Interest in big data continues to grow across all Asia Pacific industries and markets, however adoption will remain variable until next year, according to a study from Forrester.
In this report, Forrester details the current adoption trends surrounding big data in APAC and provides recommendations to create a successful roadmap to big data adoption.
The report is based upon results of a survey conducted by Forrester, of about 1,400 IT executives and technology decision-makers from SMB and enterprise companies across eight Asia Pacific countries including Japan.
Key findings include:
- Interest in big data initiatives grows as fast as the big data hype; most Asia Pacific organizations are still trying to come to grips with what big data is
- Clear use cases of big data in different industries are driving the awareness and demand; yet challenges such as lack of available skills and team conflicts will hinder adoption
- China and India leads big data adoption in APAC (both with 21% reporting having implemented big data)
- The gap between organizations that achieve benefits from big data and advanced analytics and those that struggle, even with traditional systems and methods will widen
Big data adoption in APAC
According to the report titled “Big Data Adoption Trends In Asia Pacific: 2013 To 2014“, some markets and industry sectors in APAC were clearly early adopters of big data initiatives and that interest is strong across almost all sub-regions and verticals. This interest and adoption of big data in APAC is being driven by the general, cross-industry perceptions of the value of data in addressing customer demands and expectations as well as the pressure to respond to changing market dyanamics while increasing operational efficiency.
“The common link across all big data initiatives is an interest in using more types of data, from more sources, to enable timelier, better-informed insights,” said Forrester.
With that, Forrester identified two use cases that drive big data awareness and investment across industries. These are: demand-driven, customer relationship-oriented initiatives; and supply-driven, efficiency-oriented iniatives.
Source: Forrester Research, Inc.
Demand-driven initiatives are typically focused on improving consumer insight and experience, wherein organizations are seeking ways to leverage customer data to improve understanding, predict behavior, and ultimately deliver improved value via increased customer intimacy. Early adopters include telcos, retail, and insurance and financial services, with use cases like increasing customer service levels, marketing campaign optimization and reducing customer churn.
Supply-driven approaches on the other hand are more common in verticals such as oil and gas, utilities, healthcare and financial services. These initiatives are a response to market pressures for organizations to make better use of the data they already have. Examples include the use of smart grid technology and the expanded use of sensors to create more intelligent systems.
Moreover, according to the research, big data adoption plans vary widely across APAC.
Research shows that China and India leads big data adoption in APAC (both with 21% reporting having implemented big data). While one-third of Australian and New Zealand organizations are either planning to implement or have already adopted big data systems and will be expanding their big data initiatives in the future. Meanwhile, Indonesia has the highest percentage (25%) of respondents who are planning to implement big data while Malaysia has the greatest proportion of businesses with no current adoption plans.
Source: Forrester Research, Inc.
But while interest in big data is strong within organizations in APAC region, translating this into actual implementations is still a tough process. The research indicates that the most current activity remains focused on smaller-scale production implementations or proof-of-concept projects.
“The business value of big data implementations still remains unclear for many,” noted Forrester.
Big data trends in APAC
Forrester identified several distinct trends occurring within APAC. These include:
- In Australia and New Zealand, big data implementations are being driven by data variety and velocity while for countries with vast consumer populations like India, Indonesia and the Philippines, big data deployments are motivated by data volumes.
- There is a wide gap between between leaders and laggards in India, Indonesia, Philippines — a small number of organizations are already committing to and investing heavily in big data solutions, while the majority of organizations are in the very early stages of discovery and understanding.
- Organizations in commodity-driven markets like the Philippines and Indonesia are more likely to stretch the limits of what is possible with more easily accessible and commoditized tools, such as the Microsoft SQL Server stack and open source tools. While in more mature markets such as Australia, New Zealand, and to a lesser extent Singapore and Malaysia, organizations are more likely to buy expensive proprietary platforms in order to shift liability and risk to a third party.
Big data strategies
“Identifying realistic big data objectives is vital to success,” recommended Forrester.
Without a strategic plan that includes clear business goals, strong data governance, and the right mentality and people, big data initiatives may struggle to deliver the intended business value.
Forrester also recommends that projects must focus on bigger business impact rather than bigger data repositories.
It is important to determine whether big data really can help your company at this time. Don’t get swept up in the hype, but explore the potential of it.
And unless a clearly defined significant business outcomes can be assigned to big data initiatives, Forrester recommends that any project should start small and iterate quickly, with a focus on slowly building up the capabilities and skills to take on a larger implementation.
Meanwhile, big data vendors are encouraged to temper expectations to ensure big data value delivery.
“Vendors must be clear about the value proposition of their solutions and must ensure that organizations understands big data and the business value it offers,” advised Forrester.
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