“Google, Facebook are really big data companies, not software companies. They collect data, process it and sell it back with value added extensions. They don’t have better algorithms. They simply have more data.” — Anonymous
The convergence of cloud, social, mobile and connected computing has sparked a data revolution. More than 90 percent of the world’s data has been generated over the last two years . And with a projected 50 billion connected “things” by 2020 , the volume of data available is expected to grow exponentially. This proliferation of data has created a vast ocean of potential insights for companies, allowing them to know their customers in a whole new way.
Data is valuable. Data is plentiful. Data is complex. Data is in flux. Data is fast moving. Capturing and managing data (Cloud, On-Premise, Hybrid IT) is challenging. It’s a paradox of the information age. The glut of information that bombards us daily too frequently obscures true insight.
Help people uncover, see, understand and visualize data presents a broad and momentous market opportunity….call this user-driven discovery. Take for instance, Facebook (like Amazon.com) builds a custom Web page every time you visit. It pores over all the actions your friends have taken—their postings, photos, likes, the songs they listen to, the products they like—and determines in milliseconds which items you might wish to see, and in what order. Is this the future for every firm…..
The opportunity is simply getting bigger by the day. Every customer interaction is generating a growing trail of data (“data exhaust”). Every machine that services the customer is generating data. Every conversation, transaction, engagement, touchpoint location, offer, response is a potential digital bread-crumb of opportunity.
Now let’s flip the context. A typical mobile user check their phone interface 150 times a day for updates. A Gen Y or Millenial user obviously much more than a Gen X user. The consumption patterns for information are changing continuously. Facebook style real-time updates which were revolutionary 5 years ago seem outdated in the mobile world. We live in an “attention deficit economy” where attention is the new basis for competition. The firms that create the evolving experience using data which can grab/hold your attention will attract marketing and ad $$.
As a result, the buzz and hype around data…small data, big data, machine data, social data, mobile data, wearables data….is relentless. As a result there are a lot of new initiatives and companies. I have been asked repeatedly by a lot of entrepreneurs and strategy teams about analytics market size and opportunity size. Product and services firms are also interested in opportunity sizing as they create new offerings in the data rich world.
I thought i would share a mashup of industry and market sizing data i have collected so far.
- How big is the overall market for Analytics, Big Data?
- How big is the market for Digital Customer Interaction or Engagement?
- How big is the market for Mobile and Social Intelligence?
- How big is the market for Wearables?
- What is growing fast, faster and fastest?
All good questions as services firms think about digital strategy, analytics and future state. You always want to be in the “hot” area… selling is easier, valuations are richer, revenue growth percentages exponential.