Big data refers to large sets of unstructured, semi-structured, or structured data obtained from numerous sources. Among the sources are customer databases, medical records, business transaction systems, social networks, mobile applications, and scientific experiments. No matter what business you’re in, chances are big data has already transformed it — and if not, it soon will.
Big data has already changed our lives in dramatic ways and is poised to become an even more crucial component of the business world. If you’re not prepared for how big data will impact your company, it’s time to start looking forward.
Today, companies are focusing on overhauling their data architecture, consolidating data, and discarding legacy systems. Big data has a great impact on businesses since it helps companies efficiently manage large volumes of data. Usually, this type of data is aggregated over social media networks, web browsers, geo-locations, fitness apps, text messages, and other media files. Some of the key drivers of big data market growth are sensors and IoT devices.
Big data is already everywhere. You’re contributing to it every time you watch a show on Netflix, post something on Twitter, or have a quick phone call with a business. In this blog, we’re going to explore how big data will affect the future of business.
Why is Big Data Important?
Data plays a huge role in understanding valuable insights about target demographics and customer preferences. From every interaction with technology, regardless of whether it’s active or passive, we are creating new data that can describe us. With data being captured through products, video cameras, credit cards, cell phones, and other touchpoints, our data profile is growing exponentially. If analyzed correctly, these data points can explain a lot about our behavior, personalities, and life events. Companies can leverage these insights for product improvements, business strategy, and marketing campaigns to cater to the target customers.
Big data will change how even the smallest companies do business as data collection and interpretation become more accessible. New, innovative, and cost-effective technologies are constantly emerging and improving which makes it incredibly easy for any organization to seamlessly implement big data solutions. Interpreting big data allows companies to create new growth opportunities by better understanding their target audience. Your data can also offer an insight into which of your team members are the most productive, or how you can make your office more efficient.
Netflix is an excellent example of the value of big data. In October 2019, Netflix had over 163.5 million subscribers. The company revealed that using big data saves up to $1 billion a year on customer retention. That’s because Netflix better understands how to tempt you with the shows you’ll actually want to watch.
Big data contributes to the business intelligence that allows companies to improve their return on investment. With every insight you glean from your data, you’re one step closer to reducing the amount you waste on marketing campaigns that don’t work or strategies that don’t deliver. Big data:
- Gives you a complete end-to-end view of your customer’s journey
- Helps you understand your customer’s sentiment towards you
- Shows you how to improve employee performance
- Boosts your chances of enhancing your product’s potential
- Highlights gaps in your market strategy
Impact of Big Data on Business
With the help of big data, companies aim at offering improved customer services, which can help increase profit. Enhanced customer experience is the primary goal of most companies. Other goals include better target marketing, cost reduction, and improved efficiency of existing processes.
Big data technologies help companies store large volumes of data while enabling significant cost benefits. Such technologies include cloud-based analytics and Hadoop. They help businesses analyze information and improve decision-making. Furthermore, data breaches pose the need for enhanced security, which technology applications can solve.
Big data has the potential to bring social and economic benefits to businesses. Therefore, several government agencies have formulated policies for promoting the development of big data.
Over the years, big data analytics has evolved with the adoption of agile technologies and the increase of focus on advanced analytics. There is no single technology that encompasses big data analytics. Several technologies work together to help companies procure optimum value from the information. Earlier, big data was mainly deployed by businesses that could afford the technologies and channels used to gather and analyze data. Nowadays, both large and small business enterprises are increasingly relying on big data. Thereby, they boost the demand for big data. Enterprises from all industries contemplate ways of how big data can be used in business. Its uses are poised to improve productivity, identify customer needs, offer a competitive advantage, and scope for sustainable economic development.
As global data continue to increase, organizations are even looking for new ways to optimize these data and make an informed business decision while remaining competitive. One of the major impacts that big data has on businesses is the growing amount of data generated due to the increased reliance on the internet and the rapid advancement in technology. In fact, a report by Seagate IDC forecast that the global data sphere will reach 175 zettabytes by 2025. Big data also provides fast and actionable data insight to help businesses make informed decisions. By using analytical data platforms, companies can improve their operation, automate tasks, remain competitive, and design more big data use cases
- Businesses will have to learn to manage their data.
- Privacy is paramount
- Communication skills will be key.
- Storing and managing data will get more challenging
- There may be a big data talent crunch on the horizon
How Big Data Is Used in Businesses Across Industries
- Banking, Financial Services, and Insurance (BFSI)
- Retail
- E-commerce
- Manufacturing
- Logistics, Media, and Entertainment
- Oil and Gas
Big Data Applications in Business:
- Improving the customer experience-Automation
One of the most popular ways to leverage big data in the current landscape is to access information as a way of improving customer experience. Experts agree that customer experience is the key to success in today’s landscape. With big data analytics, you can unlock the sentiment, preference, and requirements hidden in your conversations with customers.
- Transforming the hiring process-In depth insights
People are the most important asset in any business. It’s not just your customers that matter, but the employees that serve those clients daily. Today’s companies are often struggling to find the right talent to add to their teams. Unfortunately, slipping up and making the wrong choice with a candidate is a costly issue. Experts say that the cost of a bad hire is up to 30% of that person’s annual earnings. With big data, however, you can feed analytics engines and AI algorithms that tell you exactly who to hire based on the skills you need.
- Improving decision making
Big data can improve your ability to make the right decisions in almost every area of your business. Because data is the key to fuelling things like analytical apps and artificial intelligence, it’s also crucial to delivering the kind of insights leaders need to move their company forwards. When plugged into the right applications and cloud computing services, big data analytics can give you answers to some of your most pressing questions. For instance, you could use data from a workforce optimization tool to determine what your employees need to do their best work. You can also use big data analytics to decide where to invest money into extra products for potential peaks in demand. Your data tools could even tell you when you’re likely to need more staff in your contact center based on previous trends.
How to take advantage of the power of big data
- Start with a goal
- Experienced big data team
- Identify end goals
- Capture the right data
- Apply proper analytic methods like CRM and contact centre tools, Workforce analytics, Business intelligence
- Implement strategies to drive innovation
Conclusion
Finally, big data is indeed the future of the enterprise; it provides an endless opportunity for organizations to outperform their peers. The use of big data will also lead to an increase in more job categories, new regulatory structures and standards, and a shift by organizations from data generation to the use of actionable data in gaining insight.
The escalating need for analyzing data will lead to the rise of demand for big data over the forecast period. Furthermore, the number of online businesses in the industry is also growing, owing to enhanced profit margins. Other industries, such as healthcare, utilities, and banking, will widely use online platforms to provide improved services to customers.
Smart application of big data in everyday business life allows making data-driven decisions and responding promptly to market developments having its direct business impacts to the bottom line. The competition in all industries is constantly increasing giving businesses no chance for mistakes and requiring end-to-end analytics and technology-based tactics implemented to stay competitive.
Big data analytics is the future of business
- Ultimately, in a world where experience is key and businesses are constantly fighting to differentiate themselves, there’s nothing more valuable than data.
- Big data provides companies with the scale and insights they need to develop a realistic path for growth.
- The right big data technologies will show you how to connect with your customers on a deeper level, and what you can do to make your team more efficient.
- Data gathering systems also give you the power to streamline business operations and reduce your outgoing costs, while building your bottom line.
- In the years to come, any business that isn’t taking advantage of big data will be missing out on endless opportunities.
Blackcoffer Insights 31: Keshav Gupta, Dr. Akhilesh Das Gupta Institute of Technology and Management
