Research firm McKinsey has a new, free report on the value of Big Data to business. In "Big data: The next frontier for innovation, competition and productivity", McKinsey defines Big Data as "datasets whose size is beyond the ability of typical database software tools to capture, store, manage and analyze". The report then looks at the economic value of such data: not just value already obtained by businesses, but also the value yet to be realized by sectors of industry. Some interesting facts from the report:
- Data is being collected at a rapidly increasing rate because data storage costs are dropping dramatically. Storage sufficient to hold all the world's music can now be purchased for just US$600.
- There is more than $300B potential annual value to US health care, by implemeting analysis of Big Data stored by the healthcare industry.
- Retailers could increase operating margins by 60% from analysis of their Big Data.
I'll be drawing on some of the report's conclusions in our webinar today, The Big Analytics Revolution Starts with R. You can find more facts and analysis in the 143-page McKinsey report, available at the link below.
McKinsey Global Institute: Big data: The next frontier for innovation, competition and productivity