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Second, as organizations create and store more transactional data in digital form, they can collect more accurate and detailed performance information on everything from product inventories to sick days, and therefore expose variability and boost performance. Leading companies are using data collection and analysis to conduct controlled experiments to make better management decisions; others are using data for basic low-frequency forecasting to high-frequency nowcasting to adjust their business levers just in time.

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Third, big data allows ever-narrower segmentation of customers and therefore much more precisely tailored products or services. Fourth, sophisticated analytics can substantially improve decision-making. Finally, big data can be used to improve the development of the next generation of products and services. For instance, manufacturers are using data obtained from sensors embedded in products to create innovative after-sales service offerings such as proactive maintenance preventive measures that take place before a failure occurs or is even noticed.

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The use of big data will become a key basis of competition and growth for individual firms. From the standpoint of competitiveness and the potential capture of value, all companies need to take big data seriously. In most industries, established competitors and new entrants alike will leverage data-driven strategies to innovate, compete, and capture value from deep and up-to-real-time information.

Indeed, we found early examples of such use of data in every sector we examined. The use of big data will underpin new waves of productivity growth and consumer surplus.

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For example, we estimate that a retailer using big data to the full has the potential to increase its operating margin by more than 60 percent. Big data offers considerable benefits to consumers as well as to companies and organizations. While the use of big data will matter across sectors, some sectors are set for greater gains. We compared the historical productivity of sectors in the United States with the potential of these sectors to capture value from big data using an index that combines several quantitative metrics , and found that the opportunities and challenges vary from sector to sector.

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The computer and electronic products and information sectors, as well as finance and insurance, and government are poised to gain substantially from the use of big data. There will be a shortage of talent necessary for organizations to take advantage of big data.

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By , the United States alone could face a shortage of , to , people with deep analytical skills as well as 1. Several issues will have to be addressed to capture the full potential of big data.

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Policies related to privacy, security, intellectual property, and even liability will need to be addressed in a big data world. Organizations need not only to put the right talent and technology in place but also structure workflows and incentives to optimize the use of big data.

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  7. Access to data is critical—companies will increasingly need to integrate information from multiple data sources, often from third parties, and the incentives have to be in place to enable this. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy.

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    If you are facing a modelling challenge, most likely we have faced it and solved it. Reliability engineering practices during the design phase aims to optimize system robustness through measures such as redundancy or diversity in the design alternatives. This allows system designs based on user requirements and alternatives to be formulated and evaluated in a more holistic approach. Maros RAM analysis software can be applied throughout the whole project asset lifecycle.

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