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Ramesh Munamarty, Group CIO, International SOS
Data is the new currency of the digital economy! We have all heard this before but it is hard to fathom the magnitude of this challenge or opportunity (depending on your ability to exploit it). The total amount of data in the world was 4.4 zettabytes (1 ZB is 44 trillion GB) in 2013. That is set to rise steeply to 44 ZB by 2020. This sharp rise in data will be driven by rapidly growing daily production of data. To put it in perspective, 2.5 Exabytes are produced every day which is equivalent to 530,000,000 million songs. According to Cisco, Global IP traffic will increase nearly threefold over the next five years. Overall, IP traffic will grow at a compound annual growth rate (CAGR) of 22 percent from 2015 to 2020. The technology trends that are driving this exponential growth are a combination of Internet of Things (IoT), Machine/Deep Learning, Mobile/Wearable Devices/Apps, and Cognitive Computing. The challenge is that all these technology trends are converging and creating a perfect storm in this Digital Universe. The volume of data continues to double every three years as information pours in from digital platforms, wireless sensors, and billions of mobile phones. This causes some challenges, but it also presents incredible business opportunities. Data storage capacity has increased, while its cost has plummeted. Data scientists now have unprecedented computing power at their disposal, and they are devising ever more sophisticated algorithms.Digital native organizations such as Uber, Airbnb, Snapchat, and several others have created business models based on data and analytics. They are able to cause disruption by entering markets with surprising speed and creating a digital mesh of networks without any investment in physical assets. The majority of the organizations that are not digital natives are forced to quickly react to this new normal. They need to derive insights from massive amounts of data to prevent being disrupted and also to potentially create new revenue generating business models. Even though some has already recognized this and created market leading digital products, the sad reality is that most companies are capturing only a fraction of the potential value of data and analytics. Among the industries with the poorest value capture are healthcare and public sector which are capturing only 10-20 percent and manufacturing is capturing 10- 30 percent. In contrast, retailers who leverage the full power of big data could increase their operating margins by as much as 60 percent.
Organizations need to recognize the disruptive models, define clear business use cases, and redesign business processes to leverage data driven insights and empower end-user