Benefits of Big Data
Big Data Analytics fits the bill nicely if we're talking about modern technology and industry disruptors that can help every industry and every corporate organization.
There is no doubting that Big Data has grown into a multibillion-dollar industry in less than a decade.
With the rise of the internet, wireless networks, smartphones, social media, and other technologies, the Big data revolution has arrived.
Today, Big Data is popular in industries other than technology, such as healthcare, education, governance, retail, manufacturing, BFSI, and supply chain management and logistics, to mention a few. Almost every business and organization, large and small, is currently reaping the benefits of Big Data.
"By 2027, the big data market will be worth more than $1 trillion globally, and the software development sector will be its biggest beneficiary." - according to Statista.
But what exactly is big data? How does it function? Who uses big data? What are its benefits?
We will provide some answers in this article.
What is Big Data Analytics?
"Big Data is a term used to describe information assets with high velocity, high volume, or great diversity that require unique processing methods to better decision-making, insight seeking, and process optimization." - according to Gartner.
It is a collection of massive data sets that cannot be analyzed using standard computer approaches. This term refers to the data and the numerous frameworks, tools, and techniques. Technological advancements, the expansion of the internet, and the introduction of new social networking communication sites need the use of new technologies to handle the data generated daily.
Why Big Data?
A big data analytics solution enables firms to generate strategic value and maximize asset utilization.
It benefits organizations:
- To comprehend where, when, and why their customers purchase
- Protect the company's client base with improved loyalty programs
- Taking use of cross-selling and upselling opportunities
- Provide specific promotional details.
- Optimize Operations and workforce planning
- Increase the efficiency of the company's supply chain.
- Forecast market trends
- Increase the competitiveness and innovation of businesses.
- It assists businesses in discovering new revenue streams.
Companies use Big Data to understand what their customers want, their best customers, and why people choose different goods. The more a company understands its customers, the more competitive it gets.
We may combine it with Machine Learning to develop market strategies based on customer predictions. Companies that use big data become more customer-centric.
Companies can examine changing consumer preferences using historical and real-time data. As a result, firms can enhance and update their marketing tactics, making them more responsive to customer needs.
Benefits of Big Data
Big data can contribute to ground-breaking innovations for businesses that use it properly. In addition to promoting data-driven decision-making, big data solutions and big data analytics may also empower your employees in ways that benefit your company.
Opportunities To Make Better Decisions
There is a higher chance of finding patterns and insights that can guide operational and strategic decisions when the massive amount of information is available in a format that companies can easily manage and analyze.
Data-driven insights serve as a basis for more intelligent and trustworthy decision-making.
Increased Productivity and Efficiency
Individual worker productivity levels may rise due to organizations being able to process more information more quickly thanks to big data analytics tools.
Additionally, the enterprise may gain access to data and insights about its operations, allowing management to identify areas where the organization could be more productive.
Reducing the Cost
Using big data to streamline processes, boost efficiency, and boost production can result in considerable cost savings for an organization and benefit overall profitability.
Additional cost savings are produced by utilizing big data in predictive or prescriptive analytics processes powered by machine learning and artificial intelligence. This can be done by finding even more effective working methods or by using techniques like preventative maintenance and improved quality control management.
Improved Customer Service
Helpline services and technical support powered by big data, artificial intelligence (AI) and machine learning can significantly improve the level of customer care firms can offer.
Responsible usage and analysis of customer and transaction data enable companies to tailor their communications to specific customers, increasing brand engagement and improving user or buyer experiences.
Fraud and Anomaly Detection
Knowing what's going wrong is just as vital as learning what's going correctly in financial services or healthcare sectors. Artificial Intelligence and machine learning systems with big data quickly detect erroneous transactions, signs of fraudulent activity, and anomalies in data sets that may hint at various ongoing or potential problems.
Foster Competitive Pricing
Big Data Analytics lets you monitor the market and your competitors in real-time. You may not only keep track of your competitors' past behaviours but also examine what they are doing right now. Big Data Analytics provides real-time information, allowing you to –
- Calculate and quantify the effect of price changes.
- Utilize competitive positioning to increase firm earnings.
- Examine your finances to understand your company's financial situation better.
- Implement price strategies based on local customer demand, purchasing behaviour, and competitive market patterns.
- Automate your company's pricing process to ensure price uniformity and prevent manual errors.
Greater Agility and Speed
Advances in real-time big data processing via stream analytics help firms to become nimbler — both in internal operations and product development, innovation, and speed to market.
Boost sales and Retain Customer Loyalty
Big Data collect and analyse massive amounts of client data. Customers' digital footprints show a great deal about their preferences, wants, purchasing behaviour, and much more. This client data allows for creating personalized products and services to meet the specific needs of distinct customer segments. The higher a company's personalization quotient, the more clients it will attract. Naturally, this will significantly increase sales.
Personalization and product/service quality also has a favourable impact on client loyalty. Customers will return to you if you provide high-quality products at reasonable pricing, personalized features, and discounts.
Control and Monitor Online Reputation
Businesses must evaluate, maintain, and enhance their online reputation as more corporations take their business online. After all, online and social media reviews from consumers may impact how potential customers view your company.
There is a plethora of Big Data tools built explicitly for sentiment analysis. These tools assist you in navigating the enormous online realm to discover and comprehend what people are saying about your products/services and brand. Only after you understand client complaints can you attempt to enhance your services, which will ultimately boost your online reputation.
5 Big Data Case Studies
Undoubtedly, Big Data has been a game changer in most modern sectors during the last few years. More businesses are using Big Data as it becomes more prevalent in our daily lives.
Following are the interesting big data case studies
With over 2 million employees and 20,000 locations in 28 countries, Walmart is the world's largest retailer and company by revenue. It began using big data analytics even before "Big Data" was coined.
Walmart employs Data Mining to identify patterns that can be utilized to make product recommendations to users based on which products were combined.
Walmart has enhanced their customer conversion rate by utilizing excellent Data Mining. It has been accelerating big data analysis to produce best-in-class e-commerce technology to provide an improved consumer experience.
The primary goal of storing big data at Walmart is to improve customers' shopping experience when they visit a Walmart store.
Walmart develops big data solutions to revamp global websites and create unique applications to personalize the shopping experience for customers while enhancing logistics efficiency.
When it comes to moving passengers and making deliveries, Uber is the top choice for people all around the world. It leverages the user's data to closely monitor which parts of the service are more frequently utilized, analyse usage trends, and identify where services should be more concentrated.
Uber focuses on the supply and demand for services, which causes the pricing of the services given to fluctuate. As a result, one of Uber's most essential data applications is surge pricing. For example, if you are late for an appointment and order a cab in a congested area, you should expect to pay twice the amount.
For example, on New Year's Eve, the cost of travelling one mile can range from $200 to $1,000. Surge pricing affects demand in the near term, but long-term use may be the difference between keeping or losing consumers. Machine learning techniques are being considered to detect where there is high demand.
Netflix is determined to use Big Data to forecast what its users enjoy watching. For this reason, big data analytics is the gasoline that powers the recommendation engine. Netflix has recently begun to promote itself as a content creator rather than just a distribution channel.
This technique has, unsurprisingly, been heavily influenced by data. Data points such as what titles users watch, how frequently playback is interrupted, ratings are given, and so on feed Netflix's recommendation engines and new content decisions. The company's data structure incorporates Hadoop, Hive, and Pig, as well as a variety of other typical business intelligence tools.
Netflix demonstrates that knowing exactly what customers want is simple if corporations don't make assumptions and make decisions based on Big Data.
As a data-intensive company, eBay faces a significant technical barrier in implementing a system that can instantly assess and act on data as it arrives (streaming data). There are numerous approaches for supporting streaming data analysis that is continually evolving.
eBay collaborates with several tools, including Apache Spark, Storm, and Kafka. It enables the company's data analysts to look for information tags connected with the data (metadata) and make them available to as many individuals as possible with the appropriate level of security and rights (data governance).
The company actively participates in the open-source community and has been a pioneer in integrating big data solutions.
McDonald's and Burger King
Have you ever observed that you rarely wait long for your fries or burger at McDonald's or Burger King?
Big Data is the reason...
Yes, Big Data contributes to the timely delivery of your meals at the counter. Do you want to know? How?
Some fast-food restaurants use Big Data analytics to monitor their drive-through lanes and to adjust their menu items.
If the food order line is severely backed up, the features will be modified to reflect only those things that can be rapidly made and supplied. If the queue is reasonably short, the feature will only show items requiring a little more preparation time.
As a result, you can see all these menu modifications on the LCD screen at food outlets.
Future of Big Data
Most big data professionals agree that the amount of generated data will continue to rise dramatically in the future. According to projections, the global data sphere will reach 175 zettabytes by 2025. The growing number of internet users who do everything online and the development of linked gadgets and embedded systems are significant contributors.
Experts anticipate that the future of big data will be cloud-based, as public and enterprise cloud service providers such as Microsoft Azure, Amazon Web Services (AWS), and Google Cloud Platform revolutionize how important data is stored and handled. Hybrid and multi-cloud systems are considered the future of corporate big data project implementation.
Fast data, which enables processing in real-time streams, is projected to grow in popularity. Fast data will become a vital vehicle for delivering speedy business value, with stream processing technology allowing firms to examine such information in as short as one millisecond. This trend is expected to be fuelled by the merging of growing machine learning and artificial intelligence technology into big data analytics tools.
Finally, we've seen big data's benefits and use cases in real-world applications.
Big Data assists organizations and businesses in identifying and exploiting new growth prospects. Big Data provides them with a wealth of information on the products and services. It also aids in learning about customers, suppliers, and consumer preferences, which may be recorded and analysed.
Overall, it aids in the understanding and optimization of business processes.
Undoubtedly, Big Data provides a doorway into a new world. It gives you a fresh perspective of the world and allows you to perform things more efficiently and productively.