According to research from EMC and IDC, we can expect the digital universe to expand by a factor of ten between 2013 to 2020 - from 4.4 trillion gigabytes to 44 trillion. That means the data in the digital world effectively doubles every two years.
For South African organisations, the richness of this world of big data is an underexploited opportunity. Sure, nearly every large and medium-sized company in South Africa is using some form of business intelligence to make smarter decisions in the boardroom, but few are embracing the transformative potential of big data. The opportunity of big data lies in the sheer variety of the data we can collect, analyse and use in real-time or near real-time.
What this means is that data is becoming an asset for businesses in every industry, but they must learn to exploit it effectively. Companies must turn the data they collect into value if they are to deliver the personalised service their customers demand, identify new business and market trends ahead of their competitors, and achieve an optimal level of efficiency.
On one level, this is about analysing even more structured and unstructured data at the senior and middle management level to make better strategic choices. Certainly, with more and better data about sick leave in the workforce, customer social media commentary about products, transportation routes and inventory turnaround, C-suite executives can make better predictions and drive decisions about key aspects of the business.
But on another level, it is also about using data to drive better operational performance, often using automated processes. This is how the masters of big data - Uber, Netflix, Amazon and other digital disruptors - are really putting their pools of data to work. Amazon and Netflix, for example, apply smart algorithms to their customer data to make spot-on product recommendations to their users.
And in the business to business environment, The Climate Corporation in San Francisco examines weather data to provide insurance to farmers. These companies have woven big data right into the fabric of their businesses; indeed, their business models depend on their ability to capture, analyse and operationalise real-time data.
The picture in South African businesses is that most organisations are still discovering the potential of big data, with the exception of some of the larger banks and telecommunications operators.
One challenge lies in accessing the skills to build big data platforms and use them effectively; another lies in the fact that many organisations are running legacy platforms that are not up to the challenge of big data. Without the right platforms in place, their employees and managers don’t have the right tools, and big data cannot be analysed and organised effectively.
This is why businesses should be looking to modernise their enterprise applications for an era of mobile, cloud, and big data technologies. These new-age applications link business processes and departments into an integrated business backbone, but offer the agility companies need in the digital era.
A solid technological foundation will give the business access to data that is dynamic, relevant, accurate, and real-time. This, in turn, will help managers to make smart decisions in real-time - and without the effort of collecting and organising data. Armed with the right real-time data, they will have the insights they need to drive innovation, streamline operations, and enhance productivity.
