Big data is a term that describes the processing of extremely large and complex sets of data to reveal trends, patterns and other valuable insights and is fast emerging as a game changing business tool across all industries.
According to statistics, the total amount of data created, captured, copied, and consumed globally is currently around 97 zettabytes. This figure is set to increase rapidly over the next three years, projecting to grow to over 180 zettabytes by 2025. To put this into perspective, this represents almost 180 trillion USB sticks each with a capacity of 1GB.
Big data is still a relatively new area and most organizations struggle to take advantage of this technology or gain value from their data. The challenge of analyzing the sheer volume of data requires businesses to hire qualified professionals who can translate it into meaningful insights. A Master of Data Science degree can help individuals interested in the field of Data Science to pursue a career in this area.
Despite the staggering numbers, you may still be wondering how big data is relevant. In this article, we’ll delve a little deeper to help you understand the impact big data can have on your business.
Competitive Edge
Data-driven insights can allow businesses to better understand their customer base through analyzing data such as age, income level, spending habits and other demographics to target, attract and retain customers.
Understanding the preference and behavior of its customers is essential for any business to succeed. Big data removes much of the guesswork by providing insights on customer buying habits and behaviors, helping businesses to predict and better anticipate their customers’ needs. This can allow for greater targeting and customization through marketing campaigns, increasing customer loyalty, marketing return on investment as well as helping businesses stay ahead of their competition.
Greater Efficiency
For businesses that rely on supply chain management, big data analytics can help to improve operational efficiencies. Businesses can use data sources to improve their sales, inventory and planning processes by predicting demand. This can help them to monitor and stock their inventory at the right levels, thereby reducing costs, maximizing sales as well as customer satisfaction.
By using big data in this way, such businesses can meet their customers’ demands more efficiently, increasing profitability.
Cybersecurity
Big data can help businesses minimize the risk of data breaches and cyber threats. Big data analytics combined with machine learning can be used to analyze current and historical data from various sources enabling businesses to detect irregularities and respond to potential risks in real time, helping to keep their business safe.
Used in this way, big data can alert businesses to potential breaches to security by using algorithms such as malware detection, look-alike predictions and anomaly detection.
Big data biometric technology is already being used to great success by businesses in order to counter risks such as identity theft and fraud by collecting data such as physical, behavioral and physiological data of customers.
Improved Customer Service
Big data can help businesses improve their interactions with their customers.
Machine learning tools such as chatbots and virtual assistants can address customer queries at any time of the day or night. This can help businesses to respond effectively to their customers as well as gain a better understanding of their concerns so they can be resolved quickly.
As this article has shown, there are many great benefits big data can offer to your business.
