Why Big Data Is Important for Higher Profits?
In this new series, the authors will explain why Big Data is so important to businesses. The final installment will clarify its value for your business. After reading this article, you should understand why big data is important to companies and how it can improve business performance.
First, let us define Big Data which is a term borrowed from Data Warehousing which is a term for a technology platform that supports distributed execution across multiple physical and logical nodes. The article first describes what exactly is Big Data. It comes in the form of unstructured, semi-structured and dense Big Data and includes a map-reduction, greedy algorithms, and neural networks. In a future post, we will see its true importance to companies. Then we will explore its utility for today’s businesses.
The utility of big data for today’s businesses cannot be denied. It helps companies discover new opportunities and apply advanced analytics to existing data sets. It helps organizations derive inferences and draw conclusions which are more meaningful than conventional sales and marketing analyses. For example, sales by a specific customer in a given quarter may be indicative of a new product line or service offering that can be highly profitable. Hadoop analytics can help companies reduce operational expenses by automating certain business processes, streamlining repetitive tasks, and providing valuable information to key decision makers.
What makes big data analytics so unique and provides such an advantage to businesses is the integration of social media platforms. Today, organizations are leveraging Twitter, Facebook, LinkedIn, and other social media platforms to obtain new insights and customer insight which they can then use to support key decisions. In addition to collecting data, social media platforms allow organizations to make announcements, share files with colleagues, and upload videos and images to increase exposure. In this way, users gain direct access to information and experiences that can help businesses better serve their customers.
Another tremendous benefit is the real-time analytical potential offered by social media. Twitter, for example, can provide data on user activity, market share, and industry trends with a few clicks of the mouse. This provides organizations with immediate insights about user preferences, interests, behaviors, and buying habits. Similarly, using YouTube and Facebook to upload video clips and images can yield quick analytical insights. Traditional sales and marketing methods cannot provide organizations with the insight big data services can provide.
Big data analytics tools such as Hadoop and Spark can help organizations make the most out of their data sets. Spark is an open source framework that delivers event processing, batch processing, and the distributed execution environment necessary for large-scale analytics. Hadoop, on the other hand, is an open source framework that enables distributed application execution on large horizontal grids. With Hadoop, an analyst can easily visualize the data sets he or she has collected and analyze it in real time. Hadoop is rapidly being used for various web-based applications.
The real-time capabilities of big data analytics solutions, however, go beyond basic analytic functions. Many solutions provide marketers with unprecedented insights into user behavior, brand loyalty, and product demand. These technologies also help organizations develop new online marketing strategies. By collecting, analyzing, and interpreting real-time data, big data analytics solutions are helping marketers identify new opportunities and build new business models using the most appropriate mediums at the right time.
In addition to providing users with instant insights, these tools are also helping companies optimize their processes and practices. Big data analytics is not just an efficient and effective way of collecting and managing data. It is also a crucial way of understanding customer behavior and developing improved customer experiences so that they get better satisfaction from your products and services. With the right tools, organizations can get closer to achieving their goals and improve their profitability at the same time.