How Big Data and Analytics are Transforming Business
Analysts predict that by the year 2020 organizations will house 4.4 zettabytes – or 44 trillion megabytes – of information. As businesses embrace big data, they are gaining more perspective into their markets and discovering previously unrecognized ways to improve operational efficiencies. Mobile device proliferation only enhances these capabilities, and as the technology continues to develop, big data analytic service providers are finding ways to help smaller organizations exploit the resource.
Deeper Consumer Perception
Firms are using big data to improve customer relations by identifying their best clients now and in the future, as well as their clients who may not make large purchases individually but generate substantial combined revenue. Big data facilitates this by gathering information from many different sources, including information called unstructured data – which does not conform to a readily discernable format – making a previously impossible task possible and creating new opportunities.
Better Operational Efficiency
Big data efficiencies help organizations realize sizable increases in productivity. Modern businesses generate so much information that manual evaluation is impossible. For instance, a single commercial airplane sensor group generates 20 terabytes of information per flight. Fleet vehicles and delivery company parcels equipped with RFID technology amass enormous intelligence stockpiles. Further adding to data generation are computers that communicate with each other and operate without human interaction. These advancements facilitate many remarkable capabilities, such as transports that alert firms to service issues and warehouses that inform logistics systems when inventory is low, and are the reason why many industries now view big data as a standard business practice.
Mobile Data Enhancement
Mobile technology is expanding taking big data analysis beyond the confines of corporate headquarters. This capability increases the already formidable impact the technology makes on the business world. With big data, field personnel can now exploit real-time information. The technology merges mobile resources with available intelligence stored in enterprise legacy systems and instantly gathered information generated by field representatives.
Big Data for Smaller Firms
Today, even small to midsized organizations can harness big data analytic capabilities. Smaller enterprises that cannot cost-effectively deploy the technology in-house can turn to SaaS vendors. In the past, these firms typically relied on spreadsheets, but today, marketers cannot effectively manage large information volumes that generate quickly and frequently. Big data vendors make this service possible by sharing resources among many end-users.
Organizations benefit from big data analytics without deploying the technology within their enterprise. Some analytic firms research information and produce reports that smaller companies can purchase. These firms generate relevant reports by merging client databases with publicly available information. The result is a detail rich report that gives smaller organizations solid insights into their markets. Using this information, the companies can identify trends once only accessible by large corporations. Outsourced big data reports can also help smaller enterprises discover internal inefficiencies.
Increased Human Capital
Employee retention is a normal business concern but more so in some industries than others. An IBM case study reveals that one company reviewed around 5,000 applications and hired 200 new employees each month. Big data analytics allowed the business to analyze longtime employees’ histories to discover what job traits identify long-term job prospects. As a result, the company revamped their hiring process, greatly reducing worker turnover.
By improving employee retention, organizations can increase service levels and dedicate newly available resources to more productive activities. Over time, this experienced staff pool can help firms outperform their competitors.
Firms must manipulate large information stores to compete in the modern marketplace. Big data helps firms of all sizes exploit previously unrevealed opportunities such as increasing productivity and human capital. By combining the technology with mobile sources and propagation, organizations are developing entirely new capabilities.