Big data could generate $250b in APAC revenues

Big data could help generate an extra $250 billion in revenues in the Asia Pacific region, however implementations are hampered by a lack of available skills and poor internal communications.

That's the key finding of new research commissioned by Hitachi Data Systems (HDS) and conducted by The Economist's Economic Intelligence Unit.

Initial returns from investments into big data are not promising with barely 10 percent of ANZ outfits believing they have achieved their goals, and less than half failing to cross even the weaker threshold of seeing some level of success.

In recent months the hype around big data has subsided as the technology begins its inevitable decline down the slope of Gartner's infamous "trough of despair" now that the reality of implementation has kicked in.

But despite this, senior executives remain positive about the long term outlook for big data with the majority believing successful projects will add more than 25 percent to revenue.

And an overwhelming majority – 70 percent – expect the technology to deliver improvements in productivity, profitability and innovation. Forecasting and strategic decision making are also seen as big potential winners, while most also expect to see improvements in knowledge management and knowledge transfer internally – ironic given that many also see current efforts hamstrung by poor communication.

According to Neville Vincent, senior vice president and general manager, HDS Asia Pacific, “the key challenge for organisations seeking to reap the benefits of big data is to acquire the right skill sets and manage communication better across the enterprise and between departments.”

Vincent said HDS' view is that organisations will need to appoint data scientists who combine the disciplines of business, statistical analysis, and software development. That will be tough in market where demand outstrips supply and where the gap is set to widen. Recent studies by organisations like the global CMO Council have identified  data analytics skills as the top priority for marketing organisation in the Asia Pacific, for instance.

There is still a long way to go for many companies. The study found that 40 percent of organisations surveyed do not have a big data strategy and of the 20 percent who have plans under development, those plans have been poorly communicated.