Big Data – Why the Big Deal?

//Big Data – Why the Big Deal?

Big Data – Why the Big Deal?

With the recent explosion on the vast amount of data from all sources, digital and non, it would be a too big of a disappointment if any organization miss this. As both W. Edward Deming and Peter Drucker explains, ‘if you can’t measure it, you can’t manage it’.

Many organizations find it hard to understand the meaning of ‘Big Data’, the importance and relevance of this phase to their organization. As aptly put forth by W. Edward Deming, it is important for any organization to measure and manage the data, for if they do not measure then they do not know how to manage and execute any organizational decisions.

In the area of re-defining business, identifying and mitigating risk, introduce innovative products, enhancing customer experience, data driven analytics and decision making should be the heart of driving organizational results. Advanced digital technology and other technological penetration such as Cloud Computing, Internet of Things (IoT) plays a very crucial role in Big Data.

So, what is Big Data? In his book ‘Big Data Fundamentals’, Thomas Erl defines Big Data as:

“..a field dedicated to the analysis, processing, and storage of large collections of data that frequently originate from disparate sources.”

Image below are most commonly known as the 5 V’s of Big data which also describes the characteristics of Big Data.

What Is Big Data – To A Business ?

Data-driven decisions are better decisions. Big Data enables business and senior decision-makers to act on evidence, a data-driven decision than intuition. Organization and leaders should drive insights from data, analysis and reasoning. They would also be able to explain the phenomenon on why any events happen, how they affect the organization, impact assessment and also prescribe the next best actions. With vast data now available, organizations should focus on exploiting data for strategic competitive advantage which creates values for the business.

From a strategic point to assess data and execute analytics strategy and how it supports business strategy. Trusted insight created by enterprise wide analytics support decision making.

Big Data is transforming industries

Expected Benefits For Organisation

In general, the use of Big Data can unlock significant value in areas such as product and market development, operational efficiency, market demand predictions, decision making, and customer experience, loyalty and etc.

In a Business School Executive report released by IBM in October 2012, Analytics on real-world use of how enterprise extract value with the use of big data by the respondents were found to be below,

  • Increased Customer-centric outcomes 49%
  • Increased Operational optimization 18%
  • Reduced Risk in financial management 15%
  • Ventured into New business model 14%
  • Increased Employee collaboration 4%

Moving forward

Organizations should also consider grooming potential employees and groom them in the field of analytics. Equip managers and employees with relevant professional competencies for appropriate interpretation of results and analytical training courses in areas such as basic statistics, data mining and business intelligence should be equipped to the employees.

In October 2010, Harvard Business School described Big Data as, “sexiest job of the 21st century”. Management consultancy McKinsey predicts a scarce and severe “shortage of talent necessary for organizations to take advantage of big data”.

Organizations by embracing Big Data, it helps them to identify observations and make the decisions based on the predictions and patterns, trends, faster and accurate than before.

Key Takeaways

By embracing Big Data, Organization Increase Business revenues and profitability. Data-driven decisions are better decisions compared to intuitions. Big Data’s power does not erase the need for vision of human insight to focus on exploiting data for competitive strategic advantage.

Big data can also help organization to Improve understanding of customers, their needs, and purchase patterns.

By | 2018-04-27T11:07:05+00:00 October 3rd, 2017|Big Data|5 Comments

5 Comments

  1. Anbananthan Rathnam 15 November 2017 at 17:30 - Reply

    Nice article Dinesh. My deeper question would be how the small and medium businesses could embrace the ‘tip’ of the iceberg of Big Data in order not to be lagging too far behind the progress made in Big Data. The Tech Giants are utilizing Big Data to set the trend, but the Small and Medium businesses need not follow this fast trend as it is not economically viable for their survival. So, what strategy could small and medium business use to trail behind Big Data by not spending all the money in fully embracing Big Data? Thanks

    • Dinesh Sekar 21 November 2017 at 13:50 - Reply

      Thank you for the comment and an interesting query as well. Currently i am working on an article which will be posted here in the month of December, That article would answer the questions that you have raised on,
      – Big Data for SME and the long-term value creation to SME with the adoption of Big Data,
      – Strategy and
      – Approach for Big Data,
      Will share the link once the article is posted in our PinkElephant Asia’s blog.

    • Dinesh Sekar 23 November 2017 at 15:39 - Reply

      Mr. Anba, Kindly refer to the below URL which will take you to an article, ‘Small and Medium Enterprise, are they ready for Big Data?’.
      //www.pinkelephantasia.com/small-medium-enterprise-ready-big-data/

      The article will humbly express our thoughts on the question posted and hopefully answer the question you have posted.

  2. Ravindran GKK 15 November 2017 at 17:42 - Reply

    Straight to the point explanation. Thank you for the article.

    • Dinesh Sekar 21 November 2017 at 13:50 - Reply

      Thank you for the feedback Mr Ravi,

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