Is Big Data a Strategic Tool?

1378 Words6 Pages
Big data can be defined as the voluminous amount of unstructured and semi-structured data a company creates. (1) And businesses are usually collecting more data than they know what to do with, which aims to provide the ability to take advantage within the competition. (4) Data have swept into every area of the global economy (6). Therefore the use of Big data not only emphasis on collecting and storing a large amount of data but also turn these data into competitive goal to gain the competitive advantage. The big data can create value to the business success in terms of innovation and differentiation, to improve organizations’ performance and productivity, and to increasing the ability to make better decision. On the other hand, Big data can be challenges such as the importance of privacy and security, and talent of organization to find the full value of Big data.
According to the research by MGI and McKinsey's Business Technology Office, big data will become a key basis of competition, underpinning new waves of productivity growth, innovation, and consumer surplus. (3) So that big data provide the companies more opportunities to discover data correlations before would have remained hidden.

Dominic and David (2012) mentioned Bigger and better data give companies both more-panoramic and more-granular views of their business environment. Big data enables companies to create new products and services, enhance existing ones, and invent entirely new business models. (8) And using big data can be a key factor for companies to gain the competitive advantage than competitor. (13) Therefore, the use of Big data has already become an important method to boost their competition by make differentiation products and service...

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... This is based on the detailed and sufficient transaction data collect by the business. Moreover, many companies are already using big data to improve the ability to making better choice for business. The sufficient data not only help manager to analysis the business conditions easily, but also provide confidence to manager to make better decisions. On contrast, many researches shows that Big data can be seem as challenges for business. First one is security and privacy of the data. Most of the data is sensitive and has significant impacts on business performance, such the customer personal data, business financial records, etc. The second one is about the talent and ability of organizations and manager to maximize the full value of data. And not only focus on the quantitative of data. How to use the data to create value can be the Achilles heel for some companies.
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