Only one in four Big Data projects undertaken by businesses are profitable, according to a new study – but all might not be as bad as it seems.
The joint study by Capgemini and Informatica revealed that just 27% of Big Data projects are profitable, leading the two companies to conclude that most businesses have "significant work" to do in order to make money from crunching large and complex data sets.
However, of the 200 senior IT and data management executives quizzed in the survey, almost half (45%) said they are breaking even, while a further 12% were still waiting to see whether their Big Data project would prove profitable.
Just 12% of the executives said they were losing money by attempting to yield insights from analysing data sets.
The report suggests that the success of a Big Data project hinges on who is responsible for it. Chief Operating Officers (COOs) and Chief Data Officers (CDOs) are more than twice as likely to run a profitable Big Data project, compared to Chief Information Officers (CIOs). Currently, CIOs are responsible for these strategies in 52% of cases, but ownership is shifting towards COOs (20%), Chief Technology Officers (16%) and Chief Marketing Officers (16%).
"Clearly the key battleground is in the leadership of initiatives, echoing what we've witnessed in digital transformation," says John Brahim, Head of Capgemini's Insights & Data Global Practice.
"The study suggests however that many organizations have some way to go before they become truly insights-driven, with budget constraints and integration highlighted as significant challenges in fully operationalising Big Data."