Many ways to create value from massive amounts of data

Massive amounts of data can create value in a variety of ways, and we've found five widely available ways to exploit massive amounts of data. These approaches provide transformative value creation potential and have an important impact on how the organization should be designed, organized, and managed. For example, how will corporate marketing functions and activities evolve in a world of potentially large-scale experimentation? How will the business process change, and how will the enterprise evaluate and leverage its assets (especially data assets)? Can the ability of an enterprise to gain data and analyze data bring greater value than a brand? What business model is available that may be interrupted? (for example, in a world where data is extremely transparent, what will happen to industries that are based on asymmetric information, such as various types of brokers?) How do existing organizations, which are closely linked to legacy business models and infrastructure, compete with agile new attackers who can quickly process and leverage detailed consumer data that is readily available, such as those that people talk about in social media or embedded sensors report? As customers gain strength by mastering data, such as price and quality comparisons between different competitors, what happens when the surplus starts moving from supplier to customer?

Create transparency

Making it easier for relevant stakeholders to get information in time can create enormous value. In the public sector, for example, easier access to relevant data between previously separate departments can significantly reduce search and processing time. In manufacturing, consolidating data from research and development, engineering, and manufacturing departments to achieve concurrent engineering can significantly shorten time-to-market and improve quality.

Allows people to experiment to discover needs, expose variables, and improve performance.

As organizations create and store more digital forms of transactional data, they can collect more accurate and detailed performance data (in real time or near-real-time), from product inventory lists to staff sick days. It enables organizations to record processes and then arrange comparative experiments. Using data to analyze performance changes-either naturally or through comparative experiments-and then understand their origins can lead to higher levels of performance.

Segment the population to customize the action plan

Massive data enables organizations to perform very specific subdivisions to tailor products and services to meet these requirements. This approach is well known in the area of marketing and risk management, but it can also be revolutionary in other areas-for example, how to treat all citizens equally and equitably in the public sector in the same way. Even in consumer goods and services, companies that have been using segmentation for years are starting to deploy increasingly sophisticated data technologies, such as micro-segmentation of customers in real time to lock out promotions and advertising.

Replace or support artificial decisions with automated algorithms

Sophisticated analytical tools can dramatically improve decision-making processes, minimize risk, and uncover hidden insights. This analytical tool is useful for organizations ranging from tax authorities (who can use automated risk engines to label candidates for further investigation) to retailers (which can use algorithms to optimize decision-making processes, such as automatic fine-tuning of inventory and pricing based on real-time store and online sales). In some cases, decisions are not necessarily automated, but are magnified by the analysis of the entire vast database-using massive data techniques and techniques, rather than smaller samples that individuals can process and understand with spreadsheets. The decision-making process may never be the same again; some organizations are already making better decisions by analyzing the entire dataset of sensors from customers, employees, and even embedded products.

Innovate with new business models, products and services

Massive data enables companies to create new products and services, improve existing products and services, and invent new business models. Manufacturers use data obtained from the use of actual products to improve the development of next-generation products and to create innovative after-sale services. The advent of real-time location data has created a new set of location-based services-from navigating to pricing for property and personal injury insurance based on where people are and how they drive.