6.800 million dollars will be invested in Big Data, throughout Europe, between now and 2018. Is it worth it? It would seem, according to the latest info from the tourist sector, that Big Data is the way to go, at least in terms of outlay and business strategy, for next few years. With what aim? Alberto Sacappini, an Innwise data analytics expert gives us his views in the following interview.
The impressive growth of Big Data in Europe is a numerical fact for eMarketer, who place the amount invested this year alone at 2.9 million.
Is it worth the money?
It’s hard to know the profitability of this investment as it depends more on the use of Big Data analysis systems than on their implementation. These systems first started to be implemented some years ago and have helped define good practice and cases of success. Today, I feel, the greatest challenge is to know how to make the most out of the data.
In Spain’s case, it still doesn’t reach 8%, but the growth forecast for this year is 304%.
Why do you think that Spain hasn’t reached the same level as other European countries like France and Germany when it comes to using Big Data?
In Spain, (probably more than countries like France and Germany), we still haven’t learnt that much about “small data”; knowing how to properly analyse a limited amount of data that is easily accessible to the company.
That is especially valuable to small and medium companies. It also depends on the company’s investment power, as Big Data processing and analysis systems can involve a large financial outlay.
According to the IDC, 90% of worldwide data has only been created in the last two years, estimating that the volume of digital registries could reach 1.2 million zeta bytes this year.
Is the Spanish hotel industry prepared to properly process these enormous amounts of information? Where do we stand, where are we heading?
Apart from the main hotel chains, I feel that the hotel industry needs to put in a lot of work to be prepared to properly process this amount of data. As I said, the main challenge is not the implementation, but previously establishing an objective and clearly defining the use it is going to be given. Presently, we are in a position in which most hotels and hotel chains don’t even use a centralized information management system and even less business intelligence systems.
The first step to be taken before using Big Data is to consolidate, process and analyse existing information
Just as for the last few years it was Revenue Management and presently it is CRM, I think in the next few years Business Intelligence and Business Analytics will be key to achieving a sustainable competitive advantage.
In future posts we will dig deeper into the role of Big Data in the hotel sector. Analysis and data processing so hotels can function better.