Is big data the next buzzword that’s going to fade away or a fancy term for a phenomenon that’s here to stay?
What is big data?
Big data represents a massive volume of both structured and unstructured data that is so large, it is difficult to process using traditional database and software techniques. A new model of analyzing information is required by businesses to manage the huge data volume, velocity and versatility of information generated as part of business operations.
I will discuss a few interesting facts to make it easier for you to understand the size of the big data market:
- The annual revenue from the global big data market surpassed $33 billion last year.
- At the same time, spending on big data technology reached $57 billion.
- Only 23% of companies plan their strategies based on big data findings.
We can draw two important conclusions from these figures: Big data is a massive industry but a lot of companies are still not using it optimally to improve performance. Also, if you want to stay one step ahead of competitors, you should apply basic big data principles to your daily work.
4 Principles of Big Data
You can find numerous ways to exploit big data in business analytics. However, there are 4 basic principles one should learn immediately:
· Ensure the goal is clear
Big data can be very descriptive while uncovering the multiple layers of information flow that affect your business. However, this is not the primary objective. The first question you should have in mind is how big data can help to achieve specific business objectives. Big data analytics and statistics should lead to a concrete outcome, becoming a tool for the overall improvement of your business.
After all, that is what big data is all about. Traditional business intelligence activities and tools can help you generate insights but you want to take things to the next level and use big data to improve your company’s ability to make intelligent business decisions.
· Detect trends
If you follow industry trends and stay up to date, you can count on the long-term success of your business. On the other hand, it is even better to become a trendsetter, which is exactly where big data shines. For example, if you are a digital retailer who monitors the behavior of online buyers, you would need to detect trends early and act on them quickly.
Big data insights can often help businesses detect changes in customer behavioral patterns and warn them to prepare for game-changing trends on time. In such circumstances, a business could adjust its sales procedures to fit the new model and gain a huge advantage over competitors who ought to adapt once the trend is already set.
· Analyze relevant information
The amount of data you can accumulate is gigantic. This is good because it gives you enough material to work with but it doesn’t mean you should try to uncover it all at once. On the contrary, businesses should focus on relevant information only. Don’t throw yourself into a data ocean if you don’t need more than a small sample to make good conclusions.
· Establish connections
Big data analytics delivers incredible results when it comes to establishing relations between different elements of a business. You should always analyze information clusters in connection with other processes, factors of influence and levers.
For example, marketing is supposed to support sales but sometimes it gives sales agents nothing but useless leads. Big data analytics can help in assessing all leads to determine which ones deliver the best results and which ones should be eliminated. This way, you can successfully connect two or more segments of the business, making each segment even more productive than before.
Big data is one of the easiest and most productive ways to raise the success rate and the profitability of your business. It is closely related to business analytics and has the potential to deliver great insights into all the key units of your organization, from HR to sales and marketing.
In this article, we looked at 4 big data principles companies should apply on a daily basis. Apply these principles and leave a comment if you have other suggestions to share.
Guest Post Author
Olivia Ryan is a passionate blogger who writes on topics of digital marketing, career, and self-development. She constantly tries to learn something new and share this experience on different websites.