The amount of data that companies can capture is astonishing – and growing. According to an article from The McKinsey Quarterly, in the vast majority of industries, companies with over 1000 employees each store more data than the U.S. Library of Congress.
You can learn about customer habits and preferences, test and optimize internal and external processes, and the list will continue to grow. All of these tests and new processes will require even more data storage.
Since the ability to gather and analyze this data will change business competition, The McKinsey Quarterly, suggests five questions that all CEOs need to ask themselves as they head forward:
- What happens in a world of radical transparency, with data widely available? Industries that are heavily reliant on proprietary information need to take a look at their strategies. Their information might not be so heavily guarded for too long.
- If you could test all of your decisions, how would that change the way you compete? This data allows for testing, analysis, and ultimately optimization of your products and processes. You need to assess how this will affect your strategy.
- How would your business change if you used big data for widespread, real-time customization? Data allows for customization for individual customers and increased ability to focus on the customer at crucial times in the sales cycle.
- How can big data augment or even replace management? New technologies will replace staff
- Could you create a new business model based on data? You may find that there is a market for the extraneous data that you collect in the process of getting what you originally were looking for. This can lead to new business opportunities.