Data is now part of every organization, as essential as capital. What makes Big Data different from other data groups is the vastness and range of data that is available. There is not just one aspect to decipher, information usually follows a structure, from looking into past records and also procuring information from modern sources like social media profiles, customer blog content, video channels, registration forms, etc. That is why Big Data analysis requires expert insight and verve in decision-making.
Quality improvement, eradicating errors from a process, reducing production time and saving on costs can be attributed to effective use of Big Data. As has been researched by McKinsey Global Institute (MGI), making good use of the huge data volume has gained monetary importance for business establishments, apart from other sectors. According to iveybusinessjournal.com, retail firms who embraced Big Data saw their profits go up by a phenomenal 60%. According to the McKinsey Global Institute report, data volume has witnessed an annual rise of 40%.
Business & Big Data
As statistics indicate, several companies are planning strategies according to Big Data, bringing innovation and value to the business. Studies conducted on varied sectors reveal how Big Data is here to stay. Collecting and analyzing data is not a new phenomenon. For example, in pharmaceuticals, data concerns the health effects of prescribed medicines.The clinical trails, citing the effects, side effects and risks that go with any particular medicine are also listed. The companies of the future will include ones that will capture data, info about consumer choices, products, buyers and services. There is still a large chunk of information out there that is not yet digitalized. The need for Big Data will only grow in the coming years, there is no dearth in demand for statistics and high-end data analysis. Still, bridging the gap between Big Data and profit margins is both a possibility and a hurdle. It takes insight and a keen eye to identify key Big Data areas and transform it into a profit-making idea.
According to Forbes.com, a staggering 84% of enterprises hope to see Big Data analytics providing them with a competitive edge within three years of implementation. About 89% enterprises believe that companies not taking to Big Data in 2015, will risk losing their market share. By 2014, over 73% of all companies were already allocating 20% of their tech budget to Big Data analytics.
There are various aspects that go into an business enterprise, here are few of the many aspects where Big Data is set to rule:
Advertising / Marketing
Online advertising is a major source of revenue for several online business enterprises. Big Data can help a big way in analytics, in selecting where the ads should be placed, what keywords should be used, which geographical region must have access to what kind of ads, what particular age group must be targeted in a certain advertising campaign, etc. Recording and documenting data about each click and every visit to the website, goes a big way in building a detailed bulk of information about the user. Interpreting the data into algorithms, making it easier to deploy ads, is just one of the luxuries that Big Data allows. Dividing areas into markets and consumers, helps to further segregate and personalize.
The effect of Big Data on digital advertising has been particularly profound, advertisers are now able to analyze large amounts of organized, unorganized data. With mobile phones as good as a person’s identity, personalizing online and device ads will be critical. Marketing will be data driven and facilitate localization of ad content. Deciding what ad content should go where will be a more precise business.
E-commerce / Retailing
The influx in digital data has led to an explosion of big data, leading to an interpretation
of data resulting in better performance and decision making. Another major factor has been about how data on customer understanding has been streamlined and systemically documented, thanks to the online shopping tradition, fast gaining ground. Leading companies are finding new ways to overtake the stiff competition, thanks to Big Data. The push for innovation and understanding customers’ needs begins with it.
There are tools that allow companies to latch on to anything that is said about the company on social media. One live example is the site, socialmention.com. Hadoop is another exclusive Big Data tool that can be scaled to thousands of machines, as per requirements. The Hadoop framework allows storage and processing of Big Data by use of simple programming methods.
Big Data has been largely used in analytics. In the world of automated banking, it is used in prevention and detection of fraud. Most financial applications of Big Data are customer-centric. According to an IBM survey, over 55% of the banking and financial sector people banked on a customer-friendly approach, moving away from a product-focused approach. No wonder, customer-based analytics is right on top of banking companies’ to do-list. For instance, the Oversea-Chinese Banking Corporation (OCBC) based in Singapore and Malaysia, checked on detailed customer data to discover each customer’s preferences and streamline their services.
In the widespread mayhem and use of cellular phones, instant communication and social networking, Big Data can aid in making sense of constantly accumulating data. Creating chunks of detailed information on each subscriber goes a long way in providing them with customized services. The European telecom company saved over 40% in costs, thanks to subscriber data interpretation. Putting together all accumulated customer data to conceptualize, create, test-launch and then release the product is another effective manner to put Big Data to use. Issues do persist in implementation across business enterprises.
As Dr. Sarab Kochhar, Director of Research, Institute for Public Relations, mentions in her recent article, that several organizations lack collaborative teams where IT and business departments work together on Big Data. Kochhar also mentions the need for consistent data management policies. She also writes on the need for research with respect to what tools need to be used where.
With an increasing frequency in occurrence of tech-crimes, hacking, cyber terrorism and instances of fraud, Big Data can play a huge part in a system where cyber security norms and platforms need to be constantly updated. Constant analysis of data, detailed monitoring and review, discovering a pattern to the facts, can go a long way in enhancing security and intelligence. Evaluating new sources of data like the Internet, social media websites, email and mobile appliances, adds substance and direction to Big Data analysis. Under such circumstances, each business enterprise needs to strategize on what tools and data is required.
With the aid of Big Data you will be able to: 1. Identify what needs to be protected. 2. Know what threats are reoccurring and counter them. 3. Pinpoint threats to security within the enterprise. 4. Predict hacking, reduce cases of fraud and be ready for cyber attacks.
These are just a few aspects where Big Data is changing and contributing significantly to profit-making and stability. But there is no doubt that interpreting Big Data and gaining from its benefits, will only gain stature, in the time to come.