How do CIOs and CFOs tackle this situation and do you consider big data as something different especially when it comes to data quality?
The one thing that makes big data so desirable is its intersection with advanced analytics. Big data is only as useful as the analytics deployed to exploit it. The world of Big Data Analytics (BDA) is quite different from our familiar world of data processing, management, and analysis. Apart from its innate ability to juggle different data types, structures and I/O speeds, BDA has to work with an intelligent and responsive enterprise that understands its customers and provides real-time, insight-driven services and support.
Awareness about big data and its impact on businesses has just started seeping into the fundamental workings of companies. Several businesses enter into the big data space without a thorough understanding of business requirements, goals, and data policies. This often leads to wastage of resources and the insights procured fail to add much value to the company. There is a need for more big data specialists to help effectively run and manage implementation across functions.
Other barriers are the same as one would expect with the adoption of any new transformational technology. These range from determining ownership within the organization to building a business case for recommended implementations. There is also the worry that the current database is too unstructured for effective automated analysis. The fact is, this is not a limitation for big data analytics at all.
What are the merits of adopting big data analytics solutions and what difference can it make?
A recent academic research found that companies that have incorporated data and analytics into their operations show productivity rates 5 to 6% higher than those of their peers. The reason is simple: The more information a brand has regarding its consumers, the better it is able to predict their buying behavior and customize its offerings, fostering customer trust and leading to an increased chance of sale. Another recent survey of 50 CMOs at companies large and small found that offering personalized customer experiences was their highest business priority. Mass personalization has become the most important brand attribute when it comes to fostering customer loyalty. Additionally, personalization helps companies differentiate their products/services from those of their competitors at a time when the Internet is rapidly making it easier for customers to compare offerings and make purchases at the click of a button.
Given the urgent need for customization, big data analytics is one of the most cost-effective and potent tools in any organization’s customer engagement arsenal. Never has data on user behavior been as readily available as it is today. The sheer volume of it is staggering. To use that information for determining segments and micro-segments of customers and predicate product and service innovation on those insights is the way to business success in the near future.