Analytics Trends 2016: The Next Evolution

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Analytics Trends 2016 The next evolution

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As the discipline of business analytics matures, it’s clear that some trends aren’t going away. Instead, they are evolving at such a rapid pace that they demand a fresh look every year. This year, we’re taking stock of a mix of both new and familiar trends that are shaping an “everywhere analytics” world—where analytics, data, and reasoning are embedded into the decision-making process, every day, everywhere in the organization. Analytics Trends 2016 | 2

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Six trends Analytics Trends 2016 | 3

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The man-machine dichotomy blurs As cognitive capabilities advance, where do humans fit into the picture? Fear not—there’s still a place for us. In the near future, human insights and instincts will complement machine-driven insights. What will this more collaborative future look like? Analytics Trends 2016 | 4

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The man-machine dichotomy blurs Humans and machines will find new ways to complement one another The cognitive age is here • Humans will build and implement cognitive technologies • Humans must ensure machine performance and fit with work processes $1 billion • Humans will perform roles that computers can’t – such as those involving creativity, caring, or empathy in venture capital funding for cognitive technologies in 2014 and 2015 The way forward Market revenue for cognitive expected to exceed • Examine knowledge-intensive processes to determine which tasks are performed by machines, and which by humans $60 billion by 2025 • Plan for some degree of retraining Source: International Data Corporation www.deloitte.com/us/AnalyticsTrends #AnalyticsTrends2016 Analytics Trends 2016 | 5

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The man-machine dichotomy blurs Impact Analytics Trends 2016 | 6

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Analytics expands across the enterprise Not long ago, it was enough to simply get targeted analytics capabilities put in place. Today, a new goal is emerging: The insight-driven organization. That will require scaling small, current analytics initiatives to the enterprise level. From “analytics transformation” to “industrialized analytics,” get ready. Analytics Trends 2016 | 7

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Analytics expands across the enterprise A new goal emerges: The insight-driven organization (IDO) • Yesterday: Implement or improve targeted analytics capabilities in a few key areas • Tomorrow: Tightly knitted combo of strategy, people, processes, data, and technology that delivers insights every day, everywhere in the organization Shaping an IDO future with today’s decisions • Some leaders are already discussing “analytics transformation” and “industrialized analytics” • Decisions on issues such as data warehouses and big data must be made in the context of an IDO future The way forward • Take existing analytics initiatives and scale them to the enterprise level • Goal: Grow and connect analytics capabilities across the enterprise www.deloitte.com/us/AnalyticsTrends #AnalyticsTrends2016 Analytics Trends 2016 | 8

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Analytics expands across the enterprise Impact Analytics Trends 2016 | 9

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Cybersecurity: A good defense isn’t enough Last year’s supertrend is still front and center— growing in importance as more organizations experience the losses in value and reputation that can result from security lapses. Some organizations are taking the offensive when it comes to cybersecurity— which requires new thinking and approaches. Analytics Trends 2016 | 10

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Cybersecurity: A good defense isn’t enough Persistent and evolving • Product design and other IP are vulnerable to theft and sabotage—protecting data is only part of the challenge Growing investments in cybersecurity • Cybercriminals are becoming more skilled Scanning the current cybersecurity landscape • Leaders are taking steps to become proactive, not reactive U.S. federal government agencies alone will have spent more than $14.5 billion • Big spending is expected to continue on IT security in 2015 • Rise in automated scanning of Internet chatter, analysis of past hacks to create predictive models that anticipate the next threats, and more The worldwide financial services industry will have spent $27.4 billion The way forward • Enhance collaboration between analytics and cyber professionals • Adopt more predictive approaches to threat intelligence and monitoring www.deloitte.com/us/AnalyticsTrends on information security and fraud prevention in 2015 Source: International Data Corporation, “Big Data and Predictive Analytics: On the Cybersecurity Front Line,” February 2015. #AnalyticsTrends2016 Analytics Trends 2016 | 11

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Cybersecurity: A good defense isn’t enough Impact Analytics Trends 2016 | 12

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The Internet of Things – and people, too As the Internet of Things matures, it’s moving beyond the interesting gadgets on which it relies to include tracking people as “things.” And it’s spawning new business models along the way. Analytics Trends 2016 | 13

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The Internet of Things – and people, too Beyond gadgetry • New roles for people in the IoT: Connected customers automatically transmitting data on aspects of their behavior or preferences, workers outfitted with wearables that share information on activities and whereabouts, and more • This is spawning new business models and leading to new ways to influence behaviors A new source of innovation • Data generated by IoT assets is being aggregated and analyzed to create new products and services • Big benefits to society at large are more likely as a result − More energy- and time-efficient transportation − More transparent, economical government services … and much more The way forward: • Build on existing infrastructure: Much of what is required to enable IoT is already in place • Give people incentives for participating in IoT—like health insurers offering discounts to track customer fitness activities using wearables www.deloitte.com/us/AnalyticsTrends #AnalyticsTrends2016 Too big to ignore? The worldwide IoT market is expected to grow from $655.8 billion in 2014 to $1.7 trillion in 2020 Sources: International Data Corporation, “IDC’s Worldwide Internet of Things Taxonomy, 2015,” “Worldwide Internet of Things Forecast, 2015-2020,” “Worldwide IoT Spending Guide by Vertical” Analytics Trends 2016 | 14

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The Internet of Things – and people, too Impact Analytics Trends 2016 | 15

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Companies bridge the talent gap The business world is coming to terms with the fact that the supply of data scientists (and others with related skills) can’t keep up with demand. So they’re getting creative. From new recruitment strategies to tapping the capabilities of a broader talent ecosystem, expect the analytics leaders of 2016 to find a way. Analytics Trends 2016 | 16

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Companies bridge the talent gap A deepening shortage • Universities can’t crank out data scientists and others fast enough to keep up with business demands • Only 17% of “analytically challenged” firms report having the talent they need How much talent is enough? Expanding avenues for talent • Analytics and data science programs are on the rise in universities International Data Corporation predicts a need for • Providers of analytics talent are also on the rise— often in highly specialized areas such as business intelligence, predictive analytics, data science, and cognitive technology 181,000 people The way forward with deep analytics skills in the U.S. by 2018 • Recruitment: Collaborate more closely with university programs on internships and student projects Source: International Data Corporation • The talent ecosystem: Cultivate ecosystems of external providers of analytics skills www.deloitte.com/us/AnalyticsTrends #AnalyticsTrends2016 Analytics Trends 2016 | 17

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Companies bridge the talent gap Impact Analytics Trends 2016 | 18

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Business borrows from the sciences Scientists have been applying advanced analytics techniques to their toughest challenges for years, in everything from molecular biology to astrophysics. Now, their business-world counterparts are beginning to borrow many of those techniques for their own purposes – jump-starting their efforts with more sophisticated capabilities. Analytics Trends 2016 | 19

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Business borrows from the sciences Scientists were into analytics before it was cool • The discipline of analytics isn’t new—scientists have been advancing analytics techniques for decades • Techniques developed for scientific purposes hold significant potential for addressing business challenges Cross-pollination has already begun • Analytics developed for DNA research have been applied to text analytics initiatives • One prominent private company hired dozens of scientists from a major research university • Developments like these are in their nascent stages now—but a burst of activity is likely The way forward • Hire broadly from multiple disciplines spanning statistical, biological, and physical sciences • Expand and clarify the career track for data scientists • For companies that are not high-tech: Determine whether your organization can viably compete with start-ups and other advanced industries for the talent and skills you need www.deloitte.com/us/AnalyticsTrends #AnalyticsTrends2016 Analytics Trends 2016 | 20

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Business borrows from the sciences Impact Analytics Trends 2016 | 21

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To learn more, visit www.deloitte.com/us/AnalyticsTrends Follow @DeloitteBA on Twitter Share your thoughts with the hashtag #AnalyticsTrends2016 Analytics Trends 2016 | 22

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Trend Watchers Forrest Danson Principal US Leader, Deloitte Analytics Deloitte Consulting LLP fdanson@deloitte.com Adnan Amjad Partner Cyber Risk Services Deloitte & Touche LLP aamjad@deloitte.com Tom Davenport Independent Senior Advisor Deloitte Analytics tdavenport@babson.edu Steven Gold Principal Enterprise Science Leader Deloitte Consulting LLP stevegold@deloitte.com Jim Guszcza Senior Manager Chief Data Scientist Deloitte Consulting LLP jguszcza@deloitte.com Vivek Katyal Principal US Risk Analytics Leader Deloitte & Touche LLP vkatyal@deloitte.com John Lucker Principal Global Advanced Analytics Market Leader Deloitte Consulting LLP jlucker@deloitte.com Beth Mueller Partner US Tax Analytics Leader Deloitte Tax LLP bethmueller@deloitte.com Jon Raphael Partner Audit Chief Innovation Officer Deloitte & Touche LLP jraphael@deloitte.com Analytics Trends 2016 | 23

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