7 Notable Examples of Big Data in Business
How do we use big data in a business? In this digital era, data is a very important asset that must be owned by every company and organization. Without reliable data collection, companies or organizations will find it difficult to compete in the market. Therefore, you need to understand examples of big data in businesses that will always use digital data in this modern era.
Through this article, you will learn about the application of big data in the business sector in depth. But before that, you need to know what big data is first. Let’s see the full explanation below!
Getting to Know Big Data
Big data is a very large and complex collection of data that cannot be processed using traditional data processing technology. Today, big data is often generated by modern companies and organizations that collect data from various sources, such as customer transactions, system monitoring, and social media interactions. The data collected can be in the form of text, images, audio, or video.
To process big data, special technology is usually needed that can handle the five characteristics of big data, namely Volume, Variety, Velocity, Veracity, and Value. This technology includes special software and hardware that can process data in parallel on several servers or computers at once. In addition, special algorithms and analysis techniques are needed to find useful information from the data set.
Big data is very useful for companies and organizations who want to find patterns and trends from the data they have. For example, an e-commerce company can use big data to find out customer preferences and suggest products that customers might buy. In addition, big data is also useful for the government and non-governmental organizations in making decisions that can benefit society.
Examples of Big Data in Businesses
In practice, big data can be applied in various applications in business. The following are some in business.
1. Customer Analysis
Companies can collect data from customer transactions, product choices, and online behavior of customers, then analyze this data using special algorithms and analytical techniques to find certain patterns and trends. The results of this analysis can then be used to improve the shopping experience and suggest products that customers might buy.
By using big data for analysis, companies can find out customer preferences and adjust marketing and sales strategies according to customer needs. In addition, companies can also improve customer service by providing chatbot services or question-and-answer services that suit customer needs.
Read Also: What Is Big Data
2. Targeted Marketing
In targeted marketing practices, companies may collect data from social media, online advertising, and websites, then analyze this data. The results of the analysis can be used to determine the right target market and increase the effectiveness of advertising or marketing efforts made.
By using big data to carry out targeted marketing, companies can find out the exact demographics, interests, and behaviors of their target market, so they can create more relevant and effective ads. In addition, companies can also increase the effectiveness of advertisements by choosing the right time to play ads or choosing the right platform to display ads.
3. Production Optimization
By applying big data for production optimization, companies can identify weaknesses in the production process and take the necessary corrective actions. For example, a company can optimize production schedules by taking machine setup times into account, identifying faulty or overloaded machines before breakdowns occur, or looking for ways to reduce production time by using more efficient materials.
In addition, companies can also use big data to optimize the use of raw materials and reduce waste by predicting raw material needs and adjusting production according to demand. Thus, companies can increase production efficiency, reduce production costs, and obtain greater profits.
4. Sales Prediction
Data gathered from past sales, prices, promotions, and external factors such as weather and holidays can be used to predict future sales. By predicting future sales, companies can manage inventory and production more effectively.
In addition, companies can also optimize promotions and marketing by choosing the right time and targeting the right market according to sales predictions. Ultimately, companies can increase revenue and lower costs by leveraging available data.
5. Risk Analysis
Risk analysis is the process of assessing business risk by utilizing available data, such as financial, operational, and industry data. Through big data, companies can find out the risks that may occur in the future, assess these risks, and take the necessary precautions.
In addition, companies can also use big data to assess investment risk by predicting the likelihood of investment success or failure based on historical data and external factors that influence investment. Thus, companies can make wise decisions and minimize business risks by utilizing the available data.
6. Performance Monitoring
Through big data, companies can find out the detailed business performance and take the necessary corrective actions. For example, a company may identify financial problems such as low-profit levels or high debt levels, identify operating problems such as low levels of productivity or customer satisfaction, or identify human resource problems such as high turnover rates.
7. Quality Upgrade
Companies can collect and analyze data from customers’ shopping experiences, products or services, and manufacturing processes to improve product and service quality. In addition, companies can also use big data to increase innovation by finding new ideas that suit customer needs or finding new ways to solve existing problems.
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