With the advent of technology, the world we know keeps evolving. Procedures and SOPs change with each technology integration, sometimes changing methodologies completely. For instance, big data and its connection with machine learning help automate many mundane tasks that were first only done by humans. This change impacts various industries and business operations. But before we discuss how big data has impacted business processes, we first need to understand what big data is.
What Is Big Data?
Big data is what its name suggests: a large volume of data. It can be data from stock exchanges to social media platforms. The volume of data can be hundreds of terabytes per day. Without proper data management, all of this data can be wasted. Tech experts use the term “Three Vs” to describe big data.
- The first “V” is volume: The large volume of data can be from terabytes to petabytes.
- The second “V” is velocity: the high rate or speed at which data is received, and without an intelligent data management system, it can be disastrous.
- The third and final “V” is variety: There is a lot of variety in big data, as it comes from hundreds of sources that are very different from each other.
This data management needs a knowledgeable team and structured, sorted, and stored software. However, once it is structured, sorted, and stored, it becomes extremely valuable for companies. For instance, data analytics in insurance can significantly help insurance companies counter fraudsters.
Now that you’ve got the idea of big data, here are a few ways it influences and changes business processes.
What makes terabytes upon terabytes of this data so valuable to big companies? Any rational person would ask this question. Well, it lets companies perform highly targeted marketing campaigns. Big data solutions offer real-time insights into customer wants and needs.
Big data solutions give insights into the interests and hobbies of customers via their browsing and purchase history gathered using cookies from several websites. It allows companies to market directly to their customers and show them exactly what they want.
Companies often rely on previous purchases and reviews to develop or improve their existing product. Now, thanks to big data solutions, these companies know what the customers want, so not only can they market their products extremely well, they can develop new products based on the interests of the masses.
Identifying New Business Opportunities
Big Data can segment and channel insights by extracting more information from existing resources. In addition, social media channels such as Twitter and Facebook play a crucial role in creating new business opportunities.
Aside from competitive analysis, companies can also use big data to prioritize different customer preferences in product development. Most businesses rely on diverse, ever-changing data to generate market intelligence.
By using big data, businesses can improve their workflows and operations. Optimizing business processes can reduce costs, reduce time wasted on mundane tasks, and help employees focus on more significant tasks. Businesses can mitigate financial losses and avoid potential threats by improving fraud detection, cybersecurity planning, and risk management.
Big data analytics can improve physical operations in an exciting and rewarding way. Data analytics can improve predictive maintenance schedules to reduce costly repairs and downtime.
The first step is to analyze the model, its age, condition, location, warranty, and service information. In contrast, security and HVAC systems in facilities are greatly affected by other business activities, such as staffing and production schedules, which are often influenced by sales cycles and customer behavior. A well-integrated set of big data allows you to maintain the equipment when it’s most needed.
Big data has been very helpful in cost reduction, especially in the inventory department. Big companies can predict major events or milestones in many industries thanks to big data and highly intelligent algorithms. Based on this data, they know whether to increase or reduce their inventory.
Suppose they sense that an event may somehow affect and lower the sale of their product. In that case, they can reduce or eliminate their inventory, reducing the high cost of carrying a large inventory. If big companies sense that an event may increase sales, they can improve their stock, reducing the cost of hurried production.
Increased cyber security
Big data has allowed companies to boost their sales and profits, increase their cybersecurity, and lower vulnerabilities. IT and cybersecurity experts have been able to predict and extinguish any potential data breaches. Cybersecurity is very important to big companies, as a small leak can cost them millions as it also lower potential vulnerabilities.
Efficient supply chain management
Big data has allowed many companies to optimize their supply chain and maximize profits. It can also detect potential fraud using its algorithms, lowering risks and increasing profits. Companies such as Amazon use big data for their fleet management. They use big data to optimize their delivery routes by coordinating when a product may be delivered and providing the precise location of items. UPS has saved millions of dollars in fuel using big data. It has performed this feat by using big data to optimize its delivery routes, making its vehicle take the most efficient route possible, saving fuel and time.
Better business intelligence
Business intelligence is used to gain business insights that are not possible by humans but only by algorithms. However, business intelligence cannot function without big data. Before the introduction of big data, business intelligence was very limited and was seldom used. However, with the arrival of big data, most companies depend upon business intelligence to develop their products. Business intelligence uses big data to analyze and gain insights into customers’ interests. New start-ups depend upon business intelligence to obtain the customer’s interests and understand their competition’s business model.
We can say that using big data for businesses is the future as it helps predict trends and changes in the trends. Companies that don’t embrace this change may be at a severe disadvantage. If you like this article, feel free to drop your two cents about your thoughts on this topic in the comments below.