Big Data captures and collections are set to double every 20 months—that’s a total of 44 times between 2007 and 2020. While they may be adopting it, the way businesses use Big Data has as significant an impact on business success as the presence and promise of Big Data. In other words, simply being open to collecting and using data is not a guarantee for success.

How you’re analysing and using your data matters more. In fact, in this day and age of online connectivity and digital dependence, you can actually say that your business is only as good as how it uses data.

How Businesses Are Using Big Data to Compete

More and more organisations are realising Big Data’s potential and are finding more ways and applications for it. For example, let’s take a look at how companies in the Asia-Pacific region are using Big Data, based on a survey from The Economist:

• 52% of real estate and construction industry respondents are using data to increase local content in the areas of product design and research and development.
• 31% of respondents in the manufacturing sector report using Big Data to reduce rising labour costs.
• 53% of healthcare, pharmaceuticals, and biotech companies rely on data to create new products and services
• Respondents in the energy and natural resources sector are the ones most interested in using Big Data to reduce operational costs, revise and create new customer segments, improve profitability, and enter new markets

Successful companies focus on using Big Data for one goal at a time and use it on no more than three goals overall, depending on the company’s size. Meanwhile, the most commercial use for Big Data so far has been as a tool for targeted advertising and marketing, with recent reports revealing that many companies are dedicating at least 25% or more of their budget to these initiatives. Big Data is being used by businesses in other ways as well, such as for streamlining internal processes, analysing market sentiment and patterns, and even when conducting DNA analysis.

Scepticism and the Pitfalls of Not Using Data the Right Way

Despite its potential and the way it’s beginning to change organisations and shape industries, many senior executives are still sceptical about Big Data. This leads to a whole score of consequences: a lack of performance metrics to justify and measure the success of data analysis, a lack of suitable software solutions, and a lack or shortage of business culture that promotes and encourages the use of data in different ways.

Also, while Big Data has proven to be a tool for both big and small organisations, many SMEs are still thinking that it results in huge spending and, thus, is not worth it. All these contribute to a trickle-down effect that is severely affecting how well we use Big Data collectively. In a sense, while Big Data’s versatility in terms of application cannot be understated, we’re limiting ourselves in how we use it.

Because of scepticism, Big Data use is also wildly variable. The gaps in its use can cause anything from wasted data to data wrongly used to answer a question about resources, project allocation, or customer behaviour. If there is a failure in understanding how to use it, then Big Data can feel like overwhelming chatter from multiple sources with no real application.

Failing to use Big Data the right way can also mean wasted resources while trying to approach various internal issues. Long-term poor data harvesting and analysis can affect profits. Failure to adopt and implement properly can leave a company not just lagging behind but also losing its competitive edge entirely, as other data-driven businesses gain a leg up simply by going with better data management protocols and systems.

Failure to understand how to use Big Data can often come down to being simply confused and intimidated, not knowing what to do with all that data. With so much information coming in at once, how can companies know how to properly utilise their data?

Using Your Data the Right Way

Big Data is finding more use in different industries, from banking and finance to sports and education. This tells us one thing: In a general sense, data is certainly not limited in terms of application. However, using your data the right way goes beyond simply knowing where or for what reason you can use it.

An important step in proper data management and analysis is knowing the different kinds of data and how to use it. For example, historical data, maintenance data, and even pattern-related data are important for systems and projects which use predictive analysis. This is especially useful for industries that depend on machinery, enabling them to come up with better maintenance programs that prolong the life span of equipment as well as improve planning for possible equipment failure.

Meanwhile, real-time data can be used by businesses to detect fraud even before any big losses occur. The same kind of data can be used to build databases which managers or IT security personnel can use to improve data security systems and prevent future fraudulent activities. For retail and marketing companies, data gathered from social media interactions, customer surveys, purchase points, and customer surveys help build better buyer personas that greatly improve promotional strategies, product development, and customer service. With the right data and data analysis, you might be able to predict what customers will want, before they even realise they want it.

Utilising your data the right way results in increased business efficiency and planning. Because you already know what kind of data you need and how to use it, you’re able to streamline processes, reducing wasted effort, time, and resources. Improved decision-making is another benefit—having the right information faster gives managers a boost in terms of planning and creating better strategies, policies, and protocols.

Hotel Chain Serves as an Example

Marriot International uses Big Data to accomplish one goal at a time, being very focused and specific on their goals for enhancing customer personalisation. For the hotel chain, this means knowledge about their customers’ previous stays, payment methods, and preferences (even as granular as bathrobes and pillows) and requests. This data can then be used to set up discounts, create personalised recommendations and experiences, and offers to encourage long-term brand loyalty to current and future clients.

Through this, Marriot International is showing us that Big Data can be used by businesses to gain a real competitive edge. With their data initiatives, they’re able to build a standard of quality customers will not only come to expect but will associate with brand value. This, in turn, promotes brand loyalty and recognition.

Capturing data analysis’ impact will help align the broader business’ mission with the actual ways in which it engages and interacts with customers. This alignment can ultimately drive success in terms of increased profitability and improved perceived brand value.

Make Big Data Work for You

Having the data you need is well and good but, without the proper tools, you won’t be able to maximise it for your organisation. Latize’s intelligent data management platform Ulysses turns your data into a web of information you can use to derive the needed insights to push your business forward and make the right decisions. This allows you to do a number of positive things, from improving internal processes and avoiding or reducing risk to uncovering previously unseen opportunities for your business. Contact us today and know how Big Data can do wonders for your business.