What Is Big Data & Its Importance In Business
In the last decade, data has become the single most valuable resource for businesses and organisations in the digital world. It holds immense power and contains vital information that can transform businesses in all sectors. As more and more companies are adopting technology and software that helps them gather crucial information regarding their business, the amount of data being generated is astonishing. The concept of Big Data stems from this practice.
What Is Big Data?
According to Gartner, Big Data is defined as “high-volume, high-velocity and/or high-variety information assets that demand cost-effective, innovative forms of information processing that enable enhanced insight, decision making, and process automation.” In simpler terms, it refers to large sets of data that are difficult to process using traditional analytical tools and methods. Big Data typically has five dimensions:
- Volume – This refers to the scale and involves a large amount of data – typically in billions, terabytes, etc.
- Variety– This refers to the various data types that may be processed and stored in the same system.
- Velocity – This refers to the streaming of data which includes real-time information that is generated and updated at a fast pace.
- Veracity – This refers to the accuracy of data sets and how they are interpreted.
- Value – This refers to the value of the data sets that can be used to understand the value of the business.
How Can Big Data Help Businesses?
The rise of Big Data has helped businesses understand and realise their true potential. As traditional data analytics tools are limited in their capacity to gather and analyse the vast amounts of data generated every day, Big Data analysis is the best way forward for companies that wish to unlock their full potential. It helps organisations collect vital information, such as:
- Customer profiles and their purchase patterns.
- Cross-selling and upselling opportunities.
- Targeted promotional data.
- Supply chain performance and inefficiencies, if any.
- Market trend predictions.
- Employee performance and productivity.
- New sources and opportunities for revenue-making.
While the collection is essential, analysing all this data and deriving valuable and actionable insights from it is another challenge. Thankfully, Big Data analysis tools and predictive modelling methods can do the job just fine. With the help of Big Data analysis, businesses can enjoy the following benefits that can help them grow:
- Improve Customer Experience
One of the most important uses of Big Data analysis is understanding the customer. Without knowing what, where and why the customer makes a purchasing decision, companies cannot provide a unique customer experience that keeps them coming back for more. Big Data analysis helps you understand your customers and offer them the best customer experience using personalisation and segmentation.
- Boost Sales
Big Data gives accurate information about customer buying journeys, market trends and size, and other product-based information which allows businesses to promptly respond to customer demands and be the first in the market to offer the services/products that are in demand. This can significantly increase lead generation and boost sales.
- Increase Productivity
Employees often rely on estimates when making crucial decisions. Big Data analysis with the help of AI and deep learning can help them conduct an accurate risk assessment and modify the processes based on quantifiable data. They are also less likely to make errors and more likely to take the right decisions regarding important processes, thereby resulting in better productivity.
- Gain Competitive Edge
Big Data analysis is increasingly being used by companies who wish to gain a competitive edge in their respective markets. With the help of data mining and other advanced data analytics tools and methods, businesses can refine their SEO, SEM, SMM, PPC, content, and email marketing strategies to target the right customers and stay ahead of the game with predictive modelling.
Big Data is often referred to as the “next big thing.” But it is already here and revolutionising industries like healthcare, finance, retail, manufacturing, and engineering to name a few. From driving brand loyalty to optimising prices and making other important decisions, Big Data analysis is the key to a successful future for all businesses.