ACCA Performance Management (F5) Certification Practice Exam

Which of the following is a potential cost when using Big Data?

1. Increased market share

2. Costly implementation

3. Enhanced customer loyalty

4. Improved employee training

The correct answer is: Costly implementation

The potential cost associated with using Big Data is the costly implementation. Implementing Big Data solutions often involves significant expenses, including the acquisition of advanced technology, the hiring of skilled personnel, and the development of sophisticated data management and analysis processes. Organizations may need to invest in infrastructure, such as cloud storage, data processing systems, and analytics tools. Additionally, ongoing costs for maintenance, updates, and training of employees to effectively work with these new systems can accumulate. This aspect can be a substantial barrier to entry for some organizations, particularly smaller ones, which may not have the requisite resources for such investment. Therefore, while Big Data can yield substantial benefits in terms of insights and decision-making, the initial costs involved in setting up and effectively utilizing these systems can be quite high. This reality can make it challenging for organizations to realize the full potential of Big Data in a cost-effective manner.