Big data was supposed to have a bigger impact by now. Tech evangelists expected retailers to use big data analytics to increase operating margins by 60 percent before the end of 2014, but a McKinsey Quarterly report indicates that we haven’t reached these numbers.
It’s about timing, though. Just because big data—which has become one of the most talked about buzzwords in the industry—hasn’t reached its full potential yet doesn’t mean it won’t. The hype might be outstripping the production, but better analytics and a greater understanding of the science behind big data will go far to make big data a much more prominent tool in 2015 and beyond.
First, it’s important to note what has held big data back thus far. Amazon and Google have used analytics to reduce costs, but most companies aren’t doing enough with the information coming in. They see the numbers, but they don’t know why certain people dropped an app after just a short period of time or why a specific demographic isn’t being reached.
Additionally, CEOs don’t seem to grasp the success of their company’s big data efforts. They think the data is being used effectively and efficiently, while the members of the organization who have a broader understanding of the situation see that this just isn’t the case.
What can turn it around? There are many solutions. What’s critical is that the number of mobile users is only going to go up in the coming years. By 2016, it’s estimated that 61 percent of web traffic will come from mobile devices instead of PCs. That means there will be even more data to deal with.
This abundance of data is difficult to keep track of and use for the benefit of businesses, but this is a known issue that people are working to resolve. Visual mobile analytic tools that go beyond the “what” in data are the future, producing solutions based on the numbers coming in. Right now, it’s hard to sift through so much information without the help of these visual aids. Once we’re able to make use of these tools and continue to streamline the process, actual results will be seen.
The issue isn’t a lack of data. Mobile traffic now outstrips web traffic, and all the data coming from mobile sources is being accounted for. Actual beneficial uses for said data is what we need to discover, and with more advanced analytic solutions, big data might finally reach its potential in 2015.
