By Monica Rodriquez
Asking why each head of a company should understand finances and big data seems silly at first, but the truth is that leaders cannot be experts in every arm of their company.
In fact, some of the best leaders are only experts in the management of personnel. So, the head of a company needs to choose carefully what they become an expert in and two of those things should be finance and big data.
Understanding The Dynamics Of Consumer Interaction
According to Ginni Rometty, CEO, IDM “Big Data will spell the death of customer segmentation and force the marketer to understand each customer as an individual within 18 months or risk being left in the dust.”
There is a big difference between the power the head of a company has when big data analysis is briefed to them and when the head understands the nature of big data. It is the difference between allowing a chef to taste a meal and letting an electrician taste a meal.
Big data enables the head to understand the things like the dynamics of consumer interactions, the state of online security, the effectiveness of marketing, and so forth. The result is a head of a company that makes better and more informed decisions. The result is a leader who knows the difference between meaningful statistics and staff members who are trying to make the data fit their priorities.
Stronger Lead Conversions
Market research has changed to the point where big data can create probabilities that tell you what your consumer is going to do before he/she even reaches your website. For example, Leads Market can learn and understand so much about target audiences that they can connect borrowers and lenders with an almost jigsaw-like precision. None of this would be possible if the company couldn’t pour of epic amounts of big data in order to understand how each consumer will act.
Whether a company buys its leads or generates them itself from marketing, it is in the interest of all to understand how best to convert such leads. A leader such as the head of a company can best divide resources when he or she understands the consumer too though his/her understanding of big data. One cannot always trust staff members to make decisions in the best interest of the company.
Save Money On Business Operations
When the head of a company understands finance, then it almost always results in that company servicing money on business operations. The head understands the economics of each arm of the business, which means saving money on business operations can happen across the board. This is important because many times the heads of each division/department have no reason to cut costs because they are fearful of losing their budgets.
On a lesser scale, business operations may be cut or streamlined based on the big data of other companies. An easy example is how larger banks saw how many people went paperless back in the day, so they started to implement paperless communications themselves. That is a very basic example, but it shows how a company may grow and evolve because its leader understands how to interpret big date correctly.
Predictions And Forecasts
If a leader is to understand both finances and big data, there is a chance that the leader will spot future opportunities and threats thanks to big data, and then be able to handle them based on his or her knowledge of finance. Understanding how big data works, rather than having big data analysis’s summarized, may help the leader stop over-enthusiastic staff members from overspending on projects that will probably have a very low payoff.
Such a person may see opportunities based on the big data collected on how masses of people are reacting to a certain market conditions. “A leader may exploit that condition and would understand how much money should be spent on the procedure so that profit margins do not become dented. In short, it may help a leader seize opportunities while being moderate enough to not put the company at risk.” – say specialists from LeadsMarket, an online marketplace for leads.
Conclusion – It Is Not Always About Information
“Processed data is information. Processed information is knowledge. Processed knowledge is Wisdom.”Ankala V. Subbarao)
Being the head of a company requires more than the comprehension of information. Nobody is saying that the head should be an expert in everything, but there is a difference between simply comprehending what is being shown and being intimate with its details.
For one thing, the head can spot false or incorrect interpretations, or can generate better assumptions based on his or her understanding of finance and big data. If anything, knowing about these things is yet another tool for success.