With today’s technological advances, computing memory space is cheap, making the storage of massive amounts of data extremely cost-effective. The buzz around big data has been fueled in part because the storage of data can be accomplished on a large scale with very low overhead. But what exactly is the value of all that data?
While the storage may be cheap, losing the opportunity to make meaningful connections and predictions based on the data can be costly. A competitor who gathers the same amount of data but who also knows how to harness that data gains an advantage in the marketplace. Organizations must avoid collecting a bunch of ‘dumb’ big data that has no positive impact on the bottom line.
Smart big data must use its sheer volume to predict future events. Companies have always had the ability to compare current figures to past numbers. However, analyzing big data can compare the two in a broader context, isolating various factors that contributed to the changes. Having identified those factors, a company can make smart predictions about future events and trends coming its way. What starts as ones and zeros somewhere in a giant server farm can become a powerful way to predict a wide range of future events that impact the supply chain, risk management, fraud management, and more.
To make big data smart, powerful connections must by presented in ways that make sense to an organization’s decision makers. Those with the business savvy to make a company successful should be given powerful insights even if they are technologically-challenged. The BI tools that present big data must do so in a configurable, clean, and straightforward dashboard tailored to meet the needs of each individual. A disconnect between IT and the business side of an organization can sometimes hinder these efforts. In such cases, an outside consultant can help select and implement a big data strategy that is tailored to meet the needs of not only the organization as a whole, but also the specific needs of the business’ key players. These consultants are professionals at presenting big data in intelligent ways.
With storage costs so low, there really isn’t a business reason to restrict the volume of data that is collected. However, a business must not lose sight of the fact that accumulated data is ‘dumb’ until it is connected and presented in intelligent ways.
Done the right way, big data gives a company a competitive advantage, which, of course, is truly smart.