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Real World Use Case Of How Small Businesses Can Reap On Big Data Like Big Brands
Despite the proliferation of statistical analysis software, data, and applications around the globe, it’s still considered inadvisable to use data for the sole purpose of identifying hidden patterns to solve business problems.
Since data can be too complex, organizations can only use it within a reasonable time and in the correct context. Furthermore, it takes great effort to assimilate the results of it properly.
But still, organizations manage to look into it by pursuing “the Scientific Method”. So even though data doesn’t provide the answers to your company’s problems, there are a lot of other interesting insights and observations that you can extract from it.
One of the most exciting discoveries that we made is how using big data in your small business can improve your business metrics like the profitability, sales, and traffic, or even improve your social reputation. And if you think that these insights are only applicable in large enterprises, I would say that they’re equally important in your business.
The main purpose of big data is to become an essential tool for all companies and industries, and that’s why data scientists are constantly finding new applications and applications to be most relevant in small businesses.
As you can see in this article’s featured image, on which basis companies with thousands of employees are using Big Data to boost sales and their social reputation. This also applies to what businesses could do if they think of using Big Data in small businesses.
Data science is a trendy topic right now, so I thought I should write this article, discuss some of the most important Big Data applications and some other ways to use it in your small business.
In the light of big data applications in large brands, below, I will discuss some simple but useful applications of this technology that small businesses can apply to make the business process much more dynamic.
1. Implementation of risk management
For every business, it is important to manage its risk strategically. While several different factors will make this possible, big data is probably the single most important thing businesses can do to manage risk successfully. The most basic and easiest way for your company to leverage big data is to build out a “risk dashboard.” This tool enables you to put a name to the risks that are currently “big” for your company and map it to a score that quantifies each risk’s likelihood of occurring.
For example, you might look at the state of your hospital beds, the amount of hospital space you own, and the average length of stay at each hospital. The process of analyzing these metrics would allow you to start exploring which of your facilities are in need of the most upgrades and investments. Not only will this help you see which parts of your company are at risk but it will also help you plan around the risk when it arises.
For example, when the Feds proposes new regulations and/or enact changes to Medicare or Medicaid, it may seem like the risk of business loss may have increased; however, it doesn’t always happen. Instead, it may be just that you are proactive in positioning your business to better navigate the changes that may come in the future.
2. Big data helps to better understand the customer
So far, the benefit of using big data hasn’t always been clear to businesses. Perhaps most famously, Target cut its 2013 holiday sales forecast after hackers stole data on as many as 40 million credit and debit cards. The retailer discovered that 40 million customers were compromised, a response that is described as a “nightmare scenario.” So, instead of preventing a breach, Target chose to react to it.
Instead of telling customers that it’s safe to shop, the retailer provided them with a free one-year subscription to credit monitoring service LifeLock. But Target’s reaction to the data breach illustrated the challenge of using data effectively. The company was trying to reduce its risk of harm by fixing a known problem—the security of its systems—without treating the breach as a major emergency.
Answering these questions, what does this incident teach us about using data in the breach response? The answer is that, instead of solving a known problem, fixing a current issue, and notifying customers, companies are faced with a new challenge: securing their systems against future threats. They have to rebuild the system to ensure that it is as secure as possible to avoid any further data breaches.
3. Big data can help you to understand your competition better
Big data also provides the opportunity to get to know your competitors. For instance, it can provide information about their likely sales tactics and which specific marketing tactics work. You can then use those tactics to preempt your competition and drive your sales to the next level.
In fact, according to a Gallup report, 92% of chief marketing officers (CMOs) believe that Big Data can be leveraged to improve marketing strategy execution and sales. With the cost of computing going down and the availability of powerful computing, Big Data is no longer an exciting idea. Data mining, data visualization, and data mining APIs are just a few data mining technologies that have been around for a while. However, they continue to be common today.
The range of information available can be overwhelming. You can go from learning the basic structure and structure of a set of data to visualizing the same data in entirely different ways.
4. Personalize the marketing strategies
Big data can help you to personalize your marketing strategies, increase brand loyalty, and get a competitive edge. But this isn’t just about crunching numbers and reporting results. A data-driven marketing strategy will also help you address your customers’ changing needs.
A great example of how big data can help you to create a winning marketing strategy is Amazon. It has developed a robust data ecosystem that measures purchase activity across many different devices, offers, and channels. But the genius behind its success is the strategic use of predictive models to identify emerging trends and predict future trends.
5. Identify the market trends
By applying big data in your business, you can also identify the market trends, which can then be put to fair use. An example could be a food company looking at consumption patterns to tailor a new product to a customer. We don’t have to ask people what their needs are and buy for ourselves – we can engage directly with the people we interact with on a daily basis.
6. Scale up the human resources
Using big data analytics you can produce comprehensive talent acquisition techniques. From recruiting for work to enhancing employee efficiency, big data will help you make smarter and more productive business decisions.
In 2017, Deloitte Global noted that technology investments in HR were already outpacing other areas of human resource management. But there is still a lot of room to grow. Analysts at Gartner have projected that, by 2020, 75% of major enterprises will have adopted a “systems-integrated talent management system”. In other words, implementing big data in HR is crucial in creating smart hiring, training and retention strategies.
Big data has endless applications in businesses. By applying this technology businesses need to uncover the hidden patterns used by customers to achieve a higher conversion rate, uncover what happens in the back office, among the clients and how those key customers respond to marketing and sales efforts.