IT is going through a cycle of innovation once again as organizations adopt Big Data. And Hadoop is the technology that is enabling this. It has been a long time since IT has offered business a competitive advantage – and big data is changing that.
In 2004, Nicholas G. Carr wrote the book, Does IT Matter? Information Technology and the Corrosion of Competitive Advantage.
Carr discusses how IT was a competitive advantage in the 70’s and 80’s, citing examples like American Airline’s Sabre reservation system, Reuter’s Monitor Money Rates service, and American Hospital Supply’s ASAP purchasing system – all custom applications that gave these businesses a big competitive advantage.
By the end of the 90’s, IT had become a commodity item with companies buying packaged enterprise systems, which became known as “companies in a box.” His point – IT no longer offered a competitive advantage.
As the cost of packaged software became more attractive, organizations were willing to sacrifice custom applications and the potential advantage offered in exchange for cost savings. This began the era of IT cost reduction vs. IT innovation.
Then along comes Hadoop and Big Data Analytics. Businesses are once again investing in
writing a plethora of custom applications that provide competitive advantage. These applications let them analyze their
business in ways never before feasibly possible.
Hadoop was derived from Google’s MapReduce and Google File System technology – which was designed to handle the massive parallel processing required for web searches, social networking and mobile commerce to run quickly. Until Hadoop, processing massive volumes of data was cost-prohibitive.
Today, businesses are finding a variety of uses for Hadoop and big data analytics and using it for business decisions and strategy, security – and yes, more cost reductions.
Determining how to implement Hadoop, what type of analytics and other processing it can be best used for is still being determined my businesses. According to a recent study done by CIO Magazine, nearly 50% of the organizations surveyed have a big data/Hadoop implemented or are in the processing of implementing. The remaining organizations plan to have big data implemented in the next 24 months.
If you are implementing Big Data/Hadoop, watch the informative on-demand webinar.