Big data feels like a new term, but it was first coined by analysts who used spreadsheets to mine information in the early 1990s. Today it refers to enormous sets of data that are generated from a wide range of digital sources and transferred quickly. Unlike traditional forms of digital data, big data denotes packets of information that are so large, swift and diverse that they cannot be processed using standard methods.
Businesses collect data from innumerable sources. These include phones, televisions, apps, cars, websites and credit cards, all of which can transmit valuable information to specialized platforms. These big data software platforms use databases, servers and AI tools to manage the information. Over time, the big data is broken down to identify patterns in behavior and trends that are useful to a business.
The ability to understand and utilize big data gives executives a head start over their rivals. It allows them to view the big picture, be agile when it comes to taking action, and ultimately, be more productive. Ambitious business leaders who are hoping to take their career to the next level should consider the Aston Online DBA. Aston University’s Doctor of Business Administration is a globally recognized program that is delivered part time over four to six years. It prepares graduates for the most senior positions in their field.
Using big data well
Businesses that decide to use a big data initiative need to be clear on what they want from the beginning. Large amounts of information can be confusing, and money could be wasted on the implementation of unnecessary data. Furthermore, companies that obtain their data analysis from a thirty-party business should have strict data protection rules in place. These should cover who will have access to the data and how it will be used. Finally, once the infrastructure is in place, organizations should share the insights gained with all their departments. It is often the case that information on customer behavior has implications for various areas of an organization, so teams must collaborate to find the most innovative solutions.
How do different industries harness the power of big data?
Big data spans almost every sector, changing how contemporary organizations interact with each other, their suppliers and their end users. Here are some of the industries that have adopted big data insights quickly and are using them to enhance their products and services:
Finance
The complex data sets created by big data are used to create various solutions to the challenges felt in the financial sector. The predictive analytics this service provides is transforming how stock markets function around the globe and informing the investment decisions of many. It can provide real-time insights into market trends and reduce errors that might occur due to an investor’s personal bias.
Another key benefit for this industry is fraud detection and risk mitigation. Banks and lenders can use big data to identify possible criminal activity by pinpointing strange transactions or a dramatic change in a person’s buying habits. This helps an organization stay compliant with various regulations around fraud controls. Furthermore, it ensures they can act quickly to advise the cardholder of a potential threat or block a concerning transaction.
Entertainment
Anyone who uses Netflix, Disney+ or another streaming service is contributing to big data. As these entertainment organizations have access to numerous digital customers, they are in the ideal position to use the big data they create to enrich customer engagement. At a basic level, they can deliver a better experience by predicting what people want to see based on their searches, viewing history and ratings.
This information can also be utilized when it comes to retaining customers and increasing their user base. Companies can learn more about why people subscribe or unsubscribe, and then use this data to develop their products and promotional offerings. Finally, instead of informing customers about every new program, services can use the information they have gathered about viewers’ habits to send targeted advertisements. This ensures the emails a company sends feel more personal, and as such, are more appealing to the customer.
Healthcare
With access to vast amounts of patient data, hospitals, pharmaceutical providers and researchers can progress and develop healthcare solutions. Organizations can see how well they are performing in specific areas and understand where there are areas to improve. Analytics can also aid healthcare providers when it comes to creating personalized treatment plans, by ensuring the scheme benefits the payers and providers.
In terms of population health, data can confirm that the best decisions are made for entire communities, by ensuring the information on behavioral health is accurate and not based on assumptions. Finally, the adoption of wearables to enhance healthcare has allowed clinics to cut costs considerably. The huge amounts of real-time streamed data from watches and other devices is extremely valuable. It provides better preventive care for the individual, but also important information on how a condition progresses and what the triggers can be.
Agriculture
Farmers are under increasing pressure to provide cheaper, more environmentally friendly and abundant produce. To manage these demands in a time of climate change, many are using big data. This allows them to collect information from various sources and then optimize their output without massive upheavals on their farm. Sensors attached to tractors provide information on the soil, and farmers can also use big data to analyze weather patterns. This allows them to take care of a crop more efficiently and modify their pricing model. Additionally, these insights can be used to spot and control a small problem before it becomes more difficult to manage. These might be issues that occur with soil quality or equipment, or operational inefficiencies which must be tackled swiftly.
How can big data help individual businesses?
Across almost every business sector, data is a crucial tool, from the smallest start-ups to firms with a global reach. These companies are often primarily interested in gaining a competitive advantage over their rivals, but there are other ways in which this resource benefits businesses. Gathering and analyzing datasets is just the beginning of the process. To personalize the experience, big data professionals also need insights into what the company expects to gain from the information and how they plan to use it. Here are a few ways in which big data can give organizations the edge:
Leaders can feel more confident in their decisions
Businesses that are already using analytics to fuel their decision making can take this concept to the next level with big data. The vast amount of information at their fingertips allows CEOs and managers to evaluate their processes and learn about making their operations more efficient. They are better informed when it comes to choosing which equipment to buy, understanding the habits of employees and selecting materials.
With this in mind, it is easy to make decisions about where to spend money, what kind of people should be hired and how risk can be managed. As well as speeding up the process of decision making, having generous amounts of information can make businesses more confident in their choices. This is a major advantage in any fast-paced commercial environment where having the courage to respond quickly to prevalent trends gives you the edge.
Asset optimization is simplified
Big data allows companies to monitor each asset they own individually. They can also find the best way to use the assets they own, based on highly detailed big data. As a result, the business can swiftly work on improving productivity, minimizing downtime and extending the life of its assets. Asset optimization involves finding the sweet spot between reliability and efficiency. In a production environment, this could involve changing how and when pieces of equipment are run. For example, a business may find that running two pieces of equipment at 60% is more economical than running one piece at 100%. Insights like these can deliver a competitive advantage as businesses can maximize their assets as well as potentially cut costs.
Costs can be reduced
There are several ways that big data can help businesses reduce the cost of running their organization. Energy consumption is one area where costs can be reduced, as data ensures that this metric can be tracked and constantly optimized. Using data, a business can see which spaces and systems are consuming the most energy and take action to reduce this where possible.
It can also evaluate which staff working patterns are the most effective. For example, a business could examine whether daily meetings and regular emails make a department more or less productive, compared to departments that follow a different working pattern. Furthermore, big data might suggest what actions can be taken by staff to increase productivity. This type of information ensures savings can be made without having a major impact on the business’s operation.
Marketing becomes more effective
In the modern world, marketing has generally relied on data to create targeted campaigns and personalized advertisements. Now big data can be used to understand how customers behave and their intent at every point in the buying process. Teams can create a strategic marketing scheme that is focused on a specific demographic, based on what people have bought previously or what they view on social media.
Supply chain problems are avoided
Supply chains can be spaced out around the globe and this can lead to a lack of visibility for the end users. Considering decisions about supply chain management can cost a company dearly. It is clear that digitized supply chains informed by big data are the future. Using the information gathered by AI, a business can quickly collect insights from real-time reports and make important decisions immediately. In turn, this leads to fewer gaps in service and better relationships with both customers and suppliers.
The service is tailored to customer preferences
The standard data a business holds on its customers can become outdated within weeks, leaving the company unable to provide a personalized experience. However, by using big data, companies can tap into a plethora of constantly updated information. This ensures they keep customers happy in various ways. For instance, a customer can select the way in which they will be contacted, meaning a firm can avoid bombarding its contacts with unwanted emails or texts and potentially lose a client in the process. This data can also provide details on how people prefer to engage with a brand, be it through print adverts, the website or social media.
New revenue streams emerge
All businesses are interested in increasing their profits. This is done by refining their current model, but also by generating new sources of revenue. Big data can help with this aim in several ways. In terms of advertising, the information it provides will inform a business about the best times of the day or the best places to advertise. When their product or service is promoted at optimal times, the campaign is more effective at driving sales. Big data can also be analyzed to find out what customers are searching for and what they need. With this information, companies can be ready to provide it before their competitors.
A sound investment
In many traditional industries and family businesses, decisions were made on gut feelings and intuition. However, an increasingly competitive global market means companies must be more creative to stay in the game. Big data is an accessible resource that has been enabled through technological advancements. It may seem futuristic, but in fact, it helps to solve simple problems.
All a business needs to do is decide which problems they want it to solve, and then choose how to collect the data required. Small firms might work with third-party providers to collect and structure their data, but multinationals have entire departments devoted to solving business problems by modeling their data and driving insights. This developing technology cannot be ignored. As it becomes more accessible to all sizes of businesses, the organizations that choose to invest will have the upper hand when it comes to growing their revenue and building their brand.
