ABOUT THIS PERSPECTIVE

Learn about the capabilities and benefits of data analytics when starting on and maturing along a data analytics journey, as well as the overarching benefits of digital transformation using the many data solutions available.

THE DIGITAL TRANSFORMATION WILL CAUSE DISRUPTION

Welcome to the fourth industrial revolution: digital transformation. This is a revolution that is fundamentally altering the way we live, work and relate to one another, and will transform the way every business in every industry operates. The growing accumulation of data, increasing diverse sources of data, especially through the Internet of Things (IoT), artificial intelligence (AI), machine learning, as well as leveraging data through data analytics, is transforming the way every business operates. The ability to make sense of data transformation is dramatically reshaping industries and reinventing our futures. Though digital transformation is considered an imperative, some companies are faring better than others in the race to become a data-driven organization. The revolution is already here.

Business leaders see a chaotic, uncertain future ahead. Consider these findings from a survey of 4000 business leaders:

  • 48 percent don’t know what their industry will look like in three years
  • 78 percent feel threatened by digital startups
  • 45 percent fear they may become obsolete in three to five years1

Digital transformation efforts are being inhibited by a wide range of challenges — two most often heard from organizations are the lack of budget and the lack of skilled resources. The lack of qualified resources points to the bigger issue: digital transformation is not a strategic focus for many organizations. Additionally, Gartner cited that early stage failures, up to 61 percent by 20172, are the direct result of the inability to define a use case and process to gain insights from data.

Despite these challenges, lines of business, competitors, customers, and C-suite executives are recognizing the need to understand more about digital transformation to stay relevant. Change is patchy across organizations. At times, investments are focused on only parts of an organization rather than a holistic application across the entire organization. A holistic and collaborative approach is needed to bring IT and business together in support of a strategic approach to digital transformation. Leaders must agree that the following digital business attributes are imperatives for success:

  • Predictively discover new opportunities
  • Deliver unique and personalized experiences
  • Innovate in agile ways
  • Operate in real time

Successfully navigating in this new era requires a commitment from organizations to transform not only people and processes, but also modernizing the environment upon which a business is built — from the edge to the core to the cloud. Data analytics is at the core of these initiatives, and there are many opportunities for starting on the data analytics journey. Data consolidation, whether adopting a data lake solution, self-service analytics, or the Apache™ Hadoop® framework, will be a major prerequisite for organizations looking to capitalize on data using analytics.