BEST PRACTICE
Why every business is now a data business
by Bernard Marr , best-selling author , keynote speaker , strategic performance consultant and analytics , KPI and Big Data expert .
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n business , information is power . Big data is providing information we couldn ’ t have dreamed of collecting or analysing just a few short years ago . Companies that don ’ t evolve or embrace the data revolution will be left behind .
That ’ s why every business is now a data business .
There ’ s no doubt that big data and its implications will affect every single business — from Fortune 500 to small businesses — and change how we do business , inside and out . It doesn ’ t matter what field you operate in or the size of your business ; as data collection , analysis and interpretation become more readily accessible , they are having an impact on every company .
The Data Revolution The numbers are mind boggling :
• Every two days we create as much data as we did from the beginning of time to 2003 .
• According to the International Institute for Analytics , businesses using data will see $ 430 billion in productivity benefits over competitors who are not using data by 2020 .
• By 2020 , the amount of digital information available will have grown from about five zettabytes today to 50 zettabytes .
• International Data Corporation predicts that half of all business analytics software will include prescriptive analytics abilities by 2020 ( software will be able to predict customer or user actions and also make specific recommendations based on those predictions ).
• Machinetomachine connections with grow to 27 billion by 2024 .
What does this mean for business ?
Data is changing our world and the way we live and work at an unprecedented rate . Almost every action we take from browsing online and paying with credits cards at brickandmortar stores to sending emails and taking photographs leaves a digital trail . We are existing in a brave new datadriven world .
The term “ big data ” refers to the collection of all that data and our ability to use it to our advantage across a wide range of areas , including business . While this term focuses on the volume of data we have , it doesn ’ t matter how much data you have , it ’ s whether you use it successfully that counts .
The Explosion of Big Data Big data knows a lot about you . Google knows your age and gender , they have a comprehensive profile of you and your
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interests . Facebook knows more than who your friends are . It can predict whether your relationship is going to last and also analyses your “ likes ” to tell how intelligent you are . ( For all of you inquiring minds : curly fries , science , Mozart , thunderstorms or The Daily Show predicted high intelligence , while likes for HarleyDavidson and Lady Antebellum predicted low intelligence ).
From networked security cameras to store loyalty card programs , big data ’ s influence stretches to almost every aspect of modern life from healthcare to space exploration to our political elections .
Big data is powered by the information explosion made possible by the Internet of Things ( IoT ), basically everyday items that collect and transmit data via the internet and includes things such as your smartphone and your smartwatch to your TV and refrigerator .
Today , there are about 13 billion devices that connect to the internet . By 2020 , that number is predicted to rise to anything between 50 and 70 billion . Smartphone users alone are predicted to number more than 6 billion by 2020 .
How Do Businesses Use Data to Gain a Competitive Advantage ?
There are five core areas where data really matters to business . Data helps companies : 1 . Improve decision making 2 . Understand customers in a deeper way ( who they are , why they are buying , where the market trends are going , etc .) 3 . Deliver a new value proposition to customers 4 . Improve and automate business processes 5 . Create a new revenue stream when data is monetized ( build big data into their product offering ) Most companies start by leveraging data to help them improve decision making .
It ’ s clear that data is becoming an essential business asset , central to the success of every company . As the world becomes smarter and smarter , data becomes the key to competitive advantage .
A company ’ s ability to compete will increasingly be driven by how well it can leverage data , apply analytics and implement new technologies .
Data Strategy Critical for Success
In order to thrive , business leaders will have to actively work to expand their thinking away from what has been traditionally done , and include ideas and systems that may never have been considered .
Since every business , regardless of size , is now a data business , every business needs a robust data strategy .
Companies who will really profit from the explosion of available data will be the ones that have learned to think smarter about the data and what to do with it . It ’ s not just about collecting vast amounts of data , but finding innovative ways to build your business .
The way for companies to avoid drowning in data is to develop a smart strategy that focuses on the data necessary to achieve the business goals .
It is imperative for every company to commit to collecting and analysing the massive data that ’ s now available to propel their business . Those that don ’ t , won ’ t survive .
Bernard Marr is a bestselling author , keynote speaker , strategic performance consultant and analytics , KPI and Big Data expert . His new book Data Strategy : How to profit from a world of big data , analytics and the Internet of Things is out now , published by Kogan Page , priced £ 19.99