Big Data

In one point, we have all heard the term “Big Data”. But, do we really know what it is? In simple terms, big data refers to a large, fast, and complex amount of information that makes it difficult to process using the traditional methods. The impressive thing here is not the amount of data. What matters with Big Data is what organizations can do with the collected data.   

Basically, what makes Big Data impressive and so useful for many companies is the fact that it provides answers to many questions companies didn’t even know they had. Data can be analyzed to obtain new ideas that lead to better decision making and strategic business plans.   

How does Big Data offer value to companies?  

There are multiple ways in which Big Data can help companies. However, there are 4 specific benefits that would be worth highlighting: cost reduction, time reduction, faster, better, and smarter decision making and the creation of new products and services.   

Big Data makes it possible to address a variety of business activities. Here are some examples: 

1. Product development: Companies use big data to anticipate customer demand. They build predictive models for new products and services by classifying key attributes of past and current products and modeling the relationship between those attributes. For example, Procter & Gamble uses Big Data and analytics form social media, test markets, among others to plan, produce and launch new products.  

2. Customer experience: Customers are the first and most important concern of any company. Nowadays, it is much easier to understand and have a clear view of the customers thanks to the use of Big Data. It allows companies to collect data from social networks, call logs, web page visits, and other sources. All this to improve the interaction experience, as well as to maximize the value offered. Other uses of Big Data: personalize offers and products, reduce the rate of customer abandonment, and proactively manage incidents.  

3. Fraud and compliance: In terms of security, Big Data comes very handy. It helps to identify patterns in data that may be indicative of fraud. Similarly, all the information that is collected is used to create regulatory repots.   

4. Machine learning: Machine learning is a trending topic today. All this is possible due to the information that is collected with the use of Big Data. The impressive thing about this is that know, instead of being programmed, machines can learn.  

5. Operating efficiency: This is probably the area where big data has the most impact. As seen before, big data allows companies to analyze and evaluate production, customer feedback, returns and other factors to reduce out-of-stock situations and anticipate future demand. Big Data can also be used to improve decision-making based on market demand at any given time.