Big Data Analytics is the strategic use of data to discover gaps, opportunities, and insights. Current technologies allow companies to obtain a large amount of information from their internal public and even from potential customers.
However, it is essential to know how to use this enormous amount of material correctly to guide your decisions and, in this way, increase your performance in the market. Knowing how to collect, organize and analyze data will be essential for the future of many businesses. Is your company prepared for this reality? Find out in this article what Big Data Analytics is and its importance in organizations’ decision-making.
Data And Companies
Data is not the future: it is already the present for many companies. Not taking advantage of this strategy can mean falling behind and even the end for some organizations. A technology business, for example, will hardly gain market share if it does not invest in data analytics. One of the greatest examples in this regard is Netflix. Its recommendation system works precisely by collecting customer information and, based on it, highlighting productions that are closest to their taste. Which genres are most watched by the user, movies that he liked, that he didn’t like, series that he stopped watching…
All this data, when strategically analyzed, gives clues about the preferences of those who use the platform, thus helping to outline their profile and estimate which program in your catalog most closely matches these criteria. In this way – using sophisticated data systems – Netflix can deliver films and series with a high chance of pleasing its audience. Google, Facebook, and Instagram use this same logic… But you don’t need to be a technology giant to adopt the same dynamic and improve your company’s performance.
What Is Big Data Analytics?
Briefly, this concept means collecting, organizing, and analyzing a large amount of data from various sources, to identify patterns, find gaps and discover opportunities. Adopting Big Data Analytics can be a great strategy to optimize processes and find new business ideas. Using data in decision-making has yet to start in modern times. The difference is that, with the advancement of technology, it is now possible to store and structure a huge amount of information. This expanded the range of subjects that can be researched, collected, and organized, making this strategy more accessible. Before talking about its benefits, it is necessary to know that there are 5 Vs that form the pillars of Big Data Analytics:
- 1- Volume: Due to technology, a large amount of data can be collected through Big Data Analytics. If this information is useful, this volume will not be a problem but a huge opportunity.
- 2- Speed: Due to current technology, collecting, organizing, and analyzing data has become much more agile than manual methods. This factor can be very useful in markets with rapid behavior change, which require faster decisions, and also brings the advantage of reducing costs.
- 3- Value: with so much data being collected quickly, it is essential to know which information will be useful and which will not be so useful, avoiding spending resources and time on something that will not generate value for the company. That’s why it’s important to plan well before implementing this tool.
- 4- Variety: the collected data must come from varied sources. Information can be obtained from social networks, opinion polls, Internet browsing, purchasing habits… There are so many sources for these materials. It is enough to know where this strategy’s target public is – collaborators? Customers? Providers? Lawsuit?
- 5- Veracity: in times of so much dissemination of erroneous information, it is necessary to be very careful to collect correct data that truly reflect the reality of the analyzed situation. Therefore, accuracy and integrity are key factors for achieving this strategy’s objective. Data can be collected for various purposes: better understanding the target audience’s preferences, checking employees’ performance, optimizing some processes… In all these examples, Big Data Analytics can offer precise insights indicating better paths for the company. Therefore, this tool becomes important for more assertive and efficient decision-making.
The Value Of Big Data Analytics In Decision Making
It’s no wonder that several companies – giants or small – are somehow adopting Big Data Analytics. There are several advantages when implementing this tool daily, especially in improving decision-making.
Optimize Processes And Reduce Costs
Data can help show gaps in current operations, allowing them to be optimized and thus generate more value for the company. Consequently, this cuts down on unnecessary expenses and makes it possible to reallocate resources where they are most needed.
Big Data Analytics can also contribute to revealing hidden business opportunities. Discovering certain customer behaviors that can generate more sales, new employee skills, and improvement in processes… you need to know how to analyze what the numbers indicate correctly. These issues can help develop new products and services, conquering market share.
More Accurate And Agile Decision Making
Having reliable and quickly obtained data is a hand in the wheel to make more proactive and agile decisions. Imagine if your company discovers in a brief search on the website that orange draws more attention than green when buying a product. A simple test can confirm this quickly – which will help the board/management define the color change. This is just a small example of how well-collected information can allow for an accurate, agile decision that will benefit the organization. Adopting the strategic use of data can become a major competitive differentiator.
Also Read: Data To Monitor And Prevent Business Crises