By Kalie Moore
A recent Accenture survey showed that 89 percent of senior technology and business executives believe big data will revolutionize business operations in the same way that the Internet did. In addition, 85 percent feel big data will dramatically change the way they do business and 79 percent agree that companies that do not embrace big data will lose their competitive position and may even face extinction.
Talk about the epitome of hype. Though enterprise companies may think big data is the holy grail, what does it mean for you, the SMB owner or employee? Will you be shut out of this this revolutionary business tactic?
Just because you may not currently utilize big data -- defined as data sets that are so large, so complex, that they are impossible to analyze with traditional tools like your brain or Excel -- does not mean you cannot participate in data-driven decisions. In fact, for the majority of companies, your current data is more important than some vision of big data. Let’s look at the types of data that could prove valuable in the short term:
1. Small Data – The volumes of data that the human mind can comprehend is known as small data and should not be underestimated. Think of all the data-driven decisions your team has made in the last year based on existing data. Perhaps you A/B tested your landing page for more conversions, or analyzed the keywords of your competitors and used your findings to update your SEO strategy? These decisions were based on small data.
2. Smart Data – This type of data has two common definitions. The first definition has to do with predictive analytics. In this case, smart data predicts which movies you are likely to watch on Netflix, which products you are likely to buy based on your past purchases at Amazon, or what your next career step will be based upon similar profiles on LinkedIn. In the second definition, you’ll hear marketers talk about smart data in the context of data visualizations. Big data typically refers to the raw information, whereas smart data can describe the visually compelling presentation of the data’s insights.
3. Dark Data – It is the neglected, uncategorized data that no one knows what to do with, but we're too scared to delete because we might one day need it – sort of like that sweater Grandma bought for Christmas. According to IDC, a research firm, up to 90 percent of big data is dark data. Yikes.
Benefits of Current Data
Your goal should be to focus on your current data so it does not become dark data. Work with the data you have, analyze it to answer critical questions, then act upon the new insights to make critical decisions.
Investing in new, high-end analytics tools is not enough to magically discover the valuable insights hiding within your data. Work with your current data, first. Develop a consistent practice of data selection and intelligent analysis to support your operating decisions. Then take those processes and apply them to all the data you can get your hands on.
In the long run, given all of the new data being gathered, all of us will eventually be big data consumers. Until that time, we need to make efficient use of existing information to streamline workflow and improve customer relations, production, and delivery. Even small advantages may pay large dividends, so until big data comes to your floor, make the best possible use of what you have.
