As advanced analytics continues to become more sophisticated, businesses across industries are realizing how much business value there is in turning data points into actionable insights. With demand for big data ever increasing, a host of startups have emerged alongside the Microsofts and IBMs of the world to help organizations integrate, understand and leverage big data insights.
When it comes to big data, many people have the perception that bigger is better. They want to use services provided by the biggest companies, with the perception that the large the organization, the more access they must have to data. Big companies have so much first party data, they must know much more about consumers, right?
It may seem counterintuitive, but this is simply not true. With so many different data points out there, certain points will be more valuable to you in some instances than in others. In order to create a comprehensive data set, even the monoliths need to purchase additional points in order to fill the gaps in their own data.
Consider this in another way – a surgeon could have the choice between a scalpel and a machete. But just because the machete is bigger, doesn’t mean it is more useful to the surgeon. He needs the right tool that will allow him to make small, anatomical dissections. Having the right data is similarly important, allowing companies to target and personalize at a more precise level.
The real differences between startups and monoliths when it comes to big data has nothing to do with accessibility – and everything to do with service. Qualities such as adaptability, time to market for innovations, ability to be prescriptive and access to quality resources within the company will distinguish smaller companies’ big data services from the monoliths.
Startups have a big advantage over larger companies when it comes to adaptability. Shifting strategies with big companies is much more difficult for the simple fact that they have a lot more layers of management and much longer approval processes. Clients are often made to work within the monolith’s existing products and frameworks. Startups are leaner by nature, meaning their products are often more adaptable to your own business compared to those offered by larger companies.
Time to Market
In the same vein, innovations can go to market much more quickly with a startup. With high volume, high variety data that comes in at a high velocity through real-time data streams, it is important for companies to be able to rapidly experiment with all sorts of combinations of data, and adjust the tools they’re using quickly to successfully predict trends, identify customers and push out promotions at the optimal time. Without the lengthy cycles of a large corporation, startups are much more flexible and capable of working with customers to get them what they need, when they need it. Meaning if your data conflicts with how you’re currently running a campaign, you can change tactics right then and there. If a new technology hits the market, or you need an integration that doesn’t already exist within the platform, a smaller company is nimbler, and likely able to turn it around for you quickly.
In addition to longer decision and go-to-market times, large companies can become entrenched in the traditional way of doing things, which affects their ability to administer prescriptive and innovative advice. With more invested in the status quo, they run the risk of becoming reluctant to invest in new technologies and methodologies that might require an overhaul of their current businesses. Startups are not hindered by deep roots within a particular product, meaning they’re willing to try innovative solutions – focused on figuring out what will deliver the best outcomes, rather than protecting their own heritage.
Access to Quality Resources
Who you decide to do business with determines what – and who – you get access to. Larger businesses often have procedures that prevents their executive management from engaging in close contact with their customers, delegating that responsibility to scores of account representatives instead. While there’s no harm in this, there’s no real benefit either. When working with a startup, customers have access to management (and expertise) much higher up in the food chain – sometimes all the way up to the CEO. Because of this, startups often develop much closer relationships with their customers and take a vested interest in making their data programs successful.
When it comes to big data, perceived “volume” of data doesn’t matter. What you DO with your data, and how a company works with you to accomplish it, is much more important than the size of the business you’re working with. The next time you consider leveraging big data, ask yourself: what data do I actually need, and how will I use it to benefit my business? That’s the key to mastering big data.