Companies that have big data functions spread across business units rather than using IT or dedicated teams, are achieving the least benefits, according to research.
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The survey by Tata Consultancy Services (TCS) suggested that 42% of big data pioneers are using existing IT resources and 37% are creating dedicated teams to support their strategies.
But in contrast, firms that have been slow to adopt big data strategies have largely (68%) left analysis within business units. Keeping the analysis within business units will stifle adoption, said the report, because sharing data across the organisation is critical.
“The toughest challenges for businesses implementing big data initiatives is getting different business units to share information across organisational silos and determining what data to use for different business decisions,” said TCS’s global trend report, The emerging big returns from big data
The report also said there is a technological challenge for companies attempting to handle the large volume, velocity and variety of big data.
“Big data has enormous potential and early adopters are projecting a high return on investments,” said Satya Ramaswamy, global head of mobility and next generation solutions at TCS.
“However, overcoming the technological challenges is only part of the story. Businesses need to carefully think where big data initiatives should sit within the organisation, how to break down internal silos and look beyond just internal and structured data sets.”
How many respondents expect ROI greater than 50% in 2012 by sector:
Retail businesses - 35%
Banking and financial services - 33%
High tech - 27%
Media and entertainment - 25%
Consumer goods businesses – 17%
The research revealed that businesses leading the way in big data strategies spent $24m in 2012 and expect to spend $26m by 2015. Those lagging behind spent $7m in 2012 and expect to spend $13m by 2015.
The study also found that the US has the most activity around big data initiatives with 68% of US companies interviewed involved in a project.
Latin America had the second most activity at 51%, with 45% of the European companies involved in projects and 39% in the Asia Pacific region.
Businesses are expecting a payback on these investments with a total of 43% predicting a return of more than 25% in 2012.