The Risks of Ignoring Big Data

To some, “Big Data” is just another buzzword in this age of start-ups. However, it certainly backs up all the attention that it has been receiving with clear cut results.. Similar to how big data analytics raised Walmart’s sales turnover, which resulted in improved customer and employee intelligence quotient, it can work for just about any business.

It uses the already available data sets and new ones as well to discern trends and patterns. Businesses can then use it to make better and informed decisions. It can change how business leaders manage their enterprises. Yet, despite the hype, too many businesses still do not take it seriously. According to Gartner, one of the world’s biggest names in IT research, a lot of companies all over the world fail to fully monetize big data. Much information is acquired, but solutions aren’t generated, since they don’t recognize it as a true asset in business.

The truth is big data can change the way business owners understand their customers. They can gain useful insights to understand their business even more. It can generate new revenue streams for businesses that have yet to tap the online market, as sites like Facebook and Shopify (with Google Anaytics) have developed sales platforms that can drive traffic and offer data-based insights. Marketing strategies also stand to benefit from big data. According to Mark Harrington, VP of marketing for Clutch, aggregated data can be sorted into a single data set, which gives users a clear view on their customers’ preferences and purchases.

All told, a competitive enterprise cannot afford to be left behind. Here are some of the risks you’ll take if you ignore Big Data.

Convincing stakeholders will be harder to do

If you don’t have big data, convincing stakeholders to approve your next project will be harder to do. Stakeholders need actionable insights, which analytics handily provides. Culling the right figures and performance trends is tedious and takes time, while running the risk of inaccuracy in a presentation’s projections, which compromises its feasibility.

With big data, you’ll be able to tap and make use of several data sets. This will help a business make grounded projections and actionable insights. It’s one of the best ways to convince any investor of the viability of any product or business, or at least the potential to achieve such, for stakeholders.

Not seeing all the angles for initiatives like IPO, mergers and acquisitions

For a big business to make any major move, the initiative should be backed with a ton of data. It’ll need periodic returns, sales per product, revenues and expenditures, and market studies.The organization will also need to gauge customer sentiments, reaction, interests and more.

But without big data, the company might be coming in blind or won’t see all the angles. In the case of a merger, a company taking in a brand involves a lot of risks and potential rewards, and the data has the answers. A data platform can show the areas in which the brand dispenses much of its capital. It can also identify more cost-effective solutions or alternatives and even sales performance. Reception and sentiments of the market towards the products can be tracked as well. In a nutshell, a brand’s potential can be quantified using big data and this can lead to a fruitful merger or business acquisition.

The same thing applies for a company that intends to go public ( IPO or Initial Public Offering). Potential shareholders would want to know if the company’s performance and overall value on the market will continually grow and Big data bridges the gap between doubts and facts.

No access to customer insights

Without the use of big data, reviewing product performance will take a lot of time. On top of that, quantifying the target market’s reception to different product lines can mix in remote guesswork. This will not bode well for a company that’s trying to raise its profits. Again, big data fills in the gaps and more.

With it, the company will be able to see the types of people who patronize the brand. They will also see their purchasing power, their spending habits. Big Data Analytics is so helpful it will tell you the things that they don’t like. By using Big Data companies can create new product lines with confidence and tt can completely customize campaigns, and possibly tweak the marketing and promotion of existing products.

Big data platforms can help chart and map out the potential success  of business endeavours.

An organization could miss out on potential savings.

At some point, companies will look into reducing operational costs to save money. But sometimes the information provided by internal audit teams isn’t enough and this will cost the company in the long run. Big Data analytics can help figure out which departments and sectors are under performing or need to cut back.

A company can also opt to work with a business consulting firm that provides big data solutions. The consulting company can be treated as an off-site data services center. This will allow the company to focus on core competencies and improve it based on the big data analytics.

Big data can possibly eliminate the potential margin of errors caused by imperfect sampling, leading questions, and other human factors that skew the results of market research. The improved accuracy makes the company more cost effective as a whole. It can see beforehand if a particular endeavour can yield significant amounts of profits. It’ll result to less money wasted on fruitless research endeavours.

In addition, it can prevent a company from overstocking on supplies or buying too little. This allows companies to maximize its operating capital and avoid or reduce wastage. All told, knowledge translates to saving and it makes company better at making informed decisions.

Your competition could have the upper hand

Business is a perpetual race against time. Successful enterprises waste no time creating or banking on existing trends. If a company manages to launch new products and promos, they could turn one-time customers to loyal ones.

Companies could also procure the latest tech to improve the efficiency of their operations – before their competitors do. The truth is that big data provides all the aforementioned solutions. A competitor can use big data to craft a highly saleable product backed with a “trending” promotional campaign. It could instantly capture a bigger share of the market.

To illustrate the capabilities of big data, let’s take the case of President Obama’s winning bid for re-election. With the use of a powerful analytics engine and teams of market researchers, Obama was able to quickly identify the needs and wants of the people living in the undecided states. He tailored his campaign platform according to the people’s preferences. In the end, he won those states over before his opponent, Mitt Romney, got to them. The realm of business follows the same trend in securing a large share of the market.

Getting ahead with Big Data

Big data analytics offers a slew of advantages. Regardless an organization’s size, the business model used, or the nature of the business. Industry leaders and new entrants alike can use data-driven strategies to innovate, compete, reorganize, and ultimately offer more value to their consumers.

Advanced business consulting companies like lloopp can expand that value even further. In using data platforms that successfully mimic the human brain, they can predict trends before they happen, granting customer companies the ability to set trends while concurrently acquiring a bigger market share. Clearly, the next step in big data computing has arrived. It makes a lot of business sense to be a part of this revolution.

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