With the challenges in data which businesses are facing today, it is only imperative to utilise various technologies and platforms to solve these. Considering the pandemic especially, different industries are making the most of their data and analytics to meet the needs of the changing business landscape.
In an interview with DSA, Hillary Ashton, Teradata’s Chief Product Officer, gave one example of how their customers in Singapore are utilising data analytics to improve business operations in these challenging times. She said these customers have been enhancing their solutions by leveraging third-party data assets and stress-testing their analytic models in order to better understand the effect of the pandemic and predict the impact it will bring to their business in the future.
Aside from that, Hillary also mentioned that the use of advanced data analytics has been especially valuable in helping enterprises fulfil their customers’ needs, which, according to her, is another high-end common use case. Other use cases include financial risk analytics and fraud detection that give businesses better visibility into their real-time transactions and the capability to quickly detect fraudulent ones, at scale.
Exciting Times for Data and Analytics
Data analytics also makes sure that companies are adhering to all of the compliance regulations through their data, which is a global consideration, especially in the financial services market. To enable this, however, customers must have their data and analytics solutions in order. Additionally, users must also consider various technologies for their data analytics.
“We are seeing with 5G the availability of data, especially sensor data or IoT data in general. Combined with 5G, it is opening doors for new use cases. Things like traffic analysis for intelligent cars, machines on a factory floor, predicting failure before it happens or reducing waste in a factory. It's quite an exciting time for data and analytics and we see a lot of momentum in the data analytics space”, Hillary added.
She mentioned that sensor and IoT data is becoming pervasive, not just in manufacturing but across many different industries. For instance, Teradata has a telecommunications customer who is using sensor data in order to understand network outages in the telco space. This is highly valuable because it prevents customer disappointments and increases the net promoter score for customers.
As such, more and more businesses are opting for cloud data analytics for its various benefits. According to Hillary, the cloud features frictionless IT, wherein customers’ lines of business (those who want to have a lower interaction with IT) can benefit from.
“There is also [the benefit of] data accessibility. The cloud increases access to many new sources of data that are not in your traditional data warehouse. This may mean social media data, clickstream data based on your website behaviours and advanced IoT data that's coming in. And data accessibility requires modern tools, which are common in the cloud, for instance”, she added.
Managing One’s Cloud Expectations, and Appetite
Hillary believes that cloud data analytics can help companies improve their ROI or return on investment. This is because the cloud makes analytics much easier to deploy since there is a broad ecosystem of analytic capabilities and tools available to it. Organisations can make careful choices about the architecture used for analytics with cloud in order to manage costs and have successful ROI.
However, as with any other technology, users of the cloud can still face certain problems if they don’t think their cloud strategies through. Organisations using on-prem infrastructure only have to think about fixed costs, although Hillary states that as they add more users or data, most systems will start to slow down or reach a maximum capacity.
In the cloud, its elasticity and availability allow you to just pay more whenever you need to add more users or data. However, when businesses are not mindful of their consumptions, this is where budget overruns can enter and become a serious issue. Gartner predicts that by 2022, 75% of organisations using cloud data management systems will experience significant budget overruns.
Explaining how to avoid this situation, Hillary said “Enterprises should have a mindset to consider how to manage their appetite, that the business has to do more data and more analytics in a cloud environment while managing costs. In fact, there are sometimes some hidden costs. Teradata provides careful guidance to our customers on how to make sure that they consider future egress charges in the cloud context so that they are not surprised by a cloud deployment of any solution”.