No doubt big data has been one of government’s big stories in the past year.

Agencies are grappling with how to process the tsunami-like inundation of government data and documents produced annually by federal employees. Some have launched contests to generate novel approaches to using big data information sets. Public officials and innovators have offered ideas at a series of White House “Datapalooza” events.

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This is the second in a seven-part series of AOL Gov’s Best Of 2012
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Indeed, big data holds big promise and has already sparked positive changes.

The IRS, FEMA and a growing number of other federal agencies are using the art of analytics to help employees improve performance. Intelligence and law enforcement agencies are turning to big data analysis tools to find patterns and correlations that are often overlooked by traditional search methods for catching criminals and terrorists. And big data analytics could reduce federal health care spending by as much as $70 billion annually.

Big data can drive big capabilities. But day-to-day practices are key to building and sustaining an analytics culture.

Finally, looking ahead to 2013, tactical deployments of big data solutions are predicted to grow by more than 30% CAGR and will accelerate broader pervasive analytics deployment, laying the foundation for “smart government.”