The last two years have witnessed the emergence of Big Data Analytics (BDA) as a major focus area for business & technology leaders in stepping up digital programs and scaling post-Covid.
While security and compliance concerns frequently impede large-scale adoption, Big Data Analytics has been steadily increasing.
According to a recent IDC study, global BDA spending will advance at a compounded annual growth rate (CAGR) of almost 13% through 2025. The Big Data and Business Analytics market is expected to reach $260 billion by 2022, with banking and manufacturing leading the way. The Asia-Pacific (APAC) region is expected to be a major contributor to this growth.
The government sector, which is massively investing in infrastructure management, and the healthcare sector, which is expanding its wellness monitoring capabilities, are both adopting BDA at a much faster rate.
Banking spends the most, focusing on fraud detection and improving customer experience to increase customer and brand loyalty.
The overall requirement to alleviate supply-chain liabilities and market disruptions while also providing excellent customer experiences has resulted in increased investment in BDA, which ensures business sustainability.
BDA, when applied strategically ensures spontaneous results in business and palpable results for enterprises. Below are the five areas where big data analytics can create a huge difference.
- Improved customer experience through behavioral analytics
Product design and delivery must be in sync with changing customer demands. Generally, a customer would need the following:
- Details and contact information for product inquiries.
- Attention at the time of buying.
- Powerful customer care medium to guarantee retention and brand loyalty.
Paying attention to these three areas and implementing them successfully will result in enhanced customer retention, contentment, and a considerable increase in cross-selling and boosting of products.
Behavior-based analytics tools are an excellent way to evaluate customer purchasing patterns and gain real-time insights from instant feedback. This not only simplifies the understanding of the customer experience but also offers insight into areas the company should focus on and the services which can be enhanced.
- Increasing product development
BDA can be utilized to effectively customize products. To create distinct, competitive offerings, BDA can assist in understanding the product’s purchase history, reviews, and overall market demand based on current market trends.
This allows the product to be upgraded with new features, have its functionality improved by incorporating innovative technology or simply change the packaging for easier access.
- Increasing the efficiency of operations
The implementation of the Internet of Things (IoT) on various devices and instruments has simplified data collection for businesses.
BDA can be utilized to generate data that can aid in optimization to assure minimal material waste, output maximization, productivity improvement, optimization or establishment of continuous operational models, and constant incremental enhancement.
Increased sales, improved production, lower monthly costs, shorter execution times, better asset management, and higher product turnover are the results.
- Make planning and decision-making easier
BDA provides a comprehensive view of business decision-making. BDA can be used by the board of directors to assess the efficiency of the business, from supply chain to consumer services.
BDA can also help with a business SWOT (strengths, weaknesses, opportunities, and threats) analysis, as well as risk and trend analysis, goal-setting, and any variations in all areas.
Business leaders can also reduce redundant tasks, improving employee satisfaction and lowering attrition. Along with data-driven solution execution, informed decision-making becomes simpler.
- Recognize trends to remain competitive
The most significant benefit of big data analytics has been pattern recognition. Recurring patterns are an excellent predictor of emerging market trends. Businesses can innovate and develop new products by identifying and acting on these trends and opportunities. This increases business profits.
Market trends are also helpful in predicting the impending risks and offer businesses a clear path of growth while alleviating any unnecessary tasks in their operations.
Big Data Analytics is a dominant tool and is here to stay. Billions of dollars are invested in it to ensure long-term business growth.