Information is the prime asset of enterprise, the departure point for all decisions leading to product innovation, marketing strategy, and ongoing competitive advantage. IT generates an abundance of business information; the problem is selecting data most useful to your enterprise purposes and using it to devise suitable long-term objectives. Data driven decision-making is based on big data analytics, which particularizes and coordinates enterprise-derived information towards specific organizational objectives. Analyzing large data-sets for assessment of strategic performance is the current best practice technique of enterprise decision-making.
Big Data and Business Decisions
Data driven decision-making leads to superior operational performance, productivity and profits, by a factor of 5%-6%. Big data mechanisms generate better decisions; data driven analytics increase knowledge of enterprise functions and workflows, through accelerated and enhanced assessment of operations in relation to industry sector and competitors. The result is improved decision-making and performance, in comparison to rival organizations, resulting in bigger market share and greater customer satisfaction.
Big Data for Marketing
Big data application has quickly acquired a reputation as the cutting edge analytical technique for firms of all types, providing a key basis of business planning. Data driven decisions are especially valuable for marketing, brand positioning, new product development, customer support, and virtually every sphere of contemporary business activity, motivating innovation and productivity. Evidence suggests organizations embracing big data analytics are likely to develop a substantial competitive advantage over rivals.
Steady, ongoing marketing growth requires balancing data driven decision-making with focus on long-term, higher-order objectives. Marketing decisions cannot be successful unless extraneous information is separated and removed from data useful to enterprise goals. The risk with big data is the over-abundance of information can distract marketers from their essential aims. Efficient application of marketing data requires persistent attention to critical business objectives, regardless of potentially tantalizing alternatives that may emerge from evaluation. The relevance of information to marketing strategy is the primary concentration and point of departure.
To focus big data analytics:
- Determine the authentic enterprise issue. Big data is useless out of context with the marketing problem to be solved.
- Collect data based on this use-assessment; this will be the foundation of your strategy.
- Accurate analyses require guided exploration based on reliable methodologies for data driven decision-making to be effective; decide what techniques – profiling, correlation analysis, predictive analysis, etc. – are most suitable for your purpose[s].
- Ensure the database and sample are sufficiently deep, so data are statistically significant and can be divided into segments accurately reflecting the market
- Apply marketing acumen to big data analytics to make strategic recommendations appropriate to the product or service, and its consumer-base. Audit data for accuracy and ensure reports are customizable to the strategy’s specific enterprise requirements.
Big data is stimulating a fundamental transformation in the way business is done. Appropriately implemented and managed, big data analytics can improve strategic decision-making and operational performance for most firms in most realms of enterprise.