Big data: The next frontier for competition
Analyzing large data sets—so called big data—will become a key basis of competition, underpinning new waves of productivity growth, innovation, and consumer surplus as long as the right policies and enablers are in place. Research by MGI and McKinsey’s Business Technology Office examines the state of digital data and documents the significant value that can potentially be unlocked. However, companies and policy makers must tackle significant hurdles to fully capture big data’s potential – including a shortage of skilled analysts and managers.
To exploit the data flood, the world will need a lot of data analysis capacity. A report last year by the McKinsey Global Institute, the research arm of the consulting firm, projected that the world needs workers and companies with “deep analytical” expertise.
The impact of data abundance extends well beyond business.