When managed properly, big data brings to the spotlight neglected, dark corners of the organization. A large volume of well-managed data can deliver a better comprehension of operations, customers, and markets if implemented within an analytics or artificial intelligence program.
For digital transformation to succeed, organizations need large amounts of data and quality management.
On its own, big data is completely useless unless the organization has a digital transformation strategy to make use of it. Big data ensures that organizations gather a large volume of data, which ultimately increases the chances for success.
When digital transformation and big data converge, a change of real value for the organization becomes possible. As the number of IoT devices, smartphones, and wearables grows, the amount of data these devices generate also grows.
The combination of all that data, the potential of big data analytics, and digital transformation enables organizations to adjust in almost real-time to their customer needs, but also predict their behavior in the future.
What is Data?
We can define data as quantities, characters, or symbols on which operations are performed by a computer, which may be stored and transmitted in the form of electrical signals and recorded on magnetic, optical, or mechanical recording media.
Now, let’s see how it differs from Big Data.
What is Big Data?
Big Data is a collection of data that is huge in volume, yet growing exponentially with time. It is data with so large size and complexity that none of the traditional data management tools can store it or process it efficiently. Big Data is also referred to as data but in huge size and volume.
The growing increase of internet-connected devices, evolving data-driven business models, and globally connected business ecosystems require that organizations build a cohesive, modular digital platform, powered by big data.
The return on investment that an organization can generate from its investments in the digital platform will greatly depend on its data value extraction potential. When digital technologies focus on deriving maximum value from big data, it can allow technology leaders to build data hubs for accumulated and staging data from various sources.
Many big data providers offer pre-built analytics and machine-learning algorithms that these leaders can leverage and implement in their digital transformation initiatives.
However, big data and linked digital transformation efforts must be clearly defined for the organization and the industry. For instance, an organization will need to define whether the goal is to increase revenue with connected products, cut costs with a more optimized platform, or something else.
Only when the objective is clearly defined, IT leaders are ready to determine an in-depth strategy for their big data, IoT, and cloud. When we consider the role of digital transformation in business growth, the implementation of Big Data technology plays perfectly into the entire digital transformation strategy. Even though people are at the center of digital transformation, that’s only possible if appropriate technologies and processes are implemented beforehand.
Every digital transformation effort should have an objective in mind. Whatever the goal of the digital transformation strategy, all actions that follow need to align with it. More importantly, a digital transformation strategy defines the path and guides all employees in implementing chosen technologies.
Also, before you fully dive into the process of digital transformation, you’ll need to consider which type of digital transformation is the most suitable for your organization.
Don’t lose the business perspective
Another thing that organizations need to be aware of is losing the business perspective. Too many digital transformation initiatives start within IT departments and fail to succeed because they weren’t business relevant. If an effort involving big data is executed on its own, it will seem like a solution that lacks a problem to solve.
The most successful digital transformations allow technology, including big data initiatives, the glide path. Big data and digital technologies enable organizations to understand better their customer preferences and behavior to create more personalized experiences.
This introduces a range of insight-based products and services and allows the organizations to combine big data and digital transformation to design new products and services that give them a competitive advantage. Yet, if big data is poorly managed, it might slow down or harm the entire process of digital transformation.
In the video below, learn more about how analytics and Big Data play a crucial role in digital transformation – and why it must be executed at high standards.
Of course, there will be several challenges of digital transformation your organization will need to overcome. You can count on Lumen Spei to fully support your digital transformation efforts!
That is why organizations need to understand the value that lies in metadata management, data catalogs, data quality, data ownership, and assigned security. All these factors impact more the digital transformation than having fewer data to work with than you expected.
Technology leaders being proactive in using big data in aid of digital transformation will be the most successful ones in their industry. They will begin their digital transformation by crafting a strategy for data management.
Where to start with digital transformation?
After all, digital transformation cannot be successful if its data lacks trustworthiness. Organizations that invest in data governance, advanced analytics, and machine learning, will see the most benefits from their overall strategy.
The most common benefits that come from such strategies are improved operational efficiency, enhanced customer experiences, and increased revenues. Our team at Lumen Spei is ready to help you fully digitalize your organization and take advantage of all benefits digital transformation has to offer.
If you wish to find out more about please drop us an email at krunoslav.ris@lumenspei.com
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Exploring Digital Transformation in Food & Beverage Industry - Lumen Spei / June 21, 2023
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