We have passed the point of questioning the value and capabilities of Big Data on business success. In progressive organizations it now holds a seat at the table as a crucial resource to business. Companies have realized that there are major opportunities to use the data they already have and apply new insights across their business for incredible results.
Cloud technologies, and the advancements in data analysis give foundation to accelerating the trend. Advanced technologies like active analytics (“decisioning”), advanced algorithms, etc. are proving to be extremely effective at fueling the Big Data engine. In the new world we live in, data isn’t something to be stored and ignored, but analyzed and utilized for its valuable insights.
Big Data analysis has proven to be invaluable at helping driving decisions across organizations—from pricing and distribution decisions, to product and marketing insight—spreading a trend of ROI from end to end. There is no doubt, Big Data is now mainstream.
Google’s Chief Economist Hal Varian coined the phrase “marketing is the new finance”.
Varian foresaw great advances in ways to satisfy people’s needs, better matches between buyers and sellers, and a more robust advertising environment due to the availability of vast quantifies of rich, real-time, highly available “big data.” His predictions today ring truer than ever.
Now, the information-rich environment enabled by the net is transforming marketing into something more. Specifically, marketing is becoming the new research and development (R&D).
Marketers now have immediate access to consumer behaviors and reactions across multiple channels and media. This empowers them to take a leadership role in determining consumer preferences, meeting customer needs, and helping match supply with demand. In other words, driving the business.
We’re living in the era of the digital data deluge. Think about how often you check your bank balance online versus going to a teller, how many emails you receive a day, the number of hours you spend on your smartphone not making phone calls.
Consumers leave contrails of data as a result of their digital interactions, and this behavioral data creates opportunities to drive customer acquisition, reduce operating expenses, and make faster, better decisions.
But there are also some fundamental problems.