Big Data Analytics: Importance and Benefits In Modern Businesses

The new economy, digitization, big data along with big data analytics are business buzzwords that have one thing in common: they are still big business. They represent the biggest change possible. Everybody can think of them in some way, but they are terms that are still in widespread use. 

Big data analytics can be understood more broadly. It’s one reason to study the subject in depth and understand the opportunities it presents for your business.

big-data-analytics

Big data analytics involves the analysis of large amounts of data from different data sources (Big Data). It uses the knowledge gained to make decisions, optimize business processes and exploit competitive advantages.

What Happens When Analyzing Large Amounts Of Data?

Big Data Analytics Takes Place In Three Stages:

Extracting Data From Data Sources

Today, data can be extracted from a variety of sources, from web analytics tools to smart home and smart factory applications. The challenge is to bring together this usually unstructured mass of data. 

The term data mining is often used for this purpose. This means that the data is available in raw form, for example in a mine, and needs to be extracted before it can be processed in a targeted way.

Structuring and Optimization The data Set

After the first step, there is a large amount of data that is still practically unusable. To do this, the right software will structure this amount of data according to parameters that you define.

Data Analysis And Processing

If the first two steps are mainly useful for working with the dataset, the real value lies in the third step: you can gain insights from the data analysis and use them to make decisions and optimize your business.

This step usually corresponds to big data analysis, sometimes used synonymously with big data analysis. It is a subsection of the big data analytics review.

Application Of Data Analytics

Big data analytics is used by companies in the business intelligence field. Analytics can provide users with important contextual information that can be used to optimize one or more processes. Efficiency gains can give you an advantage over your competitors.

You can also process the data for specific purposes, such as digitizing sales: effective sales tracking increases the likelihood of reaching and convincing potential customers in the long term.

Challenges In Big Data Analytics

The challenges of big data lies in the data itself:

  • Unstructured data is available in many places in many formats.
  • Data sources must be consistent with each other.
  • Data must be diverse and disparate across many sources.

Define What You Want To Achieve By Analyzing Big Data:

If you really want to use data to achieve your goal, you need to define the goal you want to achieve by analyzing big data. To do this, you need to know your company’s capabilities, know how to perform the analysis, select the right technology and use it.

The final cost of big data analysis depends on these decisions. To achieve a high return on investment, the investment should depend on the desired, preferably specific, objective.

Big Data Analytics Tools

There are many different technologies for analyzing large amounts of data. The ones listed here are well known and each focuses on a different area:

Informatica PowerCenter

Informatica PowerCenter is one of the most widely used ETL (Extract, Transform, and Load) tools in the world. No matter if you have a number of databases or a data warehouse, Informatica PowerCenter lets you safely process the data they hold while maintaining its integrity.

IBM Cognos

Today, modern businesses need different applications for proper data analysis, track events, find indicators or reporting in order to better acquisition and decision making. To solve this problem and provide a unified solution for businesses, IBM has created the IBM Cognos Business Intelligence suite. With the growing popularity of BI solutions, the demand for IBM cognos has increased dramatically.

Apache Hadoop

Apache Hadoop can be used in different architectures and on different hardware. It allows you to aggregate large amounts of data in a relatively fast cluster.

SAP BusinessObject

The use of SAP Business Objects is becoming extremely important in our constantly evolving and changing world. SAP BusinessObject BI tools are highly scalable and extensible. It can serve tens of hundreds of thousands of users and can be scaled up or down depending on the needs of the organization using it.

Splunk

Splunk provides centralized, real-time, cross-system access to historical and current data. Splunk thus becomes a data platform that enables faster problem identification and resolution.

Tableau

With Tableau, you can extract and process data. With visualization, you can gain instant insights that you can use to optimize your processes.

Zoho

Zoho is a big package with many programs. These include CRM, home office toolkit, financial platform and data analytics.

Importance of Big Data Analytics In Modern Business

Today, big data has become an asset. Take a look at some of the world’s biggest technology companies. They value their data, which they constantly analyze to make their operations more efficient and develop new products.

In a recent survey, 93% of companies consider big data initiatives “very important”. Using big data analytics solutions helps companies uncover strategic value and make the best use of their resources.

Finding value in big data is not just about analyzing the data. It’s a full exploration process that requires analysts, business users and managers to ask the right questions, identify patterns, make educated guesses and predict behavior. 

The importance of big data does not depend on how much data a company has. It’s about how the company uses the data it collects.

Each company uses the data it collects in its own way. The more efficiently a company uses its data, the faster it grows.

In today’s market, companies need to collect and analyze data. Let’s see why big data is so important:

Saves Money

Big data tools such as Apache Hadoop, Spark, etc. offer advantages to companies when they need to store large amounts of data. These tools help companies to find more efficient ways of doing business.

Saves Time

In memory, real-time analytics helps businesses collect data from multiple sources. Tools such as Hadoop help them analyze data instantly and make informed decisions quickly.

Understanding Market Conditions

Big data analysis helps businesses better understand market conditions.

For example, analyzing customer buying behavior helps companies identify their best-selling products and manufacture them accordingly. This helps companies to stay ahead of competitors.

Monitoring Social Media

Companies can use tools to process large data sets to analyze emotions. This allows them to get feedback about their company, i.e. find out who is saying what about it.

Companies can use big data tools to improve their online presence.

Improve Customer Acquisition

Customers are an important asset on which all businesses depend. No business can succeed without a solid customer base. But even with a good customer base, they should not ignore the competition in the market.

Not knowing what your customers want will affect the success of your business. This results in loss of customers, which has a negative impact on the growth of the company.

Big data analytics helps companies identify trends and patterns with customers. Analyzing customer behavior leads to profitable business.

Providing Market Information

Big data analytics shapes every business process. It enables companies to meet customer expectations. Big data analytics helps transform a company’s product portfolio. It provides effective marketing campaigns, stimulates innovation and product development.

Benefits Of Big Data Analytics

Big data analytics is well established across a variety of industries. Thus, big data is used in many industries such as finance, banking, healthcare, education, government, retail, manufacturing and many more.

big-data-analytics

Many companies such as Amazon, Spotify, Linkedin, Netflix etc. use big data analytics. The banking sector is the largest user of big data analytics. The education sector also uses data analytics to improve student performance and to help teachers teach.

Big data analytics helps retailers – both traditional and online – to understand customer behavior and offer products that match their interest. This helps them to develop new and improved products, which is very beneficial for the business.

However, many companies are still not clear about what big data is and how this analytical capability in commerce can benefit their business model. Lets see some of the sectors that are already using big data analytics.

Product Development

Analyzing large amounts of data can be a crucial advantage during development. For example, by assessing social media channels or customer feedback, you can identify social trends and market gaps early on.

Production

As manufacturing becomes smarter, it is no surprise that big data is playing an important role in this area. For example, many processes are monitored by sensors that generate large amounts of data. This data can provide predictive maintenance and prevent delays or failures in production.

Distribution And Logistics

Sensors are also increasingly being used in the supply chain, for example to measure fuel consumption or to record data on the location and condition of wearing parts. The structuring of this data means that costs can be reduced in the long term by scheduling deliveries on time, changing routes and loads, and reducing downtime and maintenance costs.

Marketing And Sales

Data analysis can significantly improve customer relations. By gaining a deeper understanding of your customers’ needs, you can target individual customers directly with personalized offers.

Banking

Big data analytics can help the financial sector make reliable forecasts or risk calculations. For example, the investment sector can react more quickly to market developments or price falls.

Conclusion

We find that big data helps companies make informed decisions and understand their customers preferences.

It helps companies achieve rapid growth by analyzing data in real time. It enables companies to outperform their competitors and achieve success.

Big data technologies help us identify inefficiencies and opportunities in-our business. They play an important role in determining the growth of a company.

Do you have experience with big data analytics? Want to get involved but don’t know where to start? 

At ExistBI, we look forward to sharing our ideas with you. We’d love to help you discover the potential of big data analytics for your business and put it into practice.

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