Big Data
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Information in Big Data equals USD 300 Billion potential value to US health
care, € 250 billion potential value to Europe’s public sector administration, or
a 60% potential increase in retailer’s operating margins possible with Big
Data
The case study further discovered five broadly applicable ways to create potential
value for a company when dealing with Big Data. For this purpose data from the US
Bureau of Labor, information from companies with more than 1,000 employees in
the health industry (US), the public sector administration (EU), retail (US),
manufacturing (Global) and personal location data (global) has been gathered
between 2002 and 2009, in order to provide a meaningful picture:
1.
Creating transparency
It is necessary to make information accessible and easy findable. This does not only
save costly working time, but also does help to adapt more efficiently to a changing
environment.
2.
Enabling experimentation to discover needs, expose variability, and
improve performance
An ability to deploy technology that allows companies to collect and even manipulate
data for decision making processes, offers organizations a new possibility in terms
of hypotheses formulation, by designing and conducting experiments to prove them.
Such data-driven decisions often result in a positive output, as they are based on
empirically collected data. McKinsey discovered during its research that especially
in the public sector this method of experimentation prove well-founded.
3.
Segmenting populations to customize actions
While there are patterns to segment customers by for example demographic
characteristics or by buying patterns, information derived from Big Data allows an
even more detailed segmentation. Hence more tailor-made or deeply customized
solutions for customers can be developed.
4.
Replacing/supporting human decisions making with automated algorithms
