4 Tips for Getting the Most out of Big Data
A recent McKinsey survey revealed that, in general, only 19% of American enterprises believe that their big data analysis activities contribute to profits. This sentiment has left some executives wondering if standard accounting specialists are enough to make the most of big data initiatives. For some enterprises, making the most of big data systems require a specialized and dedicated team. In these instances, team collaboration is required to make meaningful use of big data reports.
Delivering meaningful reports is sometimes a multi-staged process, that requires input from information technology specialists, analytics experts, and business unit leaders to quickly review and adjust results. Equivalent collaboration is required to test the outcomes of big data reports. Many enterprise leaders do not consider the value of business unit collaboration. However, business unit collaboration is a vital component for leveraging the full potential of big data systems.
The following sections review 4 tips for making the most of big data systems.
Tip 1: Implement a Performance Management System
Performance management is a systematic process that allows enterprises to optimize employee productivity. The process begins with defining roles, establishing expectations and setting goals. Performance management is a broader, more complex process compared to human resource productivity management that requires effective strategies for successful implementation. It encompasses many tasks, such as regular progress monitoring, feedback, coaching, goal setting, and incentives.
Business leaders who’ve successfully mastered the methodology are prepared to focus on improving productivity and driving progress toward the organizational mission. Developing a performance management plan is a collaborative process between organizational leaders and staff members. Ultimately, the goal is to establish realistic and measurable goals that drive the organization toward success.
Tip 2: Find Translators
Data collection alone is not enough to fully leverage the power of big data systems. To solve business problems and take advantage of new opportunities, people must understand the reports generated by big data analyses. It’s vital that enterprise leaders secure the services of individuals from different business units to form a communication bridge between the various functional areas of the organization. These translators can evaluate, disseminate and communicate meaningful information to stakeholders.
A recent survey of United States enterprises revealed that only 18% of organizational leaders believe that their talent pool consists of enough skilled employees to gather and evaluate big data information effectively. These professionals are vital for shaping complex information into meaningful reports that can be used by executives or marketing teams to ensure they remain innovative in their respective industry. For this reason, it’s vitally important that professionals who are skilled in working with big data technology are employed within each business unit.
Tip 3: Understand the Benefits
Many business leaders and nonprofit organizations don’t understand the full potential of big data technology and how data can be used to improve performance. What these leaders fail to realize is that a mere 10% increase in data accessibility can generate $65M in revenue for a typical Fortune 1000 company. United States healthcare institutions, for example, could save as much as $300B a year by using big data systems to streamline operations. Among organizations that maximize the potential of big data systems, 83% of respondents in a recent poll believe that the technology generates revenue.
The widespread adoption of social media usage has led to an ever-expanding universe of available consumer data. For some time, psychologists have recognized the potential of big data systems for improving operations and human resource decision-making. Today, many organizations employ psychologists who specialize in big data analysis to gain invaluable insights into their consumers’ and employees’ behaviors. Data, as it turns out, is an effective indicator of future behavior.
Tip 4: Prioritize Network Traffic
Business leaders shouldn’t undervalue the worth of network traffic. Many organizations fail to take advantage of this information-rich resource. However, network traffic is an invaluable resource for gaining a deep understanding of the consumer experience. By leveraging network traffic data, enterprise leaders can learn in-depth details about their consumers’ experiences and habits.
Detailed knowledge of consumer network activities allows enterprise leaders to develop consumer loyalty and gain an advantage over competitors. While it’s well-known that big data reports are only as valuable as the information that they’re built on, policy and procedural bottlenecks, as well as limited technology, have left many enterprises struggling to identify and exploit quality data for analysis. Overcoming these obstacles is essential for success in the modern marketplace.
To produce genuine and measurable improvements, business leaders must pool skilled talent with complementary skills. Translators then shape these evaluations into meaningful reports that guide the actions of critical business units. When teams effectively evaluate data and produce meaningful insights, enterprises benefit from acquiring new business, discovering new opportunities and successfully sustaining long-term growth.