Big Data does save money, say govt IT Officials

BANGALORE, INDIA: Big Data and other analytical tools have great potential to make governments more efficient and improve citizens' lives, particularly in health and public safety sectors.

A new study released by TechAmerica Foundation and commissioned by SAP AG, revealed that 87 per cent of federal IT officials and 75 per cent of state IT officials say Big Data can have real and immediate impacts on how governments operate.

The survey of nearly 200 public IT officials, conducted by Penn Schoen and Berland, found that 83 per cent of federal IT officials say Big Data solutions can help government cut the federal budget by at least 10 per cent, or $380 billion. Those surveyed also believe that Big Data can save lives, for example by improving medical treatments.

The study cites a number of ways the use of Big Data can benefit the public sector, including:

Substantial budget cuts: Federal IT officials say real-time analytics of Big Data can help the government cut at least 10 per cent annually from the federal budget, or about $1,200 per American, for example by detecting improper healthcare payments before they occur.

Lifesaving potential: According to 87 per cent of federal IT officials and 75 per cent of state IT officials, the use of real-time Big Data solutions will save a significant number of lives each year. For example, medical researchers can aggregate information about healthcare outcomes to reveal patterns that lead to more effective treatments and detection of outbreaks.

Crime reduction: 75 per cent of state IT officials see the practical benefits of Big Data in medicine and public safety as extremely beneficial. Police departments are currently using Big Data technology to develop predictive models about when and where crimes are likely to occur, helping dramatically reduce the overall crime rate in specific locations.

Enhanced quality of life: Real-time Big Data is helping the government improve the quality of citizens' lives, according to 75 per cent of federal IT officials. For example, by gaining insight into huge volumes of data across agencies, the government can provide improved, personalized services to citizens.

Big Data Faces Barriers to Adoption

While Big Data technology is expected to offer citizens significant benefits, the survey also reveals cultural and practical barriers to adoption, including:

Privacy concerns: The biggest barrier for taking advantage of Big Data is privacy concerns, according to 47 per cent of federal IT officials. Officials believe the challenge will be explaining that Big Data analytics is not equivalent to 'Big Brother'.

High costs: 39 per cent of federal and state IT officials worry about the expense of new tools and the level of investment needed.

Return on investment (ROI): A lack of clarity about Big Data's level of ROI is a barrier for 42 per cent of federal IT officials.

Long process: Across both state and federal IT officials, about 40 per cent say database queries take too long using traditional database technology.