McKinsey Quarterly

Chart Focus Newsletter
February 2012

ShareFacebookLinkedInDeliciousTwitter

Will ‘big data’ transform your industry?

The volume of data that businesses collect is exploding: in 15 of the US economy’s 17 sectors, for example, companies with upward of 1,000 employees store, on average, more information than the Library of Congress does. New academic research suggests that companies using this kind of “big data” and business analytics to guide their decisions are more productive and have higher returns on equity than competitors that do not. As big data changes the game for virtually all industries, it will tilt the playing field, favoring some over others. The financial and information sectors rank among those with the highest potential to create value in the near term. To learn more, read “Are you ready for the era of ‘big data’?” (October 2011).
Also of Interest

May 2011
The challenge—and opportunity—of ‘big data’
A McKinsey report explores the explosive growth and potential uses of digital information. [includes audio]

August 2010
Clouds, big data, and smart assets: Ten tech-enabled business trends to watch
The swift adoption of advancing technologies is upending traditional business models. Senior executives must prepare for a challenging new environment.
[includes audio]

March 2010
The Internet of Things
More objects are becoming embedded with sensors that enable them to communicate. The resulting information networks promise to create new business models, improve business processes, and reduce costs and risks. [includes audio]

June 2008
Meeting the demand for data storage
If storage costs continue to rise rapidly, they could make it harder for companies to store and exploit new forms of data.

Did you miss last month’s Chart Focus?

Why companies aren’t investing
Profits are strong, interest rates low, and bargains abundant, yet many companies aren’t investing. Uncertainty—about the economy, markets, and economic policy—ranks high among the reasons, but decision biases play a surprisingly important role. Executives are foregoing opportunities that, despite today’s volatility and uncertainty, are probably worthwhile.