Can Big Data Transform my Company and its Marketing?

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One of the most popular buzzwords in 2013 it is Big Data. Thanks to data management platform improvements and the increasing power of computers, it is now possible to work with larger data sets than ever before. As a result, many companies and institutes are relying on the promise of Big Data to deliver results never before possible. However, myths abound about Big Data; here are three of the most common misconceptions.

1. Big Data Will Lead to Profits

As with many technological revolutions, promises of profits may not pan out. Whether misinformation about profitability is distributed out of an effort to market Big Data products or is simply based on inflated expectations, companies should be skeptical of claims of quick returns on investment. That said, Big Data will surely be useful for some companies and institutes; predicting which will benefit, however, is difficult.

2. Big Data is Inherently Helpful and Insightful

In many fields, Big Data will lead to insights that would have gone unnoticed before. Like profits derived from Big Data, however, it is impossible to accurately predict what these fields will be. Because the insights derived from Big Data are unknown, it is not clear if the data will be useful for companies or institutes. Even if it does lead to insight, the insight derived may not be actionable. A New Jersey SEO company, for example, may be unable to capitalize on particular insights derived from Big Data analysis. Again, however, some companies and institutes may wish to take this risk; new and unexpected data points can transform how a company operates and lead to tremendous success in the future.

3. Data is Necessarily Useful

Much of the allure of Big Data comes from a belief that all data comes with some inherent value. In reality, large sets of data may be unable to lead to significant insight. As a result, those who assume that all data they have is useful may be met with disappointment in the future if the data turns out to be useless. Again, caution is advised for those who wish to invest in Big Data analysis, and great results should not be expected.

As with most forms of new technology, Big Data analysis is fraught with risks, and nobody can fully predict what its effect will be. This phenomenon may be more pronounced with Big Data than with previous technological revolutions as nobody fully knows how much information can be gleaned from especially large data sets. While companies should view Big Data as a potential boon, those who invest too much in it may risk losing their investments. As with all new technologies, prudence is advised for those who are considering Big Data investments.

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