While 60 percent of IT professionals agree that “big data” will help improve decision making, only 28 percent are generating strategic value from their data, according to a new study. Of those surveyed for “The Cisco Connected World Technology Report,” 38 percent say they have a dig data solution, but that they need a strategic plan to take advantage of collected data.
Almost one in four participants (23 percent) listed the lack of IT staff or the lack of big data expertise among staff as a major obstacle to extracting value from data. Many (16 percent) also listed budgetary constraints as an obstacle, suggesting some companies are questioning whether they can afford to add the staff they need to put data to good use.
While many recognize the potential advantages of utilizing big data, companies must carefully weigh the costs they would incur by adding the staff needed to do so. In The Little Black Book of Strategic Planning for Distributors, Brent Grover says companies must consider not only current costs, but the future costs and cash flow requirements of continued growth.
Grover says people expenses are highly complex, but they aren’t incalculable. “Each functional area must list each individual and the annual cost of his ongoing employment: hourly including overtime, salaries, commissions, bonuses, fringe benefits, etc.” Distributors must consider these costs and all other HR-related costs when adding staff to support big data analysis, since in some cases new costs could mean a level of borrowing that the company might be unwilling or unable to undertake.
Read about the other cost factors, including recruiting and on-boarding costs, Grover says distributors should consider in a staffing budget in The Little Black Book of Strategic Planning for Distributors. Visit the website for the book at www.strategicplanningfordistributors.com or order your copy from MDM's online store.