Big Data & its implications on business has often been compared to an iceberg which has more than 90% of the mass submerged under water (and only 10% visible). Hence, designing information & data systems so as to cater to Big Data; and deriving meaningful insights from the same is not a short-term project or engagement. Rather, it’s a long-term strategy & governance wherein the business would reap benefits in the long run.
In fact, there has been multiple studies carried out in the way businesses strategize Big Data implementations. As shown in the figure above; businesses leveraging the power of Big Data Analytics have realized 5 to 6% improvement in performance; while they foresee an improvement of 26% over the next three years.
How does Big Data affect decision-making for enterprise organizations?
There are multiple business-cases wherein enterprises leverage the power of Big Data Analytics in making more relevant and actionable decisions. Now, the key impact on these decisions go through a series of process steps to culminate into something worthwhile – a brief description on the processes are mentioned below for reference–
1) Identification of goals/targets – Big Data enables businesses to strategize their future goals aligned to market movements & consumer preferences
2) Formulation of key performance indicators (KPIs) – Big Data Analytics also enables business to understand relevance of data points; and accordingly filter out non-related data. This is extremely important considering the humongous volume of data that the business is exposed to
3) Refinement of data into actionable to-dos – Big Data Analytics & efficient usage of tools & technologies enables businesses to derive relevant data from the massive data pool; and extract actionable information & knowledge from them.
4) Process execution & continuous tracking – Even after the goals/targets is formulated & executed; the relevance of Big Data doesn’t stop there. The impact extends to continuously tracking the outcome of the process execution; and checking its alignment with the high-level goals & priorities of the business
Impact for businesses
Successful implementation of Big Data systems & applications would have the below mentioned impact for businesses –
1) Drive in top-line & optimization in bottom - line i.e. increase in both revenues & profits
2) Increase in customer base, customer loyalty; resulting in higher number of repeat sales
3) Prudent identification of high performing areas & the slack areas in business operations so that appropriate corrective measures can be taken