Big data is fast changing how people work with many organizations witnessing a surge in the amount of data. The introduction and use of big data by organizations have in a way replaced the human workforce. Big data also serves as a significant innovative force to organizational staff with the knowledge and capacity to utilize the same. Around the world today, many organizations rely on social media information to improve organizational performance while at the same time increasing revenue generation. The inception of big data was when organizations around the world sought to address the processing of heterogeneous kinds of data in online platforms with the aim of extracting valuable data. Big data technology is mainly about storage, processing, analysis of data, as well as organizational management of the data for use in new levels and decision-making contexts. This essay explores how a private sector organization, the Commonwealth Bank of Australia (CBA), approaches the issue of big data and big data analysis. It further explores what data is analyzed by CBA, the transformation of the data into useful information, and its futures directions with regard to data collection and decision making when it comes to HRM.
CBA’s Approach and Analysis of Big Data
As is the case in many banks around the world, CBA’s managers came to acknowledge the need for understanding their customers. It is at this moment that the issue of big data came into mind leading to the decision to utilize big data in the analysis of huge data capacities revolving around today’s digital economy. According to Eyers (2014), CBA mainly utilizes big data as a defense mechanism where the focus is to safeguard its share in the retail banking market and fend off competition from emerging organizations that utilize technology to offer similar services. The use of data will help CBA to enhance its relationship with customers.
Data Analyzed by CBA and Why
Data analyzed by CBA are the business ongoing cash flow performance and the consumer risk data. Eyers (2014) notes that CBA’s analysis of the mentioned data types is mainly due to the fact that the organization attains better risk assessment results and receives early warning of potential risks or challenges. Another reason for CBA’s analysis of the mentioned data types is the resultant reduced spending on storage costs and the ease encountered in searching across massive online data.
CBA’s Transformation of Big Data to Useful Information
One of the ways CBA is transforming big data into useful information is through the sale of the “Daily IQ” to consumers. “The “Daily IQ” is a kind of big data analytics tool. Having been launched in March 2014, the “Daily IQ” provides cash-flow-related information and other business insights from rival banks in other locations. With the obtained information, CBA business consumers have a glimpse of where they stand or how successful they are. CBA has continued to use big data to collect both structured and unstructured data which is then stored or used in informing and reporting potential risks to customers (Eyers, 2014). CBA’s major step in this regard is that it has shifted from interacting with customers at the branch level to interacting with them on technology devices such as tablets and smartphones. Through the use of big data, CBA is remodeling how it deals with its lenders in a bid to have a greater share of consumers’ spending. The organization also has plans in place to promote new technology to the point-of-sale customers through big data technology (Eyers, 2014). The new technology will provide a platform for interaction between consumers and merchants and later flowing into the organization’s systems for analysis.
CBA’s Future Directions
A major reason fueling CBA’s preparation for the future with regard to data collection and decision making insofar as HRM is concerned is stiff competition coming from organizations with strong relationships with broad customer bases. In this regard, CBA’s HRM staff stand to benefit from big data given its possibility of opening up novel research avenues and opportunities. With the world shifting more to digital technology, the organization’s HRM and other professionals are likely to have easy access to online domains that are fast-moving. Through these domains, staff will be able to interact or keep in touch with other HRM practitioners while also being aware of the latest events, trends, and experiences in the field (Morgan, 2016). Going forward, big data will help CBA’s HRM in terms of strategic decision-making.
The introduction and integration of big data analytics in organizations help in improving organizational performance and agility. The use of big data analytics is also important for organizations as it paves the way for strategic decision-making where data is employed considering many actions that focus on the realization of organizational goals. The use of big data analytics also gives organizations the capacity to predict risks of challenges that might jeopardize the realization of set objectives. An organization that uses big data analytics is also able to realize operational processes benefits through having the best organizational workforce, elimination of wasteful resources, cost reduction, lower inventory levels, as well as best operations plan.
Eyers, J. (2014, August 14). Big data analysis a top priority for CBA chief executive Ian Narev. Retrieved from https://www.smh.com.au/business/banking-and-finance/big-data-analysis-a-top-priority-for-cba-chief-executive-ian-narev-20140814-103zym.html
Morgan, J. (2016). People analytics: A new way to make decisions in the workplace. Retrieved from https://www.youtube.com/watch?v=EZqKsOoA8tw