Rapid transformation: The impact on insight from data and analytics to quantum physics

March 21, 2016

Senior Analyst, IBM Center for Applied Insights, IBM

Adopting data and analytics was once the future. Now, as companies are in the midst of transformation, they seek to capture new and better opportunities from their data.

Having data insights, however, is only the first step. The real competitive advantage comes from optimizing the analytics function and related capabilities to put fresh insights to work in every decision, interaction and business process. That is why, at the IBM Center for Applied Insights, we tapped into the experience of highly skilled data leaders to highlight best practices for equipping businesses to actually make use of insights. Here’s what was learned from the wisdom of data leaders to direct business priorities in 2016.

Data needs a leader

Organizations are using data insights to unlock game-changing results. A new report from the Harvard Business Review reveals several discoveries in regard to insight. Among them, 71 percent of business leaders are creating new forms of economic value from insight, 32 percent have monetized insight directly and 42 percent believe insight will be a significant contributor to company revenues over the next three years. What is the key to their success?

Pioneering organizations draw on data leaders such as chief data officers (CDOs) to close the gap between insight and action. Leading data leaders have focused on making data a priority, developing from within and freeing all the data to yield the best value for the business. In short, data leaders don’t just gather the data, they build a capability to fully capitalize on the data and achieve business benefits, from increased revenue to improved efficiency and effectiveness.

Welcome to the cognitive era

As business leaders harness the transformative power of data and analytics to make smarter, quicker and more analytically-informed decisions than ever, many organizations are already looking ahead to the cognitive era. Unlike computers of the past, cognitive systems are capable of understanding natural language and learning like a human. This capability is paving the way for an entirely new realm of possibilities.

Cognitive systems are expected to enable us to utilize the vast domain of unstructured, data-rich information that’s historically been too difficult to leverage because of its form and volume. Over time, cognitive systems can help us better understand and manage the world’s complex systems. But for now, early adopters are preparing their organizations by casting a cognitive vision, managing expectations and building the right team.

The quantum future of data

Cognitive computing can also help us enhance and extend our expertise, enabling a smarter civilization. Quantum computing, however, helps us realize exponentially more speed and power than what is achievable today, enabling a smarter, faster civilization. How is this feat possible? By harnessing the principles of quantum physics, quantum-based computers are expected to offer enormous leaps in performance over traditional computers.

Exactly when a fully realized quantum computer will hit the market is unclear, but leading experts in the field of quantum research are optimistic that the wait could be as short as 10 to 20 years—which is much shorter than was originally expected. What is clear is that quantum computing is expected to have a huge impact in many industries, including healthcare and pharmaceuticals, in which large volumes of data come into play to positively impact problems on a global scale.

Innovation and disruption happen at breakneck speeds. One of the few constants is change. However, by sticking to three principles—invest in data leaders, focus on becoming cognitive and prepare for a quantum future—leading organizations can create strategic advantage.