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.
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

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.
2. Time-Saving
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 Listening
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 behavior and recommend products as per customer interest. This helps them in
developing new and improved products which help the firm enormously.
IMPACT OF BIG DATA ON BUSINESS
With the help of big data, companies aim at offering improved customer services, which can help
increase profit. Enhanced customer experience is the primary goal of most companies. Other
goals include better target marketing, cost reduction, and improved efficiency of existing
processes.
Big data technologies help companies store large volumes of data while enabling significant cost
benefits. Such technologies include cloud-based analytics and Hadoop. They help businesses
analyze information and improve decision-making. Furthermore, data breaches pose the need for
enhanced security, which technology application can solve. Big data has the potential to bring
social and economic benefits to businesses. Therefore, several government agencies have
formulated policies for promoting the development of big data.
Over the years, big data analytics has evolved with the adoption of agile technologies and the
increase of focus on advanced analytics. There is no single technology that encompasses big data
analytics. Several technologies work together to help companies procure optimum value from the
information. Among them are machine learning, artificial intelligence, quantum computing,
Hadoop, in-memory analytics, and predictive analytics. These technology trends are likely to
spur the demand for big data analytics over the forecast period.
Earlier, big data was mainly deployed by businesses that could afford the technologies and
channels used to gather and analyze data. Nowadays, both large and small business enterprises
are increasingly relying on big data for intelligent business insights. Thereby, they boost the
demand for big data. Enterprises from all industries contemplate ways of how big data can be
used in business. Its uses are poised to improve productivity, identify customer needs, offer a
competitive advantage, and scope for sustainable economic development.
How Big Data Is Used in Businesses Across Industries
Financial services, retail, e-commerce, manufacturing, and telecommunication are some of the
leading industries using big data solutions. Business owners are increasingly investing in big data
solutions to optimize their operations and manage data traffic. Vendors are adopting big data
solutions for better supply chain management.
Banking, Financial Services, and Insurance (BFSI)
The BFSI sector extensively implements big data and analytics to become more efficient,
customer-centric, and, thus, more profitable. Financial institutions use big data analytics to
eliminate overlapping, redundant systems as well as providing tools for easier access to data.
Banks and retail traders use big data for sentiment measurement and high-frequency trading,
among others. The sector also relies on big data for risk analytics and monitoring financial
market activity.
Retail
The retail industry gathers a large amount of data through RFID, POS scanners, customer loyalty
programs, and so on. The use of big data assists in reducing frauds and enables the timely
analysis of inventory.
E-commerce
The importance of big data for E-commerce business is clear enough: the more you know about
your customer, the more profits you generate from your e-store. Data on real-time customer
behavior, purchasing history and products liked allow tracking high-demand products and
forecasting trends to be the first in the market to introduce best-selling products. Pricing analysis,
inventory management, customer churn prediction – these are only a few more things the
technology can do for business. The key to success is to be able to offer an extraordinary
customer experience that makes customers pay a higher price and this is where the technology
becomes your business partner.
Manufacturing
A large amount of data generated in this industry remains untapped.  The industry faces several
challenges, such as labor constraints, complex supply chains, and equipment breakdown. The use
of big data enables companies to discover new ways to save costs and improve product quality.
Logistics, Media, and Entertainment
In the logistics sector, big data helps online retailers manage inventory in line with challenges
specific for one or another location. Companies within this sector use big data to analyze
customer personal and behavioral data to create a detailed customer profile.
Oil and Gas
In the oil and gas sector, big data facilitates decision-making. Companies can make better
decisions regarding the location of wells through an in-depth analysis of geometry. Agencies also
leverage big data to ensure that their safety measures are up to the mark. Companies have started
to take greater advantage of big data. Taking into account the benefits of big data for business,
they turn to analytics and other technologies for managing data efficiently.
However, the usage of big data in several industries, such as healthcare, oil & gas, and so on, has
been slow. The technology is expensive to adopt, and many companies still don’t use the
majority of data collected during operations. Also, business silos and a lack of data integration
between units affect the use of big data. The information is not always consistently stored or
formatted across a company. And finding employees who possess the skills to analyze and use
data optimally is a challenging task.

BIG DATA IN MANUFACTURING: THE BENEFITS

The big data revolution is upon us. Whether you work in an office building, a factory or out in
the field, you’ve likely used some form of data analytics and the Industrial Internet of Things
(IIoT) at some point or another. Depending on your profession, you might even use it on a daily
basis. Although some industries rely on these next-gen innovations more than others, nearly
every single one benefits from the greater accessibility, heightened productivity and improved
communications offered by the IIoT.
Understanding the Benefits in Manufacturing
Manufacturers enjoy numerous benefits from big data analytics and the IIoT. Apart from
building a reputation for innovation and technology, some have experienced significant
advantages as a result of their IIoT implementation:
Faster Integration of Automation
Much to the dismay of some, factories all around the world are already embracing industrial
robotics. Proponents of technology insist that automation results in the loss of jobs, but recent
studies and reports paint an entirely different picture. Instead of resulting in widespread layoffs,
many manufacturers use robots in a way that complements their human workforce.
Increased Competitiveness
The manufacturing industry is, traditionally, a challenging profession. The rise of mobile
connectivity, next-gen hardware and the IIoT elevates this competitiveness to a new level by
providing deeper insight into market trends, knowledge of consumer needs and forecasts into
future styles. According to recent reports, 67% of manufacturers are now more
competitive thanks to the IIoT and big data analytics.
Less Downtime
Hardware downtime is a real productivity killer. Not only does it result in idle employees on the
production line, but it also requires troubleshooting and maintenance from engineers. Instead of
waiting until something goes wrong, some manufacturers now use big data and the IIoT to
perform predictive or preventive maintenance on their machines. Some “smart” hardware can
even self-diagnose and automatically shut down to avoid further damage.
Improved Research
The marriage between big data and the IIoT also lends itself to researching and reporting. Merck,
a pharmaceutical firm that manufactures various vaccines, recently solved the low vaccine yield
rates seen with some products via in-depth data collection, processing and analysis. Apart from
utilizing the breakthrough in current products, scientists with Merck are already planning to
integrate the solution in future vaccines. Similar studies and reports have the potential to impact
factory operations in every sector across the globe.
Greater Customer Service
Much of your success in the manufacturing industry depends on the satisfaction of your
customers and partners. Whereas many factories once built their business on providing
standardized products, more consumers now want customized, built-to-order goods. Advanced
sensors now provide alerts to field technicians regarding maintenance needs, RFID tags monitor
the physical condition of goods and data-driven reports provide accurate recommendations
for improving your customer service scores even further.
There is a plethora of reasons to make the move to the big data and the IIoT, some of which are
unique to your specific profession or area of expertise. While this is not meant to be an
exhaustive list of benefits, it covers some of the most advantageous perks of the IIoT and next-
gen technology.

6 BIG DATA BENEFITS FOR BUSINESSES

When business leaders hear the term big data, they most naturally think of the daunting volumes
of new data available today. This data is created from e-commerce and omnichannel marketing,
or from connected devices on IoT, or from business applications that generate ever more detailed
information about transactions and activities.
Nevertheless, big data is not simply characterized by the sheer scale involved; the data itself is
diverse and constantly changing. As a result, the term big data also encompasses new ways of
storing, processing, managing and serving the information that drives business decisions. It is
these new techniques, especially big data analytics, just as much as the volume of data, that
enable the big data benefits that business executives and IT teams alike hope for.
Let's have a look at six ways in which big data can improve the way we do business.
1. Better customer insight
When a modern business turns to data to understand its customers -- whether individually or in
categories -- it has a wide range of sources to choose from. Big data sources that shed light on
customers include the following:
 traditional sources of customer insight such as purchases and support calls
  external sources such as financial transactions and credit status, if these details are
available within a company's terms of service
 social media activity
 data from external surveys
 computer cookies
Clickstream analysis of e-commerce activity is especially useful in an increasingly digital
marketplace, shedding light on how customers navigate through a company's various webpages
and menus to find products and services. Companies can see which items customers added to
their carts but perhaps removed or later abandoned without purchasing; this provides important
clues as to what customers might like to buy, even if they don't make a purchase.
Not only online stores, but brick-and-mortar locations can also glean useful understanding of
their customers, often by analyzing video to learn how visitors navigate through a physical store
compared with their navigation of a website.
2. More insightful market intelligence
Just as big data can help us appreciate our customers' complex shopping behaviors in more
detail, it can also deepen and broaden our understanding of market dynamics.
Social media is a common source of market intelligence for product categories ranging from
breakfast cereal to vacation packages. For almost any commercial transaction you can imagine,
there are people out there sharing their preferences, their experiences, their recommendations ...
and their selfies! Yes, even of their breakfast fare. These shared opinions are invaluable for
marketers.
In addition to competitive analysis, big data can also help in product development: prioritizing
different customer preferences, for example.
In fact, big data does not just assist with modern market intelligence; in almost any e-
commerce or online market, almost all market intelligence is driven by diverse, ever-changing
data.
3. Agile supply chain management
Whether it is pandemic-driven toilet paper shortages, the trade disruption of Brexit or a ship
stuck in the Suez Canal, you should be aware by now that modern supply chains are surprisingly
fragile.
Surprising, because, mostly, we don't notice our supply chains until there is a truly major
disruption. Big data, including predictive analytics, often in near real time, helps to keep our
global network of demand, production and distribution working well for the most part.
This is possible, because big data analytics can integrate customer trends from e-commerce sites
and retail applications with supplier data, real-time pricing, and even shipping and weather
information to give a level of business intelligence not seen before.
It's not just large enterprises that benefit from these insights. Even modestly sized e-commerce
businesses can use customer intelligence and real-time pricing to optimize business decisions
such as stock levels and risk reduction, or temporary or seasonal staffing.
4. Smarter recommendations and targeting
In our lives as consumers, we are now so familiar with recommendation engines that we might
not be aware of how much they have evolved since the advent of big data. At one time, the
predictive analysis for recommendation engines was quite simple: association rules which found
those common items in market baskets. You can still expect to find this as a feature on e-
commerce websites telling us that customers who bought widgets also bought fidgets.
Newer recommendation systems are much smarter than that, building on the sophisticated
customer insights we have already discussed, with the result that they can be more sensitive to
demographics and customer behavior. These systems aren't limited to e-commerce, either. A
friendly waiter's recommendations may well be data-driven -- decisions prompted by a point-of-
sale system that evaluates stock levels in the pantry, popular combos, high-profit items and even
social media trends. When you share a picture of your meal, you are providing yet more input for
the big data engines to digest. Streaming content providers use even more sophisticated techniques.
They may not even ask customers what they want to see next: even before the current movie, program
or song finishes, the next selection fades in, keeping viewers binge-watching by utilizing their own
preferences combined with a great deal of big data analysis gleaned from other users and social media.

5. Data-driven innovation
Innovation is not just a matter of inspiration. There's a great deal of hard work in identifying
subject areas that are promising for new efforts and experiments.
Big data tools can enhance R&D, often leading to the development of novel products and
services. Sometimes, the data -- cleansed, prepared and governed for sharing -- becomes a
product in itself. The London Stock Exchange, for example, now makes more money from
selling data and analysis than it does from securities trading.
Data by itself, even with the best big data tools, will not produce new insights. We still need the
human element: the understanding and imagination of data scientists and business intelligence
analysts. However, the breadth and scope of big data, especially when stored on a single platform
such as Hadoop or a cloud data warehouse, can lead teams to a new understanding of trends,
which would be difficult to glean in a less integrated environment.
6. Improved operations
Business activity of all kinds can be improved by the use of big data, but one of the most
interesting and rewarding has been the use of big data analytics to improve physical operations.
For example, the use of big data and data science to inform predictive maintenance schedules can
reduce costly repairs and downtime for critical systems. You can start by analyzing the age,
condition, location, warranty and service details. However, some of these systems, such as
security and HVAC in facilities, are notably affected by other business activities such as staffing
and production schedules, which may, in turn, be influenced by sales cycles and, therefore, by
customer behavior. Well-integrated big data analytics can pull all this together to help you
maintain the right equipment at the optimal time.

BENEFITS AND ADVANTAGES OF BIG DATA & ANALYTICS IN BUSINESS

According to Gartner, “Big Data are high volume, high velocity, and/or high-variety information
assets that require new forms of processing to enable enhanced decision making, insight
discovery, and process optimization.”
In essence, Big Data refers to datasets that are too large or complex for traditional data
processing applications (for instance, ETL systems). It is characterized by three core features –
high volume, high velocity, and high variety. Rapid development and adoption of disruptive
technologies (AI, ML, IoT), rapidly-growing mobile data traffic, cloud computing traffic, and
high penetration of smartphones, all contribute to creating an ever-increasing volume and
complexity of large datasets.
Since the advantages of Big Data are numerous, companies are readily adopting Big Data
technologies to reap the benefits of Big Data. Statista maintains that the global big data market
will grow to $103 billion by 2027, with the software industry leading the Big Data market with a
45% share. While the global Big Data and Business Analytics market was valued at $169 billion
in 2018, it is estimated to rise to $274 billion by 2022. In 2018, nearly 45% of professionals in
the market research industry used big data analytics as a research method.

ADVANTAGES OF BIG DATA          

Big Data can help create pioneering breakthroughs for organizations that know how to use it
correctly. Big Data solutions and Big Data Analytics can not only foster data-driven decision
making, but they also empower your workforce in ways that add value to your business.
The benefits of Big Data Analytics and tools are – 
 Data accumulation from multiple sources, including the Internet, social media platforms,
online shopping sites, company databases, external third-party sources, etc.
 Real-time forecasting and monitoring of business as well as the market. 
 Identify crucial points hidden within large datasets to influence business decisions. 
 Promptly mitigate risks by optimizing complex decisions for unforeseen events and
potential threats.
 Identify issues in systems and business processes in real-time. 
 Unlock the true potential of data-driven marketing. 
 Dig in customer data to create tailor-made products, services, offers, discounts, etc.
 Facilitate speedy delivery of products/services that meet and exceed client expectations.
 Diversify revenue streams to boost company profits and ROI.  
 Respond to customer requests, grievances, and queries in real-time.
 Foster innovation of new business strategies, products, and services.
Now, we will expand on the most significant advantages of Big Data: 
1. Cost optimization
 One of the most significant benefits of Big Data tools like Hadoop and Spark is that
these offer cost advantages to businesses when it comes to storing, processing, and
analyzing large amounts of data. Not just that, Big Data tools can also identify efficient
and cost-savvy ways of doing business.
 The logistics industry presents an excellent example to highlight the cost-reduction
benefit of Big Data. Usually, the cost of product returns is 1.5 times greater that of actual
shipping costs. Big Data Analytics allows companies to minimize product return costs by
predicting the likelihood of product returns. They can estimate which products are most
likely to be returned, thereby allowing companies to take suitable measures to reduce
losses on returns. 
2. Improve efficiency
 Big Data tools can improve operational efficiency by leaps and bounds. By interacting
with customers/clients and gaining their valuable feedback, Big Data tools can amass
large amounts of useful customer data. This data can then be analyzed and interpreted to
 extract meaningful patterns hidden within (customer taste and preferences, pain points,
buying behavior, etc.), which allows companies to create personalized products/services. 
 Big Data Analytics can identify and analyze the latest market trends, allowing you to
keep pace with your competitors in the market. Another benefit of Big Data tools is that
they can automate routine processes and tasks. This frees up the valuable time of human
employees, which they can devote to tasks that require cognitive skills.  

3. Foster competitive pricing

 Big Data Analytics facilitates real-time monitoring of the market and your competitors.
You can not only keep track of the past actions of your competitors but also see what
strategies they are adopting now. Big Data Analytics offers real-time insights that allow
you to – 
 Calculate and measure the impact of price changes.
 Implement competitive positioning for maximizing company profits. 
 Evaluate finances to get a clearer idea of the financial position of your business.
 Implement pricing strategies based on local customer demands, customer purchasing
behavior, and competitive market patterns.
 Automate the pricing process of your business to maintain price consistency and
eliminate manual errors. 
4. Boost sales and retain customer loyalty
 Big Data aims to gather and analyze vast volumes of customer data. The digital
footprints that customers leave behind reveal a great deal about their preferences, needs,
buying behavior, and much more. This customer data offers the scope to design tailor-
made products and services to cater to the specific needs of individual customer
segments. The higher the personalization quotient of a business, the more it will attract
customers. Naturally, this will boost sales considerably. 
 Personalization and the quality of product/service also have a positive impact on
customer loyalty. If you offer quality products at competitive prices along with
personalized features/discounts, customers will keep coming back to you time and again. 
5. Innovate 
 Big Data Analytics and tools can dig into vast datasets to extract valuable insights, which
can be transformed into actionable business strategies and decisions. These insights are
the key to innovation. 
The insights you gain can be used to tweak business strategies, develop new
products/services (that can address specific problems of customers), improve marketing
techniques, optimize customer service, improve employee productivity, and find radical
ways to expand brand outreach. 
6. Focus on the local environment
This is particularly relevant for small businesses that cater to the local market and its
customers. Even if your business functions within a constrained setting, it is essential to
understand your competitors, what they are offering, and the customers.  
 Big Data tools can scan and analyze the local market and offer insights that allow you to
see the local trends associated with sellers and customers. Consequently, you can
 leverage such insights to gain a competitive edge in the local market by delivering highly
personalized products/services within your niche, local environment. 
7. Control and monitor online reputation
 As an increasing number of businesses are shifting towards the online domain, it has
become increasingly crucial for companies to check, monitor, and improve their online
reputation. After all, what customers are saying about you on various online and social
media platforms can affect how your potential customers will view your brand. 
 There are numerous Big Data tools explicitly designed for sentiment analysis. These
tools help you surf the vast online sphere to find out and understand what people are
saying about your products/services and your brand. When you are able to understand
customer grievances, only then can you work to improve your services, which will
ultimately improve your online reputation. 
 To conclude, Big Data has emerged as a highly powerful tool for businesses, irrespective
of their size, and the industry they are a part of. The biggest advantage of Big Data is the
fact that it opens up new possibilities for organizations. Improved operational efficiency,
improved customer satisfaction, drive for innovation, and maximizing profits are only a
few among the many, many benefits of Big Data. Despite the proven benefits of Big Data
we’ve witnessed so far, it still holds numerous untapped possibilities that are waiting to
be explored.