We produce data every single second across different digital interfaces and gadgets. It can be in the form of text messages on the mobile phone, a social network post, a digitized bill in the transaction counter of a shopping arena, a video footage, an audio clip, a television program or your electric meter reading. These huge chunks of data across different digital user environments are accumulatively referred as Big Data in relation to their emerging significance as raw material for targeted analytics geared towards deriving useful insights across different spheres. Besides others, business importance of Big Data and horizon of possibility for Big Data analytics in business is simply huge and consequently world's greatest tech firms are already on their toe in engaging gigantic resources to reap the benefits of this next big frontier. Yes, in some years from now Big Data analytics is going to change the face of business and business process beyond recognition. Let us see how.
- Understanding and addressing consumer interest
- Understanding psychology - what makes customer buy and why?
- Real time decision making means more speed
- Understanding social risks better
- Less fraudulent activities and more transparency
- Healthy competition with level playing brain game
- Opening new business possibilities hitherto unforeseen
- Cost advantage with smart decision making
- Less and less possibility of human faults
- Less infrastructure, less paperwork and more innovation
For business conglomerates and shrewd marketers understanding the evolving consumer interest and addressing it appropriately is of top priority. Big Data analytics has opened great array of ways to get insights into consumer behavior and thus striking proper marketing plan would be much easier in the time to come. For instance, analyzing the click streams on the internet in a specific zone or transaction records in a consumer shopping arena can reveal many truths concerning consumer interest and how to address them to translate into better business volume.
Business importance of Big Data is best understood in relation to the much repeated query - what makes customer buy and why? Yes, to put it in positive terms insight into consumer psychology or buying psychology just gives a marketer or business strategist a much advanced footing and now this can be achieved with the use of Big Data analytics much faster and more precisely. For example, analyzing the cell phone bills, churning history of consumers and typical area specific user preferences one can gain insights into the particular motivations behind churning.
Velocity or the speed at which the data is being processed, stored or shared at a large level is one of the important dimensions of Big Data. Yes, while volume is important to gain gross insights into large numbers, velocity or speed of data offers the challenge for real time analytics. For instance, analyzing the transaction records of traders across various stock terminals one can gain insight into the trend of market. Velocity is important where insights only gain any foothold in real time of here and now, the ideal example can be daily trading in stock market.
At a time when a whole generation across the globe is lived and entertained by a digitized society thanks to social networking, to assess an emerging socio political situation or trend analyzing social networking posts in that particular area can provide enough insights. To assess a political unrest that seems imminent in the near future and to take business steps to minimize your business casualties in that area there cannot be any better way than to analyze streams of posts from social networking sites. Though privacy or data security is a big concern concerning providing these data for Big Data analytics, in future for bigger socio economic interest the constraint can be mediated in one way or other.
Yes, Big Data analytics is going to play a big role in elevating the security standard in numerous sectors, particularly in reducing fraudulent activities in the fraud prone transaction areas of business. For instance, transaction records of various stock exchanges and corresponding banking data can successfully reveal the money laundering networks more easily when the analytics work in large scale, combining input from multiple agencies in the transaction chain.
As business importance of Big Data analytics is already well known across the business thinkers and strategists, with its all encompassing analytical vision this new frontier of analytics cannot be limited to the practical application by a few simply because of its nature. Naturally while Big Data analytics will come with practical life implications in few years from now, it would be an open book for every business conglomerates to reap the benefits. But while the pool of data is open to all and everyone, the real game is in sophistication of analytics and that is where the game remains open for fair competition.
Until now Big Data is just the next big frontier for all our tech space and digital maneuvers to leap into a new world where even a so called 'nonentity' named 'data' rules. We can assess the huge change of everyday reality that is going to take place with it. Most important of all, analytics into volumes of data in different digital environments will make many demand heard in the ears of the marketers and it would make many hazy picture of possibilities clear like day, in one liner to say, it would reveal many business possibilities hitherto unforeseen. You can expect more revolutionary demand specific business ideas like McDonald's or more value brands targeting specific set of customers.
Unquestionably access to volumes of classified and unclassified data and sophisticated analytics would lead volumes of actionable insights for far better decision making process and it would definitely put companies and business conglomerates at a great cost advantage. Just imagine how much marketing research, consumer surveys, etc. cost a company and how far it can be replaced in a big way by the more accurate and result oriented research enabled by Big Data analytics.
Volumes, velocity and variety of classified and unclassified data put into sophisticated tool of analytics targeted towards particular derivatives can make the process of drawing conclusion even faster and less prone to faults as compared to human fluctuations incorporated into present day business environments. How many times you have seen your present boss differ with the earlier one? Yes, such situations are commonplace in business environments and sophisticated Big Data analytics can really replace them with accuracy and thorough compliance.
While you handle gigantic pool of data for deriving insights through sophisticated analytical apparatus, you undoubtedly require fewer infrastructures and less paperwork and the process becomes smoother, time driven and more observant to details. Such a business environment is more susceptible to the forces of innovation. While regular and crucial decision making can be much relied on the data analytics, you can find newer ways to drive data to derive newer areas of knowledge and business insights and thus can foster innovation.