Has big data been over-hyped? On the contrary, according to a new report from McKinsey Global Institute (MGI) which finds that,
“Big data’s potential just keeps growing. Taking full advantage means companies must incorporate analytics into their strategic vision and use it to make better, faster decisions.”
The age of analytics: Competing in a data-driven world report suggests that the range of applications and opportunities has grown and will continue to expand. Given rapid technological advances, the question for companies now, the report says, is how to integrate new capabilities into their operations and strategies—and position themselves “in a world where analytics can upend entire industries”.
A 2011 MGI report highlighted the transformational potential of big data. McKinsey analysts say, “We remain convinced that this potential has not been oversold.”
That report estimated the potential for big data and analytics to create value in five specific domains. The new report revisits these, showing uneven progress but “a great deal of that value still on the table”
Progress on capturing data value
The power of the platform
The report also highlights how platform business models demonstrate the massive value still to be unleashed. Leading companies are using big data and analytics not only to improve core operations but to launch entirely new business models.
The report notes, “The network effects of digital platforms are creating a winner-take-most situation in some markets. The leading firms have remarkably deep analytical talent taking on various problems—and they are actively looking for ways to enter other industries. These companies can take advantage of their scale and data insights to add new business lines, and those expansions are increasingly blurring traditional sector boundaries.”
Creating and capturing this value is something TM Forum is focused on helping its members to do.
TM Forum’s Deputy CEO, Nik Willetts, comments, “We are on a very clear path to becoming more than just a communications service provider industry to being a true digital service provider industry, providing a whole suite of digital infrastructure capabilities. We can be that provider and act as the digital services enabler. That requires us to embrace new platform-based business models…where we are enabling business and commerce for others and playing a core role within an ecosystem — serving as partners not just providers.”
TM Forum’s Data Analytics work is focused on incorporating data and analytics into the business vision and developing the right business processes, infrastructure and talent.