Big Data is truly “big” as it can lead to creating the most powerful competitive advantage for your firm. However, before jumping into Big Data you must know what not to do. No matter what, you must never do the following 12 things in Big Data:
1. Jump into Big Data without a corresponding business strategy
What makes Big Data “big” is your ability to gain an unparalleled competitive advantage, to get never-seen-before analytical insights about your stakeholders, to develop the next generation of strategies that will truly redefine how business is conducted, and to shape a new future for human civilization – and all of that means you must have a business strategy to pursue the Big Data projects. No, no, no … it is not the Christopher Columbus journey… Big Data is more like the mission to the Moon – complex but requires flawless planning. If your Big Data project team is not talking about your business strategy, something is wrong. The first step in developing a real use case for Big Data is to become intimately familiar with the overall strategy of your company– and the second step is to pioneer a new one with Big Data.
2. Start the project without understanding Value
Yes… dollars and cents matter… even in the Big Data world. If you cannot show the Return on Investment (ROI) for your project – you haven’t done your homework. Time to go back to the drawing board! Do not pursue a Big Data project that cannot clearly demonstrate its ROI. Demonstrating ROI goes back to the first point: where is the business strategy? Big Data can positively impact the shareholder value from increasing revenues, decreasing costs, reducing the cost of capital, mitigating risks, increasing capital efficiency, and helping you develop real options. It is your job to show your Board, CEO and CFO how your Big Data project will create value.