Megan, recently conquered her dream of starting a boutique. She did not locate the boutique in her own lane. She choose a different place far away from her home. She has analysed that people in her street are not good customers as she has seen them haggle a lot in every other shop, and there are two other boutiques showing their existence in her lane, so there is a lot more competition, whereas here, there is less competition, she can make the boutique’s presence even more stronger and lay an excellent foundation for her future business. She can charge a better price too.
She found this new lane, by the two big Lamborghini’s parked near where her boutique was and she assumes, “If the cars are big, then the people there will have more money”.
Megan, being a fashion designer, who has no knowledge in analytics is using sophisticated marketing analytic techniques like customer profiling, demographic segmentation and competitor analysis to make strategic decisions for her business. This shows analytics is being used by a lot more people than you think. Analytics is in reality everywhere.
Hence this buzzword “Analytics” rings around every nook and cranny – everyone wants to learn and implement these concepts in their firm as much as possible. Based on this excitement, it seems that Analytics would replace the way information is collected, stored, managed and consumed thereby transforming the way we work, live and play.
In the recent past, the industry has grown significantly – by almost 14 percent in 2012 – and is slated to grow to a size of $50.7 billion by 2016 (IDC Report, 2011). It is being forecast that the market for analytics and business intelligence (BI) platforms will be the fastest growing segment in the software markets (Gartner Report, 2012). With emerging trends such as data-as-a-service coming, analytics shall probably see further growth prospects.
In US, the Analytics industry revenue in 2008 was sized around `24.45 billion dollars, in the next two years of span, the size grew from `24.45 billion to `25.44 billion dollars in 2010 and `27 billion dollars in 2013. It is expected to scale up to `30 billion dollars by 2017 (Statista Report, 2015). The major chunk of the analytics usage comprises of the BFSI (Banking, Financial Service and Insurance), Telecom Services, ITES (Information Technology Enabled Services), FMCG (Fast Moving Consumer Goods), and Retail. However, the small and medium enterprise sector is still in a nascent stage of deploying analytics and BI as compared to their larger counterparts, the latter contributing up to 65 percent of the total services utilized in the Analytics and BI market (Netscribes’ Report, 2013).
A lot has been said and written lately about whether Analytics revolution is for real or it is one more hype that will die down soon as tech world moves on to the next fad. In my opinion, Analytics is a game changing revolution – the truth is in there!