In a recent paper “Reaping the benefits of big data in telecom“, in the Journal of Big Data, Jacques Bughin analyses the profit impact that the deployment of big data analytics has on telecom service providers.
The results are revealing; the graph below shows the profit impact for each of the 80 companies analysed,per company ordered highest first:
This paints a fairly bleak current picture:
- The median impact of big data on profit was 1.4%, compared to an industry average across all technologies of 3.2%, i.e. returns of less than half of the average across other technologies
- 40% reported no profit or negative profit impact, i.e. their bottom line would be better off if they had not made the investment
- Only 5 % claimed to have generated material profit impact on their business
On the positive side, Jacques then goes on to analyse what makes the difference between those companies that achieve a significant positive profit impact from deploying big data analytics compared to those that did not. The key factors that he highlights are:
- Invest early in big data analytics
- Invest in big data analytics infrastructure before investing in data science
- Apply big data analytics strategically across the business
- Address multiple big data analytics use cases
These are all factors which underline the importance of investing in a big data analytics platform like PNDA, in order to realise a positive profit impact from big data analytics.