The New Currency of the Economy: Data Analytics

Data is everywhere. In fact, the amount of digital data that exists is almost implausible and is growing at a rapid rate— each and every one of us is constantly producing data. With the population burgeoning and the standard of living improving, mobiles phones and access to the internet has become the norm rather than the exception. With data consumption seeping into our day to day lives, importance of data and its analysis to 21st century growth can’t be emphasized enough.

This formidable era has transpired companies to gradually see a move towards adopting software analytics in their approach. The conflux of several trends, including the increasing migration of socio-economic activities to the Internet and the decline in the cost of data collection, storage and processing, is leading to the generation and use of huge volumes of data, commonly referred to as “big data”.

The concept of big data has been around for years; even though the term Big Data is a significantly recent term, one can trace the genesis of its definition to almost half a century back. Back then businesses were using basic analytics like manual examination of numbers for insights and trends. With improving technology, most organizations now understand that if they synthesize all the data that streams into their businesses, they can apply analytics and derive significant value from it. Thus it becomes the work of Big Data analytics to find insights that will help organizations make better and profitable business decisions.

It’s a perceivable fact that data analytics has made our lives simpler, faster and efficient. Whereas a few years ago a business would have gathered information, run analytics and unearthed information that could be used for future decisions, today that business can identify insights for immediate use with scrupulous precision. The ability to work faster, be more efficient and have a better awareness of their surroundings gives organizations a competitive edge they didn’t have before.

The tangible impact of data analytics doesn’t limit itself to large corporations only; governments are taking huge strides in this field to know more about the people they govern.

India, one of the fastest growing economies, has emerged as the third largest hub for startups in the world and is buzzing with new innovations in the field of technology. Indian consumerism is on the rise thanks to a growing entrepreneurial spirit of the middle class. With the push for a digital economy and the need for alternative modes of digital payment, India’s economy is exploring different technological solutions for financial transactions.  Moreover, demonetization has brought about an attitudinal shift in the minds of the Indian people with more individuals now migrating towards digital payment mediums like never before. With news that the Centre is exploring ways to make it mandatory for all government departments and agencies — including services such as railways and road transport corporations — to accept digital payments at points of consumer interface, it will be only a matter of time digitalization becomes the driving force behind how we function in our daily lives.

Already a key business destination for analytics and data science, the position of Indian analytics industry is only going to grow in the coming years. A recent report by Nasscom predicts that India’s analytics industry is expected to grow eight-fold to US$ 16 billion by 2025 whilst according to Forbes, the global big data analytics market will surpass 200 billion dollars soon.

Amongst several factors driving the exponential rise of the Indian analytics industry is the growing data generation at an individual level. India with its swelling population of more than a 1 billion, Internet users in excess of 400 million and smartphone user base of around 300 million is deemed to inevitably generate massive data, making each click an important information point that can be processed using Big Data tools to reveal user behavioral patterns. Though still a developing nation, a large talent pool and the growth in Internet enabled devices means data generation is only expected to grow given its low-cost, ease of access, ease of use and overall economic growth of the country.
This increasing digitization of transactions, coupled with the government’s unique identification project –AADHAR are some of the factors for Big Data Analytics’ demand in the country. Linking of the AADHAR to various services like finance, healthcare etc is expected to create a colossal pool of data which would require Big Data analytics to convert raw data into meaningful information and thus facilitate analysis.

One can truly say the scope of Big Data Analytics is colossal in an ever-growing economy like India.


[Contribution] The New Currency of the Economy: Data Analytics

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