The dynamic environment in which businesses operate today, combined with the huge volumes of data created by the digital world, demands new approaches to manage and use data for business advantage. According to Forrester Research, most of the organizations use less than 5% of their data effectively. Is your business in the majority?
This article introduces you to big data and different ways you can derive value from it.
What is Big Data?
The term ‘big data’ is used to describe data, both structured and unstructured, that is growing exponentially and cannot be analyzed using traditional data analysis techniques because of its complexity and volume.
How are businesses seizing the Big opportunity?
When used correctly, big data can provide valuable insights to develop new products, redefine business strategy, and understand customers.
Here are a few examples of how big firms are using data for their advantage.
- LinkedIn – The professional social network collects data of its over 100 million users and uses it design new, personalised products that are tailored to an individual’s distinct skill sets and interests.
- ChipRewards – This company collects data from insurance companies, healthcare providers, and customers to develop individualized programs to offer incentives to its customers with healthy lifestyles.
- EMI – The music company uses big data analytics to monitor, measure, and forecast product demand.
3 Tips to Extract Business Value from Big Data
So, big data offers great value but how do you get started? Here are 3 tips you can use big data to gain customers’ attention and competitive advantage.1. Start Small but Think Big
To make an effective use of big data, you should collect and integrate data from all possible channels and touchpoints. This doesn’t necessarily mean big investment. Consider collecting data from your distributors, retailers and customers, and scale up according to your business needs.
2. Collect Most Up-to-Date Data
One of the most important considerations of using big data analytics is to collect the most relevant and current information. Depending on your industry and your competitive landscape, you may need to collect data quarterly or biannually.
3. Integrate Data into Your Business Strategy
Gone are the days when strategic decisions were made in a high-level corporate meeting. To make effective decisions, you must take suggestions from low- and middle-level management and take your customers’ needs into account. Make sure that the information you have collected from various channels is integrated into your overall business strategy.
Using these tips you can extract enormous value from big data. So, get started to earn more customers and revenue.