- September 12, 2023
- Posted by: Aelius Venture
- Category: Information Technology
Business leaders usually think of large data quantities when they hear the term big data. E-commerce and omnichannel marketing platforms, IoT devices, and corporate apps generate more transaction and activity data. Just a few examples.
The data is massive, maybe overwhelming. Big data analysis has several commercial benefits. We’ll discuss some of these benefits below, but first let’s define what we’re talking about—it’s not just data.
What’s big data?
The term indicates that the amount of data involved can be bewildering, but it’s not a complete definition. I’ve seen multiple data lakes in the same organisation that were smaller than standard data warehouses to hold huge data. huge data platforms are optimised for enormous data sets. However, huge data is usually big.
What else happens? The variety of data kinds is important. A big data system may comprise XML, raw log, text, image, video, audio, and structured data. This is the variety of big data, and storing and processing massive information like photos, video, and audio requires a scalable system.
Another twist is data velocity. That relates to its generation or update pace. Log files from monitoring systems, mobile apps, websites, and other sources often contain thousands of readings per hour. Big data can exist without velocity, but a good architecture can handle it.
Many analysts and practitioners have added veracity and variability to these V’s of big data. In conclusion, big data often has several types of data and the potential for scalability and rapid updates. It also includes innovative data storage, processing, management, and analysis methods for business choices. These new techniques enable big data benefits that corporate executives and IT teams want.
Following the 8 ways big data can enhance a company
Better customer insight
Modern businesses have many data sources to understand their clients individually or in groups. The following big data sources illuminate customers:
- conventional consumer data sources like purchases and support calls;
- Credit reports and financial transactions external sources;
- social media use;
- survey data from internal and external sources;
- computer cookies.
In an increasingly digitised marketplace, clickstream analysis of e-commerce activity can reveal how customers browse a company’s webpages and menus to find products and services. Companies can monitor which goods users placed to their baskets but removed or abandoned without buying, which can reveal what customers might like to buy.
Brick-and-mortar stores can also learn about their customers by analysing video of how they explore a store vs a website.
More market intelligence
Big data can analyse complex client shopping behaviour and improve our understanding of market dynamics.
Social media provides market insight for anything from breakfast cereal to vacation packages. People share their preferences, experiences, recommendations, even selfies for practically every commercial transaction! They serve breakfast too. This feedback is crucial for marketers.
Big data can support product creation by prioritising client preferences in addition to competition analyses.
In practically every e-commerce or online market, diversified, ever-changing data drives market intelligence.
Supply chain agility
In the face of pandemic-driven toilet paper and other products shortages, Brexit-related trade disruptions, or a ship trapped in the Suez Canal, modern supply systems are shockingly vulnerable.
Surprising because we rarely notice our supply chains until a severe disturbance. Big data that enables near-real-time predictive analytics keeps our worldwide demand, production, and distribution network running smoothly.
Big data systems can combine customer trends from e-commerce sites and retail apps with supplier data, real-time pricing, shipping, and weather data to deliver unprecedented insight.
Not only huge companies profit from these insights. Customer intelligence and real-time pricing can optimise stock levels, risk reduction, and temporary or seasonal staffing for even small e-commerce enterprises.
Smarter suggestions and audience targeting
Consumers are so acquainted with recommendation engines that they may not realise how much they have changed since big data. Association criteria that detected common goods in market baskets were once used for predictive analysis for recommendation engines. E-commerce websites still show that widget buyers also bought fidgets.
Building on the comprehensive customer information we’ve discussed, newer recommendation systems are more sensitive to demographics and customer behaviour. These systems go beyond e-commerce. A point-of-sale system may examine pantry supplies, popular combos, high-profit goods, and social media trends to inform a friendly waiter’s recommendations. Sharing a dinner photo feeds big data engines more data.
Streaming services employ more advanced methods. They may not ask customers what to view next: By using their personal tastes and big data research from other users and social media, the next movie, programme, or song fades in before the current one concludes, keeping people binge-watching.
Inspiration is not enough to innovate. Identifying good topics for fresh research and experimentation is difficult.
Big data techniques and technology can boost R&D, leading to new goods and services. Data cleansed, prepared, and governed for sharing can become a product. The London Stock Exchange now earns more from data and research than securities trading.
Even with the best big data tools, data alone cannot yield fresh insights. Data scientists, BI analysts, and other analytics experts’ understanding and inventiveness are still needed. The breadth and reach of big data, especially when kept in a single Hadoop cluster or cloud data lake, can help teams understand trends that would be difficult in a less integrated environment.
Variety of data set uses
Several times in my career, data that was meticulously collected and modelled for one commercial purpose was unfit for another.
A credit card issuer’s marketing team sought to know how clients utilised their pocket cards. The many unsuccessful swipes and cancelled transactions at the time, frequently owing to payment terminal connection issues or card magnetic stripe faults, complicated the study. The data was carefully cleansed to exclude unsuccessful transactions.
The initial marketing application used a wonderful data collection. The fraud protection team couldn’t use it since they wanted to see unsuccessful transactions that may have indicated fraudulent card use. Additionally, the erased material was kept on tape and difficult to access.
In the age of big data, we can store all raw data in a data lake and apply data models only when needed for analytics. We can then create use-case-specific data pipelines or execute ad hoc queries to populate analytics processes. This allows for many and different applications to run on the same data set.
Improved business operations
Big data improves all business activities. It optimises company operations to save money, increase productivity, and satisfy customers. Effective hiring and HR management are possible. Fraud detection, risk management, and cybersecurity planning mitigate financial losses and business threats.
Improving physical processes using big data analytics is fascinating and gratifying. Big data and data science can provide predictive maintenance schedules for important equipment and systems to prevent costly repairs and downtime.
Start by examining age, condition, location, warranty, and service. However, facility security and HVAC systems are affected by other company operations like personnel and manufacturing schedules, which may be influenced by sales cycles and customer behaviour. Well-integrated big data sets help you maintain equipment at the right moment.
Future-proofing analytics and data platforms
The development of data analytics technologies and methods is rapid. The basics of reporting, BI, and self-service analytics already strain IT departments. Machine learning, predictive modelling, and AI are increasingly mainstream for major organisations. The data collected, saved, and analysed vary with each iteration of technology.
This diversity and data volume are challenges today. But data and analytics needs are only getting more sophisticated and demanding. Who knows what’ll happen in a few years? Big data’s versatility and size are vital for building a long-lasting data platform.
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