A comprehensive and intelligently developed big data strategy will thwart the risks of being wiped out. Recall Blockbuster, a company that moved too slow to embrace the online model. It was written on the wall but Blockbuster completely missed it. Netflix emerged as the powerful competitor that led to the demise of Blockbuster. How can you avoid this fate?
First, start thinking about big data not as an application for a single business function and instead view it as an enterprise-wide strategic opportunity. Want to maximize the benefit of big data? Think enterprise and not functions.
Second, link a broader big data strategy to your company’s overall strategy and value chain. To do that first start with customers and value creation. Develop a good understanding of revenue and free cash flows producing abilities of the firm. Then understand the cost of capital and risks of the company. Develop a good understanding of global processes and stakeholder relationships. Based upon this information, now develop an enterprise big data strategy for the firm.
Include a macro strategy that focuses on broad environmental factors e.g. macro-economy variables, and also develop a firm level micro strategy.
Develop a company-wide architecture for big data. Include all stakeholders in mind when planning. And don’t forget about your competitors. The idea is to know more than they know and have the ability to act upon that information. Put them on the defensive. Game on!