Big data and its business impact
In the past, only a few large companies were able to access big data due to the high prices of data collection and analytical tools. However, with the rapid growth of technology, both startups, and large companies are now able to access these tools. Big data plays a significant role in improving the productivity of a company. It is majorly used in sectors such as manufacturing, retail, and logistics.
Big data encompasses a large volume of information that is analyzed using data analytical tools to establish trends and patterns of human behavior. It plays a significant role in developing insights and helps in better decision making. Big data is mostly used to establish customer experiences to improve customer satisfaction.
It also helps in establishing target markets, cost reduction techniques and increasing the profit margins. Big data allows companies to discover secrets that Help them to gain a competitive advantage over their rivals. In retail, big data is mostly used to analyze inventory and reduce fraud. In logistics, it is used to analyze individual customer behavior and create a customer profile. In manufacturing, big data helps companies discover new ways to reduce costs and improve efficiency and productivity.
Financial services and telecommunications companies embrace big data to help them develop more customer-oriented solutions. Vendors use it for the better supply chain management. There is no doubt that big data plays a significant role in the development of businesses. In 2017, more than 53% of companies had invested in big data. This big data is either sourced from medical records, scientific experiments, and customer databases. It is also garnered from social networks, mobile applications, and large transaction systems. The big data is stored in technologies such as cloud-based analytics and Hadoop. It can be analyzed using predictive analytics, in-memory analytics, and machine learning. Hadoop, artificial intelligence and quantum computing can also be used in data analysis.
A business should consider several factors before adopting big data solutions. First, it should seek experienced personnel who are conversant with data collection and analysis. Secondly, it should analyze the desired goals, for instance, if they are targeting greater profit or more customer satisfaction. Also, they should target the right data failure to which the company will not achieve the desired outcome. The company should also apply proper analytical methods and tools. Big data is crucial to businesses of all sizes. It not only helps in developing insights but also in decision making. It increases the efficiency and productivity of companies by understanding customer needs.
References
Chen, H., Chiang, R.H. and Storey, V.C., 2012. Business intelligence and analytics: From big data to big impact. MIS Quarterly, 36(4).
Wamba, S.F., Akter, S., Edwards, A., Chopin, G. and Gnanzou, D., 2015. How ‘big data can make a big impact: Findings from a systematic review and a longitudinal case study. International Journal of Production Economics, 165, pp.234-246.
Popovič, A., Hackney, R., Tassabehji, R. and Castelli, M., 2018. The impact of big data analytics on firms’ high-value business performance. Information Systems Frontiers, 20(2), pp.209-222.
