Should Your Company Use Big Data Analytics?
Big data analytics is the process that includes collecting, organizing and analyzing large sets of data to try to find out any hidden patterns and trends.
Big data analytics have a major importance nowadays. Companies, in the most varied industries, can and are using it wisely. For example, financial institutions are using big data analytics to identify fraud; the healthcare industry is using it to discover how they can maximize the limited resources; online marketers use the big data to know which ads are most likely to get clicks on Facebook.
Big data analytics is becoming more popular every day within companies since it offers so many benefits. There are three main business advantages of using big data analytics:
Competitive Advantage: Some companies are using big data analytics to increase customers retention. Since businesses can deeply analyze all the data, they are able to evaluate and improve their marketing efforts and to adapt their marketing strategies in real-time. By using big data analytics, the company is getting an edge over their competitors who don’t use it.
Cost Savings: On the old days, you needed to store all the data into databases, and have powerful computers just to process it. But now there are already big data tools like Hadoop that allow you to store all your data at a much cheaper price. But Hadoop also has different tools that will help you not only storing but also processing and analyzing the data, with a very small cost.
New Business Opportunities: When a company decides to use big data analytics, they have multiple goals. One of them is definitely to improve what they are already doing. But they also try to reach a different goal: they want to explore new business opportunities. By using big data analytics, companies can get to know their customers better and know exactly what they are looking for. And they can also discover a new segment in their main audience they weren’t targeting just yet.
For most companies, dealing with big data analytics is truly a challenge. The volume data is huge, the types of data are different, and somehow, companies need to use different software and applications to retrieve important information and combine it. Only then, it’s possible to look at the data to discover some patterns or trends that will allow them to make better decisions regarding the company’s future. Big data can be analyzed using specific applications and software tools like data optimization, forecasting, text mining, data mining and predictive analysis.
However, companies need to pay special attention when they are using big data analytics:
- Analyzing such a huge amount of data to uncover any patterns may be a tough task especially if you don’t have anyone inside the company with the right skills to do it;
- Hiring an external and experienced analytics professional can be a bit expensive, especially if you’re just a small business;
- Since the big data analytics includes so many different types of data, there might be some issues with the consistency and data quality;
- Working with so many different software and applications may be hard, especially if you don’t have an in-house IT department. Some of this software and applications are a bit complicated to use.
Read more about data analytics and visualization at data-visualization.org.