How to improve big data analytics profit impact

In a recent paper “Reaping the benefits of big data in telecom“, in the Journal of Big Data, Jacques Bughin analyses the profit impact that the deployment of big data analytics has on telecom service providers.

The results are revealing; the graph below shows the profit impact for each of the 80 companies analysed,per company ordered highest first:

 

40537_2016_48_fig1_html
From: “Reaping the benefits of big data in telecom”, Jacques Baughin, Journal of Big Data

 

This paints a fairly bleak current picture:

  • The median impact of big data on profit was 1.4%, compared to an industry average across all technologies of 3.2%, i.e. returns of less than half of the average across other technologies
  • 40% reported no profit or negative profit impact, i.e. their bottom line would be better off if they had not made the investment
  • Only 5 % claimed to have generated material profit impact on their business

On the positive side, Jacques then goes on to analyse what makes the difference between those companies that achieve a significant positive profit impact from deploying big data analytics compared to those that did not.  The key factors that he highlights are:

  • Invest early in big data analytics
  • Invest in big data analytics infrastructure before investing in data science
  • Apply big data analytics strategically across the business
  • Address multiple big data analytics use cases

These are all factors which underline the importance of investing in a big data analytics platform like PNDA, in order to realise a positive profit impact from big data analytics.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s