In certain ways, we can say that Big Data is clairvoyant. When utilised properly, it has the capability to tell you what to expect in the future. Think about how many times in a day you interact with technologies or devices which have predictive features. For example, Netflix and YouTube recommend what it is thought you’d want to watch next, or you get emails every day from online retailers who think they know what you need to purchase soon. Meanwhile, Google and other search engines predict what you want to look for before you’re even done typing it in the search bar.
Big Data helps make these nifty features possible. However, in terms of the future, its potential goes way beyond simply telling you what to click on next. When analysed correctly, Big Data provides you with meaningful insights to ensure that your business is well-prepared for the future.You Don’t Need all that Data to Find Answers
The concept of knowing which data you need is akin to walking into a drugstore and trying to find the proper medication for a cold. There are a lot of options, and each one works in a certain way. However, you don’t need all that medicine, you just need the right one to free you from a runny nose, an itchy throat, and sneezing.
The same thing can be said about data. One persistent Big Data myth is that you need all the data you can get to get results. This is not true—not every piece of data you can access is going to be relevant to your objectives. For example, if your objective is to understand your target market’s online purchasing habits then data related to their online activity is relevant. However, data related to their offline activities may not be needed in this scenario.
Preparing Your Organisation through Big Data
There are many areas in which Big Data can inform a business’ future. It may be through a roadmap for growth and progress or by revealing opportunities. It could also expose possible threats you should prepare for and the risks associated with certain decisions. Ultimately, Big Data can provide you with ideas around innovation and how to be agile enough to adapt to changing market or industry dynamics.
Companies can no longer simply understand processes and operations looking at only how to improve upon what is already there. If they want to secure future success and stay ahead of the competition, they must also rethink the entire process. Constantly challenging existing practices is what moves organisations forward.
If understood, Big Data has the ability to help companies make better decisions, which will positively impact their bottom line and development. Making the correct predictions about different areas—from customer demand trends to industry developments—matters. Gathering the right data and having the tools to manage and extract relevant insights from it will lead to business advantages, such as being able to more accurately predict buying behaviour based on past purchases or past interactions for consumer-centric companies. You can then pattern or customise campaigns or services based on these insights to take advantage of them further, increasing your chances of getting more benefits from your data.
In manufacturing and factory-dependent industries, past data can be used to more accurately assess equipment lifetime and failure. This paves the way to more effective maintenance schedules and planning, allowing for a proactive approach to maintenance, resulting in fewer and shorter downtimes. In the end, this not only helps you better protect company assets, it also equates to less money wasted.
Another area where Big Data can positively influence future decisions is fraud detection in financial institutions. Through analysis of user-generated data (e.g. biometrics, log-ins) and patterns and trends related to past transactions, businesses such as online retailers have the ability to not only monitor things in real-time, they can also identify areas where fraud is more likely to occur in the future, giving them a boost in enhancing their fraud detection strategy and protocols.
To understand the capabilities of Big Data in preparing your organisation for the future, it’s helpful to see it in action. By 2021, it’s been estimated that cybercrime will cost businesses worldwide $6 trillion a year. How can you use Big Data to ensure you won’t be a victim? By looking at past actions, technologies, and security gaps that led to cybercrime and data breaches, businesses will know what to look and prepare for in terms of strengthening their defences. Algorithms and systems can then be created to formulate predictions, update existing tools and databases, and flag attacks (and trigger safety measures) before any real damage is done.
Using Big Data to Understand and Gain Customer Loyalty
The grocery industry has found Big Data to be of great benefit in preparing for the future. Grocery stores collect scan, panel, and card data. A scan relates to what is sold in the store. This is mostly quantitative data and includes data such as quantity, prices, and time of purchase. Panel data provides context such as age, household makeup, income,and education. This supplemental data is supplied by third-parties. Grocery stores also include card data in their analysis, which is collected via consumer activity such as the use of loyalty or credit cards.
Proper data analysis helps these companies understand their customers’ needs and buying habits better. It allows them to better target customers through email, social media, and other marketing channels. The Australian Food and Grocery Council Supply Chain Survey Report 2016 listed shopper loyalty as a main focus within the industry since many shoppers seem to be visiting many retailers instead of just one.
Major grocer Woolworths is aware that Australian consumers shop at different retailers and know that Big Data can help them find the answer to achieving consistent and stronger customer loyalty. In 2013, Woolworths made a substantial investment in data analytics and has revealed that this investment has helped them understand their customers better. Doing so has allowed them to deliver a better customer journey and experience, boosting customer loyalty in the process. By properly analysing store and consumer-generated data, grocers have the ability to improve their operations and services and make them more effective now and for the future as well.
Be Future-ready
Big Data has significant value for any organisation that hopes to make better decisions to gain better business outcomes. However, having data is not nearly enough; you also need to be able to properly analyse it in such a way that it delivers actionable insights you can use to prepare for the future. Latize’s intelligent data management platform Ulysses helps you make sense of the data you have, building for you a web of data about different things you can use to improve and even gain a competitive advantage. Learn more about how Ulysses can help future-proof your business today.
