Big data is changing the future of organizational decision making. Belkacem Athamena, a professor at Al Ain University of Science and Technology wrote a white paper on the evolution of big data in decision making. Companies will place a greater emphasis on quantitative decision-making models than ever before, since new big data technology has made it more reliable.
Global Executives Create Highly Sophisticated Big Data Decision Making Models
There are two things companies can do with data: improve operational efficiency and implement better decisions. Using big data to improve efficiency allows managers to accelerate the delivery of reports and analysis. This means that time needed to make better decisions or release new products can be reduced from months to days. A company that utilizes big data effectively will be able to make higher quality decisions, which has a positive impact on its bottom line. Companies around the world are realizing that big data is more important than ever. The NewVantage Big Data and AI Executive Survey highlights the growing utilization of big data. Here are some of the findings of this survey:
- 91.6% of leading companies are investing more heavily in big data
- 75% of companies fear that competitors will disrupt the industry and steal market share through better utilization of big data
- 87.8% of companies say big data investment is urgent
- 55% of companies have invested over $50 million in big data
One of the biggest things that stands out is the huge dependence on quantitative decision-making with big data. Companies are capturing more quantitative data than ever to get greater value from their models. This isn’t just the case in the United States. I recently spoke with some colleagues in Spain and learned more about the investment of big data over there. Spanish executives have developed brilliant big data decision making models. The growing rates of “data literacy” is also contributing to the quality of data decision making models. According to a survey published by Qlik (a company specializing in analytics and Business Intelligence), 25% of Spaniards surveyed are fluent in understanding and managing data for their daily projects, compared to 17% of the European average. They are the European leader in big data decisionmaking. According to Gartner, companies that use predictive business performance metrics will increase their profitability by 20%. On the other hand, General Electric’s latest Innovation Barometer (February 2018) indicates that currently 6 out of 10 executives base their decisions on Big Data. Big data has recently started to make a huge impact on various industries. According to the study Adoption and Impact of Big Data and Advanced Analytics, which surveyed over 100 companies, companies will increase their investment in big data by 250% over the next three years. The world’s most prestigious business schools are developing new programs that focus on quantitative decision-making using big data. The IMF Business School faculty is one of the most reputable. According to Carlos Martinez, the head of the IMF Business School: “The massive analysis of data has come to stay. In our country, although there is still much to be done, companies are increasingly aware of the need not only to save, but to manage the large amount of data they use every day. Now the question is not how to store the information, but for what. And there are many companies suffering from Diogenes syndrome, which accumulates many teras of data, but does not know how to exploit them.” The Schulich School of Business has recently created a big data course, which they feel is the wave of the future. The business school offers both 6+ and 1-3 day programs, which gives students flexibility to learn more. The founders of this program state that the program is valuable across all disciplines. Executives can use big data fundamentals covered in the course to “chart the right course for their organization.”
Quantitative Decision Making Models Will be the Norm in the Big Data Era
The reason for the boom in big data is that the ROI is incredibly high. Companies have found ways to monetize all kinds of valuable data that can help them make much more effective decisions Only a few years ago, a lot of this data was discarded, since companies couldn’t find any practical applications for it. But now companies can predict market behavior under hundreds of possible scenarios. They can also analyze sales volumes and models that explain changes and buying habits of consumers.
