The concept of Big Data has been around for a while, but it was not until recently that Big Data has revolutionized the business world. Most organizations now understand how they can capture the terabytes of data that streams into their businesses and apply analytics to transform it into actionable insights. The benefits of big data and analytics have made it an essential requirement for organizations looking to harness their business potential. For professionals, there is an ocean of opportunities in Big Data Analytics to consider it for your next career move.
What Is Big Data and Analytics?
'Big Data' refers to an extremely large volume of data and data sets that include structured and unstructured data coming in from multiple sources. These datasets are so voluminous that traditional data processing software is unable to capture, manage, or process them. Complex big data can be used to address business problems that were previously inaccessible.
Often, big data is characterized by the three Vs. – data containing great Variety, coming in increasing Volumes, with high Velocity. The data can come from publicly accessible sources like websites, social media, the cloud, mobile apps, sensors, and other devices. Businesses access such data to see consumer details like purchase history, what they searched for or what they watched, their likes, interests, and so on. Big data analytics uses analytic techniques to examine data, thus obtaining and find out information like hidden patterns, correlations, market trends,, and consumer preferences. Therefore analytics help organizations make informed business decisions that lead to efficient operations, happy consumers,, and increased profits.
Also Read: How Big is Big Data?
Who Uses Big Data and Analytics?
Amazon, the online retail giant, uses its massive data bank to access customer names, addresses, payments, and search histories and uses them in advertising algorithms and to improve customer relations.
The American Express Company uses big data to analyze customer behavior.
Marketing leader Capital One utilizes big data analysis to ensure the success of their customer offers.
Netflix uses big data to gain insight into the viewing habits of international viewers.
Brands like Marriott Hotels, Uber Eats, McDonald's, Starbucks are also consistently using big data as part of their core business.
Most Compelling Benefits of Big Data and Analytics
Businesses, big or small, across industries can benefit from using big data effectively. The benefits of big data and analytics include better decision-making, bigger innovations, and product price optimization, among others. Let's look at the top benefits closely:
1. Customer Acquisition and Retention
The digital footprints of customers reveal a lot about their preferences, needs, purchase behavior, etc. Businesses use big data to observe consumer patterns and then tailor their products and services according to specific customer needs. This goes a long way to ensure customer satisfaction, loyalty, and ultimately a considerable boost in sales.
Amazon has utilized this big data benefit by offering the ultimate personalized shopping experience, wherein suggestions pop up based on previous purchases as well as products that other customers have bought, browsing patterns, and other factors.
2. Focused and Targeted Promotions
Big data allows businesses to deliver customized products to their targeted market—no more spending fortunes on promotional campaigns that do not deliver. With big data, enterprises can analyze customer trends by monitoring online shopping and point-of-sale transactions. These insights are then used to design-focused and targeted campaigns that help brands live up to customer expectations and build brand loyalty.
3. Potential Risks Identification
Businesses function in high-risk environments, so they require effective risk management solutions to address issues. Big data plays a critical role in developing effective risk management processes and strategies.
Big data analytics and tools promptly reduce risks by optimizing complex decisions for unexpected events and potential threats.
The insights you gain using big data analytics are the key to innovation. Big data allows you to update existing products/services while innovating new ones. The large volume of data collected helps businesses identify what fits their customer base. Information on what others think of your products/services can help in product development.
The insights can also be used to twist business strategies, improve marketing techniques, and optimize customer service, employee productivity.
In today's competitive market space, it is necessary for businesses to implement processes that help track customer reviews, the success of products, and monitor competitors. Big data analytics facilitates real-time tracking of the market and keeps you ahead of competitors.
5. Complex Supplier Networks
Companies that use big data offer supplier networks or B2B communities with higher precision and insights. Suppliers can apply big data analytics to evade constraints they usually face. Big data allows suppliers to use higher levels of contextual intelligence that is crucial for success.
6. Cost optimization
One of the most compelling benefits that big data tools like Hadoop and Spark offer include significant cost advantages for storing, processing, and analyzing large volumes of data. The cost reduction benefit of big data is aptly demonstrated through an instance from the logistics industry.
Typically, the cost of returns is 1.5 times higher than normal shipping costs. Companies use big data and analytics to minimize product return costs by calculating the chances of product returns. Thus they can take suitable measures to minimize product-return losses.
7. Improve Efficiency
Big data tools can improve operational efficiency—your interaction with customers and their valued feedback help to collect large amounts of valuable customer data. Analytics can then extract meaningful patterns hidden within the data to create customized products. The tools can automate routine processes and tasks, thereby freeing up valuable time for employees, which they can utilize to perform tasks requiring cognitive skills.
Why Choose Big Data and Analytics as a Career
The big data and analytics benefits prove how powerful a tool it has emerged to be for businesses irrespective of size and industry. Big data analytics has become crucial both for organizations as well as professionals skilled in analytics. Big data analysts are highly in demand now because data is useless unless there's the skill to analyze it.
Job opportunities in big data and analytics careers are at an all-time high, and companies are looking for qualified data professionals to help tap the true potential of big data to positively influence their business decisions. Skilled big data analytics are getting big pay packages, and the salary trend is indicating exponential growth. Many IT professionals are looking to invest time and money in Data Analytics training. All this clearly indicates that Big Data Analytics is here to stay, and a career in data analytics is one of the wisest decisions one can make.
Check out the video below that will help you understand Big Data Analytics in detail.
Despite the numerous benefits of big data and analytics, there are still many untapped possibilities in the data world that remain to be explored. As businesses look to exploit the power of big data, there is a high demand for professionals with data analytical skills who can boost the organization as well as their careers.
If you are interested to know more about big data or considering the possibility of upskilling yourself, check out our course on Big Data and Analytics.