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ACCA Strategic Professional · Strategic Business Leader · Big data and data analytics

Orlin Insurance gathers vast telematics data from customers' cars. Its board notes that the data is large, fast and varied, and accurate, yet after two years the pricing team has used it for no decision and profitability is unchanged. Which statement best applies the Vs of big data framework to this situation?

The firm has failed to realise value. Big data only creates benefit when analysed into insights that change decisions. The case says the data is large, fast, varied and accurate, so those Vs are met, yet no decision uses it and profitability is unchanged.

  1. AThe firm has a volume problem because it has collected too much data
  2. BThe firm has a velocity problem because real-time data cannot be priced
  3. CThe firm has failed to realise value, because the data has not been turned into insight that informs decisionsCorrect
  4. DThe firm has a veracity problem because accurate data cannot be used for pricing

Explanation

The case states volume, velocity, variety and accuracy are all adequate, so the gap is value: the data has not been converted into actionable insight. Attributing it to volume or velocity contradicts the case, and veracity is stated as satisfactory.

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