Guest post by Finnegan Pierson.
The business world is changing, and big data is now the next big thing. Business owners have been using big data for analytics only, but now most of them have realized the potential of it and are using it for management purposes.
However, some entrepreneurs are still apprehensive on whether they should incorporate big data or analytics into their business. Most of them are lagging behind because they lack some management skills in their businesses; these are planning, vision, communication, decisiveness, among others. Nevertheless, the big data revolution is only just beginning and, therefore, to progress, every business owner will eventually need it in their investment. The following salient points show the importance of big data in the business world.
The Importance of Big Data in a Business
Most critics tend to argue that big data is synonymous with analytics, but there are some differences between the two. First and foremost their similarities are that both of them assist in collecting the business intelligence that will propel the investment further by making more informed decisions. Regardless of this, they still have distinct differences. These include volume. Just as the name suggests, big data is more significant in volume. Today more businesses are using the power of the internet to store data. The Harvard Business Review confirms that some reputable companies are able to gather over 2.5 petabytes of information per hour from client transactions only. This is equal to filling 20 million file cabinets. This essentially means that the companies are able to cover even more than a week’s data as compared to the analog timeframe. Essentially this means that big data saves a lot of time for the entrepreneur.
Another huge advantage of big data is that it can be collected using a variety of intelligence ways. These can be anything from GPS signals, messages, sensor readings and even social media posts. For a business, this means that even their social media posts are a big data reference point. Unknowingly the smartphone is also a source of information for any user. This is because it stores valuable information about everything you do in an incredible filing system. Therefore, it can be used to collect relevant information when the need arises. Gadgets such as this can be used to produce consumer insight reports to the entrepreneur regardless of whether the client knows it or not. Habits such as online shopping have started to generate a vast amount of big data. Therefore the intelligent business owner doesn’t have to go through a huge inconvenience to find out about his potential customer’s spending habits.
Big data has the power of finding out information in real time. Big data applications are able to increase the velocity of data creation, and this gives any business an edge in competition. Such insights are also immeasurable in finding out how a business is progressing. Applications such as the spark programming are assisting the business owner in building a convenient database that will mainly assist in building an advanced business. A Spark programming guide is a relatively convenient and step by step manual that even small business owners can follow and upload on their own.
Introducing Big Data
If an entrepreneur hasn’t embraced big data yet, hope is not lost, as it doesn’t take much to take the huge step towards data evolution. Although the whole company should be aware that you are introducing big data, you should start with a team that will steer the change within the company. Forbes business magazine says that entrepreneurs should ensure that they come up with a campaign before introducing big data among its ranks.
How Big Bata Improves Company Performance
Research carried out by the Harvard Business Review revealed that companies that followed big data decision-making policies were 5% more industrious and 6% more lucrative. This hypothesis shows that big data steers companies into profitability.
To sum it up, the importance of big data in any enterprise is immeasurable as it influences various facets of the business which include creating a new customer base and pushing up the profit margins. Therefore, any business which is worth its salt should be using big data to revolutionize itself.