“Big data” was the buzz at a social media conference I
recently attended in Atlanta. This mammoth
term represents the collection of massive amounts of information,
virtual warehouses for storage of the information and experienced statisticians
to analyze the data.
Government does it. Large companies are on the bandwagon.
Should your organization join the fray? Wikibon.org analyst Jeff Kelly has a
message for those that think they can ignore big data: “Your rivals
might leave you in the dust.”
I’m not entirely sure
about that dire prediction, but I can make these observations about small to
mid-sized organizations and data:
Many organizations spend valuable resources collecting data
that sits idle. Others have various departments collecting data, but the
information remains in silos. Most
companies can’t afford to hire objective statisticians, so data has the
potential to lead to “false positives” or incorrect judgment calls. Lastly, just
because a business or organization devotes time and money to the process doesn’t
guarantee that leadership is willing or prepared to make changes based on the
insights big data affords.
Gathering information just because it is possible isn’t
going to get you better analytics and outcomes. It may just get you a big mess.
Don't get me wrong. I’m not against the concept. There are some great examples of big
data leading to big pay-offs. Many may recall that back in 2002 the then low-budget
Oakland A’s successfully used the concept of big data to spot and acquire undervalued
baseball players. Their goal was clear: make it to the play-offs, and that they
did. Fast forward to today. Major
retailers have a multitude of collection points providing continual streams of
information to analyze consumer habits, sales, pricing, demographics and even
weather data. The goal: tailor product selections to specific stores for
maximum revenue. Shipping companies mine data on delivery times and traffic
patterns to fine-tune routing. Police departments use computerized mapping, monitor
social media outlets and analyze variables like arrest patterns, paydays and
upcoming events to try to predict likely crime “hot spots.”
Whether for profit or for the good of society, the common
denominator of each of these examples is in knowing what you are looking for
and why. Here are some additional thoughts that may help you fuel branding, sales, services,
membership or fundraising:
Ask the right
questions. With the silos gone, work together to identify segments of data
that can be most useful to advancing the corporate vision or solving a
problem. Who is or should be collecting
this data and who should it be shared with?
Use it or lose it.
How much information does your organization have that's collecting dust in a real or
virtual file cabinet? What benefit does that serve? For example, data mining has become essential to
effective fundraising. When used to the fullest extent, donor software programs
warehouse a wealth of information about contributors. Leave the data idle and
everyone loses: the donor, your organization and ultimately the clients you
serve.
Take action. It’s really not about the data. It’s about
what you are prepared to do with it that counts. Clarity about what you are
collecting, why you are collecting it and how it will be analyzed can transform “big data” from an overwhelming
concept into a manageable business solution.
