I had a chance to listen an open lecture in MIT SCAIL. It was on the big data analysis. The lecture was Erik Brynjolfsson, the professor in Sloan business school of MIT. He has done several studies on big data analysis and the internal efficiency of enterprise with big data analysis. He also wrote an article on Harvard Business Review with the big data analysis item.
1. Usage of Big Data Analysis
Big Data analysis is used in a various fields. It is becoming a revolution in decision-making that improves productivity. Wine chemistry, real estates sales and insurance under writing. That is one of the fields that big data is used.
If you deep dive into the efficiency of big data analysis, Erik’s team found out 4% increase with big data analysis. Also 6% increase in the profit with big data analysis.
2. Earn more money with Big Data Analysis
10% more wage with big data analysis. Am I exaggerating? Absolutely not. It is the true story. Erik’s team made a research over 330 companies in USA. If the enterprise was making decision making by experience, he defined it as ‘1’. If they used the data analysis, he defined it as ‘5’. What the team found was that IT labours and Non IT labours earned 8 times more than the non-data driven labours. For CEOs, it was 2 times higher.
· IT Labour : 0.056 > 0.02
· Non IT Labour : 0.25 > 0.03
3. Cons on his study
But he did not distinguish the big data analysis between business intelligence and big data analysis. Of course, he had defined the definition of big data. 3V(Volume-Velocity-Variety) was explained. But that was all.
4. Key Message
Anyway, Big Data Analysis or Big Data Analytics is a hot trend these days. Also it will be one of the fascinating factors for the decision-makers. But the MIT team of Erik’s just showed the beginning. I hope to meet the Entrée soon.