Big Data Innovation and Its Business Impacts
According to a recent study by IDC, worldwide data creation will grow to 163 zettabytes by 2025, which is ten times the amount of data produced in 2017. Typical computing systems struggle to process today’s volume, much less the increasing volume that looms on the horizon.
Big data’s tools and technologies continue to provide solutions for managing this constant flood of information, along with the ability to make better, more informed, data-driven business decisions faster. Because of this, according to IDC, organizations will spend $260 billion on big data and analytics technology by 2022.
With big data’s help, you can learn new ways to gain actionable insight from your own information that will help you better understand your customers and outperform your competitors. Additionally, you may also experience a boost to your bottom line performance due to improvements in your efficiencies and business processes.
Here are just a few ways big data is impacting day-to-day business, along with some real-world examples.
Advanced Targeted Marketing
The analysis of big data delivers the ability to develop highly accurate targeted marketing campaigns, which allows organizations to finely target their marketing efforts to specifically identified customer needs.
In fact, effective analysis of big data can actually help predict what products or services customers may need in the future, which makes organizations more proactive with customized marketing messages to customers for very particular items or needs.
In 2012, a Target statistician used target marketing techniques to correctly identify women who were pregnant based on a pattern of purchases of about 25 items. He was also able to estimate due dates within a very small window, so Target could send coupons timed to very specific stages of pregnancy.
Predictive Product Development
Big data provides the capabilities to predict what customers are looking for in new products or services. This delivers data-driven proof and reasoning for product development and increases the likelihood of the new product or service’s success, while lessening the chance of capital failure.
Instead of waiting for customers tell you what they’re looking for and losing market-share to more innovative competitors that went to market faster, you can drive innovation from your data and fulfill your customer’s needs like never before.
Netflix today is using data not only to make your viewing better with its recommendations engine, but also to improve the quality of content itself by funding new productions based on what they see viewers asking for, which is also improving their own profitability.
Proactive Customer Service
With big data’s help, you can know exactly what your customers are going to need before they click send or pick up the phone.
Real-time analysis of a customer’s information, along with history of website visits, social media posts, and previous calls and chats, can help predict a few issues that the customer could be dealing with. This provides your customer service team with a head start and will allow them to deliver knowledgeable and timely solutions to the customer.
Furthermore, predictive analysis techniques can provide your customer support staff with the ability to proactively contact customers where it’s been determined that a future issue could arise.
The Royal Bank of Scotland uses patterns to predict what products a customer may want and what issues may occur. Real-time data analytics help them track complaints so they can understand the big issues and predict what questions or complaints their customers may have while delivering the right resources to ensure that customers are quickly taken care of.
Big data supplies heavy data about every product and process within your organization. By gaining a full understanding of each, your decision-makers can identify shortfalls and look for ways to optimize and change to ensure maximum operational efficiency. After all, ensuring maximum operational efficiency ensures a solid bottom line performance.
Operational and historical data from a variety of sources such as machine logs, social media, web, apps, or other equipment can be correlated and reported for very clear and actionable insights into opportunities for improvement.
PepsiCo relies on huge volumes of data for efficient supply chain management. Their clients provide reports that include their warehouse inventory and the point of sale (POS) inventory to the company. This data is used to reconcile and forecast production and shipment needs. This way, PepsiCo ensures retailers have the right products, in the right volumes and at the right time.
Big data helps in providing business intelligence that can reduce enterprise costs and optimize expenses. Big data’s insights can be used to transform business processes, based on the impact of different variables, which helps to cut costs and increase profits. This also helps to eliminate unwanted costs and boost productivity.
Steadily, big data is showing itself to be an efficient operational cost-cutting tool that’s helping many organizations save substantial money.
Since 2012, Intel has used big data and predictive analytics as a means of bringing chips to market faster. They’re using gathered information to streamline testing. Whereas each chip formerly underwent 19,000 separate tests, Intel now focuses those tests on specific chips and has saved a total of $3 million in manufacturing costs on a single line of Intel Core processors.
Data Safety & Business Security
The volume of intelligence available in big data reduces the time it takes to identify and resolve a threat. This allows IT teams to predict a forthcoming attack and minimize damage, or prevent it from ever occurring.
Recent research has shown that approximately 84% of modern businesses leverage big data to block countless cyberattacks. The introduction of big data in operations can result in a significant decline in security breaches. By utilizing big data tools, malicious insider programs, weak and compromised devices, ransomware and malware attacks and more, can all be easily detected.
QSight IT, an IT company based in the Netherlands, leverages big data to gain insights into determining the potential impact of security related events. Through a big data platform, QSight gained the ability to mitigate risks and monitor them at a more granular level, giving them a clearer picture of security threats, while allowing them to process their data more quickly.