More than half of global organisations will compete using advanced analytics and proprietary algorithms by 2018, with advanced analytics expected to increase almost 14 per cent to US$1.5 billion this year, forecast Gartner analysts in ‘Predicts 2016: Advanced Analytics are at the Beating Heart of Algorithmic Business’.
“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, Gartner.
Hare said that to survive in the new digital economy and avoid being left behind, end-user organisations and vendors will need to accelerate their shift in investment focus to advanced analysis from measurement.
The report also finds that few organisations will take a rigorous approach to demonstrating the trustworthiness of their analytics algorithms through to the end of 2018. The research identifies the key factors in building trust as transparent, accountable, understandable, mindful, palatable and mutually beneficial.
“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, Gartner. “The resulting impacts are tangible — unrealised business opportunities, additional inefficiencies, increased brand risk and even criminal proceedings.”
Duncan said that leading data-driven organisations will increasingly recognise the causal relationships between data, analytics, trust and business outcomes. The benefit? Organisations that address these ethical issues will develop more productive and trusted relationships with their customers, suppliers and employees, as well as increasing their competitive advantage, brand loyalty and market share.
Finally, Gartner also predicts that, by 2018, algorithm marketplaces will be combined with Platform-as-a-Service (PaaS) to increase advanced analytics and enable the secure sharing and monetisation of raw data.
“Today’s situation of sharing data is problematic,” said Alexander Linden, research director, Gartner. “Data providers don’t typically trust end users with detailed, event-level data. On the other hand, data consumers do not like the involved complexities of data licensing and data integration. As a result, there is a significant impediment to sharing and monetising data.”
Within three years, Gartner analysts expect technology to be able to overcome these challenges, constraining the data processing to ensure that detailed data cannot be copied, saved or reverse-engineered.