The term “big data” first appeared in 2005 to name an increasingly large, diverse and complex volume of data that cannot be easily handled by management methods. traditional data. In recent years, as the need for digital transformation has increased, big data has emerged as an important factor for this journey. In the following article, join Tech Town to listen to experts in the field of technology about the impact of big data on the digital transformation process.
Big Data – Key ingredient in digital transformation
“The ability to analyze large amounts of structured and unstructured data to gain insights,” said Rahul Singh, CEO of IT and business services transformation consulting firm Pace Harmon. often in real time, which is the foundation of most digital transformation efforts, as the insights gained by big data analytics are used to drive digitization and automate the workflow. job.”
In part, the digital transformation movement emerges as organizations seek to take full advantage of this growing pool of data assets. Todd Wright, Head of Data Management at SAS explains: “Digital transformation is transforming your organization to make data-driven decisions, and big data is the ability to capture all of the data. available that an organization can produce or consume. Capturing all available data – big data – is essential to digital transformation efforts.
Technology companies can certainly take full advantage of big data for reporting and process improvement purposes. However, Singh explains, “Real value comes from the ability to combine big data with digital transformation efforts to enable the digitization and automation of the entire operation to drive efficiencies and models.” new business model”. As Prashant Kelker – Digital Solutions and Strategy Partner at technology research and consulting firm ISG said: “Digital transformation is the way. Big data is one of the mediums”.
How big data reveals digital transformation opportunities
Big data, at its best, can help identify business weaknesses. “A large amount of well-managed data integrated in an analytics or AI program will yield better insights into operations, customers, and markets,” says Wright of SAS. The bottom line is that for truly successful digital transformation and achieving the best insights for business goals, as much data as possible is essential.”
Big data is useless without an idea or well thought out to capitalize on it. “Digital transformation provides that idea and program,” adds Wright. As for whether big data is needed for digital transformation, the more data that goes into digital transformation, the better the results.”
When the two converge, real change happens. As the number of IoT devices, wearables, smartphones, and other sensors increases, so does the amount of data they generate – at an exponential level. “The combination of this IoT data with big data analytics and digital transformation capabilities allows companies to not only adjust in real time to customer needs, but also anticipate,” says Singh of Pace Harmon. predict future consumer behavior.
Ronak Doshi – Vice President of management consulting and research firm Everest Group notes that with the increasing proliferation of internet-connected devices, the growth of digital business models follows data-driven, as well as the rise in globally connected business ecosystems and integrated value chains require businesses to build a modular yet cohesive digital platform, powered by Big data is collected from many different sources.
“The business value (or return on investment) a business can generate from their investments in a digital capacity platform will depend on its ability to harness the value of data,” Doshi said. their material. For large enterprises, this volume of data is huge and cannot be managed through traditional business thinking and data techniques.”
Towards integration, not isolation
“Digital technologies focused on getting the most value out of big data can enable IT leaders to build data centers to aggregate and Organize data from multiple sources. Many big data vendors offer pre-built machine learning and analytics algorithms that IT leaders can leverage.”
However, it is important that both big data and the associated digital transformation efforts be clearly defined for the specific organization and industry first. For example, a manufacturing company ISG’s Kelker works for must determine if their goal is to increase revenue with connected products or cut costs with an optimized, connected store floor. than – or a combination of both. Only then can IT leaders determine the best big data, IoT, and cloud strategy to achieve those goals.
Kelker says: “Digital transformation should be done with goals in mind. Are those new revenues? Is there any cost savings? Is it both? This transition charter helps define the roadmap and direction of technology deployment.”
Too many big data initiatives are being launched in an IT organization or intelligence business, and they are slowly being phased out for lack of business relevance, Kelker said. “Big data initiatives, taken individually, are like solutions looking for a problem to solve,” he said. A well-done digital transformation gives technology (including big data initiatives) an easy process.”
Big Data and DT are also helping businesses better understand customer preferences and behaviors to create more tailored and personalized experiences. In addition to pure monetization by recommending insights-driven products and services, companies are also combining big data and DT to design new products and services, Doshi said. to push them to the top.
Successful organizations take a proactive approach
In some cases, big data efforts can hinder digital transformation, especially if the data is not supported by a solid data governance program, according to SAS’s Wright: Organizations cannot simply have access to more data and from more sources without managing metadata, data quality, data categories, security designations, and data owners.”
Wright says that the IT leaders most successful at using big data to support digital transformation take a proactive approach. They start with a data management strategy. “For digital transformation to be successful, it must be based on reliable data.”
Organizations that invest in data governance as well as advanced analytics and machine learning will see the most benefits from big data – combined with DT – from increased operational efficiency to improved customer experience. to increase revenue.
“Digital transformation of the supply chain is a prime example where the need to build operational resilience compels businesses to embark on their digital transformation journey,” said Doshi of the Everest Group. : “A critical element of this journey is tracking data on how raw materials, finished products, and/or information assets move through the supply chain. Insights from data are helping businesses improve the efficiency of their entire value chain and improve functions like distribution, logistics, production and sales.”
Hopefully the information Tech Town brings above will be useful for businesses. If you are planning to implement digital transformation but don’t know where to start, Tech Town is here to help.
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