Jim Manzi, chairman of Applied Predictive Technologies, talks about how ‘big data’ is in the deep hype phase of the innovation cycle.
“You can eat buffet dinners all 52 weeks a year at Big Data conferences, Big Data tag lines are now common in emails from industry analysts, and even investment bankers are tossing around the phrase.”
Manzi touches on three characteristics that allowed for early adapters to capitalize on big data
- Diverting from conventional wisdom, technical jargon, or ‘fairy tales’ of universal knowledge during the earliest stages
- Act quickly at low cost with a trial and error learning mentality
- Focus on profits in excess of capitals costs as the success metric for the future.
How can I use Big Data analytics to increase shareholder value? Manzi attempts to break the answer down to three components that he believes is the most sustainable basis for long term success.
Do it the Old-Fashioned Way: Exploit Faster Clock Speeds First. Essentially, utilize the data that you’re already acquiring.
Integrate and Use New Data Types. This sections talks about applying other, relevant data sets with each other.
Use Test and Learn to Improve Faster. Trying out new ideas in small subsets of the business and making predictions after the model-building phase from historical data.
The full article is a very interesting read and provides great insight to better, future-proof one’s company.