Big Data and New Business Models

This recent Big Data Article from the Mckinsey Global Institute focuses on three key themes – some or all of which will impact every company in the future.

  1. Big Data will increasingly form the foundation of competitive advantage for years to come.
  2. Big Data will drive new business models across every industry.
  3. Decision processes will forever be changed.

A company’s use of Big Data will increasingly be driven by competitive pressures from those that effectively leverage its insight. As these companies mature in their use of data, they will shift from competitive response to competitive advantage. Decisions will improve, driven by an ability to simulate and model various scenarios that enable optimal outcomes.

The really interesting aspect of Big Data – and the analytics that help us derive insight – is the potential impact on complete value chains. This article provides some good examples of this phenomenon at work. In essence, data will drive new business models. Members of a value chain that own data may have an ability to monetize it. Those that have a proven ability to deliver insight from this data can monetize a core competence. Some companies may find themselves driving revenue from a business model that was never envisioned.  

Whether it is new business models, better decisions, or enabled actions, the effective use of Big Data requires a level of analytic excellence that few companies have with any level of scale. This Mckinsey article echoes an earlier report that identifies a scarcity of analytic resources as a key obstacle to Big Data success. As I talk to companies about their digital strategies, I continue to focus on Big Data as the centerpiece of the strategy.

About Frank Diana

Mr. Diana has served in various executive roles throughout his career and has over 30 years of leadership experience. Currently at TCS, he is focused on thought leadership and advisory services in the context of business, societal, and economic evolution. He blends a futurist perspective with a pragmatic, actionable approach, leveraging future thinking to steer executive strategy and action. Prior to joining TCS, Mr. Diana was Executive Vice President of enherent Corp., where he led a business analytics growth initiative focused on leveraging advanced forms of analytics to deliver business outcomes. For Aelera Corporation where he served as Chief Product Officer, he managed the development of a market facing social computing and advanced analytics platform. Mr. Diana served as CEO of Traxian, Inc., a Silicon Valley software start-up focused on the B2B enablement of small and mid-sized businesses, and as Chief Technology Officer of Fujitsu Consulting, he developed the company’s extended enterprise vision, serving as the face to the market and analyst community. He began his career at AT&T, holding various senior roles including CIO for the company’s international financial operation. Mr. Diana also sat on various industry steering committees focused on the development of XML-based data standards. He holds a Bachelor of Science degree in computer science from Rider College. Mr. Diana can be reached by email at View all posts by Frank Diana

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