Heritage Group, has been in the space of construction since 1994, but for them it is not just about building houses, but rather saleable house. Six months prior to a project being started, the Heritage group does a manual survey on the neighbour areas and the paying capacity of the people as well as the economic starta and lifestyle of the people. This gives the Heritage Group insights in planning and making informed decisions on what to build.
“Analytics helps us make decisions such as whether to build more of luxury houses or budget houses. What should be the average size of the house say 1BHk, 2BHk or 3 BHK and at what ideal cost will it sell. It also tells us whether to target end users or investors. These are critical to ensure sales of the houses, “ says Manikkam Subramaniam, senior vice-president, Heritage Group.
Just like Heritage Group most organizations are using the huge amount of date they have to get inputs that can help them increase either the customer satisfaction or their overall revenue.
Analytics is the process of studying historical data to come out with potential trends, analyze the outcomes of certain decisions or events, or to evaluate the performance of a given tool or scenario. The aim of the activity is to improve the business by gaining insights from the data.
Take for example the case of JP Morgan Chase India. The company manages 900 clients across the globe each day with an average of one trillion transactions each day. While the typical assumption over the years has been that banks have maximum demand of home loans, however using analysis on the data that the bank has over years, it wasfound that the highest demand or the spike is actually in the student loans segment. The bank maintains a data bank of four to seven years and uses it to predict future trends at the same time analyze the previous trends better.
Huge growth by 2020
According to a research done by International Data Corporation (IDC) the worldwide revenues from Big data and Business Analytics will hit USD 187 billion by 2019. This would be a 50 percent increase in a period of five years.
The industries taking maximum advantage of analytics would be banking, discrete manufacturing, process manufacturing, central government, and professional services, predicts IDC. The report further predicts that these industries will be the top five revenue contributors of big data analytics. The report further states that big data analytic’s market will grow at a CAGR of 11.7 percent by 2020 and hit USD 203 billion in revenue.
India promises growth, thanks to startups
Another reason for companies to be able to come out with actionable insightrs using analytics is the fact that there are various startups that help them in this journey. As online companies and data collected is increasing a analytics on the collected data is almost like mining an in oil rich field. As the phrase is often used ‘Data is the new oil’ is actually most accurate in countries like India, which has a huge sample audience ( merely in terms of population) in mapping trends and the industry is at a maturing stage, giving adoption patterns etc. In fact, according to the startup report of Nasscom this year, out of the analytics and advanced analytics is the most sought after technology currently. In 2015, there were 90 new startups incorporated in the field of analytics while from 2016 onwards there have been 125 new startups incorporated in this space. The report also states that advanced tech startups are growing at a five year CAGR of 30 percent.