Big Data and its Impact on Business
Even before the invention of computers and databases, data existed in the forms of customer records and transaction records. The computers and databases enable firms and individuals to organize and store data in large volumes. Big data is being increasingly used everywhere on the planet online and offline, and it doesn’t relate to the computer alone, but it comes under information technology which is now part of most technologies and field of study and businesses. The paper analyzes the big data and how it impacts on the business. Introduction The Big data in used in many industries process to facilitate better performance of activities. The more our lives become mirrored the more we become equipped with necessary skills. Privacy in big data does not necessarily stand for secrecy.
Organizations should ensure privacy of data by establishing specific rules. The rules should not only take care of the data privacy but ensure that the rules are enforced. Individuals should be careful about how they share and use private data because of the third party influence. The issue with this uniting data from different third-party systems made to ensure that diversity is achieved across the region. This may make it hard for firms to value their business. Financial firm’s services use big data to develop new products to increase the revenue stream. A firm’s ability to determine the kind of data it needs is essential in knowing the required trends, relationships and patterns which facilitates innovation. The challenge facing the organizations on the big data can be solved by using social media surveillance with the use of appropriate business intelligence.
The data companies need to know how the processing is carried out for the big data to achieve ethical terms (Wamba et al. Privacy protection is not enough because institutions can comprise their identity and allow surveillance of institutions which can determine the identity of individuals before noticing. Organizations should begin to think about choice of big data that can allow addition of other in the future. The big data can describe by its volume, variety, velocity, variability, and veracity. It affects the financial status of the company through its effects on the operations efficiency. This is because Big Data plays an integral role in ensuring that the company attains its set objectives and goals within the time frame established by the management.
Concerning the organization prerequisites, the company should adopt the Big Data because the Big Data can store and process large of unstructured which the technology the company taken before could not. With this, the company will be able to save time hence attainment of objectives and goals. The Companies adopt Big Data because the data procurement need. With the adoption of the Big Data, data procurement process in the company will be more efficient and effective. For that reason, Big Data will provide solutions to governance since ensures that usage of disparate data is standardized and it complies with any data privacy-related regulations. The companies adopt Big Data because the company IT infrastructure consists of older networking standards which will not help the company attain its set goals and objectives.
By adoption of big data, organizations will be able to draw the employees out of their comfort zones and get them to work extra hard. Getting the employees to be more committed to their jobs will ensure that firms gain a better competitive advantage in comparison to their competitors. Having in mind that they have a target to meet which is way higher than the one they have been used to will push employees to be creative and innovative hence come up with new ideas that will result in positive growth. Most managers have adopted the Big Data as a strategy to reduce the costs of risks associated with the business operations. Because all business opportunities are associated with various risks such as stiff competition, business failure, political uncertainties, environmental hazards and other factors, reducing the cost of risks allows the company to make risky investments and venture into new markets regardless of the potential losses.
This reduces the cost of risks through an effective risk management culture enhances business value by allowing the company to explore all the available business opportunities and adopt strategic plans as it expands its operations to other markets. Additionally, by reducing the cost of risks, allows managers to ensure that operations at their companies comply with the legal requirements such as OSHA and employee insurance, which reduces the potential conflicts between the company and the society. Conclusion/Summary In conclusion, Big Data is radical for any strategic decisions that organizations make in their endeavors to streamline their operations, improve their public relations, increase their share and ultimately increase their performance and profit earnings. R. , & Pentland, A. Big data and management. Academy of management Journal, 57(2), 321-326.
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