How Much Is Big Data Worth? A Lot, When It’s Quality Data
You know big data is important for business. But do you know just how important – in terms of cold, hard cash – it is, or how to maximize data’s value? If not, this post is for you.
It’s no secret that big data is essential for business, assuming you can trust your data. It’s the key to maintaining visibility into your business operations so that you can keep your organization lean and mean. Quality data also helps you plan and measure the success of everything from marketing campaigns to new product releases. If your data is trustworthy, it is one of your most strategic assets.
Quality data: Quantifying its value
Have you ever wondered exactly how much data is actually worth? The exact answer is impossible to quantify definitively, of course. It will vary from one business to another.
In general, however, it’s clear that there’s big money in big data. Consider the following statistics:
- The big data market is worth $138.9 billion in 2020 and is expected to top $229.4 billion by 2025. That’s a measure of how much companies were investing in big data, not how much value they were deriving from it. Still, it provides a sense of just how much financial capital enterprises are pouring into data operations.
- In its 2019 Big Data and AI Executive Survey, NewVantage Partners notes that 62.2 percent of respondents have achieved measurable results from their big data investments, with general improvements in the areas of advanced analytics (79.8 percent), expense reduction (59.5 percent), customer service (57.1 percent), and speed to market (32.1 percent).
- According to a 2019 McKinsey report, companies with the greatest overall growth and revenue earnings are three times more likely than other companies to say that their data and analytics initiatives have contributed at least 20 percent to earnings before interest and taxes (EBIT) over the past three years.
Clearly, then big data is worth a lot of money for businesses.
It’s no secret that big data is essential for business, assuming you can trust your data. How much is big data worth to your business. Learn how to maximize the value of big data to your business.
Maximizing return on your big data investment
If you read the figures above closely, you’ll notice that many of the studies and statistics are not just about the money that can be made by implementing big data and data analytics in one way or another. Instead, they focus on the cash value that companies can gain by optimizing the big data operations they already have in place.
What does that mean? Above all, it means ensuring your data meets the standards of quality and integrity.
Today, it’s pretty easy to collect large amounts of data and run analytics on it. Data storage is cheaper and more convenient than ever, thanks to the cloud. Integrated data analytics platforms make it easy to get up and running quickly with basic data interpretation.
But if organizations base their big data and analytics solutions on low-quality data and pay no heed to its level of data integrity, they’ll see few returns on their investment. The value of the data you collect and analyze is only as good as the data itself.
Think about it. You can invest millions of dollars in a state-of-the-art data storage and analytics solution. But if the data you are storing and analyzing is rife with inconsistencies, inaccuracies, or other problems, the analytics results you get will be misleading. They won’t help you to plan the right marketing strategy, predict your customers’ behaviors, or gain the other crucial insights that only quality data can deliver.
The takeaway is this: Before you dive head-first into the big data world, make sure you factor data quality and integrity into the picture. That’s the difference between companies that simply do big data because it seems important, and those that do it in a way that leads to high returns on their investment.
Precisely’s data integration and data quality products help organizations deliver all critical enterprise data assets with the highest integrity to next-generation environments for trusted, actionable insights. That’s a big plus in maximizing the value of big data to your business.
To learn more, read our eBook: Governing Volume: Ensuring Trust and Quality in Big Data