While recent innovations in the software sector have significantly boosted capabilities for most software products, free open-source software solutions have made an even bigger splash. More than half of all data mining tasks are now conducted using open-source software, displacing the purchase of proprietary software.

There is a sea change occurring in global supply chains and operations, driven by a series of massive environmental shifts – digitization, the "Internet of Things," geopolitical cost and risk structures and, less noticed by senior executives but every bit as important, a huge increase in the power of customers, whether consumers or businesses. This last factor is driven by social media, ubiquitous connectivity and increased communication, and is resulting in decreased brand loyalty and increased demands and expectations across a wide range of service and experience. To respond to, and be ahead of, these changes, companies need to be agile, resilient and low-cost while simultaneously driving increased customer retention and acquisition. No longer is the question "do we prioritize customer intimacy or operational effectiveness?" Now everyone needs both!

Most firms have already invested in business intelligence, supply chain management (SCM), and modeling tools that claim to make it possible to drill deeper into their supply chain data in search of savings. These tools are often marketed with vague promises that they will harness the organization's 'big data' and/or provide 'end-to-end' visibility.

Savi Technology Inc. has launched Savi Insight, a cloud-based sensor-analytics tool designed for the Internet of Things.

Analyst Insight: More companies are using some type of "big data" software and analysis to drive their entire supply chains. Almost all supply chain organizations recognize this to be a competitive necessity. Big data is being used along all supply chain levers, from buy, make, move and sell. Successful applications require coordinated decisions across organizations and along the entire supply chain. - Nada R. Sanders, Professor of Supply Chain Management & Iacocca Chair, Lehigh University

Analyst Insight: When it comes to supply chain management, "Big Data" has generated more in the way of buzz than it has real benefit. Awash in a rising sea of data, companies still struggle to use it to make better decisions. - Brad Householder, Principal, PwC's Advisory practice; Anand Rao, Principal, PwC's Financial Services Advisory practice; Syed Mukhtar, Director, PwC's Operations practice

Analyst Insight: For many supply chain executives the term analytics is synonymous with reporting and Big Data is a new buzz word. However, when leaders harness new forms of analytics coupled with an understanding of Big Data opportunities good things happen. Here we share some insights from three studies that illuminate the opportunity. - Lora Cecere, CEO and Founder, Supply Chain Insights