How is big data analytics transforming corporate decision-making?
Big data analytics is transforming corporate decision-making, pushing organizations to become more agile and responsive.
A massive business transformation is under way as organizations increasingly harness the power of big data analytics to inform key strategic decisions. The potential for competitive advantage is significant and, in order to make full use of this, organizations need to review their decision-making processes. While big data analytics can greatly improve decisions, the actual decision-making process needs to become far more responsive and agile to realize its full value.
The big data revolution
Big data can transform how decision-makers view business problems and inform strategic decisions, allowing them to rely upon objective data. Good data, sound analysis and valuable insights are critical for mitigating risks, making balanced strategic decisions and competing against others.
EY’s Ram Sarvepalli, Emerging Markets Center, views data analytics as the key to success in the modern business environment: “Data analytics has become the key to corporate competitive advantage. The first company to identify emerging demand trends and tailor its operations to delivery can quickly establish itself as the go-to source for particular goods or services.”
Time is value
Big data analytics provide real-time insights, which need to be actioned quickly to gain better value. Rajesh Gopinathan, CFO and Vice President of Tata Consultancy Services (TCS), says that this real-time change is transforming corporate decision-making and, ideally, “once you have made that information available instantaneously, business decision-making is happening on the fly.”
Organizations that employ swift decision-making processes are able to realize better value from real-time data analytics and build a strong competitive advantage.
While most large organizations are rightly focused on creating big data and analytics infrastructure, many should concurrently transform their decision-making processes. Once companies can effectively analyze the torrent of information being harvested by their servers, they can begin to tailor their activities to what the data and their local understanding tell them customers really want. Many companies now sense they are on the brink of far-reaching business model innovation made possible by digital technologies. But they are unsure how best to identify and take advantage of the insights contained within the data.
As Laurence Buchanan, EY Advisory’s Digital Leader in Europe, Middle East, India and Africa says “Many companies in mature markets have more than 20 years ingrained cultures, mindsets, business models, ways of working and, of course, technology landscapes that are not necessarily conducive to operating with an agile innovation approach.”
How to leverage value more effectively
- Create a responsive decision-making process
- Streamline decision-making layers from top to bottom
- Leverage insights in a timely manner
- Coordinate with local levels to act on insights
Stay ahead of the curve
Organizations that streamline their decision-making processes to become agile and responsive can best survive in the face of constant digital disruption. Only by minimizing the time gaps between insight generation, decision-making and implementation can the real value of big data be realized.