This is how Big Data is Changing the Business World
When big data was first conceptualized, it was unclear to many businesses if it will really be able to make an impact on their business operations.
But, with its enormous benefits, today big data analytics has become a critical and top favorite among a large number of businesses across every industry. Big data helps increase profitability, gain a competitive advantage, get insights into customer behaviors, drive operational improvements, create new business opportunities and much more quickly and efficiently.
According to a study conducted by GE and Accenture, 87% of enterprises think that it will reformulate the competitive landscape of their industries within the next three years. In the study, 73% of the businesses have already started making investments of more than 20% of their total technology budget on big data analytics and 76% of executives predict the investment on big data is likely to grow more in the coming years. These figures prove how astonishing the future of big data is, and if you do not embrace it right now, you’ll be at risk of staying behind.
If you are curious to know if it can transform every business functions and how it is done for other enterprises, then continue reading this article, as we highlight several examples below which will help you to make an informed decision. So, let’s take a look at them now.
Hiring quality resources, cutting down attrition and reducing unnecessary employee expenses are a top priority for every business and big data proves to be a savior here.
An example is eBay that uses big data analytics to streamline several human resources (HR) functions, such as identifying the managerial and departmental hotspots for leaving and figuring out the policies that need to be adjusted.
“There’s a lot of value to be created and added through data analytics, whether it’s doing a better job spotting talent outside to attract to the company, or doing predictive analysis of who is likely to leave and what are the factors, so you can intervene before that point is reached to try to change the trajectory. There’s a ton of opportunity there,” said Beth Axelford, Sr.VP of Human Resources for eBay.
Another example is Catalyst, that uses big data to identify right talent. It conducts an online assessment, similar to Google, which is used by the company to collect every single specific piece of information that is required about each applicant to evaluate if an applicant is capable enough to deal with the company challenges.
Today, businesses use various data sources, such as search engines, social networking sites, and mobile apps, to identify the exact needs of their customers and to understand the future demand for a new product through predictive modeling.
Companies use big data to test thousands of different versions of a computer-aided design to identify every minor change a product needs, such as lead times, performance and material affect costs, so that the product development process can be improved and made more efficiently.
An example is Zynga, the creator of FarmVille which is one of the most successful games available today. It uses the data collected from the game for quality assurance, customer service and to identify what features should be tweaked or included in the next generation by analyzing existing user behavior.
Another example is Ford Motor that used a text-mining algorithm to identify the common features in one region to make these available in all regions.
With the advancement of technology, companies have started using digital technology to make their operations more efficient and, with the help of big data, they can now capture more specific information required from a wealth of new sources as it happens.
An example is United Parcel Services (UPS) which has been using big data aggressively to improve its operations. The company installed sensors in most of its delivery vehicles to track the location and speed of every truck, to track how many times a specific truck has been placed in reverse and more.
All the information collected gets uploaded to their data center at the end of the day and then analyzed overnight. In this way, UPS is able to reduce fuel consumption and cut down significant miles off its routes.
Data has always been a game changer in marketing and, with the proliferation of big data, marketers are now able to deliver much more personalized messages to lure customers.
An example is U.K.-based hotelier, InterContinental Hotels Group, which launched a data-driven campaign two years back that generated around 35% higher customer conversion or acceptance compared to earlier traditional marketing campaigns.
The secret behind the success was targeted, personalized offers to customers who needed it the most. The hotelier collects every data of their guests, just like any other hoteliers, but they didn’t just collect, they also analyzed the data to understand customer spending habits, check-in days, registration procedures and more to deliver specific offers to specific customers which they could not ignore.
For example, the customers who tend to stay on weekends and redeem reward points for gift cards received a marketing message that informs them about the local events over the weekends and so forth.
These are great examples of how big data is transforming businesses and how you can do so as well. However, understanding it and utilizing it properly could be complex. So, it is advisable to acquire help of a big data specialist to capitalize the advantage of it and implement it in your organization successfully.
So, when do you plan to implement big data analytics in your business? Do you have any questions or points to add here? Please leave your comments below and thanks for reading!