More Big Data Value Floundering
November 15, 2015
Here in Harrod’s Creek, Kentucky, the mist is rising from the mine drainage ditch. Value is calculated in a couple of easy ways. Here are two concrete examples:
One of my neighbors buys my collection of used auto parts. Before he puts the parts in his truck, a 1950 Chevrolet, he pays me cash money. Once I count the money, I help him load the parts and watch him drive away in a haze of Volkswagen type emissions.
Here’s another:
A person calls me and wants to talk with me about enterprise search and content processing. I explain that I don’t “talk” for free. If the caller transfers cash money to my PayPal account, then I call the person and answer questions. The time buys minutes. When the minutes are consumed, I hang up.
The notion of value, therefore, is focused on cash, not feeling good, having a nice day, or winning an election as the friendliest retired consultant in Harrod’s Creek.
Now navigate to “What Is the Value of Big Data to Your Business?” There is a gap between my definition of value and the definition of value set forth in this write up.
Here’s an example of Big Data value:
Big data and how it shapes your company
Big data is at the center of many decisions in any company. It will allow your company to:
Reduce and manage risk
Without data, organizations are vulnerable to many risks. Big data allows financial institutions to profile their customers when giving them credit facilities. Insurance companies can also create risk profiles which will allow them to set appropriate premiums for different customers. Agricultural enterprises as well, can use data on weather and food pricing to control production.
Better decision making
Collecting data on employees’ interests, behavior, interactions, work time, resource use and resource allocation can be very instrumental in creating better structures, improving the flow of information, increasing inter-departmental cooperation, increasing efficiency, saving time and saving resources.
Get a competitive edge
Monitoring competitor products, marketing activities, sales and pricing will help you to respond urgently with your own counter measures. If you are selling your products on a platform like Amazon, you can keep an eye on your biggest competitors and respond accordingly when they seem to be outselling you.
News flash. None of these listicle items deliver value from my point of view. Like other buzzwords and whizzy concepts, backfilling with generalizations is not going to convince me that Big Data has “value” unless the situation is linked to cash money.
Call me old fashioned, but this approach to value is one reason many companies are struggling to generate revenue from their search and content processing efforts.
Stephen E Arnold, November 15, 2015
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