Key to Business Survival: A Big Data Strategy for Risk Management
With the cost of storage dropping, thanks to cloud computing, data growth is unstoppable. But with advances in software technology, it is now possible to draw insights and conclusions from various types of data. See the true potential of big data analytics when all data merge to give a holistic view of operations – especially the insights from real-time data. Without a big data strategy, data trends and patterns would simply be invisible. It would be like trying to find a needle in a haystack.
A big data strategy is even more relevant for companies that capture data on customer behavior to make fact-based decisions. Advanced analytics on the other hand, allow for multiple variables to be simultaneously analyzed at a greater speed than relying on manual data assessment. Based on historical data, risk and churn can be estimated based on the patterns from similar events in the past. With access to customer insights, risk mitigation becomes even more real. One can design a more attractive offer than the competitor to improve customer churn. Imagine all the time you would save and the number of decisions your business can make by simply automating many of the human judgment aspects – not only improving the productivity and efficiency of your operation, but also the reliability and accuracy of the data.
If data is organized and analyzed properly, the insights will give an organization a new competitive advantage. In many cases, early adopters of Big Data strategies have forayed into this field to stay ahead and use insights to secure their revenue and customers. Those that have not yet considered a big data strategy, they cannot even begin to pinpoint or explain revenue and customer churn. In the long run, organizations that do not adopt big data analytics will either find themselves fall behind, fail to comply with regulatory requirements, or become so operationally inefficient that it will become a struggle to survive. Any organization that aims to stay ahead of the competition and stay relevant should have a Big Data strategy – to make better strategic decisions, develop innovative product/services, reduce cost and offer customized services.