Big data is no more a hype now, but a reality. The technology has already arrived and it hardly matters whether you believe in it or not. World’s top Fortune 500 companies have already invested in it or are preparing in it.
In a survey conducted in Fortune 1000 executives it was found that there are many sectors such as retail, life sciences and finance big data has clearly emerged. Around 54% firms confirmed the presence of chief Data Officer in their organizations.
However, the scenario was completely different 4-5 years ago. Most of the organizations were figuring out how to use big data for the business advantage. They have now gained a clear picture now. Most of the CIOs has clear understanding that data-driven analysis can transform their business functions, especially marketing. Is it sufficient?
No. You need to do many more things to reap the full advantage.
Devise right metrics
One of the big problems with big data is that companies have not been able to decide metrics to measure the effectiveness of Big Data implementation. Chief Data Officers will have to work hard to develop precise metrics that measures the ROI more effectively and in a transparent manner.
Define and isolate costs
It has been a major problem. Organizations will evolve more with Big data after lot of iterations, studying correlations and patterns, and then loading more amount of data. It may give false starts initially. The process may also take larger time than anticipated. It certainly involves more cost initially but it will come down with time.
The big data is being used successfully in many sectors, especially in sports, retail and life sciences. However, the success stories have not been in a large number. They have been confined in just operational cost savings. For example, financial firms have been able to lower the amount of credit risk and fraud with much higher precision. That is why, few firms having foresight have even established their in-house big data labs. But it also requires innovation and not just funding.
Be ready for the cultural change
Big data is not just about tools and data, but also about building a whole ecosystem that nurtures data ecosystem. Organizations will need to encourage a system in which numbers and data management tools are used frequently. It will help build a culture.
Randy Bean , in Harvard Business Review, says, “When I began advising Fortune 1000 firms on data and analytics strategies nearly two decades ago, I assumed that 95% of what was needed would be technical advice. The reality has been the opposite. The vast majority of the challenges companies struggle as they operationalize Big Data are related to people, not technology: issues like organizational alignment, business process and adoption, and change management.
It’s imperative that big data is not just a technology, it’s about like any other technology. It requires an amalgamation of many things to succeed eventually.