How business can handle ‘big data’ revolution
Big data has changed over the last few years from a term of elite technorati to a household phrase that almost all techies use on a daily basis. Any software product that collects, stores or analyses data is now invariably described as a big data solution. Big data in many respects results from the convergence of cloud, mobile and social technologies.From my understanding, these technologies, together with new techniques for data storage and new techniques for squeezing value out of data meaning data science and machine learning offering amazing opportunities for competitive advantage. Big data not only provides opportunities for new solutions and new products, but it stands poised to stimulate the economy and enrich our lives in many ways. But it’s not all an upside. Businesses that continue using traditional models may be threatened with extinction as their competitors establish a big data advantage.Though collection, processing and storage of unparalleled volumes of data creates new challenges for IT, these are not dissimilar to the challenges created by the long-established trend of increasing data volumes and processing power.And for us in the IT business we are used to exponential growth. But it’s not enough simply to collect and store more data.The industry need to establish algorithms and business processes around the data that can transform business process.
Establishing these smarter algorithms is going to severely challenge many enterprises. The biggest retailers and online businesses have shown that it is possible to create smarter algorithms for campaign optimization, customer-relationship management, dynamic pricing, risk and fraud assessment and so on.But to succeed, these algorithms need to be automated and integrated into the business process.All data needs to be analyzed and used to dynamically generate business decisions on both a micro meaning individual customer and macro- meaning product line, geographical level. Many enterprises are only just starting to realize that big data represents either an unparalleled opportunity or maybe even an existential threat. Amid this backdrop, the acquisition of data is critical.Enterprises that wait for a solid business plan before capturing all possible data will be at a disadvantage compared to those who start collecting everything immediately. Your bloggers best advice for enterprises is to make sure they have a big data capture, storage and processing platform in place immediately. Capture everything that you can now, and use existing technologies to provide economies of storage.Importantly, start developing in-house data science skills or find partners who can provide them for you. Many corporations have professionals with the necessary personal and professional attributes statistical, programming, business to develop into the next generation of data scientists. Exactly how the application of smarter algorithms to more extensive data sets will transform a business differs across industries. But for almost all industries, this transformation is real and imminent.