Business management makes big data decisions

Remember last year 8 15 competition http://www.aliyun.com/zixun/aggregation/15618.html "> Price war?" If you are a CEO of a power supplier, would you adopt such a competitive strategy? Change is the eternal theme, Business management cannot be static. In the big data age, it is unwise for the electric trader to adopt price warfare, and to control the management based on the big data strategy will help you to surpass the existing CEO.

Cost leading strategy, differentiation strategy and centralization strategy are the three strategies that enterprises can choose in market competition. In the era of information explosion, the fourth strategy of big competition strategy becomes the support of the original three competitive strategies.

Big Data Change Enterprise decision

The traditional enterprise management process is the problem, logic analysis, find causal relationship, put forward the solution, make the problem enterprise become excellent enterprise, this is the reverse thinking mode. The consulting process of large data competition strategy is to collect data, quantify analysis, find out the mutual relation, propose the optimization plan, make the enterprise from excellent to excellent, is the positive thinking mode.

"Data is the basis for future competitive advantage and will be an important resource." "As cloud computing, mobile Internet, social networking and big data are growing fast, this technological advance will change every aspect of business," said IBM CEO Rometty at an event organised by the nonprofit Foreign Relations Association March 9. "Rometty that big data will change the way companies make decisions, value creation and value realization."

Now the management consulting industry pursues the "plan", "feeling" type of business management is to the leaders and managers based on their subjective perspective and experience to look at information. At present, even in a scientifically oriented field, decision-making is still based on fixed perceptions. "Later, more decisions will be based on large data analysis rather than personal intuition," says Rometty. "Rometty believes that with more and more information, if the data can be used rationally, enterprise decision-making will be better and more objective." An example of a project "Using data history to reduce crime", which IBM has collaborated with the U.S. Memphis Police, is a case in point. The project analysis found a link between the rape case and the outdoor pay phone. Therefore, the police decided to transfer the pay phone to the room, which led to a 30% reduction in the incidence of rape cases. Rometty further said that in order to make rational use of large data, the way of thinking needs to change.

The biggest shift in the big data age is to give up the search for causation, instead of focusing on relationships, as Schoenberg in the big Data age. That means just knowing what "is" without needing to know why. This is different from the existing thinking practice of scientific research, which provides a new model for human cognition and the way to communicate with the world. Schoenberg points out three thinking changes in large data applications: Random samples to all data, precision to confounding, and especially large data simple algorithms that are more efficient than complex algorithms for small data;

The technical challenges of big data are obvious, but the management challenges are more daunting to start with a shift in the role of the executive team. The most important thing about big data is that it will directly affect how companies make decisions and who make decisions. In today's entire business world, people still rely more on personal experience and intuition to make decisions, rather than on data. In an age of limited information, high cost and no digitization, it is in the real world to make decisions for people in high places. This kind of decision maker and decision-making process is a kind of intuitionistic school, which now encounters Big Data challenge.

(Responsible editor: Lu Guang)