Big data has transformed the way most businesses operate helping in providing valuable insights and new opportunities for growth. From identifying new market trends to predicting customer behavior, the impact of Big Data on business is undeniable.
Big data helps organizations analyze massive amounts of data to uncover patterns, trends, and insights, which should help improve overall operations efficiency, target new markets, and develop new products or services. Organizations that effectively use big data have significant advantage over those that don’t.
It is enough to take a look into the forecast of the big data market size to know the importance of this topic for organizations across different industries. According to Statista, the global big data market is forecasted to grow to 103 billion U.S. dollars by 2027, more than double its expected market size in 2018.
In this article, we will discuss how to leverage Big Data to unlock hidden opportunities and maximize business growth. From understanding the challenges to following up on latest trends and implementing best practices, we will provide a comprehensive guide on how has affected the business in today’s data-driven world.
What is the Impact of Big Data on Business?
In a world where competition is fierce, organizations are always looking for ways to stay competitive, gain new market shares, and future proof their business. Relying on Big Data to make business decisions, analyze performance, and identify new opportunities can positively affect your business model.
Big data technologies and business intelligence software has the potential to help organizations get the most out their collected data to make critical business decisions based on facts and transactions happening throughout the course of their operation. Technologies such as cloud-based analytics and Hadoop are becoming an essential element.
Artificial intelligence and Machine Learning integrated with big data technologies will help analyze huge amount of data in addition to enable predictive analytics which will help make predictions about future events or behaviors, such as customer purchasing habits or market trends.
There are 3 main categories where big data has impacted businesses:
1- Informed Business Decisions
We all know that business decisions need to be taken based on high quality data and in the right time in order to drive the needed shift in organizations. With the technological evolvement of big data technologies, high level managers have developed full trust over the business decision process driven by these technologies.
2- Identify new opportunities
Properly storing, securing, and managing collected data can provide organizations with valuable insights into various aspects of their business. For example, organizations can use this data to identify target demographics and opportunities for revenue growth through product development.
3- Predictive Analytics
One of the most important impact of big data on business is through predictive analytics. One way predictive analytics can help with big data is through identifying patterns and trends in data that would be difficult for humans to detect. This can be used for identifying new market opportunities, detecting fraud or identifying at-risk customers.
For example, businesses can use it to optimize pricing strategies, improve supply chain operations, and personalize customer interactions.
How Big Data is used in Businesses across Industries
To fully understand the impact of big data in organizations, it is important to examine real-world examples of how leading companies are utilizing big data to gain a competitive edge.
By exploring specific case studies of how big businesses in different industries are leveraging big data, we can gain a deeper understanding of the potential benefits and best way for implementing strategies within our own organizations.
1- Retail
One of the most evident real-world examples of the impact of big data in retail is Starbucks.
Starbucks is arguably the most famous coffee place that we all need to visit daily for our caffeine dosage. It is through their rewards programs and mobile applications that they collect data from their customers. This big data then will help them learn more about the buying habits of each of their customers.
Furthermore, using big data, Starbucks can personalize the customer experience by recommending new products based on the customer’s previous selections and preferences. They can also provide personalized recommendations for products like hot or cold beverages depending on factors such as the season, weather, and even location. This level of personalization can greatly enhance the customer experience and drive customer loyalty.
2- E-commerce
The more e commerce businesses know about their customers purchase history and preferences, the more they can generate revenue. Big data is capable of providing all insights that organizations need to better understand how their customers are interacting with their products.
For instance, Amazon analyses the buying habits of its customers, including what they have already bought, what they have in their shopping cart or on their wish list, what they have reviewed and rated, and what they have most frequently searched for.
This process, known as behavioral analysis, allows for the use of cutting-edge technologies to recommend additional goods that previous customers had bought when purchasing the same goods. You can see that they have a section to suggest products related to the one you are purchasing under each product.
There is an interesting case study on this subject that we recommend to read.
3- Construction
Construction companies go through a very challenging process when planning and bidding for a certain project that should take year to be materialized. The cost of most of the items used to calculate the project budget will certainly change in the future.
With the help of big data, these businesses can find insights and use predictive analysis to help them forecast the price of the materials in the future based on various factors, thereby lowering the risk of inaccurate estimates and bids.
Conclusion
As we have shown, big data has a significant impact on business, and organizations that are utilizing these related technologies will have a competitive edge over others who are still relying on conventional business practices and not utilizing data to their advantage.
