The number of companies deploying Big Data is expected to double in the near future. Most organizations are still in the development stages of mining Big Data. Very few have completed implementation, but most have started and are on the road to obtaining additional important business insights from their data. Key among the areas in which these companies are implementing Big data is performance management. The business environment is increasingly competitive, and most organizations are looking for an edge.
Strategy formulation and implementation represent another important area where organizations are deploying Big Data capabilities. More than half of the organizations in our study currently employing Big Data are using it for this purpose. Companies are more likely to use existing data sources when starting their Big Data journey, although both existing and new data sources are being used. The challenge now is to expand the sources of data used and to explore potential uses of data available internally and externally.
Fifty-three percent of organizations in our survey have developed strategies around the use of Big Data, while 43% haven’t. Of those who have implemented strategies, the vast majority (80%) report improvement in organizational performance. Before a Big Data strategy can be developed, it’s essential to build strong data governance and quality infrastructure. Regardless of the data source, ensuring its integrity and quality is key.
It’s important to have governance around the data selected for analysis. Not all data is equally important, and a process must be in place to determine the benefit of various analyses. Having the right “tone at the top” is essential: Executive buy-in is critical. In order to stay relevant, finance professionals must take advantage of opportunities to create value around Big Data.
Data governance is a critical underpinning for Big Data and is difficult for large, complex organizations to achieve. Given the discipline, rigor, and structure in thinking that finance professionals have around financial data, they should be well placed to take a stronger role. Finance professionals can help make internal data sets more secure and robust, increasing their value. Big Data provides opportunities for better analysis and new insights to support these activities.
Big Data and leading-edge analytics has the potential to deliver significant organizational value. Organizations looking to maximize the benefits from mining Big Data should pay attention to several key items. The increased emphasis on data provides an opportunity for finance and accounting professionals to build on their core competency. By doing so, they can enhance their role within the organization and serve as business partners with other areas.
