The Importance of Analytics
Friday, 2nd December 2011
Analytics is important for two basic reasons including firstly the data explosion where the amount of data being collected today is outstripping the capacity of organizations to store it. Data is increasing substantially as a result of the Internet revolution, such as the use of social media, and the use of digital mobile devices, such as iPads. It is estimated that business data alone is doubling in size every 1.2 years. In 2011 it is also predicted that 1.8 zettabytes of data will be collected and stored in the world. A zettabyte is equivalent to one trillion gigabytes of data or approximately thousand trillion books.
The second reason analytics is important is because the challenge of converting the huge amounts of data available to knowledge. Analytics is the discipline that uses various data-mining techniques to extract knowledge from data. This is needed to assist organizations to solve problems and reach decisions. For example, analytics can identify which customers are the most profitable to a firm and which incentives are likely to entice them to buy more products.
Because of the data explosion, no public or private enterprise can expect to prosper in the 21st Century without an analytics capability.