Economic impact of the ‘information glut’
Quantifying the cost of the information glut
Exploitation of information is fundamental to business success. Technological advances over the past decade have led to exponential growth in the amount of data that can be captured and stored by businesses. Managed effectively, these data have the power to improve performance by creating new market opportunities and fresh insights into business operations.
However the proliferation of data also creates new challenges for businesses. If information management practices do not keep pace with the burgeoning volume of data, businesses can quickly become overwhelmed. Failure to effectively manage information can hamper productivity and potentially damage customer relations and business reputation. Businesses can also miss potential opportunities to access new markets and improve performance.
This report estimates the scale of potential economic value of improving information management across Australian and New Zealand businesses. While the paucity of available data limits the precision with which the potential impact can be estimated, the results nonetheless highlight that improving information management has the potential to unlock considerable economic value.
The analysis in this report draws on a survey of 400 firms undertaken on behalf of Hitachi Data Systems across Australia and New Zealand. Structure of the report is as follows:
Section 1: Background: aim and approach
Section 2: The importance of information: overload, management, sectoral differences, trends in data and information creation
Section 3: Data on the ‘information glut’: international experience and consultations
Section 4: Impact of the ‘information glut’: methodology, scenarios, results