Investing in Big Data: Pros and Cons that business must know

November 22, 2012 in Uncategorized by K. Anton  |  No Comments

Making valuable information from digital data is the hottest trend in 2012 and will be even hotter in 2013. The companies feel this possible competitive advantage and some of them are already running Business Intelligence projects in order to leverage the data while saving time and IT resources. But still there are some companies that are hesitating between different BI solutions and ways to work with Big Data. Of course, the management should know all the pros and cons of  Business Intelligence before starting any investments.

Columbia Business School marks that management and marketing departments are looking for more business data, so that they can build smart business process and reports.

That is what the executives say:

•             91 percent of senior corporate marketers believe that successful brands use customer data to drive marketing decisions;

•             39 percent say their own company’s data is gained too infrequently or not real-time enough;

•             Also 51 percent say that a lack of sharing customer data within their own organization is a barrier to effectively measuring their marketing ROI;

•             85% of large enterprises are now using social networking as a marketing tool.

That is it, Marketing is expecting more data with better quality and as soon as possible. The analytical reports of BI tools make more sense for the management and show how business is actually performing, its trends, customer demands, possible risks and marketing predictions. And this is why Big data is so popular today and discussed over all the industries – everyone wants to have real figures of the business. So when it is time start BI project to capture the data and have a business insight?

“If your organization is one of the growing number looking for deeper insight into customers and operations, then you understand that Big Data will be key,” said Director of IDC’s Asia/Pacific Business Analytics Research, Craig Stires, in his recent interview. He is right – if your company is ready for changes, growth, expansions on new markets and merges with some business then you need the insight and have real numbers that Big data and Data mining can give you. Ok, your company is ready for BI, but what are the coming benefits and challenges of this project?

Big Data ROI question

The manufacturing organizations use Business Intelligence in order to reduce or eliminate the downtime of assembly lines (through predictive analytics on equipment breakdowns). BI helps Financial service businesses to build more effective trading strategy, to have more detailed reports and reduce the time for analytical work. Media companies work with BI to sell more ad impressions. And E-commerce organizations can sell more products with BI. Actually, every industry will find the benefits of BI because every company has Big Data and strategy aims.

Big Data challenges

The most challenge that you will face running BI project will be the quality of the gathering data. You should understand that the data is different; it can be unstructured or has no value. For example, the prevalence of unstructured data will make data integration difficult and curb success rates. Another one problem is a strategy that you will use in order to set up BI tools. Before all the activities with Big Data, you have to understand which departments will be targeted, who are the key business people that will have the access to the dashboards, which analytical tools you will use. It is really important to know what are the reasons, aims and departments for your BI project – this understanding will help you to avoid buying wrong solution and using it for wrong department.

Forecasts

Big Data is already a mainstream, it was the hottest trend in 2012 and it will remain hot in 2013. The companies will pay more and more attention to it, while BI solutions will be more business oriented, agile and social. In the next year we will see the Mid-Market companies adopting Business Intelligence and Small Businesses that are interested in this field.

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