Gartner forecasts advanced analytics to grow almost 14 percent to $1.5 billion in 2016.
The research agency noted 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.
He added 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.
Further, Gartner said a minority of organizations will have a rigorous approach to demonstrating the trustworthiness of their analytics algorithms through to the end of 2018.
Gartner believes the trust factors influencing the ethical use of analytics are identifiable — transparent, accountable, understandable, mindful, palatable and mutually beneficial.
Unfortunately, these underlying factors of fostering trusted business relationships based on data are seldom given much, if any, consideration.
“The resulting business, social and ethical impacts arising from the use of data and analytics are understood by few, ignored by many and tracked by virtually no one,” said Alan Duncan, research director at Gartner. “The resulting impacts are tangible — unrealized business opportunities, additional inefficiencies, increased brand risk and even criminal proceedings.”
By 2018, algorithm marketplaces will be combined with Platform as a Service (PaaS) to boost advanced analytics and enable secure sharing and monetization of raw data.