Johannesburg, 04 Aug 2011
The growth of data will have important implications for companies and individuals around the world, says Softworx MD Jane Thomson. “Globally, the rate of data growth is estimated at 40% annually, which is eight times faster than IT spending,” says Thomson.
Much of this data is being generated by advancements in IT and telecommunications technologies. These are now able to track the movements, behaviours, personal information and preferences of people all over the world through cellphones, Internet use and sensors.
Thomson says all this data is being gathered and collated on the Internet, citing an example where more than 30 billion pieces of content is shared on Facebook every month. Cellphone manufacturers are also adding more sensors to handheld devices to enable them to provide increasing amounts of data on users' activities. There are currently more than 4 billion cellphone users, which accounts for 60% of the global population. In the future, cellphones will be able to transmit a user's location and monitor their health.
Some international companies already making use of the data growth include companies analysing large data sets of business successes and failures, patent filings, government grants and employment advertisements to help identify new business opportunities.
Hospitals are starting to use complex data retrieved from neonatal intensive-care units on sleep apnoea and changes in body temperature to identify babies at risk of developing infections. Television companies are now monitoring Twitter and Facebook to gather information on viewers' programming likes and dislikes. This information is being used to help advertisers determine the best programmes, channels and timeslots to air their advertisements. Still, other companies are using information gleaned from Facebook to help retailers offer better promotions and loyalty programmes.
The growth in data also includes large volumes of individuals' personal data. A cellphone picture posted on an anonymous Twitter account can be traced using a variety of Internet sources to provide information on a person's name, residential address, place of work and family information.
“This massive growth in data will have important implications for both individuals and businesses around the world,” says Thomson. Some of these implications could include a severe talent shortage, as companies will require thousands of deep analysts and managers who understand how to decode data and leverage the information for business growth. On the flip side, the growth in data will present new challenges for companies in terms of privacy and ethical practices. Companies will need to look at hiring privacy officers, safety officers and data officers to manage their private information, and a code of ethical practices will need to be drawn up to govern the use of consumer information.
A consumer's bill of rights to privacy may also need to be developed to clarify issues around individual privacy and how the information gathered can be used in an ethical and non-detrimental way.
Companies offering storage systems, network gear and data mining or data management software can expect large growth as a result of the growth in data. All services involved in storing, collating, decoding and managing data will experience growth as companies attempt to use large data sets to unlock value.
“Overall, it is clear that the large growth in data that will be experienced over the next few years will have widespread implications for businesses and individuals alike. Those that find a way to navigate this challenging new area will leverage the wealth of information available in large data sets,” concludes Thomson.
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