As a follow up to the recent blog posted about the reasons why Big Data could or could not be the answer when it comes to which companies or industries have the need for such a tool, it was apparent that after researching for another article interesting enough to blog about that there are many contradicting articles pertaining to Big Data. In an article on Forbs.com, written by Jonathon Gordon and Dennis Spillecke, both authors argue the reason for the use of Big Data, and also in that event, stated some very interesting trends to back their argument.
There was much speculation in the last blog unto which industries should be utilizing Big Data, and still in this sense that question is easily debatable, yet after reviewing this article by Gordon and Spillecke, it was quite apparent that Big Data has shown quite the impact over the years. So, here comes the stats to back up how effective Big Data has been. According to Gordon and Spillecke, companies that have used and are using Big Data are showing a productivity rate and profitability up to 5-6 percent higher than other companies not using Big Data. Also, it was noted that after surveying over 250 instances over a five year span, a McKinsey analysis reported that companies that used Big Data as their primary marketing and sales decisions improved their marketing return on investment (MROI) by 15-20 percent, which unofficially can increase value up to $150-$200 billion, yes billion with a b, based on global annual marketing spend of an estimated $1 trillion. In further elaboration, Gordon and Spillecke go on to mention what makes this work for companies in three simples facets. number one, using analytics to identify valuable opportunities. number two, start with the consumer decision journey, and lastly, keep it fast and simple. Data is growing at a faster rate than ever in this day in age, in fact, it is growing at a rate as high as 40 percent a year! The importance of using automation to calculate and formulate algorithms to better conduct engagement with consumers has never been of greater value. If you find this blog interesting, and also read the article linked into the blog and find it interesting also, Gordon and Spillecke also wrote an E-book over this subject also. You can find that E-book at this link.
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