As technology evolves, data has unquestionably turned into the “new oil.” In the cutting-edge technological environment, big data plays a crucial role in tapping useful values and making necessary decisions. Organizations are now swerving toward big data to make strategic policies and gain a competitive edge in the market. In the era of data-driven decision-making (DDDM), it is easy to discover the product’s current stage in its lifecycle and forecast trends accordingly.
An example comes from a 2020 poll of CMOs of significant companies: More than half of study participants indicated they lacked the tools necessary to extract meaningful customer insights, despite 75% of respondents believing that harnessing data will help their organizations greatly improve their business. In the poll, 58% of participants claimed they lacked the knowledge and tools necessary to analyze marketing data, and more than 70% claimed they couldn’t make use of the consumer data.
In April 2022, Forbes analyzed big data operations at reputed firms and concluded that “Netflix and Amazon take their customers’ viewing customs and movie ratings to run down a complex algorithm to generate personalized recommendation systems for each subscriber. A popular online dating site, OkCupid generates a stream of hilarious insights and converts them into modern romance by screening through user profiles and building correlations.”
In the modern world, enterprises have access to high-value datasets and customer data points such as websites, business apps, social media pages, and documents. Big data helps businesses convert this data into value-added, qualitative decisions.
The benefits that enterprises can gain with the help of big data and data engineering processes are enormous, some of which are:
Improving customer data and retention
Customer metrics are an essential touchpoint for businesses nowadays. Companies are ambitiously deploying and inventing new services to address customers’ queries and provide better aid. Big data helps to perform competitor analysis and analyze and entertain the market trends. Big data analytics helps companies adapt to aggressive environments and predicts the product’s future.
Using big data and AI, Netflix saves $1 billion per year on customer retention. Netflix is undoubtedly the largest TV network globally, with over 221 million paying subscribers as of June 2022. Their success is largely attributed to using AI to know which movies, TV shows, and documentaries people want to watch.
Enhance operational efficiency
Organizations leverage big data to automate their processes and optimize overall efficiency. Data analytics allows firms to draft product and technical roadmaps and bring about operational coherence. It also reduces the time, effort, and money required to deduce and employ the correct distribution channels. Data analytics allow companies to log in an excessive amount of information and draw relevant conclusions.
A large number of enterprises mutually agree that there is a need to manage unstructured data to simplify their businesses. In a data-powered economy like us, only those who can use the data in the right form can successfully navigate the market, make future predictions, and adjust their business to fit market trends.
Increase in production capacity
Big data analytics mitigates blockages arising on account of data and optimizes resources by analyzing real-time statistics. It also allows firms to assess prior blockages and rectify them in the future. Through big data, the information generated during production, storage, and services can be utilized to enhance the company’s productivity and efficiency.
A report published by Research and Markets stated that Big Data Analytics in the manufacturing industry was valued at $904.65 million in 2019 and is estimated to reach $4.55 billion by the end of 2025. With the continuous usage of big data analytics in manufacturing, manufacturers can now establish patterns allowing them to enhance processes, boost supply chain efficiency, and positively determine variables that impact production.
Identification of new opportunities
The greatest boon of big data analytics is its ability to identify and scale patterns. Big data helps a company know where it stands and its prospects. Analytics allows firms to fill in gaps in the strategy and repurpose it to meet the company’s demographics.
Companies use customer data and predictive analytics to determine the customers’ specific needs and tailor it to attract and retain them. An excellent example of this is the infamous “Target Snafu.” As reported by the NY Times, Target used data insights to figure out that a customer was pregnant and sent her personalized coupons based on the trimester she was in. The situation turned out to be hilarious, no doubt.
Benchmarking the success
Big data tools can collect customer feedback and comb opinions to change the company’s algorithm. SWOT analysis came up with the advent of big data itself. It enables firms to make the right strategies to stay competitive.
Every time Google advises changing the spelling of a search query, it does so because other inquiries on the same topic have done so and found other spellings to be more helpful. Hal Varian, a Google economist, has discussed how the company can foresee economic and public health trends by identifying patterns in search queries. Google gets approximately 3.5 billion searches daily. This makes it the highest shareholder (87.35%) of the search engine market as of 2021. This means that there are 1.2 trillion searches on Google done yearly and over 40,000 search queries per second.
So, is big data the future? If we look at the massive investments of big firms, then yes, it is. Big data and artificial intelligence were the two main topics of New Vantage’s Executives Survey. About 60 executives from Fortune 1000 organizations, including Motorola, American Express, NASDAQ, etc., responded to the survey.
The New Vantage study responded to the question of how much money businesses spend on data analytics and its presence in leading businesses. So, here is what we’ve discovered. A Chief Data Officer (CDO) was reportedly hired by 62.5% of participants, up from 12% in 2012. Additionally, a record percentage of the study’s participating organizations—97.2%—have engaged in big data and AI activities.
Here’s how we helped a telecom and ISP service provider enhance their network bandwidth using Big Data.
As more and more organizations turn toward a DDDM approach, big data continues to receive undiluted attention. While big data helps to gain and collate information from all around the world in an unstructured format, business data analytics translate and interpret it into a comprehensible form. Thus, companies have hard facts to back up their qualitative strategies. Along with the advent of the data, the role of domain experts has also evolved over the years. To conclude, the big data movement has transformed not only companies but also employees.
To know more about how we can help you leverage Big Data capabilities, reach out to our experts at contact@vsplc.com.