The big data analytics market is predicted to reach $103 billion by 2023, and the market has grown by 20 per cent this year alone. Many companies use big data creatively to gain insights that enable them to become and remain competitive in their field. For example, tech giants like Google, Microsoft, Apple and Meta have successfully leveraged the use of predictive analytics to continually stand out, sometimes designating them as big data companies.
Before we explore how businesses can leverage the power of big data, we must have a firm understanding of the term.
What is Big Data
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IBM maintains that businesses around the world generate nearly 2.5 quintillion bytes of data daily! Almost 90% of the global data has been produced in the last 2 years alone.
Big Data refers to complex and large data sets that have to be processed and analyzed to uncover valuable information that can benefit businesses and organizations.
However, there are certain basic tenets of Big Data that will make it even simpler to answer what is Big Data:
- It refers to a massive amount of data that keeps on growing exponentially with time.
- It is so voluminous that it cannot be processed or analyzed using conventional data processing techniques.
- It includes data mining, data storage, data analysis, data sharing, and data visualization.
- The term is an all-comprehensive one including data, data frameworks, along with the tools and techniques used to process and analyze the data.
Types of Big Data
Now that we are on track with what is big data, let’s have a look at the types of big data:
Structured is one of the types of big data and By structured data, we mean data that can be processed, stored, and retrieved in a fixed format. It refers to highly organized information that can be readily and seamlessly stored and accessed from a database by simple search engine algorithms. For instance, the employee table in a company database will be structured as the employee details, their job positions, their salaries, etc., will be present in an organized manner.
Unstructured data refers to data that lacks any specific form or structure whatsoever. This makes it very difficult and time-consuming to process and analyze unstructured data. Email is an example of unstructured data. Structured and unstructured are two important types of big data.
Semi-structured is the third type of big data. Semi-structured data pertains to the data containing both the formats mentioned above, that is, structured and unstructured data. To be precise, it refers to the data that although has not been classified under a particular repository (database), yet contains vital information or tags that segregate individual elements within the data. Thus we come to the end of the types of data. Let’s discuss the characteristics of data.
Why Do Businesses Need Big Data Analytics?
Surely, you would be thinking “why should I use it?”.
Undoubtedly, many businesses are unaware of the need for big data analytics. They must know that uncovering valuable insightful information can allow a business to improve value for consumers. It can be done by analyzing patterns in market shifts, trends, customer behaviour, and correlation between data. Presently, 96% of worldwide companies have confirmed the increased investment in Big Data.
Besides, Data devices allow you to carve a whole information scene over the organization. Data investigation is the major perk you can relish. Besides, you can also guard delicate data through Big Data statistics.
The fact is that Big Data is very useful for most businesses, as it allows you to guarantee information well-being and insurance. By enabling advanced software and analytics systems, and having high-power computing systems, big data provides a myriad of advantages to enterprises such as:
- Opportunities for revenue generation
- Improved customer support
- Enhanced marketing strategies
- Improved operational efficiency
- Competitive advantages, and more
However, amidst all of these advantages, the single question remains looming in the head of business owners that is “How to use Big Data in business?’’
Improve Customer Engagement And Retention
Every business owner understands the value of customer engagement. Surely, your first preference would also be creating an unmatched quality user experience to ensure customer engagement
However, sometimes, it becomes very daunting for businesses to retain customers even with a higher customer base. This happens when you don’t understand the need and desires of consumers.
If you are slow in understanding the desire of your customer, you may end up losing your customers. Here comes big data into the picture. This technology stream allows businesses to analyze and observe customer behaviour, patterns, and trends in real-time.
Simply, the more data a business collects, the more it can find patterns and trends to spruce up user experience.
Currently, it is easy for businesses to collect data which means it will be easy to understand modern-day consumers through real-time data analytic strategies.
Real-time customer analytics is very important to achieve business goals in current market scenarios and Big Data offers that insight.
Gain Marketing Insights
The naked truth of advertising and marketing is that “businesses have lost millions in devising the right strategy to boost the conversion rate. “
Surely, you would have also spent a lot of money in running advertising and still you won’t be able to get fruitful results.
Big data analytics has the utmost potential to improve this operation for your organization by enabling you to match customer expectations. Besides, it also supports changing your company’s product line and devising powerful marketing campaigns.
If you think it is not viable then let me tell you that “ after years of research and cautious enthusiasm, the advertising and marketing technology sector is now embracing big data”.
This sector is now making a more informed and decisive analysis of marketing and advertisements. The major aspects of these analyses are online activity, monitoring point of sales transactions, and detection of changes in customer trends.
Gaining insights about customer behaviour and their buying patterns allows you to understand the likings and preferences of consumers. This similar approach is being illustrated by marketers and advertisers resulting in the creation of targeted and focused campaigns.
You will be able to save money and ensure efficiency by leveraging targeted, and personalized campaigns. As per a report, big data analytics allows you to
- Predict Audience
- Improve targeted advertising
- Develop new content and monetization
- Better media scheduling and more
Examples of companies that have used big data for market insight to scale include YouTube and Netflix. If you use these applications, you must be aware of how these platforms send suggestions and also show advertisements. Past searches and the watch history of users allow them to send the right interest to users which is all done through Big data analytics.
Businesses have to deal with several issues over time. Thus, it is essential to be prepared for any unprecedented risk and problem.
To ensure damage control, industries opt for risk management processes. You already know how critical risk management investment is for an organization.
Foreseeing potential risks and finding a mitigation policy is daunting for every enterprise. You may also visit business consultants to find a full-proof risk management strategy for your company.
In a recent couple of years, big data analytics has greatly contributed to this stream for developing robust risk management solutions. Now it can be used in several ways for risk management.
- Fraud Management: Big Data systems compare external and internal data and offer faster fraud recognition with damage control caused due to fraudulent activities.
- Mitigate Money Laundering: Big Data analysis can provide identification of suspicious transactions faster and alert the organization beforehand.
- Credit Risk Management: Big Data includes predictive capacity and provides sources of data to foresee user behaviour for credits and loans.
- Operational Risk: Companies have to face several operational risks at times. Big Data provides improved control and knowledge over company interactions with clients to strengthen safety.
Apart from these, Big data can be used for integrated risk management. So, it makes sense to use big data to ensure high-grade security in various company processes.
While the big data concept is redefining the business world, it is essential to know how to streamline strategies and avoid using big data in an unstructured way. Big data can help boost business growth and enables small business to compete with larger corporations.