IDC: Big data, analytics and the cloud fueling software adoption and development

The driving force behind global software adoption is being led by three different trends, but they are all related to one specific need: better information management.

According to a report from the International Data Corporation (IDC), software adoption and development is growing on a global scale. In 2012, the worldwide software market grew by 3.6 percent, higher than the IDC’s initial projection of 3.4 percent. This is lower than the year-over-year difference between 2010 and 2011, but according to the firm, it shows that organizations have more focused needs. IDC says that adoption is being fueled by greater needs in the areas of big data, analytics and cloud computing.

These three areas each grew between 6 and 7 percent, indicating that businesses are putting a greater emphasis on the three over other software needs. Henry Morris, Senior Vice President for Worldwide Software, Services and Executive Advisory Research, shared his analysis of the findings with the online publication Fin Channel.

“The global software market, comprised of a multi-layered collection of technologies and solutions, is growing more slowly in this period of economic uncertainty,” Morris said. “Yet there is strong growth in selective areas.”

These three needs are closely tied together because they all represent the importance of efficient data management. While big data shows that information must be processed in a way that allows organizations to extract value from it, analytics shows where that value lies. Meanwhile, cloud computing shows that companies need somewhere to store and view their data without having to replace physical machines.

Ultimately, developing a custom database software system can help organizations meet all three important needs. A FileMaker-based solution allows users to manage large quantities of information, analyze and report on it, and even host it in the cloud. Going forward, these three trends of business technology don’t appear to be slowing down, so creating a system now will put businesses in a solid position in the years to come.

The words that sparked the big data era

Big data as a term may be a recent creation, but the concept goes as far back as the 1950s, long predating the rise of the modern PC.

In 1955, famed businessman Peter Drucker spoke with a number of IBM executives about their efforts to drive the sales of what were, at the time, nothing more than clunky accounting machines. IBM's brilliant selling point was that these machines allowed users to collect information. The tools contained within the accounting machine allowed organizations to process information and save it for future use. 

Drucker ended the discussion with one prophetic line that would serve as the motivation for so many innovations over the last 58 years: "I wish you knew more about what to do with information once you get it, but that is a private wish."

Today, this idea is still being worked out. Businesses are still trying to develop solutions that will allow them to better use data once it is obtained. This is the crux of the big data era. 

This week, Forbes ran a feature on this famed story, and suggested that Drucker's vision is finally being carried out. The article lists a number of professionals, some of whom were directly influenced by the words uttered in 1955, who have now dedicated their lives to finding better big data solutions.

The thing is, not every company has the same information management needs or, for that matter, the same definition of big data. While everybody is finding ways to better handle their own data, there are different methods. Some company mission statements may call for different procedures. 

That's why FileMaker is an ideal development platform. With this system, businesses can create custom database software programs designed to manage information the way that best fits their organization. These created solutions will cater themselves to the specific operations of a company.

Most people share the same vision of Peter Drucker. By developing a FileMaker-based system, they can fulfill that vision the way they see fit. 

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Custom database software can help small business owners

Small business owners tend to have a lot on their plate. Often, in addition to maintaining operations and keeping the business profitable, they are responsible for managing their company's marketing, sales and technology departments. All of these tasks can be extremely difficult to juggle at the same time.

When individuals have to wear multiple hats, they are under a tremendous amount of pressure to maintain a high level of efficiency. Information is coming from every angle and, without the benefit of a full staff to manage it all, small business owners must take on most of the responsibility, which could put their operation at risk.

In this case, technology is the best answer. Investing in solutions designed to spur greater productivity will allow small business owners to maintain their viability. However, as business picks up and it becomes harder to maintain steady workflow, these individuals may need to prioritize what's important and concentrate their efforts in those areas. 

For example, Connie Certusi, a business technology executive, recently spoke with the online publication The Accounting Web about the importance of managing financial data and how small business owners should invest solutions that will assist with accounting needs. 

"It's no surprise that most small business owners wear numerous hats and tend to take a very hands-on approach with managing various aspects of their business," Certusi said, who pointed to a recent survey that stressed the importance of financial apps. "While there's no doubt that those small business owners who don't use accounting software are successful, based on the survey, it's indicative that there are several business activities that they need to be more versed in."

Managing financial data is crucial, but it's equally important to ensure that information fits with all other components of the business. By using FileMaker to develop a custom database software system, small business owners can harness the power of an entire team of workers with custom reporting apps and data management tools that will allow them to integrate financial information in a way that benefits the entire organization.

Mobile device usage creates new marketing data

For marketers, the rapid proliferation of mobile technology can be both a gift and a curse.

For years, companies have been focusing on compiling data that can tell them exactly  where their customers are and how they are behaving. The advent of social media in the mid-2000s went a long way toward making this happen, but part of the problem in the early years of Facebook and Twitter was that the majority of user interaction was happening at a stationary computer. While businesses were obtaining valuable data, it was all coming from the same place for each user.

Mobile technology changed all of that. Today, companies know when their customers are checking into their place of business on Foursquare. If they are tweeting from down the street, that information becomes available. Because users keep their smartphones and tablets on them at all times, they can update their respective statuses and interact with companies all throughout the day. The mobile device unlocked a bevy of untapped marketing resources. 

However, that amount of data has to be properly managed. For many professionals in the marketing industry, it's crucial to ensure that data can be properly collected, viewed and used to gain a competitive advantage. If organizations are acquiring location-specific information for each potential customer, data volumes could increase tenfold. Without a system in place to keep it all organized, a company's marketing efforts could be significantly damaged.

Building a custom database software system can help companies keep their data organized so that it can work to their advantage and not be a burden on a business' marketing efforts. FileMaker-based systems are flexible and scalable, so, as new technology spurs an increase in marketing data sets, organizations can stay on top of the influx of new information.

How cloud computing can help accommodate data growth

The cloud offers myriad advantages over more traditional forms of data storage because of its ability to stretch and accommodate growing volumes. Unlike a physical server with a drive designed to store a specified amount of information, organizations that implement a cloud computing solution can add virtual storage space, which is considerably easier than replacing physical machines. In the era of big data, more businesses are using the cloud to accommodate their own growth. 

An article in Forbes underlines the importance of the cloud in any data management program. Michael Goodenough, the article's author, lists a number of reasons why businesses must ensure they can handle data growth. In addition to keeping the business moving in the right direction, there are regulatory factors to consider as well. 

"Once companies have eliminated unnecessary data and implemented an information lifecycle management solution, they'll eventually need a data storage solution," Goodenough writes. "Compliance, data retention requirements, and the rising cost of hardware infrastructure are pushing businesses to explore alternatives to traditional storage."

However, simply implementing a system designed to manage increased data will only go so far. It's just as important to have a system to manage the cloud storage environment. Designing a custom database software system that can be hosted in a cloud environment can allow users to access and manage pertinent information without compromising efficiency or risking the loss of data.

Systems created in FileMaker are ideal for the cloud environment because they too can scale to accommodate new data. This virtual solution gives businesses the flexibility they need to allow data to keep growing without having to make new physical installations. The streamlined process will keep companies running while their information volumes continue to rise. 

Data management solutions are a key component of a company growth strategy

Business growth should be celebrated, as it’s indicative of a successful organization. However, that doesn’t diminish the need to meet new challenges spurred by a growing company, namely increased data requirements.

One of the most universally accepted answers to accelerated data growth is the procurement of stronger IT infrastructure. Buying more physical servers or switching to a virtualized environment can improve the manner in which information is backed up and stored. It can allow organizations the flexibility to hold greater data volumes and mitigate the risk of losing anything pertinent to the company.

Infrastructure improvements can only go so far. Finding better ways to physically process information and store it is helpful, but the best solution is one that can sort data in a way that allows users to manage it in a more efficient and effective manner.

An article in Tech World examines this further.

“As an organization evolves over time, its ability to manage existing data and to incorporate new data management demands grows in importance,” the article says. “Data cleansing becomes fundamental to business’ continuity in order to preserve the integrity and quality of data for migration when deploying new systems or retiring legacy systems.”

FileMaker can help with this effort. By using the platform to build a custom database software system designed to keep information organized, companies can minimize their infrastructure improvement needs because the only information being processed will be essential. The mitigation of duplicated data can go a long way toward solidifying a company’s overall operation.

FileMaker development allows organizations to create scalable systems as well, a key ingredient in a successful growing company. This will allow businesses to adjust their systems to accommodate new needs brought on by more employees, new procedures and, most importantly, increased data.

Technology helps farmers manage big data

In recent years, the farming industry has become increasingly receptive to advanced technology, after decision-makers came to understand the benefits of adopting new solutions. As is the case with most businesses, even today's farmers are relying on data to manage all components of their operations.

Precision farming, the act of observing systems as a whole and generating strategies and procedures geared toward building efficiency and ensuring returns on farm-related investments, relies on big data. In order to generate the best possible strategies, farmers need a clear, real-time view of their information, which is best obtained with innovative technology. 

John Fulton, an Alabama Extension precision farming specialist and Auburn University associate professor of biosystems engineering, believes the farm management concept is the future of the industry, and he has taken it upon himself to introduce farmers to new technologies that will help them manage their information. 

Fulton spoke with the online publication AG Professional about his efforts.

"For our part, I think we have done a good job helping our producers adopt the right technologies for their operations," Fulton said. "Likewise, I think we've done a really good job helping them understand how they grow with this technology over time to maximize benefits."

Managing big data in the farming industry is an important process that must be handled correctly. Some systems can actually hurt the process if they are built improperly or simply aren't a right fit. Organizations need solutions designed to allow them to view, manipulate, process and report on information in a way that is both efficient and accurate. FileMaker can help on all of these fronts. 

By using this solution to build a custom database software system, farmers can benefit greatly and enhance virtually every aspect of their business.

The importance of CIO and CMO collaboration

Information and marketing are two crucial components of business and, in any corporate environment, the two should go hand-in-hand. Marketers need information to create more focused strategies, generate stronger leads and increase overall sales and profits. This level of collaboration should start all the way at the top, which means the chief information officer (CIO) and chief marketing officer (CMO) must work closely together.

CXO Talk – a web-based show conducted via Google hangout – produced a recent episode titled "Can a CIO and CMO be friends?" In the show, it was established that the two sides must be on the same page. The CIO is tasked with keeping data organized. The CMO must use that information to develop marketing strategies based on a number of factors pertaining to current and prospective customers. In return, much of the data obtained by the marketing team goes into the corporate system, which must be managed the the CIO and the workers they manage. It's a cycle that requires effort and teamwork from both sides.

Steve Mann, CMO for software provider Lexis Nexis and guest of the show, spoke about the marketing company's role with all C-level executives – including the CEO – and explained that his position must manage the intersection between creativity and corporate strategy.

"The CEO's strategy comes to life in the various strategies and channels the CMO uses to touch the market," Mann said. "The company's branding, communication efforts, demand generation, pricing and packaging are all manifestations of translating a business strategy into a marketing strategy."

Ultimately, for businesses to increase their outreach and build a customer base, they must rely on information and marketing. While executive collaboration is key, so is having the right tools to bring the two sides together. For example, developing a custom database software system in FileMaker allows organizations to organize pertinent marketing data and make the lives of both the CIO and CMO easier. 

New regulations could impact social media marketers in the financial sector

As social media becomes an increasingly vital component of an organization’s marketing efforts, it’s becoming more important for companies to ensure they are receiving a strong return on their respective investments. This applies in a number of industries, including finance.

Earlier this year, the Federal Financial Institutions Examination Council (FFIEC) released proposed regulations on how banks, credit unions and other financial organizations manage their social media. Ultimately, the FFIEC believes financial institutions engaging in digital conversations with potential and current customers could affect their risk profile, particularly if they receive a bevy of negative feedback via their various social platforms. These risks include those pertaining to security, reputation and legal compliance, among others. Given the massive impact the financial crisis has had on the economy these past five years, the FFIEC is doing what it can to ensure no financial-related operations go unnoticed.

The FFIEC understands the importance of social media in the business realm – whether that includes Facebook or Twitter engagement, online video creation, blogging or any other form of potential interaction – and doesn’t want to discourage marketers from utilizing this valuable strategy. It does, however, want to see what organizations are paying for such endeavors and learn just how much they are receiving in return. That’s why one of the components of the plan is regular ROI reporting.

The FFIEC is asking financial organizations to draft reports and send them to regulatory officials, “enabling a periodic evaluation of the effectiveness of the social media program and whether the program is achieving its stated objectives,” according to the proposed guidance.

Without the right tools, this could be a complicated process. Financial organizations are already receiving a tremendous amount of pressure from a variety of governing bodies, so throwing an additional layer of regulations on top of standard operations will require extra tools to improve efficiency and organization. Using FileMaker to develop a custom database software solution would go a long way toward accomplishing this.

By implementing a similar system, companies can stay on top of their social results and track data pertaining to their ROI as a way to better prepare themselves for inspection.