The amount of data in the world continues to grow at an exponential rate, and this massive increase is both a challenge and an opportunity for businesses. Contained within that data are the insights needed to improve decisions, enhance productivity, drive innovation, and produce new sources of differentiation and value. Big data analytics examines large amounts of data to uncover hidden patterns, correlations and other insights.
What Is Big Data Analytics?
It’s useful to divide the phrase into two parts: “big data” and “analytics.” Big data can be described as the gigantic amount of information that organizations have gained access to over the last decade or so. Technological advances make it far easier to collect data from a wide range of sources – not just traditional business applications, but social media, support chats, digital imagery, the Internet of Things (IoT), and many more. This vast assembly of data can reveal all sorts of insights. “Analytics” refers to the challenge of finding insights in the data quickly enough to inform decision-making and identify new opportunities.
A recent report looks at five real-world examples of how big brands are using big data analytics to grow their businesses:
BOOSTING CUSTOMER ACQUISITION AND RETENTION
With proper use of big data analytics, a business will have the capability to derive critical behavioral insights that it needs to act on so as to retain its customer base. Coca-Cola is an example of a company that uses big data analytics to drive customer retention. The company says it gains insights by communicating with consumers by phone, email and social media, and that data analytics plays an increasingly important role in marketing and product development.
Software companies collect user interaction analytics to identify preferred action paths, user behaviors and problem points in the user experience, all of which can be translated into improvements and competitive advantages for the company’s products.
USE OF BIG DATA ANALYTICS IN ADVERTISING
Data analytics can help change all business operations, including the ability to match products with customer expectations and ensure that marketing campaigns offer a powerful message. Netflix is a good example of a big brand that uses big data analytics for targeted advertising. And the company uses its huge subscriber base, now over 140 million worldwide, to make “suggestions” as to shows you are likely to be interested in.
BIG DATA ANALYTICS FOR RISK MANAGEMENT
Our highly risky business environment calls for better risk management processes. UOB Bank of Singapore is an example of a brand that uses big data to drive risk management. The bank recently tested a risk management system that is based on big data analytics, enabling it to reduce the calculation time of the value at risk from about 18 hours to only a few minutes.
BIG DATA ANALYTICS DRIVES INNOVATION
Another huge advantage of big data analytics is the ability to help companies innovate with new products and processes. As one might expect, Amazon leads the way in big data innovation. Its Amazon Fresh and Whole Foods collaboration is a perfect example of how big data analytics can help improve innovation and product development.
USE OF BIG DATA ANALYTICS IN SUPPLY CHAIN MANAGEMENT
Through the application of big data analytics, suppliers are able to move beyond constraints of traditional supply chain management under which they often incurred huge losses. Modern supply chain systems based on big data enable more complex supplier networks. PepsiCo is an example of a company that utilizes big data analytics to ensure that retailers have the right products, in the right volumes and at the right time.
Big data analytics can be crucial for your company’s growth. Companies of all sizes can employ big data analytics to help gain a competitive edge. Does your company have a big data analysis mechanism in place?
Outsource Your Company’s Big Data Analytics
An increasing number of companies are taking advantage of big data analytics as it helps find valuable insights to outperform the competitors and lower costs. If analyzing big data is critical for your business, consider outsourcing it. IT outsourcing allows your company to access a big talent pool and scale your business faster. Sequent Solutions provides the best possible IT resources at low costs. Contact us today to learn how we can help.