Which of the Following Statements About Big Data is False?
The use of big data in business has led to much discussion as of late. However, there have been many debates as to whether this type of data is good for making business decisions or not. There are three main questions in all of these discussions: Which of the following statements regarding big data is true? What effect does it have on decision-making? What are the pros and cons of big data usage?
As we know, big data is an incredible resource for companies who want to improve their overall efficiency. One of the most compelling benefits of this type of data is its ability to provide incredibly granular analytics. It gives managers a complete picture of how everything is working in the organization right now. With this information, they can make more informed decisions that are directly affecting their employees and the overall success of the company. This is the main benefit.
There is a false assumption that this data is too complex to use effectively. Some managers assume that because it is so detailed, it takes them forever to crunch the numbers. This belief is flawed. Although it takes a lot of time, the payoff is tremendous. Many businesses are able to improve their bottom line by accurately tracking key performance indicators and trends.
Some managers mistakenly believe that it is inappropriate to use this kind of analytics in decision making. They worry that it is too subjective. However, this is simply not true. Analytics in general, and this one in particular, can be completely objective.
Another false statement is that big data has no use for metrics. Even though there have been many discussions of the negative effects of metrics on overall business performance, there is no use in avoiding them altogether. By all means, managers should track everything they can see. However, the use of analytics provides them with critical data that managers can use in making better decisions.
When people hear the words “big data” this may give them the notion that it is an answer that cannot be given. Yet this is simply not true. Today’s technologies make it possible for practically anyone to collect massive amounts of information and use it wisely. A simple example would be to take stock of all the customer data that is available online. The data could include everything from a customer’s last name to where they live.
When asked which of the following statements regarding big data is false, many managers respond with: “It depends.” In other words, they may not agree that it is a good idea to use big data. Others will tell you that there are great benefits to the data. Still others say that it all depends upon who you ask and how you ask it.
When discussing the issue of which of the following statements regarding big data is false, there are many points that can be argued. However, you should be careful not to get caught up in the argument yourself. Instead, ask a skilled executive coach or consultant to help you understand the basics of the topic. By doing so, you can develop an understanding that will help you make sound decisions.
There are three basic premises that can be used in testing this statement. First, it is reasonable to expect that the number of customer transactions, referred to as transaction data, will continue to rise over time. Second, it is reasonable to think that the size of the firms and their complexity will continue to increase. Finally, it is reasonable to think that more firms will start using EHR systems in order to facilitate a smoother workflow and better record keeping.
It may be true that the number of firms using big data analytics has been on the rise over the past few years. However, this doesn’t necessarily mean that it is a good idea for most organizations. There are a number of problems that are associated with using data analytics. This is especially true if the data is obtained in a limited scope or if it is obtained through an unclear method.
The third premise is what I call the paradoxical problem. Since it is not possible to obtain hard data in all cases, the only way to evaluate whether data mining is a good idea is to look at how well businesses are doing in spite of it. In my opinion, evaluating the performance of companies based on fuzzy metrics like I call high level tables and looking at trends in the data is a much better approach than just using big data analytics. Of course, it should be noted that there is still much to learn about this form of quantitative measurement.