Here at Fairmarkit, we understand the importance of data in making informed decisions. Insight into the needs and wants of customers are better understood through usage statistics. Data is especially important to the procurement field, sophisticated technology that is able to harness the power of big data, such as machine learning, will be of ever growing utility. An article published by SourceToday highlights the importance that data prediction techniques will have in the future, especially for procurement and supply chain organizations.
In fact, it is projected that data creation — which is currently at 20 zettabytes — will balloon to 160 zettabytes by 2025. Companies are following suit with this growth, a recent study by The Hackett Group shows that approximately 80% of executives highly prioritize a method to analyze data.
New technologies that advance data analysis
Currently there are many new technologies that are pushing data analysis to new heights. Machine learning is at the forefront of technological advancements in countless industries especially procurement by enabling teams to handle greater spend with the same bandwidth. Additionally, blockchain is another promising technology that can help companies utilize their transactions and data to reach smarter decisions.
Data analytics and tail spend
In fact, Fairmarkit uses advanced data analytics to address tail spend on a daily basis. We’ve found that, on average, procurement teams have a 30% difference between the prices they’ve paid for the exact same product over different purchase times. Using data analysis Fairmarkit automatically clusters and buckets groups of purchase by risk, simplifying the workload for the human user.
The Hackett Group expects predictive analytics to rapidly gain popularity during the next two to three years. Due to the financial benefits that come with such technology, companies are expected to adopt advanced data analytics tools en masse. It is clear that the data analysis industry is quickly expanding. We are approaching the envisioned future in which purchase choices are made completely autonomous. Within just a few years, data prediction tools will be of paramount importance, and it is imperative that companies adapt now if they wish to reap the benefits.