About 77% of top organizations consider data analytics a critical factor of their business growth, and this percentage is only going to grow in the coming years. The number of jobs in the Big Data industry has increased by 106% from the year of 2014 to 2017. This apparent surge is due to the increased number of organizations implementing analytics and thereby looking for analytics professionals. The number of people taking data analytics certification courses is growing rapidly as well. But why exactly does it happen? Why is data analytics so crucial for any business willing to stay ahead of the game? Let’s find out.
1. Cost reduction
Big Data can help any organization, from a small business to a multinational corporation, both to harness their data and to draw multiple advantages from it. However, probably the biggest selling point here is that it allows businesses to stay ahead of the bleeding edge of technology without heavily investing into it. There is no need to keep multiple staff and invest huge amounts of capital – instead, there is a monthly subscription one has to pay to obtain access to exactly the functionality one needs right now, neither more nor less. This not just saves resources but gives an organization and its members flexibility to add and subtract capabilities as the business evolves.
2. Faster and better decision making
One of the main reasons of failure in business is wrong decisions, decisions that are suboptimal because they are based on incomplete information and decisions that are right but which are made too late to do any good. Big Data analytics adds enough speed to the equation to give businesses an opportunity to make decisions almost immediately, with the added benefit of allowing them to use new sources of data, which means more complete information to base one’s judgment on.
3. New services and products that meet customers’ needs
Big Data analytics gives businesses an opportunity to evaluate and gauge the customer’s satisfaction and, eventually, give them exactly what they want and not what business owners believe they want. More and more companies create and adapt their products that meet customers’ expectations even before the customers realize they have these expectations. For example, an e-learning company can use the insights received this way can increase its competitiveness in a variety of ways:
- By analyzing the demographics and creating the buyer’s personas they can analyze which courses get better response from different age groups to either create more courses catering to their core audiences or modifying the existing courses to better suit the demands of specific age groups;
- By studying which devices are most used among the clients they can better understand their needs and what limits their choices;
- By finding out which features of the existing courses get the best response from clients they can add something similar to other courses.
It is just a single isolated example – the situation is more or less the same in any other industry. Whatever your line of work is, your benefit can benefit from the introduction of big data analytics as well.
4. Stability and security
When the company’s data is stored in a dedicated data center, it can be better protected against viruses and ransomware – something that is becoming increasingly important because these threats are becoming more and more common with every passing year. Thus, decision makers can take full advantage of their growing collection of data without having to worry about building up on-site security systems.
5. Performance improvement
Big Data analytics gives you a precise picture of what works in your business and what doesn’t. Without it, you can come to the same conclusions, but they will always contain a high percentage of guesswork. Big Data, on the contrary, gives you definite information and explanation that cannot be interpreted in any other way.
6. Risk minimization
Decisions made with the help of Big Data have a much lower likelihood of resulting in failure because they are based on rock-solid foundations such as customer behaviors, market trends and business performance. It can often find reflection in unexpected areas, such as hiring. Potential advantages in this area include more through outreach to relevant applicants, the greater overall efficiency of the hiring process, less time spent studying resumes and, finally, selection of better-qualified candidates that are better suited for their intended positions.
7. Valuable insights
By monitoring social media chatter and web in general, it is possible to figure out how a business is doing and what can be done to meet customers’ expectations better. This way it is possible to increase the company’s industry knowledge, which in turn opens up opportunities for predictive planning – when you have definite expectations of what kind of economy your business is going to operate in, it is much easier to make well-informed decisions.
All in all, the importance of Big Data analytics for any business these days can hardly be overestimated. Irrespectively of your company’s size and the industry you operate in, there is a way to capitalize on it.