Big data has exceptional potential to transform business models in today’s digital era. Every interaction, be it passive or active, generates a new set of data, data is flowing from multiple channels and sources, making it difficult but crucial to analyze and draw beneficial conclusions. Big data is revolutionary as it changes the perception of nowadays analytics. Businesses have realized the power of Big-Data analytics to boost organization performance, it allows the organization to uncover invisible patterns and correlations between factors in their business to bring insights, this insight can leverage your business significantly and gain competitive value in the clutter of the business world. Today, as much as 65% of global organizations have invested in big data to stay competitive and relevant in the market. Big data serves a very broad range of purposes and can be used to improve almost every aspect of a business.
Better Decision Making
Decision making is basically cognitive activity, the result is either rational or irrational, the judgment based on assumptions not evidence. Decision making is a complex process and sometimes people make inaccurate decisions. This is the result of bias in decision making, individuals who are in charge of decision making merely make decisions based on what they think is right, their reference to make decisions is their experience and gut feeling, and nothing is entirely wrong about this, however, with the right data and complete analysis, businesses are able to optimize their decision making. Businesses have various data from different sources such as websites, social media, mobile devices, etc., by collecting the data from different sources the company is able to have a full picture and understanding of the business. Because the data that are collected are based on actual information, this allows businesses to make better decisions.
Some of the visionary companies have implemented big data analytics to develop real-time decision making abilities consisting of supply and demand side information. By using big data analytics, these companies have advanced decision making capabilities that can not be compared to a traditional model of decision making. Big data analytics can be sync to real-time data which means the data is very accurate and updated. Big data analytics is effective to save time in decision making as valuable information is clearly visualize.
With the use of big data, it’s very possible for your business to cut down overall cost. The company can start by paying more attention to its indirect cost, indirect costs are the cost that associated operations of the company but not directly relevant to its products. Statistics show that reducing a company's indirect costs could save 25% of a company's overall spending. The definition of indirect expenses vary from one company to another, some of the common expenses are rent, office supplies, utilities, and the list goes on. Big data is here to fill in the gap of this area by providing guidelines that inform the company of their significant expense, then the company can figure out which area needs to be improved.
Collecting information from machines that are used daily in the office or commonly known as IoT (Internet of Things) is also one of the ways to keep company’s indirect costs as low as possible. By gathering these data from existing machines in your company, you can generate patterns which will be useful to allocate resources. If you hire drivers to deliver your products to customers, installing IoT devices can provide valuable insight that allows you to cut down cost on managing logistics. For instance, the device can show you the fastest route possible, with just this, you can improve productivity and cut down fuel expense.
Segmenting the right market for your product is very crucial, most businesses can only specify a particular segment which is still considered too general such as adolescence, women, kids, etc. With this type of segmentation lies various subdivisions: women who are adventurous, she loves to explore nature versus women who love to pamper themselves by going to a salon every weekend. Obviously the type of products they are interested in will be different.
Before big data became a thing, marketing has always been a singular communication, organizations had always been trying to guess what kind of products customers adored, there was no clue to adjust with the market and making it dynamic communication. Big data helps companies to define and connect with specific market segments, the more you know about potential customers, the better chance of offering customers with the right message at the right time. Not only that, big data also allows the company to track customer segmentation as it evolves. People are not robots, we are evolving over time, our preferences are not the same as we were 2 years ago. Market fails to recognize that young executives now are seasoned professionals tomorrow. Big data offer a good deal for business world by analyzing its customer based on real-time data, that enforces the fact that information generates from big data analytics will always be accurate and up-to-date.
Predicting Future Outcomes
Visionary organizations are firmly associated with predictive analytics; its application to business activities bring such a significant impact to the business such as predicting buying behavior, understanding customers better, showcasing potential risks, and presenting new opportunities. Common uses of predictive analytics of big data for businesses are mentioned below:
* Predictive analytics allows the company to detect fraud by monitoring activities and catching the unusual patterns in real-time.
* It allows the company to improve its operations by managing its inventory and resources.
* Optimize marketing campaigns by segmenting the right customers and their purchase habits.
* Reduce risk by presenting which strategy would and would not work, analyzing potential risk that could occur.
Each industry use predictive analytics for different purpose, the break down of the use of big data predictive analytics are below:
Retail is one of the largest sectors to use big data analytics as the companies are always seeking to improve their position in the market and improve their relationship with customers. One of the most universal examples would be amazon’s recommendation, when a customer is trying to make a purchase, Amazon shows the list of other similar items that another buyer purchased, making the customer want to buy that similar item too. Big data predictive analytics is useful for pre-sales and after sales. Presales would include but not limited to market analysis, customer segmentation, develop business model, finding best retail locations, etc. while post-sales activity would include extending warranty, reducing returns, re-purchasing, etc.
Big data predictive analytics in the financial sector helps to improve overall business strategy such as generating sales, increasing revenue, resource optimization, etc. It allows financial firms to conduct various models simultaneously and generate faster results by analyzing strategic investment, increasing productivity, improving daily operations, and predicting changes to both the current and future market.
Predictive analytics in healthcare can be implemented by governments and hospitals by tracking millions of people’s basic health information. The organization is able to predict epidemics, massive public health issues, the chance of an individual with particular illness ends up in intensive care, future illness that will occur if a person keeps doing unhealthy habits, etc.
Big data is the key to unlock your organization full potential. It's very important to stay competitive by utilizing the power of advanced technologies such as AI, Big Data, Machine Learning, and many more. Volantis helps empower everyone in your organization to utilize the power of AI to solve complex business problems. Automate processes and predict the business's outcomes to help you know what the best decision to make based on the data. Hence it will boost your business outcome and accelerate digital transformation. If you'd like to know more or consult with us for free, please clik here.