MIS4596 – Tony Messina – Section 002 – Spring 2016

How Big Data Can Sideline Innovation

Throughout class we have discussed various topics about business intelligence and big data. To make importance business decisions, many companies have come to rely on big data and the algorithms that analyze it.  However, this article makes an interesting point that companies may be relying on big data too much. The article states the big data helps executives understand what is happening but fails to establish why it is happening. Without understanding why certain trends are happening, executives are making decisions without realizing the whole picture. Ultimately, businesses need the right balance between correlation and causation in order to make an informed decision for their companies. how-big-data-can-sideline-innovation

2 Responses to How Big Data Can Sideline Innovation

  • Aaron,

    Thank you for sharing this article! I came across a couple of these, and the new talk is now that we’ve become so infested with “Big Data”, it’s now become “small data”. Many business professors talk about this fad as well. It’s not a surprise how executives rely heavily on technology to provide answers to any data they input, but I am surprised at how little people can understand the trends. Hence, that’s why MIS majors exist! Now that companies invest in these technologies/business intelligence software’s, it’s more important to hire people to read the computer/robotic data analyses.

  • I think it is hard to generalize that companies are not understanding the why. What it really comes down to is what data the firms are looking at. In the case of Lego, they looked solely at consumer trends in the customer segment. Trend after trend showed that kids were only interested in the digital age. However, if they maybe looked at other factors that influenced the kids, such as what they were learning in school or what their parents were teaching them at home. They might have been able to come up with a more well rounded story for these kids, and targeted their product differently.

    I think yes, firms rely way too heavily on big data. However they lack the ability to see what is right in front of them. Analysts become so focused on one piece of the puzzle and make all of their predictions off of that one piece. However, if they made a story out of many pieces of data, that story may change entirely.

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