We were very impressed with a new report published by the McKinsey Global Institute (MGI) entitled ‘Big Data: the next frontier for innovation, competition and productivity’.
As auditors with extensive experience in database technology (e.g. IBM DB2, Oracle, Sybase), we were especially struck with the concept of ‘Big Data’ as managed through commercial databases.
McKinsey argues that just like capital and labor are integral factors of modern production, so too data has become an integral factor of production. Successful companies going forward will be those that manage ‘big data’ to strategic advantage.
Established industries such as health care and manufacturing are being disrupted by IT firms that have found a way to leverage data strategically. Google Health and Microsoft Health Vault are cited as examples in healthcare. There is potential for huge savings in the US and European health care systems through the use of ‘big data’ to manage personal health information on a massive scale.
This concept of ‘big data’ makes sense to us. However, the risks associated with sensitive and private information are not hard to identify. The integrity of data is another area of risk that must be understood as part of this strategic shift.
In short, ‘big data’ is on the march. The risks and controls around this data are critical if the hoped for gains are to be realized.
‘Big Data: the next frontier for innovation, competition and productivity.’ McKinsey Global Institute. May 2011. www.mckinsey.com
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