Analytics software and the computing power to run it are becoming increasingly affordable, yet organizations thus far have not availed themselves to analytics. A recent Forrester Research report states that 88% of organizational data is not being analyzed. The lack of analysis for data coming from the Internet of Things (IoT) is more acute – according to a 2015 IoT report from McKinsey & Co., only 1% of IoT data is used for any actionable purpose.
Simply put, there’s a lot of opportunity out there for analytics software. What’s the best way to bring analytics into your organization?
There are generally two ways to implement software solutions. The first way is to identify a specific need and then develop a specific product, or so-called “point solution”, that addresses and solves that need. The second way is to develop a platform that provides resources to run multiple solutions. Once a platform is available in the marketplace, both the platform vendor and a community of developers can create and market solutions.
Solutions that run on a platform possess the following advantages over point solutions:
- With a platform, innovation happens faster and for a larger number of consumers and industries, especially if the platform achieves strong support from a community of developers who can expand their business opportunities.
- Organizations that use a platform can experiment in ways that a solution or a variant of a solution can be used for another purpose. Once a technology solution is operationalized and people begin to realize its benefits, end users naturally begin to form ideas about additional features and capabilities (just ask any product manager, who is the typical recipient of feature wish lists). Advanced analytics with its predictive capabilities is particularly susceptible to this type of wish list explosion. After all, if an analytics solution can predict which assets are likely to have the shortest or longest remaining useful life, it should be able to predict other likelihoods too. Because of its relative ease in customizing and extending solutions, a platform makes it possible to clone an application and alter it to support a similar but different use case.
Because there’s so much opportunity out there for analytics, a platform adds greater value to your organization. A recent survey and report from Salesforce states that high performing organizations are 3 times more likely that others to be deriving value from analytics in more than 10 different use cases. One platform supporting 10 different use cases is much more cost effective and efficient than acquiring or developing, and then maintaining, 10 different point solutions.
Making analytics more accessible through platforms seems like the fastest way to start tapping into the 88 to 99 percent of data that is not being analyzed.