Without context, “big data,” a phrase that has entered into almost every boardroom and earnings call in the last few years, is nothing but an empty umbrella term. Today’s big data is diverse and can be generally categorized in two buckets: unstructured and structured. Unstructured data are things like photos, location, your LinkedIn page, and Twitter. Structured data are things like names and addresses. Understanding how to analyze unstructured and structured data, and identify patterns, is where the real value and opportunity to refine competitive advantage lies.
In today’s world where cost of storage is cheap, more data than ever is being collected and more flexible open-source tools allow for deeper analysis and understanding. With the number of possible data collection points exploding daily, there is even more use for analytic tools. It is projected that there will be 400B connected devices in the world by 2020 – that is a lot of data. Everything today is now collected, and with the right understanding of its usefulness, data can be analyzed and leveraged for a company’s advantage.
According to a recent study done by Wikkbon, big data is projected to be a $28.5 billion market in 2014, and will grow to $50.1 billion in 2015. It is no secret that the financial community is sitting on a mountain of data. To truly provide excellent customer service, you must not only understand what your customers need from you today, but also what they will want from you tomorrow. To do this, financial organizations must have a complete understanding of their customer base. This is where big data and analytics come into play.
With more connected devices and data being collected than ever before, it is crucial that companies understand what information to look for, and how to utilize the relevant data that they find. By analyzing and connecting data, you can link transactions with a person’s mindset in ways never before possible. As companies continue to innovate and remove the burdens of legacy technology systems, the winners of this data arms race will be the ones that not only understand the need to unshackle data by incorporating robust adaptive tools, and advanced analytics, but by also being able to educate key audiences on how this data processing is at the forefront of their business strategy.
History does repeat itself. We have seen over and over, companies not keeping up with changing trends and buying patterns, and as a consequence either fading into irrelevancy or dying out completely. Blockbuster is an example of this. It moved to reinvent, but in many ways it was too late.
The competitive advantage of properly using and analyzing big data is evident – you can grow your customer base. You can understand and see trends earlier. You can pivot your business and remain relevant. Unfortunately, many financial service companies today are facing a challenge of being locked down by old legacy systems that are slow, costly to maintain, and unable to keep pace with the ever changing needs of the customer. Fortunately, there is hope. The past five years have seen an explosion of innovative techniques and technologies that enable us to grapple effectively with all this data in agile and flexible ways. A combination of big data storage, cloud computing, and data science are enabling forward-thinking companies to create significant value from their data despite the friction caused by legacy systems.
There is an opportunity, right now, for every bank and financial services company. Unshackle the data, analyze it using advanced analytics, and look at it in a different non-traditional way. Unshackling data can be a game changer for any company that chooses to do so. Ultimately, your customer will benefit with greater service options, and you will be able to achieve higher efficiencies in operations and service models.
Mr. Craig Gorsline has been President and Chief Operating Officer of ThoughtWorks, Inc. since June 2013. He is responsible for the business operations of ThoughtWorks across 13 countries. Prior to assuming this role, he served as the Managing Director of The Americas at ... View Full Bio