Big data analytics technologies allow data sets to be analyzed and new knowledge taken away on a large scale, which helps companies make better business decisions. Queries from Business Intelligence (BI) address fundamental questions regarding business operations and efficiency. Big data analytics is a type of advanced analytics that involves complex applications with components such as analytical systems-powered predictive models, statistical algorithms, and what-if analysis.
While big data analytics helps companies sharpen their market reach and drive growth, big data initiatives have their own set of challenges. Interestingly, the problems are not linked with technology. Improvements in storage technology and infrastructure scalability have made it easier to pave the way for big data analytics to be implemented, but it does not automatically guarantee data protection, whether at rest or in transit.
In big data analytics, one of the main obstacles organizations face is that most data belongs to silos. This siloed data raises accuracy and reliability problems, aside from being difficult to integrate. To generate actionable insights, companies do not have sufficient resources that can help them harness disparate data. It is because of technology, and solutions are still changing as a result.
The use of analytics in their organizations is not fully trusted by many C-level executives. KPMG’s Guardians of Trust survey in Australia uncovered fascinating details about the extent of trust in the different analytical methods used in their respective organizations by such executives. While CEOs were 77 percent more reliable of these instruments, Directors recorded 68 percent confidence, and it fell to 52 percent at the level of Department Head. This phenomenon, however, is not limited to one country and is evident internationally in organizations.
A surprising challenge faced by many companies in their big data initiatives is the development of a data-driven culture in their organizations. Big data projects enable companies to function in an environment powered by data. This is where organizations face a challenge as they believe in an expert mentality and work with it. Because of the reluctance to change, transitioning to a learning-driven mentality presents a huge challenge for most organizations.
Despite the difficulties faced by organizations, the advantages of big data analytics can be achieved. Businesses are well aware that in an increasingly digital economy, big data analytics would be a key component. To achieve a competitive advantage, corporations will now need to control and leverage the knowledge they possess. To end this, it will be necessary for companies to build a business strategy for any big data initiatives they consider for their organizations.