You know Big Data is important for business. But do you know just how important – in terms of cold, hard cash – it is, or how to maximize data’s value? If not, this post is for you.
It’s no secret that Big Data is essential for business. It’s the key to maintaining visibility into your business operations so that you can keep your organization lean and mean. Quality data also helps you plan and measure the success of everything from marketing campaigns to new product releases.
Quality Data: Quantifying Data’s Value
But have you ever wondered exactly how much data is actually worth? The exact answer is impossible to quantify definitively, of course. And it will vary from one business to another.
In general, however, it’s clear that there’s big money in Big Data. Consider the following statistics:
- The Big Data market was worth $125B in 2015, a figure that has surely only grown since then. That’s a measure of how much companies were investing in Big Data, not how much value they were deriving from it. Still, it provides a sense of just how much financial capital enterprises are pouring in to data operations.
- In 2013, analysts predicted that the ROI of investment in Big Data would increase from 50 cents per dollar invested at that time to $3.50 per dollar in three to five years’ time.
- This interesting analysis concluded that a company was losing about $81,000 per month by failing to leverage data analytics effectively.
- According to McKinsey, better use of data analytics by marketers can improve ROI by 10-20%. Since companies spend about one trillion dollars total on marketing efforts, that means they can collectively save between $100B and $200B through Big Data.
- A 2010 study of Fortune 1000 companies found that the median company in the group could gain $255M annually through incremental improvements in data effectiveness.
Clearly, then Big Data is worth a lot of money to businesses.
Maximizing Return on Your Big Data Investment
If you read the figures above closely, you’ll notice that many of the studies and statistics are not just about the money that can be made by implementing Big Data and data analytics in one way or another. Instead, they focus on the cash value that companies can gain by optimizing the Big Data operations they already have in place.
What does that mean? Above all, it means ensuring you work with quality data.
Today, it’s pretty easy to collect large amounts of data and run analytics on it. Data storage is cheaper and more convenient than ever, thanks to the cloud. Integrated data analytics platforms make it easy to get up and running quickly with basic data interpretation.
But if organizations base their Big Data and analytics solutions on low-quality data, they’ll see few returns on their investment. The value of the data you collect and analyze is only as good as the quality of the data itself.
Think about it. You can invest millions of dollars in a state-of-the-art data storage and analytics solution. But if the data you are storing and analyzing is rife with inconsistencies, inaccuracies or other problems, the analytics results you get will be misleading. They won’t help you to plan the right marketing strategy, predict your customers’ behaviors or gain the other crucial insights that only quality data can deliver.
The takeaway is this: Before you dive head-first into the Big Data world, make sure you factor data quality into the picture. That’s the difference between companies that simply do Big Data because it seems important, and those that do it in a way that leads to high returns on their investment.
Thanks to the recent addition of Trillium’s data quality products, Syncsort can now leverage both data integration and data quality to help organizations deliver all critical enterprise data assets with the highest integrity to next-generation Big Data environments for trusted, actionable insights. That’s a big plus in maximizing the value of Big Data to your business.