Examples of Using Big Data in Business
What is Big Data in Business?
In simple terms, Big Data is a combination of all the processes and tools related to utilizing and managing large data sets. The Big Data concept was born out of the need to understand trends, preferences, and patterns in the huge database generated when people interact with different systems and each other. With Big Data, business organizations can use analytics, and figure out the most valuable customers. It can also help businesses create new experiences, services, and products.
Why is big data important for businesses?
Before big data platforms and tools were developed, many organizations could use only a small fraction of their data in operational and analytics applications. The rest often got pushed to the side as so-called dark data, which is processed and stored but not put to further use. Effective big data management processes enable businesses to better utilize their data assets.
Being able to do so expands the kinds of data analytics that companies can run and the business value they can get. Big data creates increased opportunities for machine learning, predictive analytics, data mining, streaming analytics, text mining and other data science and advanced analytics disciplines. Using those disciplines, big data analytics applications help businesses better understand customers, identify operational issues, detect fraudulent transactions and manage supply chains, among other uses.
If done well, the end results include more effective marketing and advertising campaigns, improved business processes, increased revenue, reduced costs and stronger strategic planning — all of which can lead to better financial results and competitive advantages over business rivals. In addition, big data contributes to breakthroughs in medical diagnoses and treatments, scientific research and smart city initiatives, law enforcement and other government programs.
What are the business benefits of big data?
In an article on big data’s business benefits, Donald Farmer, principal of analytics consultancy TreeHive Strategy, described big data as “the lifeblood of modern business.” He cited six potential benefits for organizations: better insight into customers, operational improvements, increased market intelligence, more agile supply chain operations, data-driven product innovation and more sophisticated recommendation engines that are better tuned to the interests and preferences of individual customers.
At a higher level, big data benefits companies by generating actionable insights that enable them to implement data-driven strategies and decision-making. It can also point organizations toward new business opportunities, potential cost savings and emerging market trends. In addition, real-time analytics applications fueled by big data can be used to provide up-to-date information and alerts about problems to operations managers, call center agents, sales representatives and other frontline workers.
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What You Need to Know About Working in Big Data
Big data has big applications in the business world. It is no longer surprising that there is a need for people to take a data science course to fully understand the impact of big data on the business environment and how to create real value through analytics. With that, in this article, we’ll talk about some of the best business applications of big data in business.
1. Implement Risk Management
Every business needs to have a strategic approach to risk management. While many things can help make this possible, big data is one of the most important. It will also allow companies to quantify and model risks that can confront their operations. With the use of big data, companies can rely on predictive analytics to have an intelligent risk foresight. With this knowledge, it will be easier to implement risk mitigation strategies.
2. Understand Customers Better
Businesses must understand their customers, and big data will make this possible. From website visits to social media interactions, big data will reveal a lot about your customers. It will also allow the business to create customer profiles and buyer personas. When you understand them better, you can improve your products and services. It allows you to deliver the highest level of satisfaction. This can also help in building customer loyalty.
3. Know Your Competition
Big data also provides the opportunity to get to know your competitors. For instance, it can provide information about their pricing models and how it is perceived by the customers. You will also learn about the customers’ perceptions of your competitors. Plus, it will help you determine how they are performing online, such as their social media engagement.
4. Personalize Your Marketing
Marketing can make or break your business. For its success, one of the most important is personalization. This is another area where you can use big data. Because it lets you understand your customers, you can create marketing campaigns that will target a specific niche or segment. It can offer insights that will allow marketers to create high-converting materials.
5. Identify Trends
Through big data, it is also possible for businesses to identify trends, which can be useful in product research and development. From customer behaviors to buying patterns, big data will provide the management with the information it needs to analyze how trends will change over time, and in turn, will give the business the time to prepare for these changes. Selecting survey methods will play key role in doing collecting sample data, survey research and analyzing the information to make decisions.
6. Manage Human Resources
Utilizing big data will help you develop a robust approach to human resource management. From hiring decisions to training and development, big data will help have the best people. From staff satisfaction to productivity data, you can have access to the information that you need for understanding and improving your workforce.
Big data has endless applications in businesses. Businesses need to uncover the hidden patterns, correlations, and get insights from unstructured big data to make proper business decisions. From risk management to human resource management, you can use big data in business in many ways to improve business operations. So, make sure to have the right infrastructure in place for managing big data.
7. Re-Develop Products
Big Data is one of the best ways to collect and use feedback. It helps you understand how customers perceive your services and products. Thus, you’re able to make the necessary changes and re-develop your products. When you analyze unstructured social media text, it allows you to uncover general feedback from your customers. You can even disintegrate the feedback in various geographical locations and demographic groups.
In addition to this, Big Data allows you to test numerous variations of high-end computer-aided designs within seconds. For instance, you can gather information about lead times, material affect costs, performance and more. It allows you to raise the productivity and efficiency of various production processes.
8. Perform Risk Analysis
Success depends on a lot of different factors. It’s not just about how you run the company. Economic and social factors play an important role to determine your accomplishments. Since Big Data leads to predictive analytics, it allows you to analyze and scan social media feeds and newspaper reports. Thus, you can permanently keep up with speed on the latest trends and developments in the industry.
9. Data Safety
Big Data tools allow you to map the entire data landscape across the company. This allows you to analyze all kinds of internal threats. With this information, you can keep sensitive information safe. It’s protected in an appropriate manner and stored according to regulatory requirements.
Due to this, most industries have been focusing on Big Data to ensure data safety and protection. It’s even more important in organizations that deal with financial information, credit and debit card information, and other such practices.
10. Create New Revenue Streams
Big data provides you with insights from analyzing the market and consumers. However, this data is not only valuable to you but also for other parties. You can sell the non-personalized trend data to large industries operating in the same sector.
There’s no doubt that Big Data will continue to play an important role in many different industries around the world. It can definitely do wonders for a business organization. In order to reap more benefits, it’s important to train your employees about Big Data management. With proper management of Big Data, your business will be more productive and efficient.
Big Data Applications in Business
Using and understanding big data is a crucial competitive advantage for leading corporations. To the extent companies can collect more data from existing infrastructure and clients will give them the opportunity to discover hidden insights that their competitors don’t have access to.
Big data can present an abundance of new growth opportunities, from internal insights to front-facing customer interactions. Three major business opportunities include: automation, in-depth insights, and data-driven decision making.
Big data has the potential to improve internal efficiencies and operations through robotic process automation. Huge amounts of real-time data can be immediately analyzed and built into business processes for automated decision making. With scalable IT infrastructure and decreasing cloud computing costs, automating data collection and storage is within reach.
Big data can also be used to discover hidden opportunities that were unknown to organizations before the ability to review large sets of data. Complex data sets can even be used to develop new products or enhance existing ones. Proprietary data within the market can prove invaluable in the competitive landscape.
Faster, better decision making
With the speed of data analytics technology, paired with the ability to analyze new sources of data, businesses are now able to analyze information instantly and make smart, informed decisions.
How to Harness the Power of Big Data
The market for big data analytics is huge – over 40% of large organizations have invested in big data strategies since 2012. However, with endless possible data points to manage, it can be overwhelming to know where to begin.
Before choosing and implementing a big data solution, organizations should consider the following points.
Experienced big data team
Create a team of experts in data collection, analytics, and strategy to help build an ideal big data approach that results in positive returns for the company. This team should include individuals who understand modern analytic methods, able to manipulate big data sets, and experienced consultants who understand overarching business goals.
Identify end goals
Having the right objectives is crucial for successfully implementing a big data solution. The data and analytics must be properly aligned with the organization’s end goals (i.e., greater profit, brand recognition, market share).
Capture the right data
Once the underlying business goals have been defined, the next step is to have a full understanding of the data before its application. Identifying, capturing, and tracking the right data will be the backbone of the entire big data process. Utilizing the wrong data sets can result in catastrophic consequences that leads the entire company in the wrong direction.
Apply proper analytic methods
Professional data analysts are skilled in translating big data into valuable insights efficiently and accurately. Visual summaries of the data that are easily digestible help supporting teams quickly process the data analysis and make quick business decisions.
Big Data Analytics Tools
The rise of big data has created a huge market for data analytics tools that help enterprises seamlessly implement big data solutions. Here best Big data analytics tool you should use is business.
Originally published April 20, 2020 6:58 am, updated on February 1, 2022 for relevance and comprehensiveness.