The data revolution is transforming the business landscape. As computing technology continues to become ever more powerful, advancing to handle data size and complexity better, companies stand to gain many benefits from big data and analytics.
“The technology for storing and managing data has evolved from traditional file to data warehouse,” shared Mike Lim, COO of Exist.
“We are now seeing the rise of big data as enterprises are starting to transition or combine their traditional data stores with big data to better handle the dramatic growth of their data.”
Big data presents huge opportunities for organizations across all industries, with new technologies available that help organizations unfold key insights from the explosion of available information today.
“Big data generates value from very large amount of information that you would like to mine fast and analyze. The main purpose of big data is data mining – a faster and much smarter way of retrieval and analysis of data,” explained Mike.
As they say, better information leads to better decision making.
“But more than just collecting and storing the data, it’s about what you do with the information later on,” added Mike.
Leveraging big data effectively can help you drive strategic decisions for developing innovative products, streamline operations, mitigate business risks, improve customer relationships and drive revenue growth.
Big data enhances customer relationship
Big data is playing an important role in efforts to improve and even customize experiences for consumers. Translating data (customer profiles, transactions, online and social media interactions) into meanignful action such as uncovering consumer behavior patterns and demographics will enables you to understand your customer better, improve how you respond to their needs, deliver the right product or service at the right price at the right time and improve client satisfaction.
“Something very interesting for retail especially for large retail companies, is that they can now store information not only about their product but as well as their customer’s information such as customer’s frequently bought items, product color or style prefences, the time they bought the item, etc. These data will then help retailers target customers effectively, forecast items efficiently and meet the demands of their customers,” shared Mike.
The Economist reported that Tesco, a British retailer, collects 1.5 billion nuggets of data every month and uses them to adjust prices and promotions. While Williams-Sonoma, an American retailer uses its knowledge of its 60M customers (which includes such details as their income and the value of their houses) to produce different iterations of its catalogue.
Big data drives product innovation
Aside from transforming customer-facing functions such as sales and marketing, big data encompasses other areas of the enterprise. Big data enables companies to create new products and services, enhance existing ones, and invent or refine business models.
In research and development, for example, big data and analytics are being adopted across industries, including healthcare and pharmaceuticals, according to McKinsey.
Once data, generated from different sources such as medical records, social media data and patient experiences, is managed and analyzed effectively, these data will help pharmaceutical companies better build a stronger pipeline of drug candidates and develop them into effective, approved and reimbursed medicines more quickly.
Big data bolsters top line and bottom line growth
Across verticals, big data can produce large data sets paired with massive processing capabilities to drive growth, and reveal cost-reducing opportunities.
Since big data empowers you to generate value-creating insights, you’ll be able to create strategic business decisions and even make a predictive analysis to streamline operations, uncover fraud and build competitive advantage.
Reach ventures explained that from a top line perspective, big data will help you predict future demand and revenue, improve pipeline probability and calculate risk more accurately for new offers. While from a bottom line perspective, big data will help you save money by analyzing and fleshing out cost-saving trends, streamline workflows by locating and targeting outliers and improve efficiency by learning from historical data.
Moreover, according to McKinsey, if US healthcare were to use big data creatively and effectively to drive efficiency and quality, the sector could create more than $300 billion in value every year.
It was also reported that Amazon, an online retailer, has claimed that 30% of its sales are generated by its recommendation engine (“you may also like”).
“Your return of investment would depend on how much data you could accumulate over time and what you do with that data vs how much is the cost of your investment, say the hardware, resources, etc. If you implemented your big data strategies efficiently, then you will quickly realize ROI,” shared Mike.