By the time we reach 2018, more than half of large businesses will rely heavily on advanced analytics and proprietary algorithms, causing great disturbances across various industries.
That is, at least, what market analysts Gartner predict. Those predictions are based on the current growth of the advanced analytics market which is forecast to expand 14 per cent more this year, reaching a value of $1.5 billion (£1.05bn).
“Advanced analytics has already been changing entire industries for over a decade and is a key factor for how most new entrants disrupt established markets and beat their incumbents — whether selling books, renting movies, borrowing money or even building a professional sports team,” said Jim Hare, research director at Gartner.
“Today, with fewer regulated monopolies and the Internet eliminating geographical boundaries, more companies are starting to use statistical analysis, predictive modelling and decision optimisation to compete, instead of using traditional approaches.”
That’s not all Gartner predicted, when speaking about advanced analytics. Trust, as a key element for a successful business, will be mostly ignored, losing companies business opportunities and increasing brand risk.
“The resulting business, social and ethical impacts arising from the use of data and analytics are understood by few, ignored by many and tracked by virtually no one,” said Alan Duncan, research director at Gartner. “The resulting impacts are tangible — unrealised business opportunities, additional inefficiencies, increased brand risk and even criminal proceedings.”
Businesses that choose to proactively govern ethical impacts of advanced analytics, including the relationship between data, trust and business outcomes, will create more trusted relationships with their customers.
The full Gartner report can be found on this link.