It is not uncommon to hear the phrase “Data Rich, but Information Poor” in the context of enterprise information systems. This is especially true when it comes to Big Data, given the three Vs of Big Data, namely Volume, Variety and Velocity (read this for more). What seems like a big problem posed by data deluge is in fact a great opportunity if only companies can unlock the potential of Big Data using predictive analytics.
Since Big Data is characterized by not only Volume, but also Velocity and Variety, it is very important that Big Data is used for analysis in real-time to predict the future and take corrective action based on that analysis. The real value is in using insights derived from predictive analytics and taking corrective action before it is too late, rather than just reporting historical information.
Techniques like Multiple-regression analysis coupled with Factor analysis, Cluster analysis and Causal Path analysis can be used very effectively with Big data. For example, rather than analyzing “historic” attrition rates, predictive analytics will make it possible for companies to identify critical incidents leading to customer attrition so that steps can be taken to retain the customer before he/she defects.
So whether Big Data deluge is a problem or an opportunity depends on what you make of it. It can be a great opportunity if advanced statistical tools are used for analyzing big data and derived insights made available to decision makers and front line employees in real time, if not it can be a great problem.
Dear CEOs, CMOs and CIOs, what’s your choice? And what are you waiting for?