Technological innovations and changing market trends have greatly influenced today’s business dynamics. Business practices have altogether changed, and for the better. Today, businesses are compelled to create an online presence to ensure profitability and keep pace with their competitors. With the onset of social networking sites and various online platforms, phenomena like big data have emerged. “Big data” is a relatively new term. It entails a colossal set of data along with various tools and frameworks involved. For understanding big data, we must first discuss its 3V’s (variety, volume, velocity). In simple words, big data is a variety (different sorts) of data available in large volume (amount) and accumulated with high velocity (speed). The idea of big data has been there for years, but it was not as advanced as it is now.
Moreover, the rising number of social media and online platforms further adds to the enormity of big data. Handling big data is challenging because most of the data gathered from videos, photos, or social media sites are unstructured. Nowadays, businesses have to look for new and innovative ways to handle and benefit from big data. Advanced technology has brought about various noteworthy changes in the handling of big data. Innovative software systems have significantly reduced data analysis time, enabling businesses to make prompt decisions. After gaining substantial insights from big data, companies can reduce expenses, increase profits, and devise development strategies
Significance of big data for businesses
Big data is equally significant for every business regardless of its size and nature. An organization should think ahead of time to attain long-run success, and that’s where big data comes into play. Big data can predict customer purchase patterns as well as identify their online behavior. Big data also enables you to foresee customers’ actions by analyzing their buying patterns.
Considering the advantages of big data, several organizations are building teams that can exploit its true potential to enhance business efficiency. Most of them hire individuals who possess an MS analytics online degree, given the exceptional skillset that online learning instills in them. Such competent individuals are well-versed in leveraging innovative methods and implementing data-driven decisions. In today’s era, organizations reluctant to reap the benefits of big data are the ones that fail to attain competitive advantages.
Now, we will discuss some compelling reasons why every organization should leverage big data.
Acquisition and retention of customers
In today’s age, customers have become highly demanding. Fortunately, big data allows organizations to determine their customers’ stated and unstated needs. It analyzes customers’ buying patterns and provides them with product suggestions based on their purchase history. Moreover, once you know what your customers need or want, you can devise strategies to retain them accordingly. It is also vital in establishing a robust customer base and in building loyal customers.
For instance, Amazon is employing big data successfully by providing its customers with personalized online shopping experiences. Likewise, it also utilizes big data technology to improve its order placement and tracking system by aligning manufacturers. Customers are provided products closest to their region which ultimately reduces delivery time and costs.
Development and redevelopment of products
Undoubtedly, big data plays a significant role in the development of new products and their modifications. It allows organizations to redevelop products according to changing market trends and customers’ preferences. Social networking sites provide ample information about customers’ liking and disliking. Big data not only helps develop or modify existing products but also assists in creating innovative products. Similarly, it provides valuable insights to innovate and streamline business processes and reduce costs.
If a business wants to remain competitive, it has to come up with something innovative. No business can prosper, let alone function on traditional methods, so generating valuable insights from big data becomes imperative. Companies mine social sites and related websites to gather relevant data about their products and after-sales experiences. They also elicit customers’ feedback regarding their products. All of this collected data allows them to make the necessary changes to their products or modify them.
In this era of cutthroat business competition, a predictive analysis model enables organizations to remain ahead of their competitors. Predictive analysis models anticipate the likelihood of upcoming events based on previous records. For instance, during the holiday seasons, the demand for a particular product might increase compared to other products. Keeping this in mind, you can inform the manufacturers beforehand to produce bulk items to meet the rising demand. Predictive analysis also allows a business to define its target market and how to reach them.
Furthermore, it enables businesses to identify suspicious activities or frauds that may occur in a business transaction. It also provides accurate methods to prevent fraudulent activities.
Identification of internal threats
Nowadays, almost every business flourishes in a high-risk environment. If companies don’t take calculated risks, they won’t be able to capitalize on market opportunities. Hence, the business environment entails risk management strategies. Companies can also leverage big data for this purpose as it’s supportive in devising risk management tactics.
Financial risks are a threat for any business. Big data helps predict financial risks that can damage your business and ensure that you take calculated risks. Applying big data for financial risk management gives you a complete picture of your revenue stream. And this allows you to manage financial risks while striving for business growth.
Targeted advertising campaigns
Marketing is an essential business function that every organization needs, even if it’s an industry giant. Businesses can create captivating advertising campaigns that target the right customers at the right time by utilizing big data technology. A good example is Netflix that advertises its shows based on the previous preference of its viewers.
The advertising dynamics are changing rapidly from traditional to digital advertising. And since digital advertising is data-driven, it benefits from big data. Digital advertisers can better target their users with the help of big data. For instance, Facebook and Google make targeted, personalized advertisements by employing big data.
In today’s world, no business can flourish without reaping the many benefits of big data. Big data caters to various business needs ranging from customer acquisition and product development to devising targeted advertising and managing financial threats. With the increase in online business post-Covid, the future belongs to big data. So, every organization should focus on devising strategies to manipulate the potential of big data for business development and success.