In 2013, in a single minute, 571 websites are opened; 204 million emails are sent; 70 domains registered; and 278, 000 tweets posted. This is just a statistic. To arrive at that, a lot of analysis has taken place to arrive at that. Armed with such metrics, you can know which area has the potential for business. Big data, despite it being a magical tool for business, much of it sits idle in databases and silos doing nothing. However, those using this tool for business are reaping great rewards. Here are five benefits of big data analysis.
1. Cost Savings From Informed Decision-Making
When faced with a problem, you have to make a decision. Most people tend to use their experience, expert consultations, or even just gut feeling to make such decisions. The outcomes are varied ranging from average to tragic. On the other hand, when using analyzed data, you can make precise decisions. You can know your cost function and its determinants; you can understand your business operations, cycles, etc.; and make significant changes targeted to the problem.
For example, companies utilizing big data can know precisely how much company hours are lost during lunch breaks, sick offs, among other situations. Some companies have provided a wellness center within their facilities in a bid to be on top of all the health needs of their staff after realizing the gains far outweigh the costs. That way, they have managed to improve employee output by reducing the risk of sickness.
2. Real-Time Customization And Personalization Of Product And Service
As a business, your value proposition is guided by simply your ability to identify a need and provide a solution. To achieve this in an expansive market that is looking for customized products on a budget is a tough ask. However, with careful analysis of the market, you can quickly scale down your focus to a niche area and customer base. To do that, you need to scour through data silos to get meaningful information.
Even established companies are finding this tool very valuable, not just in identifying the customer needs, but also recognizing when the customer needs the product and how to get the product to him or her. E-commerce is the next frontier in marketing. Almost every other big company is adopting the e-commerce model of selling. That is because they have noticed that customers are increasingly shopping online. By knowing that, they have to bring the service or product to where the customer is. Of course, such information is a product of big data analysis, not gut feeling.
3. Driver of Innovation (New Product Lines) And Solutions
Pivoting is a new normal in today’s world. IBM did the most significant technological oriented pivoting when they decided that hardware was not important in their catalog. Today, IBM is a global leader in digital solutions for its almost hardware-exclusive manufacturing business. Such drastic decisions and possible solutions and products are a result of understanding the future. This is the predictive capacity of big data.
For example, when Amazon realized how much money it was using to pay for data storage and servers, they decided to venture into web services. Today, Amazon Web Services is a globally recognized enterprise cloud computing SP. Many other companies have created or simply moved away from their core business to innovate and bring together a completely new range of services, courtesy of big data analysis.
4. Understanding Market Conditions
Courtesy of data, we know that the growth of telecommunication networks has grown at over 200% in the past decade. We also know much more about this and other metrics available out there thanks to big data analysis. Using such information, we can recognize trends, dynamics, and many other things.
For example, seated on your couch, you can analyze the market segment of your product based on income exposure, customer behavior, level of education, among many other determinants of customer intelligence. Armed with this information, you can predict how the market shapes or shifts, and you can align your products with the current lest you be swept away by standing in the way of a flood.
5. Risk And Fraud Mitigation
We have seen even global corporations fold up for failing to operate from the point of information. Firms such a Lehmann Brothers worked in a financial world of risks without looking keenly at where they stood, the repercussions are there for all to see. Today, analysis of the dynamics around your business can be the only hope you have of remaining profitable.
Modern business requires a regular and swift understanding of the market shifts, changes, trends among many other things. To understand these things correctly, you cannot simply use gut feeling. Again, businesses operate in a complex environment with complex movable parts. It, therefore, becomes tough for anyone to scan through and make informed decisions. Thanks to the analysis of these complex factors, one can have a complete picture of the environment he operates in and consequently mitigates potential threats and risks.
Despite this great potential presented by big data, there are many challenges, threats, and concerns that harvesting or mining, storing, analysis and use of the same bring . The top of this list is privacy, security, and investments.
About the author
Ian Andrews is an entrepreneur, author, and professional online exposé. He helps people secure their investments by preventing fraudsters from luring them into shady deals. He is the founder and managing partner of Ian Leaf Corporation.