McKinsey’s Report on Big Data – An Economy Game Changer
31 Jul. 2013 Enterprise Tech News
McKinsey’s report shows how Big Data has now become one of the major game changers that will aid growth and renewal in the US.
In the current struggling economy of the US, McKinsey & Co.’s research shows how Big Data, being one of the five game changers, can help the struggling economy of the country. In the list of the economic game changers of August, Big Data holds its own.
The report suggests that the current labor force of US is aging, which will lead to a decrease in the labor participation. In order to compensate for this loss, the country will be required to increase its productivity growth by nearly 30%. McKinsey suggests that Big Data can handle this crisis effectively.
According to McKinsey, with 32% of the world’s data, Big Data can bring about a $55 billion productivity boost in the retail sector alone. It will help businesses in making predictions regarding store traffic and respective staffing needs in order to optimize labor scheduling more accurately. If so, Big Data will be able to boost the annual GDP by nearly $325 billion by the year 2020. This will place it in the fourth place among the other game changers of the country’s economy (shown in the graph below).
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Although McKinsey did not include the healthcare and government sectors in their report, Big Data is expected to have a great impact on these two sectors as well. It estimated that Big Data will be able to yield nearly $285 billion in cost savings in these two sectors. On the other hand, Big Data is estimated to have a small and short-term impact on the education and infrastructure industries.
However, it is possible that Big Data will be responsible for improvement for each of the other game changers. Government bodies, for e.g. will be able to determine the efficient areas where improved infrastructure can be built. Big Data can also help educators in assessing the effectiveness of certain educational programs.