Why Big Data Can Be Efficient But Not Effective

Don’t get me wrong. I’m a big a fan of measuring things. Data is really important and very useful in taking decisions but I have a problem with Big Data. Too many people and organisations are using the outputs without looking at why big data can be efficient but not effective.

Regular readers of this blog will know that I like examples and so here’s another one. Receptionists. One of the most undervalued professions there is.

If you measure just using data what a receptionist does it looks like this:

Calls and individuals come into an organisation and are answered or met by a receptionist. The receptionist then analyses the requirements of the individual and puts them through to someone who will be able to help, or the person with whom they want to speak. Looking at it from a pure data point of view the receptionist is unnecessary and a simple selection process (press 1 for… 2 for….) completely replaces the receptionist.

Hotels have a similar situation. When I arrive at my hotel I give my name, the receptionist checks the name against the booking, allocates me a room or informs me of my pre-allocated room and then issues me with a key. Big data can deal with all of this. I arrive, login and the device checks my identity and issues me with a key to my room which is valid for the length of my stay. Simple – no receptionist needed.

The problem is that Big Data cannot measure what a receptionist actually does. It is easy to measure check in time, wait time etc what is not easy to measure, and hence what Big Data does not take into account is “feel good factor”. It’s the other things that good receptionists do like remember my name and my preferences with regard to a particular room or pillow or whatever. I know that Big Data can work out these things but it’s just not the same. How many people would think more of an organisation and do more business with them if they could deal with a human?

It’s the little things that matter and make the difference. Big Data can measure repeat business but it cannot measure true customer loyalty.

Technology doesn’t make me feel good about an organisation it is just a tool. It’s people to whom people are loyal.

Take the banks. When I was deemed useful I had a bank manager who helped me and to whom I was loyal. Now it’s just technology and the new banks do that far better than the old ones. I have no loyalty to any of them as I am just data to them. What they have forgotten is that they are now just data to me!!!

Those who do really well now and in the future will use Big Data for the easily measurable stuff and look to psychologists for the stuff that really matters to customers and employees.

“All big data comes from the same point. It comes from the past” Rory Sutherland Unbound 2018.

Horses for courses. Big Data for efficiency and soft skills for effectiveness.

Industry 4.0 has been all about technology, Industry 5.0 will be about the soft skills, but that’s the subject of another blog.

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