With all the hype and rhetoric surrounding Big Data, it can be tough for financial services firms to separate the noise from the value, according to Celent.

One way to get a handle on this is to recognize five tiers of Big Data capability-Spectator, Experimenter, Practitioner, Innovator, and Scientist-and to determine where the organization is now and where it should be.

"Celent does not advocate that all companies should aspire to be at the bleeding edge of big data," says Craig Beattie, senior analyst with Celent's Insurance Group and coauthor of the report. "The goal of this report is to help financial institutions understand what their level of investment should be strategically, and how to get there."

"Whatever level of capability an organization has now, Celent believes that there is an achievable, affordable route for that organization to start experimenting with more powerful tools and technology, to derive more value from information," says Bill Fearnley Jr., senior analyst with Celent's Securities & Investments Group and coauthor of the report.

"Big Data may be one of the most hyped and ill-defined topics in IT today," says Bob Meara, senior analyst with Celent's Banking Group and coauthor of the report. "There is no shortage of remarkable assertions around the power of Big Data to transform the enterprise."

Key findings of the report include:

· Beyond the hype of Big Data claims lies a compelling reality: as consumers become increasingly digitally driven, the manner in which financial services are delivered will change inexorably.

·  Big Data, when sensibly integrated with core, channel, and decision support systems, and directed from an enterprise perspective, holds the promise for enabling the survival of financial service companies within this epic transformation. There are at least four reasons for this:

1) Online/mobile channel usage has driven explosive growth in the number and variety of customer interactions. The customer experience has become the No. 1 priority for most firms, and excelling in this environment will increasingly require delivering timely and relevant personalized information in real time.

2) Products and marketing campaigns are increasingly customer-centric.

3) Increasingly news is breaking in social media and spreading faster than ever before, having widespread impacts on everything from purchasing decisions to stock prices.

4) The economy and competitive pressures are forcing firms to focus on very lean and efficient operations. Many markets are not growing, so growth can only come from very intelligent (data-driven) decisions across the enterprise.

Celent's advice is simple:

·  Examine your current capability level.

·  Evaluate where you should be.

·  Invest appropriately to close the gap.

http://www.celent.com/reports/big-data-guide-where-you-should-be-even-if-you-dont-know-where-you-are

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