Value of Big Data
The reason why big data is growing rapidly these days is because big data generates value. What value can this big data generate?
- Creating transparency, by using business organization’s data, every decisions made is more transparent and be able to break silos. Big Data is analyzed across functions, as an example in the manufacturing industry; the chart is provided below.
- Data Driven Discovery, Big Data become a provider of new insight that might have not been seen previously, for an example is trend in data set. Another example (beside manufacturing industry) of Big Data as a set of upcoming outlooks is the Insurance Industry where the insured’s entire life history, such as the history of the disease he or she has suffered, can be analyzed and then the premium price is determined.
- Segmentation & Customization, by analyzing Big Data can ultimately determine customer segmentation and create customization for them. The product should be created based on customer segmentation in order to continue to meet their needs.
- The power of automation, the algorithms that analyze Big Data sets can be used to replace manual decisions and labor-intensive calculations with automated decisions. So, the works become faster and more accurate.
- Innovation & new product, by analyzing big data can create new product innovations that are in accordance with customer desires and habits.
The following is a chart of how manufacturers create their business value.
On the chart in blue is a detailed description of value creation. Business value is derived from increased revenue minus reduced costs.
On the far right and in green is an explanation of how big data can help create business value, as previously explained above.
Author: Hendrix Yapputro M.Sc. Certified IT Architect – General Manager at PT Equine Global