ACCA Strategic Professional · Strategic Business Leader · Big data and data analytics
Harrowgate Logistics fits sensors to its 2,000 vehicles and analyses engine, route and driver data. Managers find that the analysis shows strong correlations between a certain route and delays but cannot explain why. The CEO proposes rerouting all vehicles immediately. Which response best reflects sound use of big data?
The sound response is to treat the correlation as a lead, test possible causes through a pilot or further data, check data quality, and then decide. Big data shows patterns, not proof of causation, so rerouting everything immediately or ignoring the data are both poor decisions.
- AReroute at once, because correlation in a large data set proves causation
- BIgnore the finding, since large data sets are inherently unreliable
- CTreat the correlation as a lead, test the likely causes (for example with a pilot or further data) and then decide, recognising that veracity and context matterCorrect
- DOutsource the decision to the sensor supplier because it owns the data format
Explanation
Big data often reveals correlations that do not show cause. Prudent use means investigating, piloting and checking data quality (veracity) before acting. Acting at once assumes causation; ignoring the data wastes its value; the supplier should not make the strategic decision.
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