Data has been one of the most powerful tools for any organization for a long time. What makes this data ‘Big’ for modern businesses is the analytical tools that help to extract meaningful insights from it. Big data analytics is essential to all organizations, both large and small. It helps them examine huge volumes of data to discover patterns and correlations that otherwise are hidden from a normal human brain.
Big data can be defined as large volumes of data having a great variety and complexity. It is ever-evolving data that helps you anticipate business-related issues and trends. Making proactive decisions based upon these anticipations can help you stay ahead of your competitors.
“The world of Big Data only appears to grow bigger and better with time. It is estimated that the worldwide datasphere will grow to 175 zettabytes by 2025. Interestingly, it was 45 zettabytes in 2019.”
These increasing volumes of data pose great opportunities for modern businesses to evolve and attain higher growth.
What is Big Data Analytics?
Big data analytics is an advanced analytical process that inspects large, diverse data sets, both structured as well as unstructured, to extract significant information. It is extremely crucial as far as organizational decision making is concerned in the current business landscape where no organization can afford to overlook the importance of data.
“A Statista report estimates the worldwide big data and business analytics market to attain a value of USD 274.3 billion by 2022 from USD 168.8 billion in 2018. The market is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 13.2 percent through the five-year forecast period.”
How Big Data Analytics is Transforming Modern Organizations?
Big data analytics incorporates sophisticated techniques like Machine Learning (ML), text analytics, data mining, predictive analytics, natural language processing, and advanced statistics, etcetera, to enable modern businesses to make timely, accurate decisions using previously unusable or inaccessible data sets. It is capable of analyzing data models having types or sizes that are beyond the capability of conventional relational databases to record, control, and process.
What makes big data analytics the transforming technology for modern businesses is its ability to unearth critical results from the enormous and complex big data. It helps businesses make use of big data to its fullest and resultantly attain higher growth and efficiency.
The following are the ways in which big data analytics empowers modern organizations:
- Boosting Customer Acquisition and Retention
Modern businesses depend immensely on customers. The establishment and satisfaction of a solid customer base are paramount to a successful organization. To have an edge over your competitors, you must learn quickly about your customers’ preferences. If you are slow to discover what your customers require, then you would not be able to bring relevant products and services for them, and will eventually lose them.
Big data analytics enables you to discern different market trends and patterns related to your customers. It goes a long way in helping you bring the right products or services for them. By closely observing the large volumes of data that are being generated in modern times, you can conveniently identify the preferences of your present-day customers. The more data you collect, the easier it becomes for you to understand your customers.
Hence, an appropriate data analytics process empowers you to derive important consumer behavioral insights that allow your business to not only expand your customer base but also retain it with higher satisfaction.
Coca-Cola is an excellent example of how data analytics can help you boost customer acquisition and retention. The director of the data strategy at Coca-Cola admitted that it is due to a strong data analytics mechanism that the company is able to retain its large customer base.
- Driving New Innovations and Product Development
Innovation and improvisation have long been the keys to a successful business. Organizations used to rely on their intuitions to bring innovative products in the past. Today, you have big data analytics at your disposal to help you gain actionable insights. You can utilize them to develop innovative products that are based on data-backed facts and not on pure intuition.
Big data analytics has become a powerful tool to help you create extra revenue streams via innovation and product improvisation. Your business can rely on vast data to determine the success of new products even before they are designed. It also enables you to re-design your existing products or services to make them more appealing to your customers. By utilizing various channels to study customer trends and needs, big data analytics helps you bring exactly what the customers ask for.
Collecting and harnessing big data empowers organizations to improve their line of products and services by developing innovative ones.
- Effective Advertising and Marketing
Modern businesses invest a lot in advertising and marketing. It is extremely important for them to carry out proper research to ensure their investments in advertisements are fruitful. Big data analytics has unlocked a more sophisticated analysis approach for the advertising and marketing sector.
With big data analytics, you can keep an eye on the point of sale transactions, observe various online activities, and discern dynamic changes in various customer patterns and trends. This enables you to carry out targeted and focused marketing campaigns for your business. It also helps you design personalized campaigns targetting high potential clients.
You can utilize big data for advertising as well. It helps you understand your consumer’s purchasing behavior. It also helps you avoid losses resulting from huge ad fraud by accurately defining your target audience via predictive analytics.
Therefore, your business can have an effective and relevant marketing and advertising strategy that not only helps you reach your targetted clients but also saves you from huge unproductive marketing investments.
- Powering Supply Chain Management
Big data analytics provides supplier networks with greater clarity, insights, and accuracy. By eliminating the constraints that the suppliers used to face in the past, it brings contextual intelligence throughout the supply chains.
Through the use of traditional supply chain and enterprise management systems, suppliers were prone to inaccuracies and used to incur great losses. They can now leverage the power of big data analytics to get rid of all these losses and errors in the supply chain.
The application of big data analytics in the present-day supply chain structures has made way for comparatively complex supplier networks. These sophisticated networks rely on high-level alliance and knowledge sharing to attain higher contextual intelligence.
Most of the supply chain executives consider big data analytics a disruptive technology for supply chain management as it sets the foundation for an intelligent and insightful supplier network.
- Intelligent Risk Management
It is critical for businesses to identify as well as mitigate any potential risk for ensuring business continuity and profitability. Therefore, having an appropriate risk management plan is paramount to all modern businesses in today’s high-risk business environment. It helps you get through the unprecedented times smoothly. All organizations, irrespective of the industry or sector they belong to, make significant investments in robust risk management strategies.
Big data analytics plays a great role in developing effective risk management solutions. Its ability to derive meaningful conclusions from various data sets is beneficial for your organization. By collecting your organization’s internal data and incorporating an integrated process of analysis, big data analytics empowers you to identify potential risks and vulnerable areas. It helps you design a strong and intelligent risk management system.
Hence, big data analytics allows you to achieve a smart risk mitigation strategy that helps you recognize and eliminate prospective threats.
All the aforementioned benefits are the reasons why big data analytics is attracting significant investments from various industries. Let us now look at some of the major sectors in which it is making important contributions.
Healthcare is probably one of the most important industries as revolutionary breakthroughs in it ensures well being of the entire humankind on our planet. Big data analytics is transforming the ways of identifying and treating various ailments. It enables healthcare professionals to study patients thoroughly and recognize symptoms of serious illness as early as possible. This leads to early treatments that are simpler, inexpensive, and personalized.
- Banking, Insurance, and Financial Services
In the world of the internet, it is comparatively easier for online fraudsters and imposters to steal your identity and other important financial details to loot your hard-earned money. Big data analytics helps credit card companies and banking institutions detect fraudulent transactions and safeguard your identity.
Big data analytics enables insurance companies to set appropriate policy premiums, detect fraudulent or fake claims, and enhance marketing efforts. Insurance companies such as Progressive and Aviva provide discounts to drivers for allowing them to keep track of their driving habits through in-car devices and smartphone applications. That way, they collect data and analyze it for the insurers to discover how safe a person drives.
- Retail Sector
As the way the world consumes and sell goods and services evolve, big data analytics posses a great opportunity for retailers, both online and offline. By adopting a data-first policy, they are able to understand their customers better and reap great profits by offering them relevant products.
Data analytics is involved in all stages of retail operations. Retailers predict market trends to work out the popular products, forecast the demands for those products, optimize their prices, identify interested customers, discover intelligent ways to approach them, smartly sell them the products, and plan new products for them.
Education is another important industry that generates large amounts of data. Modern educational establishments are utilizing this data to understand how different students learn and offer better learning solutions accordingly. With the help of big data analytics, teachers and course designers are coming up with better teaching plans by discovering ways in which students learn efficiently.
Online education has become an integral part of a student’s learning process in the modern era. Big data analytics offers educators great insights into a person’s learning pattern and empowers them to introduce personalized and adaptive learning.
Modern manufacturing activities rely heavily on data. Advanced automation and robotics are revolutionizing the entire manufacturing industry. Companies like Adidas have started investing significantly in automated factories. Even in conventional manufacturing units, embedded devices, equipped with relevant sensors, are helping manufacturers gather important data that allows them to keep track of the efficiency and health of various types of equipment and machines.
The modern manufacturers are also utilizing various sensing devices in their products like yoga mats, shoes, cars, etcetera. This enables them to understand how their products are being utilized and how are they performing. It further helps them to design better products in the future.
- Public Sector
Various governments are also utilizing big data analytics for powering their ‘smart city’ projects. They are practicing data collection and analysis and combining them with the Internet of Things (IoT) to create integrated public utilities.
There are several other industries like sports, hospitality, energy, transportation and logistics, media and communications, etcetera, that are utilizing big data analytics to their fullest for realizing their future goals and predicting upcoming trends in their respective industries. In fact, more conventional industries like agriculture and farming are adopting big data practices to enjoy benefits that nobody had ever thought of.
The Bottom Line
With increasing amounts of data being generated every second in every modern industry, big data analytics plays a huge role in deriving significant insights that help businesses bring innovative products and services. It is already transforming modern businesses across industries and promises of great future that will have smart, intelligent, cost-effective, and personalized solutions to almost all of our problems.
It is very important for you, as a business owner, to embrace big data analytics wholeheartedly if you haven’t already. It is a critical investment for your business to have a competitive edge over its counterparts. Moreover, it reduces the cost of operations and enhances customer retention. All in all, it is paramount to your overall business growth.