Organisations today face huge challenges as data complexity increases at a pace never seen before. Many organisations are unable to assess and maximise value from their increasingly complex data assets.
Data complexity can be understood from a number of dimensions:
- Value: It’s critical to understand the business value an organisation is trying to achieve by exploiting its key data assets.
Once the business value is defined and understood, the widely recognised Four Vs of big data help organisations understand its complexity:
- Volume: IDC predicts that total worldwide data will swell to 163ZB by 2025, 10 times the amount today.
- Velocity: Customer needs and digitalisation has led to growing numbers of sensors and devices, creating requirements to handle large amounts of real-time streaming data.
- Variety: It is expected that more than 80% of data will be unstructured in five years, and this trend will increase at rapid pace in the future led by sensor, smart devices and content based data.
- Veracity: Lack of trust in data is a key issue for businesses. Research shows that one in three business leaders don’t trust their data. It is also claimed that poor data quality costs the United States’ economy $3.1 trillion dollars annually.
Changing customer expectations mean being data-driven is no longer a choice for organisations wishing to remain relevant in their chosen markets. Today, more than five billion people use mobile devices with 60 percent of those being smartphones. These digitally-native customers expect personalised products and services tailored to their individual needs.
While this might seem a daunting challenge, emerging technologies like big data, machine learning and artificial intelligence as part of Advanced Analytics, represent a real opportunity for organisations to differentiate themselves.
Notable examples of data-driven organisations include Netflix, Amazon, Spotify and Apple. These organisations utilise customer-centric business models by leveraging their data assets. Such a data-driven approach can help your organisation to increase agility, drive value and transform.