Today, companies are capable of collecting, processing, and analyzing tones of various data. On the one hand, big data provides businesses with better insights and allows them to make more informed strategic decisions. On the other hand, big data management raises new challenges and, if it’s used improperly, causes more harm than good.
This article outlines the key big data challenges and discusses possible solutions.
Poorly Estimated Cost-Effectiveness
Big data is a new big trend in the business world. And it seems that all organizations, including mid-sized and small companies, want to take advantage of it.
Pretty often, organizations follow the trend blindly – they opt for doing big data without having a clear understanding of how much it will cost them and whether they can afford it. They spend lots of money on big data incorporation, but in the end, they don’t get expected returns from their investment.
How can this challenge be addressed?
The truth is that you don’t need to implement big data just because other companies do it. You should consider the pros and cons before making a decision. Firstly, you should answer the question, “How specifically will big data benefit my vary company?”. Secondly, you should estimate the costs of doing big data:
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The price of the software you will use to manage and analyze data
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The cost of data storage
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Salaries of data engineers
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Other associated costs
Business is all about making money. So you should compare estimated costs of big data incorporation with forecasted profit. If you are not sure whether doing big data will help your company make more money in the long run, you should give it up.
Shortage of Data Scientists, Analysts, and Engineers
Big data is a relatively new field, yet it develops fast. According to statistics, 71% of companies (mid-sized and large ones) are currently using big data analytics or have plans for.
The problem is that there are not enough data scientists in the labor market to satisfy this growing need. Today, the number of job postings related to data science is three times higher than job searchers. It means companies compete fiercely, trying to attract top talents.
How can this challenge be addressed?
Companies shouldn’t waste their resources on recruiting experts with 7+ years of experience. There are not many professionals out there that meet this requirement.
Organizations should focus on recruiting young professionals who have already completed a few big projects. They have basic experience and are enthusiastic about new challenging tasks.
Big companies should also consider the opportunity of training their current employees. It’s cheaper and easier to teach a team member new skills rather than find and hire a data specialist in the competitive market.
Absence of data-driven culture
Data engineers are not the only team players who should have a good command of basic concepts. Everyone who works for the company should know what massive data is, why it should be managed, and how it benefits the business. Otherwise, big data management will not work effectively – employees will likely forget to backup important data or misuse database storage.
In other words, if you want to take full advantage of business data, you need to build a data-driven culture. You should not only hire a software engineer and data architect but also encourage everyone in your team to gain knowledge in this field.
How can this challenge be addressed?
Companies can organize big data workshops and seminars for their employees. Seminars can be held by top managers, data scientists, or invited speakers. They can take place online or offline, depending on the company’s needs and employees’ preferences.
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Presence of “Bad Data”
When it comes to big data management, analysts face challenges with defining and excluding so-called “bad data” from the database. Bad data is any duplicated, missing, inaccurate data, or data that comes from outdated on unreliable sources. If bad data is not detected early, it may cause inaccuracy in data analysis and lead to the wrong strategic decisions. Every incorrect record in a database may cost a company from a few bucks to a few hundred or even a thousand dollars.
How can this challenge be addressed?
To solve this big data challenge, companies should choose and use the right tools and software. By leveraging advanced technologies, businesses can improve the collection, aggregation, and analysis processes and eventually achieve better outcomes. If a company struggles to find a solution that fits its needs, it should use consulting services to get professional advice.
Limited Access
Some top managers and team lead wrongly believe that they are the only people who should use data analytics. But in fact, it would be wiser to share data with a broader team and stakeholders. It’s a great way to ensure that every employee has the same view of the business and the entire team works toward one goal.
Also, data sharing is considered an effective tool to facilitate bottom-up decision-making. It boosts communication and gives the entire staff a voice in the company’s strategic planning.
How can this challenge be addressed?
Managers should analyze all the data available and define the data that adds the most value to the company’s development. Relevant information should be consolidated and organized in one document, for example, a report or PowerPoint presentation. The most important data should be highlighted and visualized.
Also, it’s worth emphasizing that data should be presented in a simple and concise way. For instance, if you are going to share the report with the marketing team, product management team, and customer support team, you should write your report in a language that non-data scientists can understand.
Wrapping up
Big data is characterized by high volume, velocity, variety, and veracity, so it’s not a surprise that it raises numerous challenges for business. The good news is that companies can overcome these challenges by choosing the right strategy.
Do you want to make your company more data-driven? Invest in effective data management tools and employee training. It will allow you to gain a competitive advantage and achieve outstanding results in the long run.