Analytics accelerators & visualization

Enterprise-ready security framework

Data In MotionEnterprise class stream processing & analytics

Analytics EverywhereRichest set of analytics capabilities

Ability to analyze data in place

Governance EverywhereComplete integration & governance capabilities

Ability to govern all data where ever it is

Complete PortfolioEnd-to-end capabilities to address all needs

Ability to grow and address future needs

3

3

Next generation architecture for delivering information and insights


The Big Data Market

Technology