CIO magazine recently summarised the top five business analytics trends as ‘go big, go fast, go deep, go cheap and go mobile with business data’. This succinctly worded response to Big Data and other technology trends highlights the major changes that are currently being experienced in the world of analytics technology, and the importance for big businesses to stay ahead of the game.

But why is it suddenly so crucial for businesses across the spectrum to react quickly to situational changes? The ability to ‘go fast’ is highly prized in this competitive global market, and is arguably the most significant trend identified. One example would be a logistics operator delivering cars from the manufacturer to a network of dealers. The core of this company’s business will be in the terms of the various contracts across the supply chain, which ensure that a certain volume of cars are delivered on time in designated places. Real-time analytics technology is necessary to predict when these quotas will not be met or when storage space is unavailable – allowing the business time to negotiate the delivery periods, revisit the service level agreements or factor penalties into the balance sheet. Early warning of failure to meet targets is also beneficial to the relationship with the end customer, creating trust that problems will be spotted and solved early.

As businesses become increasingly global and data volumes get bigger, the need for timely analytics is becoming ever more apparent across all industries. It is no longer a waiting game to see which companies will be the early adopters of in-memory technology, real-time analytics will soon be a requirement for many in this global climate.

In a recent 2012 IT trends report, IDC Financial Insights highlighted big data as one of the key areas of focus in EMEA this year. The analyst house then went on to predict that ‘in-memory computing will appear on banks’ radar screens’. This shift will be driven by a recognition of the tangible benefits, which include real-time analytical capabilities, faster response to operational anomalies and greater insight into customer behaviours. However, the analysts believe that adoption will be restricted to few reference banking customers, rather than a mass migration.

Yet, even if just a handful of banks switch to in-memory analytics this year, they will be part of the avant-garde movement. Being a first-mover in this market holds few risks and potentially huge benefits.

Banks have long struggled with masses of data – the majority of which is currently used to ill-effect from both a customer and business point of view. Of course banks shouldn’t start analysing data simply because it is there. They need to examine the current business issues facing the institution, such as improving operational efficiency, and determine if expanding and deepening the scope of their analytics will deliver tangible business value. As long as banks are clear on the business goals and benefits of migrating to in-memory analytics, they should not be disappointed in their investment. Whether the industry will become the early adopters in 2012 remains to be seen, but once the market does start moving, it would be wise not to be left behind.

Big Data analytics is being touted as the next investment area for the majority of enterprise organisations, according to a recent report by analyst house, Ovum. It announced that almost half of IT departments in enterprises in North America, Europe and Asia-Pacific plan to invest in Big Data analytics in the near future.
For many years now, organisations have relied on business intelligence (BI) to extract useful information from all the data they hold. However, the cost of BI technologies has been prohibitive to many organisations. In its place, a new form of technology has come to the fore – in-memory analytics.
In-memory analytics is comparatively inexpensive and also enables organistions to conduct quick – even real-time – analysis of big data and social media. Speedy analysis of vast amounts of data can give businesses a competitive edge, help them deliver a better customer service and enable more insightful and effective business decisions to be made. So, why are companies only now coming round to the idea of adopting in-memory analytics? There are three main factors driving interest this year.
Firstly, the cost of a RAM upgrade has dropped considerably. Since the RAM acts as a temporary workspace for the system’s processing, the more the RAM available, the more it can perform multiple tasks at once and respond faster to the demands of real-time analytics. Secondly, as the cost of memory hardware and chips drops, data volumes are reaching an all-time high. Companies need to find ways to process this explosion of data. In-memory analytics is one of the most effective options available to provide analysis of mountains of data. Thirdly, data velocity and variety is increasing and rapidly. In-memory analytics can manage data that both moves quickly and from multiple sources, much more quickly than traditional BI technologies.
While the benefits are clear, the question remains: when will the market move to in-memory analytics? We are asking just this question as part of a market survey currently underway. Watch this space for the results!

As 2011 draws to a close, it seems the economic crisis is set to continue, with the unreliability of the euro only exacerbating an already difficult financial landscape. This economic uncertainty means that the future is increasingly difficult to predict, not only in the financial services industry but across a variety of sectors. Businesses must now adapt to a new way of operating, developing ways in which they can react swiftly to industry changes that are outside of their control. In essence, the crisis of 2008 and beyond has highlighted the pitfalls of trying to predict industry trends, so as we enter another year many will be wondering how the changes we have seen in financial services in 2011 will affect the industry in the longer term.

With ever present pressure on banks to be innovative and respond to evolving customer needs, banks need to be flexible and agile enough to cope with change – enabling them to react quickly to it, rather than attempting the impossible task of speculating on future measures. Of course, broadly speaking these issues are prevalent not only in financial services but across the spectrum of modern industry, with the fast-paced fashion industry a prime example. Just as banks need to respond to government and customer demands, retailers are bound by customer tastes, making the need to stay one step ahead of the game more important than ever. Who’s to know when the next Lady Gaga will storm in and make oversized head gear a must? Successful fashion suppliers therefore have a flexible supply chain in place that can service this new and increasing demand, as should banks.

This is easier said than done, especially as many past systems were built for a period when the future could be forecasted, with the technology now serving a purpose which is less useful for modern banking. Moreover, even if factors come together to enable a business to predict a customer trend, it is likely that competitors will see this pattern too. The best alternative is to build market share and invest in production systems that enable a business to build volumes quicker than any competitor. A specifically made system can become redundant if the market changes quickly, which is all too often the case.
In 2012, forward thinking banks that make wise investment decisions, choosing adaptable technology, will stand to gain. For example, solutions such as Quartet FS’ ActivePivot analytics platform are not tied to a specific asset class, reporting or decision support function. This enables banks and financial institutions to use it across a multitude of different businesses including, risk, trading, arbitrage, equity finance and counterparty credit risk. While technology alone is not a blanket solution to wider banking issues, such as reform, it is the solution to changes in customer demand. Real-time analytics and flexible technology solutions can ensure that the risk decisions being made are well informed and compliant, better positioning financial institutions to cope with the challenges of today’s volatile landscape.

Georges Bory is MD and co-founder of Quartet FS (quartetfs.com). He brings 25 years of Capital Markets software experience to the company, having previously held the position of Managing Director of European Operations for Summit Systems SA.