Ignoring Big Data May Pose greater Business Risks
Enterprises that choose to avoid using Big Data analytics techniques because of the possible dangers, such as security and privacy breaches, may be creating risk of another type, than those who are embracing the new technology, says a new report by ISACA. Titled: “Generating Value From Big Data Analytics,” the report encourages IT and business leaders to look at big data holistically, taking into account the cost of inaction.
According to the report, understanding the business case is just as important as understanding the technology and compliance risk. Enterprises need to understand the business rationale for adoption, the anticipated return on investment and the impact if the enterprise chooses not to adopt while its competitors do.
“There are risks inherent in implementing Big Data, such as ensuring privacy laws are not breached. But the risk of inaction may be far greater, with a company being left behind as its competitors embrace the technique to leap ahead,” said Norman Marks, member of ISACA’s Emerging Business and Technology Committee, and author of the report.
Marks believes that the insights obtained into customer needs and buying patterns, the reputation the company holds in the marketplace and the emergence of new risks can help the organization make dramatic advances by adapting its strategies for success. “In addition, Big Data enables significant improvements in the ability to manage risk and ensure compliance, with one example being the ability of banks to monitor transactions and identify suspected money laundering,” he said.
Many professionals are open to seeing value in analytics. According to ISACA’s 2013 IT Risk/Reward Barometer, a global indicator of trust in information, close to 50% business and IT professionals polled say that Big Data has the potential to add or has already added value to their organization. Yet only 22% feel adequately prepared to provide governance and manage privacy effectively.
The new ISACA study also showed that increased competitiveness and transformative results are achieved through imaginative uses of preexisting data. The retail and healthcare industries would particularly benefit from the use of Big Data analytics, due to the sheer volumes of already-collected data that can be further leveraged through sophisticated analytics, it says.
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