Big data analytics is a new way of thinking and transforming all economy sectors, when new technologies become cheaper and easier to use, they transform businesses. That’s what is happening with big data right now. The emerging technologies, IoT and AI have made it possible for us to tap into the value of big data analytics. It is one of the marvels of human innovation but artificial intelligence (AI) offers tough competition for us. Formula 1 races are not won by the size of the engine, the aerodynamics of the car or even the skill of the driver. The difference between winning and losing a race comes down to an unlikely racing tactic: data analytics.
Similarly to Formula 1, your business generates a lot of data that can be used to answer questions that give you a competitive advantage. Understanding how to leverage data analytics can make the difference between your company winning or losing the race.
Increasingly, data is becoming a key business asset in its own right, and platform businesses that are entirely fuelled by data are among the most successful companies in the world. Apple, for example, is using data right across its business to drive success. And Google arguably knows more about us than our loved ones – knowledge it uses to provide a highly personalised service and to help other businesses target customers effectively.
Big data analytics can help your business in the following ways:
Big data is one of the best ways to collect and use feedback; it helps you understand how customers perceive your services and products. Thus, you’re able to make the necessary changes and re-develop your products or services. When you analyse unstructured social media text, it allows you to uncover general feedback from your customers. You can even disintegrate the feedback in various geographical locations and demographic groups.
Productivity and efficiency of various production processes.
For example, the Formula 1 team might discover by analysing their big data that they have slower lap times when they use a certain type of fuel. By changing the fuel, they might give themselves a better chance of winning. In the same way data analytics helps you answer questions that help your business win.
Believe it or not, your company creates just as much data as a Formula 1 team, if not more. Every operational task and customer interaction generates valuable data that you can analyse to make better decisions and uncover insights with the power to transform your business.
These days, consumers are smart and understand their priorities. Before making a purchase, consumers look around and compare different options. They even talk to businesses through social media channels and demand special treatment. In fact, most customers want to be thanked for buying products from a company.
Big data allows a business organisation to profile such customers in a far-reaching manner. This allows a business to engage in a real-time, one-on-one conversation with consumers. In tough competitive times, this isn’t a luxury. You need to treat customers how they want.
For example when a customer is entering a bank, the clerk can use big data to check his or her profile in real-time. The clerk can learn about the customer’s preferences and desires.
This allows her to advise relevant products and services to the customer. Using bigdata has been crucial for many leading companies to outperform the competition. In many industries, new entrants and established competitors use data-driven strategies to compete, capture and innovate.
Big data also provides you with insights from analysing the market and consumers. However, this data is not only valuable to you but also for other parties. You can sell the non-personalised trend data to large industries operating in the same sector.
There’s no doubt that big data is the new oil and will continue to play an important role in many different industries around the world. It can definitely do wonders for a business organization. With proper management of Big Data, your business will be more productive and efficient.
The potential of your data goes beyond just making good decisions. You have the ability to find insights about your business or customers that can reshape your approach and lead to tremendous growth. The companies that have embraced data analytics not only outperform their competitors, but they continually exceed expectations.
It’s very clear that we’re well passed the time when businesses should be wondering if they have to worry about Big Data. As these examples show, Big Data is already revolutionizing just about every industry and those companies with a clear data strategy are becoming the leaders in their fields.
Business moves at an incredibly fast speed. Like a Formula 1 team, your company can take a considerable lead if you know what questions of your data need answering and how you will take action once you have the answers.
Every business has access to data. The competitive advantage will be realized by the companies that can turn their data driven insights into decisions and ideas that transform the business and drive growth.
Companies that use data analytics to make decisions across their business have a 25 times greater likelihood of customer acquisition, a 9 times greater likelihood of reducing customer churn, and a 21 times greater likelihood of being profitable.