Is your business utilizing big data to inform strategic business decisions? It should be, why? Because big data is quickly disrupting the conventional ecosystems as well as business models and delivering troves of valuable information which businesses can feed into their sales, strategies, marketing as well as product development to improve performance.
Of course, the increasingly complex world of business, the extended creation of data and the hard-pressing desire to lead the competition has compelled many businesses to shift to using analytics in order to drive their strategic business decisions.
Defining Big data
While the term big data often sounds complex with no agreed-upon definition, it’s fair to define it as a large volume of data that has to be processed to provide information that permits innovation, insights and improved business decision making.
Obviously, defining big data in this article is not as important as why you should put it into action. According to recent Google Trends, the hype of the term big data seems to be fading away though its adoption among businesses is accelerating.
Make better decisions with Big data
Using a well defined data-driven strategy to gather and analyse big data, and incorporate it into your strategic decisions enables your business to market itself more effectively, seize new revenue prospects, deliver better customer service, boost operational efficiency and leverage emerging competitive advantages.
Big data is enabling managers to get a better understanding of the dynamics of their operations, anticipate market shifts and effectively manage risks. Instead of relying on “gut” when hiring new talent, pricing products or maintaining inventory, businesses are embracing data analytics to make strategic decisions that boost efficiency, profits and risk management.
Big data has great potential to change the long-standing conventional institutional practices and business planning and replace them with data-driven strategic decisions that take hold and become a remarkable item of competitive differentiation among companies.
Using big data to drive performance
While businesses take time to analyze consumer data and monetization opportunities, it’s quite imperative to only focus on improving performance and productivity. Big data and analytics play an important role in minimizing inefficiency and streamlining their business operations. For example, analytical dashboards and reporting can help ascertain various data correlations and give managers detailed insights to perform pricing, cost valuations and peer benchmarking.
Managing risks through data analytics
Nowadays more and more businesses are increasingly exposed to great risks from structured data like databases and unstructured data like blogs, websites and social media channels. By making the most of risk analytics, businesses can find themselves better placed to measure, quantify and foresee risk. Top decision-makers in businesses should start looking at risk analytics as enterprise-wide tactics and should therefore find ways of pulling data across varied company functions and levels into one fundamental platform. By creating a standard baseline for calculating and managing risks, businesses can absorb risk considerations into their primary strategic decision-making procedures and envisage possible scenarios.
The highly volatile business environment full of data-driven disruptions, top company decision-makers should wear two hats at the same time.
One, they must identify both the risky and rewarding opportunities like venturing into new markets and modifying present business models.
Two, they have to deliberately incorporate analytics into their main decision making process. By including data analytics in their core strategies, managers are able to streamline business processes, examine and interpret emerging risks, ascertain consumer trends as well as establish mechanisms for continuous feedback and improvement. Steering analytical transformations will thereby allow businesses to gain a competitive edge and remain at the fore of digital disruption.