The role of big data in shaping the success of businesses cannot be underestimated. In a research conducted by MGI and McKinsey’s Business Technology Office, it was discovered that big data plays a key role in addressing various important issues such as consumer surplus, innovation, and competition.
The study analyzed big data in five domains: healthcare, public sector, retail, manufacturing, and personal location data in different countries around the world. The findings revealed that utilizing big data can significantly impact a retailer’s operating margin, with potential increases of at least 60%. In the healthcare sector, if big data is properly applied, the potential for breakthroughs and increased turnover is outstanding. Even in the public sector, governments can save significant amounts of money through operational improvements by leveraging big data.
The research conducted by MGI has highlighted several important points:
Importance of Big Data
Data has become as crucial as labor and capital in the industrial sector. By 2009, it was estimated that every sector in the US economy would have an average of 200 Tb of data per company, employing thousands of employees.
Value Creation through Big Data
“Big Data” can create value in five broad ways:
- Data makes information transparent at a higher frequency, unlocking critical values.
- Digital storage allows organizations to gather and produce more accurate and detailed information.
- Big data enables precise targeting of narrower customer segments, resulting in more personalized products and efficient services.
- Sophisticated analytics can substantially improve decision-making processes.
- Big data can take businesses to the next level by providing advanced services.
Key Factors for Future Growth
The growth of individual firms in the future will largely depend on their ability to effectively utilize big data. The study emphasizes that the use of big data can lead to significant increases in operative margins for retailers.
Sector-specific Impact
The impact of big data varies across different sectors. Industries such as computer and electronic products, finance and insurance, information sectors, and government are most likely to benefit the most from leveraging big data.
Talent Shortage and Rising Demand
In the future, there will be a shortage of talent capable of analyzing big data, which will lead to a rise in demand. Companies must be prepared to address this challenge.
Addressing Issues and Maximizing Potential
While big data presents numerous opportunities, there are also several issues that need to be addressed to fully capture its potential. Privacy, security, and intellectual property are key concerns that industries must prioritize.
Possibilities and Limitations
While most companies across different sectors strive to make the best use of big data, some benefit more than others. The productivity and success of companies in different sectors can be compared based on the value derived from big data. However, there is a shortage of talent with the deep knowledge and skills necessary to effectively leverage big data. In order to fully realize the potential of big data, companies need to address security, privacy, and intellectual property concerns. Additionally, organizing effective workflows and attracting excellent talent are essential components of harnessing the power of big data.
In conclusion, big data has become an integral part of the business landscape. Its impact on various sectors, ranging from healthcare to retail, cannot be ignored. By understanding the potential of big data and addressing the challenges it presents, businesses can unlock valuable insights and drive growth in an increasingly data-driven world.
