Many companies are going overboard by investing huge amounts of money into data mining. Not many are, however, sure of how much their return on investments (ROIs) will be.
It is the opinion of some critics that big data’s disproportionate hype makes many people expect it to offer more returns that it is capable of.
Translating insights gleaned from big data analytics into a competitive advantage needs companies to change according to the information they have sourced.
Some retailers discovered that if they had to carry out a change according to the insights, they would have needed to completely overhaul their supply chain, which they could not.
The main reason is the inability to make use of the information they already possess. This is because they lack the knowledge of managing it efficiently, are unable to evaluate it in a manner that will help them comprehend it better, and lack of ability to implement changes according to the new information procured. Investing in sophisticated analytics techniques will not solve their problems as the companies lack the knowhow.
A study by Tech America reveals that only15% of the data now is structured. The challenge, therefore, is to unlock the rest which is unstructured.
Firstly, they need to invest time in learning how they can make use of the information they already have. The company needs to be able to leverage data and analyze it to help improve the operating judgment of its thought leaders before it can go ahead.
In the digital age, gathering information, analyzing it, and applying the same to cater better to customers is the key. Some companies are able to scale up their business by analyzing how their data can affect their decision making on a daily basis. Most companies are not able to follow suit. The reason might be that their management methods have not been tuned to the technology domains they operate in.
Some organizations are yet to reap benefits of the ERP and other data systems they had adopted over a decade back. This is because making decisions made on information available needs organizations to radically change their culture. Work procedures need to be revisited, old data must be wiped off, and business practices must be changed to suit the new atmosphere. For instance, they can make the data available to everybody in the organization, leading to collaborative processes in decision-making.
Some companies, who have been able to take this difficult path of incorporating a cultural shift in working, have taken care to see that all their thought leaders have information about their firm’s performance on hand on a daily basis. These persons give the operations teams information at all layers in close to real time. They also implement changes accordingly and they provide in-house training to employees on how to adapt to this new environment.
In addition, when service providers provide solutions online, they understand how their customers are using their products. By doing so, the enterprises can implement better ideas on how to serve their customers better in the future and how to improve their software.
It is also important to leverage technology via cloud-based solutions as it gives enterprises an opportunity to use data analytics solutions, which helps them make sense of the huge data they possess.
It always helps to hire applied mathematicians, who understand the nuances of data and can convey it meaningfully to the staff of companies, who then are able to make use of it profitably.
Finally, all these, however, need checks and balances in the form of brainstorming within the organization and intelligent monitoring thereafter.