Rise of New Competitive Models

Gartner Says More Than Half of Large Organizations Will Compete Using Advanced Analytics and Proprietary Algorithms by 2018

Gartner predicts that by 2018, more than half of large organizations globally will compete using advanced analytics and proprietary algorithms, causing the disruption of entire industries.

“Today, with fewer regulated monopolies and the Internet eliminating geographical boundaries, more companies are starting to use statistical analysis, predictive modeling and decision optimization to compete, instead of using traditional approaches,” said Jim Hare, Research Director at Gartner.

Mr. Hare said that, to survive in the new digital economy, end-user organizations and vendors will both need to accelerate the shift in focus of their investments from measurement to advanced analysis or risk being left behind. Leading organizations are developing proprietary algorithms that can lead to faster, more insightful analysis and are moving away from “gut feel” decision making.

Gartner also predicts that through to the end of 2018, a minority of organizations will have a rigorous approach to demonstrating the trustworthiness of their analytics algorithms.

By 2018, algorithm marketplaces are also predicted to combine with Platform as a Service (PaaS) to boost advanced analytics and enable secure sharing and monetization of raw data. “Data providers don’t typically trust end users with detailed, event-level data. On the other hand, data consumers do not like the involved complexities of data licensing and data integration,” said Alexander Linden, Research Director at Gartner.