So for those of you that like to remember things in short whites, let me give you kind of the Cliff Notes version first.
Three words: data, cloud and engagement.
Data, I think of it as the world’s next natural resource. Cloud, simply put, any process or IT delivered as a service. And the word engagement, because I think it has forever changed how we engage but understand people at an individual level.
So let me take each one, couple comments about what I see clients looking for, many of you serve clients, many of you are clients we serve which I appreciate. But what have we learned, what do they want and what’s going to happen?
But let me first start with data – new national resource. There isn’t a discussion in every discussion I had today that isn’t got data at the center of it whether it’s society, whether it’s business, whether it’s technology. And I’m going to assert that we will look back on this time 21st century and we will look at data as a natural resource that power the 21st century just like if you think back in time electricity was to the 18, if you take back or 19, you take a look at hydrocarbons to the 20th you will reflect back on data in that same way to the 21st century.
And many people had statistics, I tell you there is one that always sticks out in my mind when it comes to data: creation 2.5 billion gigabytes per day and 80% of all the world’s data ever known to man has been created in the last two years.
Now every client I know believes strong — you can see it in their reactions, three out of four are piloting Big Data projects or have then in production. More interesting to me, 1 out of 3 are constantly looking at how do you monetize data to create a new business, one in three already, which leads me to what I think is a phrase I will repeat. We look forward and data will be the basis of competitive advantage for every company in every industry. Basis of competitive advantage to distinguish the winners and the losers. And this is why I can speak from my own company.
In the last several years, we have invested over $24 billion in this area, 30 acquisitions, 30,000 engagements and wrapped up last year with the big data analytics business of $16 billion. But what I think is more interest to you is so what does determine the winners and losers and what do they do?
And so I want to share two things and they’re going to sound a little technology but everybody can say I’m a data business. All of us would say that.
So what is it that’s going to distinguish the future? Two criteria: one is and I say this to every CEO I visit – go push. How often are you using multiple types of information and pushing the edge on predictive analytics? Then you’ll know whether you have a competitive advantage.
Types are easy, all the information you have in your company rows and columns, structure, unstructured everything tweets, blogs, videos, pictures you name it. But the big question is this kind of analytics and what our research and all our work shows best practices and I am going to share with you some pretty stunning results out of it. You’ll do three things: at a base you use analytics that describe a business. The next level is you predict and the third level is you are prescriptive.
And I think one of my best analogies that make it simple is you think of the GPS. You get a map, point A to B, you see a route; that’s a description. Okay, now I’m going to be predictive. You take this route and it’s going to be 20 minutes. And now I am going to be prescriptive. While I drive as you all know, we all have the ability now, the route changes dynamically real time. That’s prescriptive as I’m going. That’s the world that you’re going to apply to every part of your business whether it’s risk management, whether it’s pricing, whether it’s hiring, whether it’s determination of skills, that’s what will make a difference.
And then the second, the guys that are really seeing the difference they exploit time value of data. That means battles won and lost in microseconds, right? And as I said the results are striking, so take this away. Those two things, range of analytics, types, multiple sources of data, real time use of it, those companies are two-and-a-half times more likely to offer new services, twice as likely to make their products smart adding intelligence to them, and twice as likely to do things real time.
So this is an underlying shift that is going to forever change the basis of competitive advantage for every company.
Second shift. Cloud. Now everybody in here — how many of you are experts in cloud? Okay, I don’t believe that answer actually. I hope a lot more of you are, okay.
Now the point, cloud as I said simple definition – any IT process or business service offered as a service. Properly understood, properly done, this is going to be a game-changer in a big deal. By 2016, a quarter of the apps in the world would be in the cloud. 80% of software developed right now is built for the cloud. But I want you to think about something and what share with every again – with every client, I think about for my own business, what appears as a technology choice, it’s not. You’re making business model choices. And that’s how to think about it and this is where it becomes a competitive advantage.