Businesses use data-driven strategies to make decisions about marketing, product development, positioning, and other aspects of commerce. According to Inc. magazine, big data's power lies in relatively new technologies that allow businesses to interpret-not merely manage-the data they collect. For this reason, big data holds significant value in both the public and private sectors in 2015. Additionally, business leaders who know how to leverage this data find themselves a step ahead of the competition.
Analyzing Massive Quantities of Data in Real Time
The tremendous quantity of data available to businesses presents some issues that tomorrow's Executive MBA Graduates might face. Even as computer speed and efficiency increases, billions of lines of data enter the world's databases and present new challenges and opportunities for leaders to take on.
Information Week reports that several of the following types of big data analytics exist:
- Predictive: Helps businesses predict consumers' future actions based on modeling and other analysis methods.
- Descriptive: Demonstrates patterns in past behaviors that explore how consumers behave in specific situations.
- Prescriptive: Produces a list of potential actions that could bring about a specific result.
These different types of analytics have applications across a multitude of industries, and business leaders who apply each type of analysis meaningfully can inject positive change into their companies and their markets.
Creating Competitive Advantages in Increasingly Saturated Markets
The variety of data analysis methods creates competition on several fronts. The Ivey Business Journal calls big data the "new competitive advantage," thanks to its growing availability and tendency to level the playing field among competitors. Since multiple businesses in the same industry might have access to the same data, the most successful organizations will apply their analytics and deductions creatively to be effective.
Not only are executives worried about losing ground to their competitors, but they are also concerned about losing potential talent. Businesses use big data to find the best applicants for a job, according to Entrepreneur. They do so by analyzing résumés and CVs using computers, software and data measurement. As big data becomes more available and useful to businesses, the ability to leverage it to find talent, grow sales and increase productivity will be essential.
Changing Corporate Budgets to Accommodate Data Analysis
Despite the value of using data to improve customers' experiences, increase sales, and reduce operational costs, The New York Times notes that many organizations suffer from data overload. C-level executives can manage big data more easily if they take creative approaches to analytics while remaining focused on company goals.
This creativity and market innovation help push big data analytics forward, but implementation can be costly. According to Forbes, nearly three-quarters of all companies dedicate at least twenty percent of their information technology budgets to big data analytics. Executives recognize the power of those analytical results and siphon cash away from other IT expenses.
Thought Leaders Will Continue to Find New Solutions
While it may seem like businesses and government entities have already harnessed the power of big data, The Washington Post reports that big data's full potential has not yet been realized. Business leaders in 2015 and beyond must tackle the privacy and security concerns that big data raises to make consumers more comfortable.
That being said, big data remains one of the most crucial assets for businesses worldwide. New technologies emerge every year, but in 2015, the challenges lie in the ability to make sense of collected data and to apply conclusions effectively.