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Published on Jul 24, 2014
The business buzzword over the past two years has been “Big Data”. Companies are trying to figure our how they can leverage their collected data and translate it into a competitive advantage. However, according to the Director of MIT’s Sloan School Center for Information Systems Research, Jeanne Ross, this approach is not necessarily a one-size-fits-all for today’s organizations.
Ross, co-author of the article ‘You May Not Need Big Data After All’, cautions businesses against buying into the hype around Big Data.
“I think you grow into Big Data,” Ross notes. She explains that there are companies who find the competitive advantage works within their specific industries. As an example, she notes that the oil and gas industry has long employed Big Data for helping them to decide when and where they should place a billion dollar well. The success in one industry, however, doesn’t necessarily translate into success in others. “Many times we know great things about our customers. We just haven’t figured out a way to address them.”
When asked if the fear is misplaced that some companies feel in that they can’t address the Big Data they have, Ross states, “No, not misplaced at all. If you don’t think you can do it, you probably can’t.” For organizations recognizing the potential value of Big Data for the first time, this news could be disheartening.
Watch the interview in its entirety here:
“I don’t think most companies are data-driven,” explains Ross. “I think they are metric driven.”
This differentiation is important. Today’s companies can respond to certain kinds of data but in order to truly be a data-driven organization, they have to recognize which data is important. As an example, Ross cites Foxtel, a pay TV service based out of Australia.
“They saw what products were going out and what channels people wanted,” she states. Even with that information they were unable to make strategic decisions. “They went back and started looking at segments and realized what ‘data driven’ would be. They didn’t have the stomach to go back and do that.”
8th Annual MIT Chief Data Officer & Information Quality Symposium