Tag: data strategy

Why 50 Percent of Companies Haven’t Started Using Big Data

Posted by on June 04, 2018

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Nearly every organization today understands the importance of big data. But while large volumes of data may be collected, many businesses are finding themselves unable or unwilling to create a complete data strategy. Businesses are proving to be hesitant to fully transition over to a data-driven approach. It may require a shift in company culture and more motivation from the top for businesses to truly commit to new data analysis processes.

What Is Big Data Being Used For?

Studies by Dell revealed that organizations utilizing data were able to grow 50% faster than their peers. But how is this growth being achieved? Big data is being used for marketing efforts, decision making, and process optimization. Through big data, companies are able to make more intelligent decisions faster — and are able to leverage their resources more effectively.

  • Marketing efforts. 41% of organizations using big data are using it to improve their marketing efforts. 37% of companies are optimizing their marketing strategies in general while 37% are focusing on social media campaigning. Big data is an easy way to identify purchasing and engagement patterns in their customers. Through big data, companies can better score leads and identify the customers that are most valuable.
  • Risk-based decision making. 30% of big data strategies are situated around risk-based decision making. Organizations are able to model potential scenarios to identify the highest risk situations — and, thus, make educated decisions. This may not be enough; more data and less intuition could ultimately lead to better decision making.
  • Business process management. Through data-driven business processes, companies are able to reduce their expenses. 49.2% of Fortune 1000 executives reported that they have started big data analysis for business processes and seen value developed through their strategies.

But there’s another statistic that’s important from this Dell study –39% of the organizations that established a big data plan were not certain what the benefits of their big data strategy actually were. And this is why many companies are not using big data.

Why Are Organizations Failing to Turn to Big Data?

Nearly every organization is now collecting data, but most are failing to actually use the data that they collect. Many of these companies are currently satisfied with the data that they are collecting and the fact that this data will be useful, but they haven’t developed a strategy or invested in a platform that they can use to make use of it.

Despite the tremendous advantages of big data, only 49% of large businesses are currently looking towards big data implementation. This is compared to 21% of small businesses and 19% to 26% of mid-sized businesses. Interestingly, businesses with 50 to 249 employees were far more likely to implement a big data plan than businesses with 250 to 999 employees.

Businesses are struggling to transition their decision-making from a more instinctive and gut-driven process to a more objective and data-driven process. It can be difficult for executives to yield power to a purely statistical and analytical process and this can cause some hesitation. Further, businesses may be afraid to invest in big data technology without a clear idea of its benefits.

Every business is different and consequently requires a different data model. There are very few businesses for which a “one size fits all” data strategy would be effective. Because of this, businesses are forced to develop their own big data strategy from scratch. This can also feel overwhelming to businesses, especially those that are not otherwise highly technical.

Businesses may also be frightened to further engage in data-related pursuits as security becomes more of a question. Ransomware, data breaches, and other similar attacks have made many businesses more conscientious about data and data storage. This may slow efforts to invest in new data-related platforms. Businesses that already have a data platform may feel that they aren’t getting the most out of their software and may be discouraged.

Though businesses may not be transitioning towards big data as quickly as they should, most businesses are aware that they need to be considering it. It’s simply a matter of implementation. Businesses that are interested in implementing data-driven solutions but not sure how should consider consulting with a professional services firm to determine a strategy and approach that will leverage data in a way that delivers most business value, through technology that aligns with their business goals.