How Big Data is Affecting Business Decisions

No matter what industry a business is in, theres one buzzword on everyones lips data. And not just any data, big data.

Were living in an information economy. The more data a company collects and analyzes, the more information they have to go off of when making major business decisions. Companies are no longer flying blind or having to guesstimate. They have exact measurements for parameters that once couldnt be measured at all.

Its so important today, big data can affect a business valuation. The data goes beyond a companys tangible assets with deeper insights and future projections that many view as indicators of success. Goodwill is the perfect example of this. Its a key intangible asset that can now be gauged through data collection and factored into valuation.

How businesses use data and the decisions they make based on data is also going to affect success rates. Its become so influential, the data itself is now being used to determine a companys value.

The Most Important Decision – Selecting Software for Data Collection

Selecting business intelligence software is one of the most important parts of the process since this is how data is gathered and analyzed. For many businesses, deciding on a software platform is the hardest part. There are countless data collection software programs today, but they arent created equal. Comparing programs like Tableau vs. key BI competitors can involve dozens of functions before even considering the user interface.

Reporting features are often at the top of the priority list. Without reports, data isnt usable. Users should be able to customize the view and types of data that are used to generate reports. This allows users to segment data so they can focus on core metrics.

Automation is also extremely important. Data collection is just one more thing that busy businesses now have to account for, and it can be time-consuming. Software programs that automate the process of collecting data and creating reports offer enhanced usability.

Of course, being able to plug into data sources is another crucial component. The more versatile the business intelligence software is at connecting with data sources, the more information a company will be able to collect and utilize. 

Top 3 Ways Data is Affecting Major Business Decisions

The decisions that are made based on big data can profoundly impact a business at every level. The needs are unique to each business, but almost every company can use big data to make informed business decisions regarding reputation, revenue channels, and productivity.

Reputation

The 2014 Reputation Institutes Annual Reputation Leaders Study revealed that the issue companies were most concerned about was being able to measure their reputation. Companies understand to create an effective strategy for improving public perception data is key.

Going off of analytics from social media platforms and the business website a company can better gauge how they are perceived by the public. They can also get insights into customer interactions and satisfaction. All of these things weigh heavily on a companys reputation. Companies can use the data to make decisions related to the branding, social media marketing as well as how to improve customer relations.

Revenue Channels

Finding your next revenue channel is much easier when you have a wealth of data. Its also much easier to find the best marketing channels for promoting goods and services. Between the two, launching a new product or service is less of a risk. Big data can help by analyzing current transactions, customer complaints, and product reviews. Companies can dig through the data to discover new opportunities that arent being tapped.

Productivity

Improving operational efficiencies and productivity is one way to quickly improve profitability. There are a number of ERP programs that analyze virtually every business function from assembly line uptime to accounting procedures. Sensors can track the movement of trucks and shipments in real time and feed massive amounts of data into a software program.

The data collected can tell business owners where efficiency is slipping. It can also help you identify ways to automate processes for increased productivity. With big data, youll know who your most productive employees are, which machines are most reliable and even how to cut fuel costs by shortening truck routes. The productivity possibilities are endless, which is why customized reporting is essential. 

There is massive potential in big data, but only if businesses can sort through it and find the metrics that really matter. Right now businesses could be sitting on a goldmine of information, they just have to know how to use it.