Harvard Business to the RescueHarvard Business' October/2012 issue has several gem articles on Big Data and Big Data: The Management Revolution by Andrew McAfee and Erik Brynjolfsson is a must read. Here are a couple of highlights:
On Big Data ROI
The more companies characterized themselves as data-driven, the better they performed on objective measures of financial and operational results. In particular, companies in the top third of their industry in the use of data-driven decision making were, on average, 5% more productive and 6% more profitable than their competitors.
On Big Data managerial challenges
The technical challenges of using big data are very real. But the managerial challenges are even greater. “What do the data say?” Where did the data come from?,” “What kinds of analyses were conducted?,” and “How confident are we in the results?”The article ends with five management challenges, and while technology is on the list, it is not in the pole position. I suggest reading the article to get the answer.
About those Managerial Challenges
My next post on this topic will cover Data Scientists. Until then, the media is finally catching on to the managerial challenges and while some of these posts are hyped up, they do provide some insight.
Companies would do better at satisfying and retaining customers if they spent less time worrying about big data and more time making good use of ‘small data’ — already-available information from simple technology solutions — to become more flexible, informative, and helpful. - You can't fix stupid, and other arguments against big data.
So, when the advertisements claim that big data will transform your business, remember that big data brings the potential for transformation, not the actual transformation. - The big data fairy tale
Pursuing big data with small, targeted steps can actually be the fastest, least expensive, and most effective way to go.- Big data doesn't work if you ignore the small things that matter