We are experiencing the making of an economy powered by a new business resource; Big Data. Although most resources are exhausted by use, data is self-perpetuating. Leading organizations leveraging big data through a strategic analytics tactic to attain sustainable marketplace advantage and generate an entirely new business model.
Big Data is increasing exponentially; we devote more of our lives in the digital world and these activities produce enormous volumes of data, some of which is stowed, and a lot of which is thrown away as ‘exhaust’. Financial services administrations have cumulated Petabytes of information about their customers, and companies sitting on this data gold mine have a unique opportunity to make this type of information play.
[A Petabyte is 1,000 Terabytes, or 1 million Gigabytes. 1 Petabyte is the equivalent of approximately 20 million 4-drawer filing cabinets full of text. Experian holds around 30 Petabytes of data globally and this is growing at about 20% per year.]
“Enterprises must learn to understand how best to leverage big data soon, since the amount of data being generated shows no sign of slowing down.” (Source: Oracle)
Volume, Velocity and Variety – The Big Data Challenge
When people think of Big Data challenges, they immediately think of the volume and the speed at which it is growing (velocity). The bigger challenge is the variety of information. Global connection will cross 100B in 2025.
According to ABBYY USA, 800% growth in data will generate in next 5 years in which the amount of unstructured data will grow 62% faster and till 2019 80% data will be unstructured.
Some organizations believe the challenge is about their enormous data volumes. Others think the challenge is in the rapid rate of growth. Still others worry about the challenge handling the new types of data. As you can see above, the real challenge is a perfect storm – facing all three challenges simultaneously.
Harness the power of customer data
Today, organizations have reached a point of maturity in Customer Relationship Management (CRM). Organizations need to reconsider how to make this data expressive and valuable to drive differentiation and brand value. On the other hand, consumer anticipation is increasing the compression on organizations to satisfy demand promptly, provide more modified service, engage on their terms, and improve the quality of the user experience.
Many companies would acknowledge they are nowhere near orchestrating insights across the organization from Big Data – so how do companies use the acumen to improve the customer experience, and equally important, how should this be operationalized?
Adding to above said big challenges is a myriad of new, largely unstructured data sources; social media text, videos, call centre logs, survey responses, email, notes added to the application during underwriting, service notes, and warranty claims.
So, is Big Data worth for effort?
Yes. Industry need to take Big Data seriously. It has the capability to give insight they didn’t know before. If you advance the technology or have the accurate tools to harness it, Big Data can be enormously valued.
Big Data is more than simply a substance of size; it is an opportunity to find insights in new and emergent types of data, to make your business more nimble, and to answer questions that were formerly considered beyond your reach. Until now, there was no applied way to yield this opportunity.