Technological developments have led to an explosive increase in the amount of data in companies in recent years. Fully integrated system landscapes and networked platforms mean that internal data volumes are now reaching previously unknown dimensions. What is more, corporate decisions and product ideas can be further improved through external data, especially coming from social media. And the pressure to use these data is great, with the competitive advantage lying in learning more quickly than others.
The management has to be able to absorb more knowledge and work with varying mindsets. Information – i.e. related, interpreted data – can be used to create new business models, which change one-off orders into continuous relationships. Product business becomes integrated service business. The innovative potential increases enormously when analytics takes over the role of the nervous system in the company.
From a management point of view, Big Data is the promise of introducing more precision into the way the company is led, with a culture of analysis and of generating new management stimuli. After all, changing the decision-making culture can improve a company’s performance.
FOUR GUIDING PRINCIPLES WHEN DEALING WITH BIG DATA:
1. “Connect the dots”: Use Big Data for competitive advantage
2. Rational thinking instead of gut feeling: Establish a data-oriented decision-making culture
3. Big Data from A to Z: Identify fields of application for insight-oriented action
4. What matters is what insights you gain: Find the right level of complexity through pragmatic model selection