The flood of data coming in from cloud technology, sensors on devices, social media behaviors and website visits has enterprises reeling. While trying to figure out solutions for storing, processing and analyzing data, enterprises recognize that the information holds a vast set of insights with big potential for understanding the market and growing their businesses. Still, it’s worth asking: is big data worth it?
Findings of the 2018 Big Data Maturity Survey revealed that 78% of companies believe that they have reached a “medium” or “high” level in their maturity with big data management. This means there are a lot of enterprises out there that think they know what they’re doing with data, but aren’t getting the results they need.
IDC indicates that spending on big data demonstrates that many companies are trusting in a solid return on their data investments, with a compound annual growth rate of 11.9%.
The Pros of Investing in Big Data
If an enterprise has a solid grasp of what they plan to accomplish with data and a vehicle for getting there, big data has the potential to inform business processes and foster growth. Here are just a few of the benefits that can come from utilizing big data:
- Informed decision-making: In the Big Data Executive Survey 2018, 36.2% of respondents said that improving their ability to make better decisions was at the heart of their efforts surrounding big data. Data-driven insights give business leaders the insight necessary to help their businesses grow.
- Reduced costs: Enterprises are using big data insights to increase operational efficiency and reduce costs. The Big Data Executive Survey 2018 found that for two-thirds of respondents, reducing costs was one of the important goals of their big data strategy.
- Better customer service: Customer relationship management systems, social media and additional points of customer contact such as online reviews are providing enterprises with new levels of insight into what customers need and want.
The Cons of Investing in Big Data
While there’s a lot of potential in accessing business data for improving operations and service, there are also some common pitfalls that make it a less-than-profitable investment for a lot of enterprises. Here are a few of the drawbacks of investing in big data:
- Shortage of talent: Data experts are among the most sought-after workers in IT at the moment, and the difficulty of obtaining employees with the right skill set is the most formidable challenge for enterprises with big data initiatives.
- Data quality: Before it’s possible to access data for application in business processes, it has to be evaluated for quality. This step is often costly and time-consuming, but if enterprises skip this task, the data may be worthless and steer the company in the wrong direction.
- Compliance: Meeting government requirements for compliance can be daunting, particularly when working with personal or sensitive data. Even if government hasn’t placed restrictions on the data, the enterprise may be facing stringent requirements within the industry.
If you’re considering how big data might serve your enterprise, or if you’ve already embarked on big data initiatives, but you’re beginning to question whether you’re receiving a positive return, contact us at Enterprise Visions. We can help you leverage the right solutions to make big data work for your business objectives.