Almost half of the investments on Big Data is going to business functions like sales, marketing and new product development, while spending on IT, finance and Human Relations is much less, according to a TCS study.
As per Tata Consultancy Services's (TCS) Emerging Big Returns from Big Data global trend report, the toughest challenge for businesses using Big Data initiatives is getting different business units to share information across organisational silos.
Big Data is used to describe voluminous amounts of unstructured and semi-structured information that a company creates and, which would take a lot of time and cost to load into a database for analysis.
"The toughest challenges for businesses implementing Big Data initiatives is getting different business units to share information across organisational silos and determining what data to use for different business decisions," TCS said in a release.
The report also indicates technological challenge of being able to handle the large volume, velocity and variety of Big Data.
"Regardless of whether they are leaders or laggards, nearly half (44 per cent) of Big Data investments are going to business functions on the revenue side: sales, marketing and R&D/new product development. Much less (24 per cent) is going to back-office functions: IT, finance and HR," it said.
TCS surveyed 1,217 companies in nine countries in four regions of the world (the US, Europe, Asia-Pacific and LatinAmerica) in late December 2012 and January 2013.
"Of these companies, a little more than half (643) said they had undertaken Big Data initiatives in 2012," it said.
The report further revealed that leaders in Big Data are doing analysis outside of business units with 79 per cent of them are using the IT function or a separate Big Data team and only 21 per cent doing the analysis in business units.
The laggards on the other hand are doing only 68 per cent of their analysis outside of the business units, it added.
"The most marked difference is that leaders spent USD 24 million in 2012 and expect to spend USD 26 million by 2015, whereas the laggards spent USD 7 million in 2012 and expect to spend USD 13 million by 2015," it said.
Country-wise US companies are leading adoption of Big Data initiatives (68 per cent), followed by Latin America (51 per cent), Europe (45 per cent) and Asia Pacific (39 percent).