‘Big Data’ has become a key buzzword in enterprise business over the past several years, but as big data technology reaches maturity, more and more companies are struggling with how best to utilise it, in order to get the maximum business benefits. The data itself is of no use without some way to monetise it.
The Economist Intelligence Unit (EIU) has released a recent report looking at the ways companies are finding opportunities through the latest data technologies. The report was based on a survey of over 450 business leaders in large enterprise companies, across all industries, from all over the world. Some of the key findings from the report include:
- There is a movement towards the monetisation of data. A lot of companies have been collecting large amounts of data for a long time now, and see it as a key strategic resource. It has reached a point where the majority of them are looking for ways to use this data to gain meaningful benefits to the business’s bottom line.
- Technology investments will grow. According to the report big data is pushing companies to change their operational structures and is prompting businesses to use new technologies. Companies have significantly increased investment in big data solutions such as cloud storage, data centres, and security.
- Data is key to decision making. According to the survey 83% of those polled claim that their company is already using big data to increase the profits on existing products and services. Data is widely regarded as the raw material that provides key performance indicators and supports strategic decisions.
- Privacy and security remain key concerns. Safeguarding consumer data is still an extremely important consideration when looking at big data. It is important for customers to trust companies with their data and for companies in turn to be selective around what data they gather and store. Companies also need to work on being more transparent around how they use customer data and regulators need to maintain vigilance in this area.
According to Naka Kondo, the editor of the report, “Differences have emerged in the way companies, regulators and individuals are preparing for a world where data are increasingly seen as a commodity in their own right. The data literacy of individuals and of regulators will be crucial in defining the value, risk and benefits of data. Data considerations should be of prime strategic importance in the next three years, especially for companies looking to capture future opportunities in an expanding and changing market.”
All of this shows that companies need a clear strategy when it comes to big data, with a need to integrate data considerations into strategic planning. Only then can businesses begin to capture emerging data opportunities.
Go here (http://www.eiuperspectives.economist.com/technology-innovation/companies-preparing-monetise-data-finds-new-eiu-report) to download a full copy of the report.