The value of big data is forcing businesses to adapt

The concept of big data is simple, but the opportunities are still being realised - often slowly. Massive amounts of unstructured data can now be retained due to the relentless advancements in storage solutions. Using analytics tools, that chaotic data can give high value clues as to how to increase efficiencies and improve customer experience.

The main issue for vendors is drawing a line between hype and reality, says June Manley, Director of Information Optimisation Solutions, speaking from HP's annual Discover event in Frankfurt, Germany.

"Our intent is to take away the hype and look at a real definition. Quite simply, if you can't manage, understand it or analyse it, then it's big data," Manley tells AMEinfo. "Accessing the right information for business decision-making is a fundamental issue."

HP's own studies have found that 86% of all businesses confess they are struggling to make use of data - issues relevant to both large enterprises and SMEs.

"SMEs face the same challenges as larger enterprises, when it comes to managing, storing and analysing information. Everything has to be in sync to harness the power of big data," she explains.

CIOs must adapt or get left behind

So storage is key but then so is the ability for CIOs (Chief Information Officers) to coordinate with relevant departments, unlocking real, practical value. Every business unit has its own processes and strategies so the collation and management of vast data silos requires clear communication.

"CIOs have an opportunity to take initiative or become irrelevant," says Manley, who predicts an emerging Chief Data Officer title will soon be commonplace and 'more critical' than the existing CIO role.

"I do believe that the CIO today has the ability to empower themselves to stay relevant. The past decade the CIO's role has been what? Cuttings costs. You'll hear a lot about costs needing to go down, but otherwise businesses are getting bigger technology budgets, so they can start looking at how to become a source of innovation. That's the conversation that needs to happen," explains Manley.

So in terms of the solutions that are already in place, we are likely to see further leaps forward in innovation in the coming years but, as Manley explains, the prevalent issue is organisations realising what is available today.

"If you look at most companies, they're struggling with the challenges of yesterday, while the opportunities of tomorrow are available today. Analytics is not about crunching numbers in a back room, it's about how do you really use technology to develop your infrastructure, customer service and other business aspects," she says.

So instead of placing the emphasis on cost reduction, data officers will be increasingly concerned with finding new ways to make use of the data that comes from a huge variety of sources, including sales, CRM systems, social media interactivity, and user feedback from company software.

Given that the key outcomes of efficient data processing consist of driving revenue growth, optimising efficiency and transforming customer experience, Manley also describes business data as now being a company's greatest asset, coining 'Return on Information' (ROI³) to redefine the understanding of what is valuable.

"When I put that equation together it was to start a discussion," she explains. "It's about the depth of insight, the cost of data storage, and the time to value. These three multiplied together and divided by the total cost is your return on information."

"The one question I ask customers when I talk to them is 'do you know the value of your data?' and 99.9% of the time, they do not. We have to start this conversation for businesses to start developing an information strategy."