Big data is a term that is currently being tossed around and for good reasons. It’s the Holy Grail of every business that wants to remain afloat and abreast of its competition. So, what is big data?
Big data refers to the large volumes of data sets which when analyzed reveal trends, patterns as well as associations about human behavior and interactions. In business, companies undergo data collection and cleansing and data sets are analyzed to come up patterns, trends and associations that can aid in making management decisions as well as reach out to prospective customers. With that said, what are the ways that big data is transforming businesses?One, when data is analyzed, and patterns or trends identified in time, then the business gains insight and when it acts promptly, it can result to returns on investment and enable lead generation because of getting specific data. For example, in a piece on the New York Times on how companies learn your secrets, it was interesting to learn that Target was able to predict that a lady was expectant and thus email her adverts of baby products. In this case, timeliness ensured that the mother got to learn of the deals Target was offering before going to other stores.
Real time analytics have helped businesses uncover trends and patterns in time and act on them. This helps give the businesses an edge over the competition. It also helps management to make decisions faster and their decisions are better as they can analyze data immediately. Another perk that comes with analytics is that businesses can come up with new product and services. This is because through analytics, they can gauge customer satisfaction and their needs, and they are thus able to come up with products that the customer wants.Data management is expensive. Very few organizations can store petabytes of data for them to analyze it. However, web innovators have come up with a solution to this: Hadoop, helps in scaling the large sets of data by parallelizing it across low cost commodity hardware thus making it less costly. All this exempts businesses from having to buy and maintain expensive hardware in the name of storing and analyzing large sets of data.
Big data is also crucial in risk evasion. Since access to large volumes of data supports scenario simulations, this helps identify risk concentrations and act on them. It also helps businesses to be wary of development of new markets and react to them. Big data is also key in fraud detection. Through pattern recognition, cases of identity fraud have been identified in a precise and fast manner compared to analyzing data manually.Different fields have realized the benefits that they can reap from big data. For example, in the medical field, physicians are countering the rise in medical cost by keeping a record of a patient’s medical history. This helps the physicians come up with accurate diagnoses and save money on extra tests. In education, almost all courses of learning having been uploaded online. All this goes to show that big data can play an important role in turning your business around.