The Analytics Revolution
“Old School” analytic companies that depends on legacy systems have resisted change – from reporting to hardware to software – but they are slowly realizing that they must embrace change in order to survive and continue to give their clients the results that they need in order to better run their businesses!
Tools become obsolete as quickly as they are created. Tools such as Hadoop and Yellowfin are newer than SAS and SQL for processing large quantities of data but will also be out of date or need updating within a brief period of time to keep up with demand. Why the need for updated analytic tools?
- There is more data to massage. In the age of social media, every text message, every email and every social media entry can now be analyzed. These unstructured data reveals a lot about both prospects for new targeted campaigns, as well as help you sell better products to your current clientele.
- There are more types of data to analyze. There is software to analyze social media content and so that creates a need for filtering engines to extract insights from this mass of information. Government data can be purchased to overlay on private company data. The advent of CRM tools such as Salesforce allows smaller businesses to amass and massage their own data.
- All industries crave analytics. Every industry now utilizes analytics for key decisionmaking – healthcare, entertainment, government, financial services and media create and utilize huge quantities of data to set annual strategy for sales as well as to create predictive and revenue models for new product offerings.
- Privacy is of less concern. Millennials are used to sharing all their personal information on Facebook and Twitter in real time so they do not have as much concern for privacy. The older generation also realizes they have a choice and can opt out of specific offerings or block marketing. There are still huge privacy concerns in markets such as healthcare.
- Emerging markets have new data. Due to technology, we know more about new markets than before. The unbanked and underserved populations are getting tools to make their lives easier. With those tools come another previously untapped area that is now a functional part of society and creates a new market for products such as prepaid cards and money transfers.
The company that does not embrace analytics will be left behind. STEM programs (science, technology, engineering and mathematics) are now an embedded curriculum in most schools and are now producing graduates who are capable of developing new analytic models to navigate neural networks.