We often read that big data has the potential to influence every business, both Fortune 500 enterprises as well as small local firms. There are several ways in which it is possible to improve business by using big data.
First of all, big data will enable companies improve customer intelligence and customer experience. It is possible to get insight in what the market wants, but also what a single customer wants, what channels he or se uses to buy and so on. This makes it possible to provide the right message to the right person at the right time. This personalization can also be applied to apps or websites. Take for example Amazon and Netflix, they suggest books, films and series that perfectly fit their users tastes. This improves user satisfaction and in the long term also their loyalty. This would not be possible without big data and data analytics.
Secondly, it is possible to use data to improve operational efficiency. This can be done by equipping machines with sensors to track their performance. Also employee performance can be tracked. Sociometric Solutions has put sensors into employee name badges. These sensors report how the employees move around the workplace and with whom they speak. The bank of America noticed that their top performing employees always took breaks together. With this knowledge they instituted group break policies and the performance improved with 23 percent.
This are only two of the numerous ways in which data can improve business. However, research done by Forrester shows that between 60 percent and 73 percent of data in enterprises is untouched. Often companies are not intentionally not using their data, but they often do not understand the opportunities data has. So if managers become aware of the opportunities, incredible gains could be realised.
Sources:
1. https://www.forbes.com/sites/bernardmarr/2015/05/11/the-nanny-state-meets-the-quantified-workplace/#3fbeb71c69fa
2. https://www.simplilearn.com/how-big-data-can-influence-decision-making-article
3. https://www.ft.com/content/d56004b0-9581-11e3-9fd6-00144feab7de#axzz3XzFqixjB
4. https://www.forbes.com/sites/danielnewman/2017/04/04/improving-customer-experience-through-customer-data/#6b9f5fda4e64
5. https://www.inc.com/jeff-barrett/misusing-data-could-be-costing-your-business-heres-how.html
Hi Erica. Indeed, this is a very interesting topic both from a scientific point of view as well as in terms of business driving. If we think of the amount of digital traces that every second are being left behind not only by us as individuals but also by pretty much every business transaction, it becomes quite unsettling. Essentially, all of that can be attributed to the Big Data. The problem is that right now businesses are still too far away from being able to exploit their data to full the extent. Just take for instance any audio, video or graphical content; they require some really sophisticated analytical tools to get deciphered yet how many valuable information they might contain. As soon as there will be sufficiently simple tools for decoding the unstructured data; a whole new world of exciting business opportunities will open up for all of us!