Big data is touted to offer a lot of potential opportunities for growth and more profits, but actually achieving those goals is proving to be incredibly tricky for many businesses.
In fact, most executives are not prepared to handle the increasing amount of data they face, according to a new report published by Oracle today.
With an average of 86 percent higher volume of data compared to two years ago, that could tally up to an estimated $71.2 million in annual revenue lost due to mishandled big data.
Executives in the public sector, healthcare and utilities industries were found to be the least prepared to handle the data deluge. On a grading scale from "A" to "F," 41 percent of public sector executives, 40 percent of healthcare executives and 39 percent of utilities executives giving themselves a “D” or “F” preparedness rating.
Furthermore, the oil and gas (22 percent) and life sciences (20 percent) industries were found to lose the greatest estimated percentage of annual revenue due to their current data management processes.
On the contrary, communications, manufacturing and retail industry executives all seem to be doing better. With the majority of leaders in each group giving themselves an "A" rating, these industries only lost about 10 percent of additional annual revenue because of growing data management processes.
Overall, most executives attributed losses to not having the right systems in place to handle big data, followed by having to rely on IT to compile and analyze the data.
Additionally, each industry is going to analyze data for its own benefit in different ways, which requires customized data solutions. However, for industries that are already having trouble upgrading existing infrastructures, that is going to hurt budgets even more in the short run. But the costs in the long run could be a lot worse if they don't upgrade now.
For reference, Oracle researchers surveyed 333 C-level executives representing American and Canadian enterprises from 11 different industries. These executives were asked primarily what problems they typically face regarding managing the deluge of big data and how they are using that information to drive profit and growth.
The full report, From Overload to Impact: An Industry Scorecard on Big Data Business Challenges, is available online to read now.