Big Data Value
As organisations make better decisions through improved analytics, it is time to invest in the immense benefits of big data business value. Big data investment’s ROI must be precisely measured for the creation of stronger connections between business outcomes and big data analysis. Several methods you can apply to achieve this include;
1-Starting with a small and manageable pilot
Whereas measuring ROI of an entire business enterprise creates for big data business value, it is hard to accomplish. To get around this, simply focus on a location or department first and get the hang of it. From here, you can roll the project out to the entire premises while driving the most accurate results. In all cases, big-data inventory analysis and actual rolling out of ROI are the standard ways to go about it. The smaller the pilot, the more room you have for correcting the small bugs!
2-Clear definition of your metrics and business goals
Big data business value projects are notoriously complicated when it comes to calculating ROI. When you consider too many variables, it is easy to get lost in the maze. To avoid this, it is crucial to define the metrics you will be measuring ROI as well as the business problem you’re after solving well before the time comes.
Success and failure of big data business value projects are pegged to the company’s description of the problem and consequent definition of metrics to be measured. ROI is all about increasing your profits while reducing the unnecessary waste of resources. If a retailer is after improving the inventory accuracy, for instance, clear definitions and an accurate list of items must be in play. Before and after accuracy measurements alongside the calculation of ROI all require big data analysis.
3-Recognising different big data projects with different ROI’s
Different big data projects often come up with different results altogether. Predictive big data business value projects pay off way higher than non-predictive projects, resulting in a considerably higher profit margin. A report by IDC clearly showed that the ROI of predictive analytics projects is at approximately 250%, a figure that all businesses and companies would be glad to achieve. Non-predictive analytics projects ROI is at a far lower average of 89%. Either way, big data business projects will result in improved ROI, with the improvement being relative to the method applied.
When going into this, you should be open-minded to the fact that all your expectations might not be met. In the real world, the ideals of popping ROI’s are not achieved due to a host of factors. Incremental revenues will increase in 78% of the establishment, but only a fraction of them report an increase of more than 3% in revenue, precisely 27%. Big business benefits and high results cannot be achieved instantly but over the course of time.
When it comes to big data business value cost saving projects, the results are similar; at the beginning, there is little impact to be felt or tangible results to be shown. Although 75% of businesses will see a reduction in operating costs, only 21% of those realise 3% cost saving. ROI is tied to big data analytics, the trick is in applying the right strategy!