An IDC InfoBrief, Sponsored by Micro Focus | April 2020

By Dan Vesset, Group Vice President, Analytics and Information Management, IDC

The Drive to Accuracy, Action, AutomationPREDICTIVE ANALYTICS

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IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

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IDC’s study also found that:

42% of an organization’s

spend was in IT budgets

28% was a direct allocation

to line of business (LoB)

30% was dedicated to DX

budget

For the Digitally Determined, It’s the Race to Realize; For the Digitally Distraught, It’s the Race to Reinvent

In terms of global progression, IDC also believes we are leaving Phase 1 and transitioning into Phase 2.

According to the IDC

Global DX Leaders Study

(June 2018):

46% of organizations were

“digitally determined”

54% were “digitally

distraught”

IDC believes that there are three discrete phases of digital transformation (DX):

By 2020, at least 55% of organizations will be “digitally determined.”

New technologies and delivery models

Platforms and communities

Autonomous systems

IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

Sources: CEO Priorities Survey, January-February 2020, IDC; Business Intelligence End User Survey, IDC, February 2020

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This portion of revenue is expected to increase to

42% BY 2025

The amount of revenue that comes from digital products, services, and experiences in the U.S. today.

Shift from DX to Generating Revenue from Digital Products and Experiences

Of those that have had turnover at the CEO level, 100% have had significant business transformation; executive turnover hit a new high in the U.S. in 2019.

38% of enterprises say that in the past three years they have experienced significant business transformation.

IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

Source: The CxO View of the Future Enterprise in the Digital Economy, Fielded January-February 2020, IDC, n=152

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CEOs are putting a priority on enabling and delivering intelligence throughout the enterprise

› 87% of CEOs surveyed by IDC in February 2020

said that greater enterprise intelligence is their top

priority for the next five years

› 70% of enterprises say that in the past year, their CEO

has articulated the need to be more data-driven

But enterprise intelligence is not simply about having more data or more information

› Nobel Prize-winning economist and Turing Award

winner Herbert Simon said, “A wealth of information

creates a poverty of attention.”

› Executives are setting new goals: moving from

using data to analyze performance to using data in

advanced decision models to affect performance

› IDC DataSphere research by 2023 there will be 103

ZB of data created, but only a fraction of it is being

tagged and analyzed

New enterprise intelligence needs require a recalibration of existing analytics capabilities to ensure:

› All data is taken into account (structured and

unstructured, data-at-rest and data-in-motion,

internally created and external procured, on-

premises and in the cloud)

› Predictive analytics and artificial intelligence

(AI) are supported

› Decision support and decision automation needs are

addressed for executives, managers, analysts, front-

line employees, and machines

Success in Digitally Transforming the Enterprise Depends on Superior Intelligence

IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

Source: Business Intelligence End User Survey, IDC, February, 2020, n=310 Sponsored by Micro Focus | Page 5

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The Complexity of the New Data and Analytics Environment

Enterprises are not only facing more data. In the past 12-18 months:› 45% started using new data types (e.g., text, audio, video, spatial)

› 38% cite introducing new KPIs

› 47% started using new analytics such as predictive analytics and machine learning (ML)

› 45% started using new internal data sources and 40% new external data sources

› 17% of the data created in 2019 was streamed in real time

According to a 2020 survey, only 28% of a typical data worker’s time is spent analyzing data as opposed to searching for it, preparing it, and governing it.

IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

Sources; U.S. Knowledge Management Survey, IDC, December 2019; Business Intelligence End-User Survey, IDC, February 2020 Sponsored by Micro Focus | Page 6

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Businesses Are Challenged by Data and Analytics Complexity

of workers are frustrated by knowledge locked away in unstructured documents.

25%

35%

48%

of enterprises say that front-line workers are influenced by outputs of analytics solutions to a great extent.

of enterprises have an executive team that has experience running a business where most of the revenue comes from digital products and services.

IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

Sponsored by Micro Focus | Page 7

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In order to address the growing availability and complexity of data volume, variety, and velocity, focus on what matters:

ACCURACY. AUTOMATION. ACTION.

Where Three A’s Meet the Three V’s

IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

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Advanced and predictive analytics use cases are found across industries. Whenever operational decisions are made, there is an opportunity to improve them by applying predictive analytics on existing and new data. Use cases include:

With greater enterprise intelligence enabled by predictive analytics:

› 60% of enterprises surveyed have achieved faster time to insights

› 65% have achieved greater trust in results of data analysis, which is key to more pervasive adoption of AI/ML

› 75% achieved more value than they had expected

Benefits

Source: Business Intelligence End User Survey, IDC, February, 2020

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› Product recommendations in retail

› Network optimization in telecommunications

› Route optimization in logistics and transportation

› Predictive maintenance in physical asset management

› Security analytics in cyber threat identification and prevention

IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

Source: IDC FutureScape Webcast: Worldwide Data, Integration, and Analytics 2020 Predictions, December 2019 Sponsored by Micro Focus | Page 9

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The FutureIt’s a hybrid world for the foreseeable future: Spending on analytics on the cloud is growing 8x faster than other deployment types and by 2023, 50% of analytics software will be deployed on the cloud.

› By 2024, enterprises that deploy ML-powered data management, integration, and analysis solutions will see a doubling of data-centric employees’ productivity

› By 2021, 25% of data-driven organizations will have turned 30% of their unstructured data into repurposed discrete elements that fuel adaptive decision making and automate data-driven workflows

IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

Sponsored by Micro Focus | Page 10

Micro Focus’ Vertica portfolio of analytics technology spans solutions for business and IT use cases. Its products, such as Vertica and IDOL, provide a range of analytics functionality for structured and unstructured data.

Vertica’s highly scalable analytic database supports traditional enterprise performance management and business intelligence as well as advanced analytics and machine learning workloads. Vertica also underpins other Micro Focus solutions, such as ArcSight, OperationsBridge, ZENworks, and others.

Questions to consider when evaluating Micro Focus’ Vertica portfolio:

› Will we be able to improve the performance and accuracy of our analytics?

› Do integrations span both the Micro Focus portfolio, as well as third-party solutions, especially third-party data integration and preparation and data visualization tools?

› What is the road map for more deployment options including public cloud and on-premises environments?

Considering Micro Focus

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IDC InfoBrief | Predictive Analytics: The Drive to Accuracy, Action, Automation

Sponsored by Micro Focus | Page 11

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Essential Guidance: Predictive Analytics at Scale

Actionable decision support must be available to everyone; whether it’s embedded in applications, security systems, or application development platforms.

› The only viable way to address current and future analytics needs is to rely on automation. Look for solutions that start by enabling automation of specific tasks and activities and progress to automation of processes and systems that incorporate inter-enterprise activities with your suppliers, customers, or partners.

› Ensure that your preferred analytics solution does not force you to comprise on performance because of the complexity of analysis or volume, velocity, and variety of data.

Message from the Sponsor

For more information, visit us at https://www.microfocus.com/en-us/trend/predictive-analytics

With Micro Focus Vertica you can:

• Analyze massive volumes of customer data at massive scale and extreme speed, offering in-depth insights into customer interactions

• Make better business decisions faster with AI-powered analytics, enabling unified and context-sensitive search and knowledge discovery across video, image, audio, and text data

• Rely on a proven Big Data analytics warehouse that stores and analyzes volumes of sensor data at extreme scale

• Leverage machine data to help IT identify insights hidden in system silos, resolving root causes of failure faster and improving operational performance with predictive analytics

• Protect customer information and intellectual property by applying machine learning to bypass rules and thresholds and assess potential risk of users or entities in your enterprise quickly

• Achieve accurate predictions, actionable insights, and automated discovery with Micro Focus Predictive Analytics