Open data, vast amounts of information made freely available by governments and private sectors, is becoming a crucial tool for executives. It can improve decision-making, foster innovation, and enhance operations. The use of open data can result in a $3 trillion to $5 trillion annual economic value across seven sectors.
The benefits of open data extend to several areas. It can assist in benchmarking performance, creating transparency in the supply chain, and identifying patterns and market trends. Businesses can also use it to develop new products and services, and to engage with customers in innovative ways.
Despite the potential, many executives remain unaware of the value of open data. This lack of awareness often results in missed opportunities. Companies need to understand the potential of open data and integrate it into their strategic decision-making process.
There are challenges to using open data, including data quality, privacy issues, and the need for data management capabilities. Therefore, companies must develop techniques to manage these challenges effectively.
Open data is not a passing trend. It is a significant resource that can provide substantial economic value if leveraged correctly. For businesses to reap the benefits, they must understand and embrace this powerful tool.
Go to source article: http://www.mckinsey.com/insights/high_tech_telecoms_internet/what_executives_should_know_about_open_data?cid=other-eml-alt-mip-mck-oth-1401