|Businessmen are now looking into big data in making business partnerships or deals / Photo by: ChampPPTX via Shutterstock|
Traditionally, there is always a more personal touch with regard to how people conduct business, whether that be face-to-face or even long-distance—the human element is what makes people trust one another, and what makes for successful partnerships and deals. For the longest time, this has been the way firms and organizations conducted business. Under the veil of human connection, everyone works with everyone they can as best as possible. Recently though, there has been talks regarding a more high-tech method of finding deals and partnerships.
As in other facets of modern society, there is an ongoing trend to using data science and algorithms to find and choose investments that best fit the purpose of the investor and businessman. This method, as well as using different kinds of software to better handle and judge investments, is just another step into the new way of decision-making that can have a deep effect on future ventures into different businesses. Olof Hernell, the chief digital officer at the Swedish-equity firm EQT, stated in article published on the website penews.com, “We as an industry spend a lot of time manually gathering data and manually doing predictions. And of course that’s better done by technology.”
This latest trend of using technology and big data analytics is changing how the very system works for many companies out there. Not to say that it’s necessarily a bad thing, it’s just that this new method could spell a distinct change to how business and investments are conducted in this field. There are a lot of software and technologies available now that are used to determine more consistent decision making by relevant parties. On whether this shift in doing business proves more successful than the traditional method, the jury is still out.
Now that the main capital has gone into private equity, the quest for getting better investments and deals have gotten much fiercer, with many companies already turning to big data to get even a slight edge against their competition and changing the way the business side of things works for them.