THE ADVANTAGES OF BIG DATA FOR CORPORATIONS
In recent times, we have been hearing alot about big data and its necessity and benefits for businesses. What is Big data all about? Big data is an organization’s massive and ever-increasing volumes of data that cannot be evaluated with standard methods.
Big data comprises of both structured and unstructured data types, is often used as the reference for firms to conduct analysis and extract insights that may help them develop better business strategies. User-generated data on social media such as twitter, facebook and Linkedin is referred to as unstructured and continually expanding-big data. Big data is a great resource for driving smart business decisions and changes. A single big data system can contain XML documemnts, raw log files, text files, images, videos, audio and traditional structured data. So we can infer that big data is a resource with many types of data and the potential for great scale and rapid updates. It also encompasses new ways of storing, processing, managing and analyzing the data that drives business decisions.
Lets consider how big data can better improve the way organizations conduct business.
Better Customer insight: Big data sources that shed light on customers include : Traditional sources of customer data, such as purchases and support calls. External sources such as financial transactions and credit reports; Social media activity; Computer cookies; Data from internal and external surveys. Not only online stores, but brick and mortar stores can also glean useful understanding of their customers, often by analyzing video so as to learn how visitors navigate through a physical store compared with their navigation of a website.
Cost Optimization: One other advantage of big data technlogies is that they reduce the cost of storing, processing, and analysing enormous volumes of data for enterprises. They can help find cost-effective and efficient company practices. The logistics business is a good example of big data cost effectiveness. In most cases, the cost of goods returned is 1.5 times the cost of delivery. By anticipating the possibility of product returnes, Big data analytics assists organizations to cut down on product return expenses. This is due to the ability to predict which goods will most likely be returned, allowing businesses to take appropriate steps to avoid return losses.
Helps improve efficiency: Big data can help enhance operational efficiency. Hiring and HR management can become more effective. Big data analytics can help improve physical operations. The combination of big data and data science can inform predictive maintenance schedules to reduce costly repairs and downtimefor critical equipment and systems.
Diverse use cases for data sets: Data can be carefully be prepared for one business purpose and then be completely unfit for another. The marketing team at a credit card issuer wanted to understand how customers used the different cards they had in their wallets. The analysis was made more difficult by the numerous failed swipes and canceled transactions that were common at the time, often due to connection problems with the payment flaws in the magnetic stripe on the cards. The data was carefully cleaned up so as to remove the failed transactions. The result was a data that was great for the initial marketing application. But the fraud prevention team could not use it, because they wanted to see the failed transactions that may have left clues about fraudulent card use.
Better Decision making: Big data has been able to boost the decision making process to a large extent. A variety of customer-centric factors like what the customers want, the solution to their problems, analyzing their needs according to the market trends, etc. are taken into consideration for a better decision-making process. Analytics grants the decision makers the insights they need to help the company grow and compete. There are other benefits why corporations should use big data, but this is where we have to stop for today. Till I come your way again, this is Goke Akingbade( Your Tech guide) wishing you a successful weekend.