A new research report by SAS and the Centre for Economics and Business Research states that Big Data and the Internet of Things (IoT) is set to be worth £322 billion to the UK economy, or 2.7% of GDP, by 2020. The report is based on the findings of a survey which asks businesses and Government to examine the value of Big Data and the IoT to a range of specific industries and to the UK as a whole.
According to “The Value of Big Data and the Internet of Things to the UK Economy” Big Data Analytics will represent £241 billion of this value while the IoT will contribute £81billion with a combined £292 billion generated from efficiency savings alone. In addition Big Data will provide 157,000 additional jobs by 2017 and the IoT will create 67,000 jobs between 2015 and 2020.
This detailed report, which is a follow-up to Cebr’s 2012 “Data Equity: Unlocking the value of Big Data” report, notes that the value of Big Data and the IoT is realised in many ways with 84% of businesses surveyed reporting increased revenues from Big Data investments, with 85% for IoT. In addition 93% of businesses enjoyed cost savings through Big Data and 91% through the IoT.
The efficiency savings, referenced in the report as the key contributor to GDP, come from various channels including customer intelligence, supply chain management, quality management, performance management and fraud detection. These savings enable companies to invest in product innovation and business creation which in turn leads to increased employment opportunities across all industries both through hiring specialist technological staff and through general business expansion. The survey findings also reveals that gaining insights into customer behaviour is one of the most popular uses of Big Data, as well better decision-making, risk management and gaining better views into operational data.
The report highlights that businesses of all sizes can enjoy these benefits with small (71%), medium (68%) and large (85%) businesses all believing Big Data and IoT allows for greater innovation. However, the realisation of the value and opportunities presented by Big Data and IoT will be generated through increased adoption rates of these technologies. The report claims that currently 30% of businesses have adopted IoT strategies and 56% have implemented Big Data solutions. These are expected to rise to 43% and 67% respectively by 2020.
techUK is continuing to look at the value of Big Data and how to drive its implementation. As part of this work techUK are holding a session on how Big Data and the IoT can add value to the UK agriculture industry on 30 March 2016, as well as regional Big Data in Action Roadshows, the first of which will take place in London on 12 April 2016.