ACCA Performance Management (F5) Certification Practice Exam

Big Data can lead to which significant benefit for businesses?

1. Reduction in operational costs

2. Higher customer satisfaction rates

3. Competitive Advantage

4. Increased social media presence

The correct answer is: Competitive Advantage

Big Data plays a crucial role in providing businesses with a competitive advantage. By leveraging vast amounts of data, organizations can gain insights into market trends, customer preferences, and operational efficiencies. This information allows companies to make informed decisions, tailor their products or services to meet customer needs, and anticipate market changes more effectively than their competitors. The analytics derived from Big Data can enable businesses to identify unique selling propositions, optimize pricing strategies, and improve overall efficiency. This kind of dynamic agility, driven by data-driven decision-making, often results in outperforming competitors in terms of innovation and responsiveness. While other options, such as reduction in operational costs or higher customer satisfaction rates, might also be influenced by the effective use of Big Data, they are more indirect outcomes. The essence of the question is about the fundamental advantage that Big Data itself can provide, which is the ability to differentiate in the marketplace, hence achieving a competitive edge.