Leaders generate an average of 12% of revenue from big data programs.
Big data can generate big revenues—an average of 12% of total sales for leading companies regardless of size or industry, according to a recent survey. Since annual revenues at most of these companies exceed $1 billion, that percentage represents significant value creation.
There are many ways that big data can generate revenue, spur product and service innovation, cut costs, improve operations and business models, and monetize data. The most common area is product innovation, but the biggest gains come from business model innovation and data monetization—both of which have fundamental impact across the organization.
Advanced analytical approaches that can address the highest priority opportunities are by far the quickest path to value over the short term. This is especially true in the areas of customer management, product and marketing analytics, operation and supply chain management, enterprise functions, and risk management.
Big data represents a huge opportunity for retailers, but it requires the right analytical capabilities and internal processes to find the value. To explore the opportunities that big data provides, retailers can take these steps: