ACCA Strategic Professional · Strategic Business Leader · Big data and data analytics
Orrin Media's board wants to justify investing in a big data platform. The CFO states: 'We already hold large amounts of customer data, so the platform will generate competitive advantage automatically.' Which response BEST reflects sound strategic thinking about the benefits of big data?
The sound response is to challenge the claim: advantage comes from converting data into insight that changes decisions and supports strategic objectives. Large volumes alone create no advantage, vendor choice does not guarantee results, and big data can also drive revenue growth, not just cost reduction.
- AAgree, because data volume itself creates a barrier to entry for competitors
- BChallenge the claim, because advantage arises only when data is turned into insight that changes decisions, and is linked to strategic objectivesCorrect
- CAgree, provided the platform is purchased from a market-leading vendor
- DChallenge the claim, because big data benefits are limited to cost reduction rather than revenue growth
Explanation
Data holds value only when analysed and acted upon in line with strategy; volume alone is not an advantage, and vendor choice does not guarantee benefits. The final option is wrong because big data can also support revenue growth through targeting and new products.
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