One of the greatest misconceptions regarding modern data management and analysis is that these matters are entirely based on quantity of information rather than quality. This is not to say that volume is not a factor in modern analytics, as higher quantities of unstructured and structured data can add value to intelligence strategies, but only when quality has been the top priority within information collection and analysis programs.
It will not matter if the firm gathers the maximum amount of information possible when most of it is not actually going to add much to intelligence, and could instead represent a source of inefficiency and waste, convoluting the analytics strategy and hindering return on investment. Again, there is something to be said for a higher quantity of data, and modern reporting analytics are built to handle larger volumes of information, but the plan must be established with quality at its heart.
This is one of the main reasons why many companies will benefit from starting small and building the reporting analytics program out, focusing on striking the right chord on a micro-level and achieving those initial wins, then organically increasing the volume of information. In fact, businesses in a wide range of industries will begin a reporting analytics program by targeting one or two functions or processes in operations, then wait until a certain level of comfort has been achieved to begin spreading it further.
By working closely with a managed service provider, these types of procedures can often be made more efficient, safe and effective, especially when the firm has not yet truly gotten its feet wet with these technologies. It might be helpful to first fully understand why reporting analytics and big data are not necessarily defined by massive quantities alone, but rather quality and speed, before beginning to provision and deploy these solutions.
Rising demand for advanced analytics
A new report conducted by the International Institute for Analytics and commissioned by Dell revealed that nearly three-quarters of surveyed firms are already leveraging advanced intelligence solutions in decision-making or intend to do so soon. In what might be a surprising finding for many in the big data community, roughly 80 percent of businesses that are using analytics have only used low volumes and slower speeds in information collection and research.
Now, the recognized definition of big data tends to involve volume, velocity and variety, but it is not all that surprising that the majority of firms are still in the initial stages of strategic development and management, as the technology is still relatively novel. According to the report, roughly 5 percent of decision-makers believe they are in an optimal stage of maturity with respect to their use of advanced analytics, while 57 percent describe their experience as relatively low-brow.
What will be most interesting to watch is how businesses progress with these solutions, as it is not clear whether volume will begin to be a bigger priority for the firms that are still focused on smaller-scaled projects. The International Institute of Analytics explained that there is certainly room to improve for the vast majority of advanced intelligence solutions users, as well as those who have not yet deployed the software.
In many ways, the report was highly indicative of a healthy advanced analytics market. Most leaders who responded to the associated survey affirmed that they were using these tools, while they also appeared to have an accurate sense of where they stand and where they ought to be in the near future. At the end of the day, it will be up to corporate decision-makers to remain vigilant and honest in their development of advanced analytics programs.
How analytics should play out
Reporting analytics solutions can quickly reduce inefficiencies and errors in virtually every component of record-keeping and information analysis, and targeting the most repetitive functions and tasks first is a good place to begin. The fact remains that advanced analytics are meant to improve the intelligence of a firm, and this means that decision-makers have to be very smart about their deployments, management and provisioning selections.
When a business attempts to run before it can walk with these solutions, it will be hard-pressed to reap the benefits that the technology can potentially sow. Rather, careful, guided and closely monitored implementation strategies will tend to yield more positive results, even if there is not a sense of instant gratification by way of the bottom line, as analytics should be viewed with the long-term perspective in mind.
Again, these tools and tactics are highly uncharted for the average business, and having expertise is critical to getting the most out of the technology. Do not try to go it alone when knowledge and resources are not up to the task – seek out a qualified service provider to enjoy the highest possible return on these investments.
