It may be riskier to ignore Big Data than implement it: ISACA white paper

BANGALORE, INDIA: Enterprises that choose to avoid using big data analytics techniques because of the possible dangers,such as security and privacy breaches, may be creating risk of another type, says a new white paper from global non-profit IT association ISACA.

"Generating Value From Big Data Analytics" encourages information technology professionals to look at big data holistically, taking into account the cost of inaction.

The white paper points out that understanding the business case is just as important as understanding the technology and compliance risk. Enterprises need to understand the business rationale for adoption, the anticipated return on investment and the impact if the enterprise chooses not to adopt while its competitors do.

"There are risks inherent in implementing big data, such as ensuring privacy laws are not breached. But the risk of inaction may be far greater, with a company being left behind as its competitors embrace the technique to leap ahead," said Norman Marks, member of ISACA's Emerging Business and Technology Committee, which developed the white paper.

"The insights obtained into customer needs and buying patterns, the reputation the company holds in the marketplace and the emergence of new risks can help the organization make dramatic advances by adapting its strategies for success. In addition, big data enables significant improvements in the ability to manage risk and ensure compliance, with one example being the ability of banks to monitor transactions and identify suspected money laundering."

Many professionals are open to seeing value in analytics. According to ISACA's 2013 IT Risk/Reward Barometer, a global indicator of trust in information, globally close to half (46 percent) of the 2,013 business and IT professionals polled say that big data has the potential to add or has already added value to their organization. In India, this number was marginally higher at 52 percent.

Furthermore, globally 22 percent of the respondents believed that they were adequately prepared to provide governance and manage privacy effectively, while in India, 34 percent of the respondents felt the same.

"India's advantage as a leader in back-office processing to the world, as well as the sheer size of its captive home market, puts Indian enterprises in a vantage position to harness the power of Big Data Analytics. Building a well thought out business case that churns through the hype surrounding Big Data, is crucial to securing success. ISACA's newest white paper on the subject, provides real life insights into the drivers for adoption of Big data Analytics while balancing technical and operational risks and challenges", said Vittal Raj, CISA, CISM, CGEIT, CRISC, FCA, CIA, CISSP, CFE, international VP of ISACA.

The new ISACA white paper provides detailed guidance on understanding the business case for big data, summarizing case studies that show how increased competitiveness and transformative results are achieved through imaginative uses of pre-existing data. The retail and healthcare industries are particularly fertile grounds for a business case justifying the use of big data analytics, notes the paper, due to the sheer volumes of already-collected data that can be further leveraged through sophisticated analytics.

Obstacles to success: Skills gap, Internal silos, "shadow IT"

The paper also outlines the challenges that may hinder the ability to realize gains from big data projects. Most enterprises do not currently have specialized analytics skills in-house, and these personnel are expected to continue to be hard to find and expensive to maintain in the short-to-intermediate term. In fact, the 2013 Risk/Reward Barometer found that lack of analytics capabilities or skills was the second most frequently cited obstacle to big data, chosen by 22 percent of the respondents.

Another challenge is enterprise silos, especially at enterprises with a history of competitiveness, antagonism or resistance to outside influence, which will make them less willing to share information or act on information they receive. Similarly, the trend of "Shadow IT"-technology adopted without the IT department's approval or awareness-may result in large volumes of hidden data that get missed by big data projects planned centrally.