Why Big Data – Benefits and Importance of Big data
In today’s world, social applications are extensively used. It results in rapid data growth. On social media platforms, billions of users connect daily, users share information, upload images, videos, and many more. This rising Big Data is not an overhead anymore. Companies are using this it to achieve growth and defeat their competitors. Here arises the question of why Big Data is important for companies and What is its importance?
The article first explains what is Big Data. Then we will see its importance. We will learn why companies are adopting these technologies to analyze and store vast amounts of Data.
Let us first start with the Big data introduction.
What is Big Data?
Big Data refers to massive amounts of data produced by different sources like social media platforms, web logs, sensors, IoT devices, and many more. It can be either structured (like tables in DBMS), semi-structured (like XML files), or unstructured (like audios, videos, images). Traditional database management systems are not able to handle this vast amount of data.
Big Data helps companies to generate valuable insights. Companies use Big Data to refine their marketing campaigns and techniques. Companies use it in machine learning projects to train machines, predictive modeling, and other advanced analytics applications.
We can’t equate big data to any specific data volume. Big data deployments can involve terabytes, petabytes, and even exabytes of data captured over time.
Why Big Data?
Big Data initiatives were rated as “extremely important” to 93% of companies. Leveraging a Big Data analytics solution helps organizations to unlock the strategic values and take full advantage of their assets. It helps organizations:
- To understand Where, When and Why their customers buy
- Protect the company’s client base with improved loyalty programs
- Seizing cross-selling and upselling opportunities
- Provide targeted promotional information
- Optimize Workforce planning and operations
- Improve inefficiencies in the company’s supply chain
- Predict market trends
- Predict future needs
- Make companies more innovative and competitive
- It helps companies to discover new sources of revenue
Companies are using Big Data to know what their customers want, who are their best customers, why people choose different products. The more a company knows about its customers, the more competitive it becomes. We can use it with Machine Learning for creating market strategies based on predictions about customers. Leveraging big data makes companies customer-centric.
Companies can use Historical and real-time data to assess evolving consumers’ preferences. This consequently enables businesses to improve and update their marketing strategies which make companies more responsive to customer needs.
Let us now explore the reason why Big data is important?
Importance of Big data
Big Data importance doesn’t revolve around the amount of data a company has. Its importance lies in the fact that how the company utilizes the gathered data. Every company uses its collected data in its own way. More effectively the company uses its data, more rapidly it grows.
The companies in the present market need to collect it and analyze it because:
1. Cost Savings
Big Data tools like Apache Hadoop, Spark, etc. bring cost-saving benefits to businesses when they have to store large amounts of data. These tools help organizations in identifying more effective ways of doing business.
Real-time in-memory analytics helps companies to collect data from various sources. Tools like Hadoop help them to analyze data immediately thus helping in making quick decisions based on the learnings.
3. Understand the market conditions
Big Data analysis helps businesses to get a better understanding of market situations. For example, analysis of customer purchasing behavior helps companies to identify the products sold most and thus produces those products accordingly. This helps companies to get ahead of their competitors.
4. Social Media Listenings
Companies can perform sentiment analysis using Big Data tools. These enable them to get feedback about their company, that is, who is saying what about the company. Companies can use Big data tools to improve their online presence.
5. Boost Customer Acquisition and Retention
Customers are a vital asset on which any business depends on. No single business can achieve its success without building a robust customer base. But even with a solid customer base, the companies can’t ignore the competition in the market. If we don’t know what our customers want then it will degrade companies’ success. It will result in the loss of clientele which creates an adverse effect on business growth. Big data analytics helps businesses to identify customer related trends and patterns. Customer behavior analysis leads to a profitable business.
6. Solve Advertisers Problem and Offer Marketing Insights
Big data analytics shapes all business operations. It enables companies to fulfill customer expectations. Big data analytics helps in changing the company’s product line. It ensures powerful marketing campaigns.
7. The driver of Innovations and Product Development
Big data makes companies capable to innovate and redevelop their products.
Real-Time Benefits of Big Data
Big Data analytics has expanded its roots in all the fields. This results in the use of Big Data in a wide range of industries including Finance and Banking, Healthcare, Education, Government, Retail, Manufacturing, and many more.
There are many companies like Amazon, Netflix, Spotify, LinkedIn, Swiggy,etc which use big data analytics. Banking sectors make the maximum use of Big Data Analytics. Education sector is also using data analytics to enhance students’ performance as well as making teaching easier for instructors. Big Data analytics help retailers from traditional to e-commerce to understand customer behaviour and recommend products as per customer interest. This helps them in developing new and improved products which help the firm enormously.
We can conclude that Big Data helps companies to make informed decisions, understand their customer desires. This analysis helps companies to achieve rapid growth by analyzing the real-time data. It allows companies to defeat their competitors and achieve success. Big Data technologies help us to understand inefficiency and opportunities in our company. It plays a major role in shaping the organization’s growth.
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