The world generates 1.7 megabytes of data for every person on the planet to use. And this information isn’t limited to the millions of emails and text messages sent every minute via social media platforms like Twitter, Facebook, and WhatsApp.
Included in that huge amount of data is the one trillion digital photos taken annually. According to YouTube statistics, 300 hours of video are uploaded every minute, and over three million are shared on Facebook every day. After that, sensor information was also accessible on our handheld devices.
These sensors can report on your location using global positioning satellites (GPS), your speed using an accelerometer, and the humidity using a barometer. This dataset is far too big to be handled by conventional data management techniques.
The term “big data,” originally coined by Doug Laney in the year 2000, was later applied to these massive quantities of information. Afterwards, many major corporations quickly adopted big data, including Netflix, Apple, Microsoft, and many others. Companies in Indonesia that have embraced big data include Telkomsel, Traveloka, and Gojek.
Many businesses are eager to start using big data. According to Miro Kazakoff, a senior lecturer in the MIT Sloan School of Management, this is because, in a world full of data, a company with a highly literate data team will win the market.
Big data in its most basic definition, refers to a collection of records that is so large that it requires the use of cutting-edge technology in order to be processed. Data is logic, according to an expert in information system management named Gordon B. Darvis, and it must be shaped and molded in order to yield useful results.
In later times, technology provided conveniences for launching a business. This led to the emergence of many new businesses, which in turn stimulated fiercer competition as established firms competed to win over customers and broadened their focus beyond the traditional market segments that had previously been amenable to generalization.
Companies can gain an advantage from big data if their employees are able to use the information to learn about their customers’ individual preferences and the kinds of things that might make them happy. Using big data, this can be done on a massive scale and entirely automatically.
Large companies like Netflix and Spotify are extremely diligent in their data collection efforts because of the profound insights it can provide about their users. Each interaction with the company’s content—from a tap to a click to a swipe—can inform important business decisions.
The end result of big data utilization is business insight or awareness. The big data process is not limited to collecting, exploring, and analyzing data; rather, it must center on the discovery of actionable insights that can guide the growth of a company’s business.
According to marketing and customer experience expert Jay Baer, businesses are engulfed by data but suffer from a lack of insight. This demonstrates that the company is not yet fully equipped to make use of the abundant data at its disposal.
Meanwhile, according to Hilary Mason, data expert and CEO of Fast Forward Labs, the greatest benefit of data is enlightening us to things we were previously unaware of. Later, the data can aid the company in discovering trends, communicating stories, and gaining a deeper understanding of the world around it.
Such insight can later make a substantial difference for a business. This difference is not limited to the business process but affects society at large.
Business analyst author, professor, and Institut Data to Perform Business director Prashanth Southekal argues that a company’s success is determined not just by the quantity of data collected, but also by how that data is managed and analyzed. Insight itself can be broken down into three levels, each with their own unique characteristics: descriptive, predictive, and descriptive.
The aforementioned three insights are crucial for any business or organization to implement. The company has taken a more mature step by applying these three insights; it can now anticipate what might happen and get ready to deal with it as effectively as possible.
The Value of Big Data for Business Performance
There are many ways in which big data can improve business operations. However, if used improperly, this information can be a weapon against your business. If you’re in the process of building a business or company, you should read this article to learn about the advantages and benefits of big data for enterprises of all sizes.
Improve Organizational Effectiveness
The use of big data tools like Tableau and Hadoop and cloud storage providers like Amazon Web Services results in significant cost savings related to data storage. This technology can also be used to determine more productive business practices.
Quantizing’s Jesse Maida explains how big data analytics solutions can cut failure costs by as much as 35 percent. This means that organizations can make substantial savings on their data and database maintenance costs. Big data can aid workers in working more quickly and efficiently, which in turn aids data utilization and ultimately extends working time.
Understanding the Stock Market’s Complex Structure
Today’s marketing efforts rely heavily on information gleaned from databases in order to analyze consumer behavior and reveal which products and services are most in demand. The owners and managers of successful businesses are able to make quicker and better decisions when they have a firm grasp on market trends.
Market trend data can also aid a company in developing products that are likely to be successful with customers. For instance, epidemic situations can spark a new trend of using face masks and hand sanitizers. The presence of big data in this area can assist retailers in determining what kinds of hand sanitizers and/or masks are most likely to pique customers’ interests.
Identifying Weak Points in an Organization
Use of big data can also have an impact on how company owners spot competitors’ weaknesses. Big data has the potential to provide significant benefits for business and enterprise owners by allowing them to develop higher-quality products that better meet consumer needs.
Strengthen Communication with Customers
Consumers today are able to articulate their priorities. Customers, for instance, will investigate and contrast numerous product alternatives before making a final purchase decision. In today’s digital age, consumers are also free to share their opinions about a product across various social media platforms like Facebook, Instagram, YouTube, and others.
Customer information like phone numbers, emails, and addresses can be collected with the help of big data. The point is to make it easier for company owners to directly thank their customers for their honest feedback by doing things like offering them freebies.
In addition to using customer information for direct marketing, financial institutions frequently utilize customer data for real-time client profile checks. In the future, the bank will learn about the client’s preferences and interests from the resulting profile in order to tailor its offers to the client.
Strengthening the Quality of Online Advertising Systems
One more way in which big data can help your company is by improving your customers’ online shopping experiences. The available information can aid online merchants in making the most appropriate product recommendations to site visitors based on their current search terms. This technology integrates machine learning with large datasets.
Conduct a Risk Analysis
Business owners can also perform predictive analysis by leveraging big data to reduce potential risks. This is due to the large size and real-time nature of big data, which allows for more precise prediction results with smaller error margins.
The capabilities of the tools in the big data system allow you to collect all the data you need for your purposes, and this can aid business or company owners in analyzing the presence of threats from within their own networks. By using a password to gain entry to sensitive company data, businesses and organizations are better able to protect their sensitive information.
Because of this, many businesses—and especially corporations—are concentrating on big data’s potential for ensuring the safety of sensitive corporate information—including financial records and the inner workings of online systems like websites.
Some of Big Data’s Weaknesses and How to Fix Them
In addition to its benefits, big data presents challenges for businesses and organizations in the form of customer complaints about privacy and security. Even large corporations like Yahoo!, Facebook, and Tokopedia have reported multiple cases of data breaches.
Thankfully, data privacy laws are getting stricter as of late. In addition, businesses relying on big data are starting to consider data-protection protocols, processes, and infrastructure; because big data requires specialized processing, experts in the field are necessary.
That is, businesses need to invest in an IT infrastructure consisting of databases, powerful processors, and other IT capabilities, such as data science, if they want to make the most of the opportunities presented by big data.
Big data has strong ties to data science. The two technologies discussed here have broad business application. Companies that want to take advantage of the insights available from big data will need to staff up with data scientists to ensure they’re getting the most useful insights possible. Unlike other fields, data science can be learned by anyone, including those with no background in IT at all.