The 5 Vs for Big Data In Project Management
Big data is changing how companies function across all industries. Both large and small organizations can benefit from the insights gained from the large volumes of data that is out there. If data management is not handled correctly it can cost a business up to 35 percent of their operating revenue. So, in a snapshot, it seems like recognizing the role big data can play in your company is the smart thing to do.
But how do we understand big data? What makes data ‘big’ and does it relate to how project managers get their jobs done? This post has the answers you need.
First, we must understand what make data ‘big’. The measurements for big data are often set out as ‘the five Vs’.
Volume
There is a vast amount of data being created and collected every day. The data produced in 2020 will be 44 times greater than it was in 2009. That shows you the increase we are looking at and it isn’t slowing down. Traditional data tools are unable to handle the enormity of the volume and so big data tools have emerged as their replacements – these tools are helping businesses to make more incisive decisions about their processes.
Velocity
Data is being generated at incredibly high speeds. The way we use information today is faster than at any other time. Think of applying for a loan or another banking transaction. Data analysis and processing now takes seconds rather than hours or days.
Variety
There are many different types of data out there. Previously, data was usually something that fit easily into tables and charts. Today, data is much more unstructured. Data could mean the photos we take and share, the social media engagements we make, the stories we post, and the videos we upload or watch. The right big data tools can take these different types of data and bring them together to analyze.
Veracity
With so much data and information floating around it can be difficult to ensure what is quality, true, false, accurate, etc. Data contains typos, slang, and unreliable sources. Again, big data tools can take veracity into account when data is being analyzed.
Value
The bottom line for big data is the ability to convert it into something of value. Collecting data for its own sake is not going to be of much benefit to a business. But if they can collect the right data and analyze it correctly, they can draw the all-important conclusions and make better business decisions.
How big data is transforming project management
So, what about big data in project management? Big data can have a positive effect on how the project management office (PMO) goes about its job. From reducing project costs and increasing project efficiencies to improving resource allocation, big data is having a major impact on the improvement of project and resource management.
Let’s look at some of the ways big data can help an organization accelerate its project processes to meet its goals:
Boost to project intelligence
Business intelligence and the tools that enable effective analysis were rather restricted before the emergence of big data. Big data is the rocket fuel that allows business intelligence tools to work to their best. For project managers, it means having access to much better knowledge of each project they are working on, from timelines to resource allocation. This leads to better decision-making.
Reduces project costs
By collecting more and more data, project managers can more easily predict trends and future events within their industries. Resource forecasts and planning can be made more efficient. This leads to more efficient output; workers are given the jobs they are best at and better information to complete their tasks.
Improves project efficiency
Big data gives organizations important information about their processes, their products, or their services. Project bottlenecks and other issues can be discovered quickly and resolved, helping to keep each project and the business working optimally.
Better resource management
With the right information, a project manager can understand what their project needs, see the available resources, and how these match up. The issue is there are often a lot of moving parts in any project and changes in budget can affect multiple areas like deadlines or resources. Using insights from big data and the right resource management solution, a project manager can more easily deal with changes to project plans and predict outcomes when certain decisions are made.
These are the main ways that big data can help organizations improve project processes and drive the business forward. Understanding the role of big data is an important first step on your journey to project success in the 21st century.