Big data analytics currently becomes an important process in many aspects of our life. Businesses highly depend on big data to get more knowledge about their customers. This process includes inferring meaningful insights from a large amount of data from various sources.
Due to its enormous size, traditional computing techniques cannot manage and process those data. This condition leads to improvements in various tools to analyze big data. The process of analyzing big data has some applications in different industries. It means that this technique is highly beneficial.
3 Things to Know about Big Data Analytics
Below is information that helps you to explore big data and its analysis process. Through this information, you will understand how the analysis of big data is important to make improvements in the field you are working.
Big data analytics refers to the process of analyzing large and complex data sets with advanced analytic techniques. Big data is complex since it contains different types of data including structured, unstructured, and semi-structured data. They also come in diverse sizes from terabytes to zettabytes.
Big data denotes data sets whose size and type are incapable to capture, manage and process by traditional computing techniques. It is also beyond the coverage of traditional databases. Big data requires a type of database that has low latency. A quality that you cannot find in traditional ones.
Through analysis, researchers, analysts, and business owners can leverage big data use. It helps to unlock insights from inaccessible and unusable data. Then, they will use it to make quick and better decisions that companies or organizations need. It helps to find the right solutions for any problems faced.
Businesses use analytic tools to extract meaning from big data. These tools allow businesses to find out hidden patterns, market trends, and customer preferences from various data sources. Analysts also use these tools to infer unknown correlations from a collection of raw and unstructured data.
2. Types of Big Data Analytics
Each type of data needs different approaches for analysis. These different analysis approaches produce four types of big data analytics. The categories of analytics are present as follows:
a. Descriptive Analytics
Descriptive analytics defines as a type of analytics technique to unveil patterns in a particular segment of customers. It works by simplifying and summarizing the previous data so it becomes a readable form. This analysis technique derives insights from what has happened in the past.
It helps to gather information about the current trends and get to know its detail. It makes the process of creating reports becoming much easier. Companies use this technique to make profits, sales, revenue, and many more.
The concept of descriptive analytics is using previous data to improve its uses across offices and labs. Some examples of big data analytics belonging to the descriptive type are clustering, summary statistics, and association rules in market basket analysis.
b. Diagnostic Analytics
Diagnostic analytics, like its name, refers to an analytics technique to diagnose problems. It provides in-depth and detailed insights into the root cause of why a certain problem occurred. Data scientists use this type of analysis to obtain the reason why a particular condition happens.
In the business world, diagnostic analytics helps to research the prominent churn indicators. It also offers business owners insights about trends among their most loyal customers. For instance, this analysis helps e-commerce companies to know why their sales decrease although customers add products to their carts.
The possible reasons that lead to this problem may vary. It can be due to high shipping charges, unsuitable payment methods, or incorrect form loading. By conducting a diagnostic type of big data analytics, a company can obtain a specific reason behind this problem.
Using the insights from data analytics, companies can work to address the problem. Then, they create reliable solutions to overcome this issue.
c. Predictive Analytics
Predictive analytics denotes a type of analytics technique that aims to predict future happenings. What happens in the future may include consumer preferences, market trends, and other important events in the market. This technique predicts future happenings by using previous and current data.
Predictive analytics is a type of analytics that is most used in the business world. It works both for service providers and consumers. It records past activities and uses them to predict what they will likely do in the future. Examples of this technique are churn risk, new risk analysis, and succeeding best offers.
It applies several models to analyze the current data including artificial intelligence (AI), data mining, and machine learning. Then, analysts use it to project what might occur within specific conditions. An example of big data analytics with a predictive type is when a company makes strategies to protect its clients.
Companies will use historical payment data and client behavior data to forecast potential fraud in transactions.
d. Prescriptive Analytics
Prescriptive analytics is a type of analytics technique that is less popular but most valuable. This process is to continue the predictive analytics. It aims to explore possible actions and recommends actions based on the results of both analytics of a given data collection.
Prescriptive analytics combines data and a variety of business rules. The data sources can be internal which comes from organizational inputs and external derives from social media insights.
This type of analytics enables businesses to decide the possible solutions for a particular problem. Big data analytics under a prescriptive type provides good applications in the healthcare industry.
It is useful to improve the process of drug development, discover the right patients to receive clinical trials, and so on. However, for customer retention, it helps to determine the following best actions and best offer analysis.
3. Benefits of Big Data Analytics
Analyzing big data has proved to be beneficial for businesses. They benefit from the results of the analytics in various ways. The benefits offered have made it one of the most significant technologies in modern industry and business. Here are several benefits of analyzing big data.
a. Applying Risk Management
Big data analytics provides critical insights related to consumer behavior and market trends. Those insights are beneficial to help businesses in examining their current positions and development. Besides, it allows businesses to forecast any potential risks that may come in the future.
It means that this benefit refers to predictive analytics. It manages the possible risks and supports them with reliable actions through prescriptive analytics.
By conducting prior analysis, we can expect that businesses are not going through several losses when unexpected things happen ahead.It also gives an idea of how to lift up from the loss and survive in unstable market conditions.
b. Making Faster and Better Decisions
The rise of big data makes the world change faster and it affects the process of decision-making. The results of data analytics play highly contributes to the process of how businesses make their decisions. It enables companies to reduce waiting time to get a response. It no longer takes days or even months.
This condition allows companies or organizations to boost their efficiency. When the products or services are not successful in the market, businesses will not go through big losses. It is because they can renew the business model using a suitable analytics technique to know customers’ preferences.
c. Developing Products and Innovations
Businesses use big data analytics to determine their manufacturing and decide on a product to lead the market. Customer feedback on specific products is an important part of big data. Then, businesses leverage the data to know the effectiveness of the product and determine its continuity.
Insights derived from the data analytics process are essential for innovations. These insights help to plan business strategies, marketing techniques, and other important moves. It is because currently, businesses depend on market insights to formulate business strategies.
d. Improving Customer Experience
Since businesses enable to analyze customer behavior frequently, it will be easier for them to improve customer experience. They use the analytics results to bring customer experience to a more personal level. Products or services are often unsuccessful because they do not meet the needs of customers.
Diagnostic analytics in big data helps to find reliable solutions to the problems currently experienced by customers. It makes businesses provide a more personalized experience when customers use the products or services. It strengthens the relationship between the company and its customers as well.
When a company can understand its customer well, it can create products or service that meets the customers’ needs. Hence, customers can solve their problems with the company’s help. This condition often lets customers reuse or repurchase the products or services offered.
e. Generating Targeted Campaigns
Platforms can adopt big data since it offers tailored items suitable for the target market. Hence, big data analytics helps businesses to make effective campaigns for the targeted market. Instead of spending much money on ineffective advertising campaigns, big data helps businesses to analyze customers’ trends.
The analysis includes observing the online purchase and shopping transactions. This allows businesses to know what kind of products becomes best-selling in the market. It gives information about a range of prices that most customers can afford. It is a useful consideration when you want to launch a new product.
The insights gathered from this analysis are useful for companies to generate focused, effective, and targeted campaigns.
Since companies understand the customers well, they can provide products or services that can meet customers’ satisfaction. It develops brand identity so the company will be memorable.
f. Providing Supplier Networks
Big data provide an opportunity for companies to be part of supplier networks. They will be a member of B2B communities. There are many advantages that companies can get when they are into this supplier networking. Big data analytics helps suppliers to resolve any problem they encounter.
B2B communities allow companies to interact with each other. They can share information about characteristics of customers’ behavior, especially toward similar business products. This community empowers the business brands since more people inside will recognize it.
It simply has a positive impact on the customer lifecycle. The community can address prospective questions regarding the current issues in the business world and seek solutions together.
Hence, this community not only allows companies to adopt a higher level of contextual intelligence but also enhances their business success through these business relationships.
Considering the benefits that companies or organizations can get from big data analytics, we know that it has a significant role in the business world. It provides solutions to a variety of business problems that companies might face. It allows decision-making and strategy planning is much easier to conduct than ever.
Different types of analytics in big data help businesses to process and use raw data sets they collect daily to be more powerful. It unveils patterns that were previously unknown and uses them to improve operations. As it offers crucial insights, businesses can use it to understand the trends and lead the market.