Data Analytics Will Improve the US Economy

According to a McKinsey report, computing and analytics technology is transforming “data into insights that create operational efficiencies”.  More specifically, by the year 2020, data analytics has the potential to increase the Gross Domestic Product (GDP) in the manufacturing and retail sectors by upwards of $325 billion.

Fortunately, the costs associated with government and health care services can decrease a generous $285 billion by this same date.

Called Data Driven Innovation (DDI), a recent report also suggested that the proper use of Big Data can significantly save money, resources, and increase overall efficiency.  After all, data analytics can benefit all industries that include healthcare, education, the environment, security and many more areas.

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Data Analytics and Healthcare

In North America, healthcare organizations currently spend over $20 billion on IT-related expenses and over the next decade, this number is expected to increase to almost 7.5 percent.  Moreover, due to the HITECH Act, the US government has committed to pay over $30 billion to healthcare facilities and professionals. Health care related IT expenditures include data analytics, electronic health records, revenue cycle management, therapy software, telemedicine, informative websites and patient interaction phone apps.

Therefore, with the implementation of the Affordable Care Act and approximately 35 million new health care users, the need for efficient technology is greater than ever.  For example, information gathered from patient data can be used to improve proactive healthcare delivery for individuals at risk. Further, pharmacists would be better equipped to track and customize individual prescriptions. Understandably then, there is also demand for technology that will ensure that this data remains secure.

 

 

Big Data Helps Analysts to Understand the Economy

While data analytics will definitely improve the overall economic outlook in the future, it can interestingly also help analysts understand the workings of the economy itself.  For example, analysts traditionally had to rely on time consuming research surveys to garner a better picture about what is going on in the economy.  However, due to the advances in data analytics technology, vast amounts of data can now be collected and analysed in an extremely effective manner.  In particular, the activity of small business can more readily be monitored.  Since the output of small business accounts for approximately 15 percent of the total US economic output, the importance of understanding small business activity cannot be overlooked.

Overall then, recent technological advances in data analytics will definitely help the US economy in the near future – as well as help individuals to understand this economy.

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