Whether we like it or not, Big Data is part of our lives now. But for many, this is nothing more than a buzzword. In reality, Big Data has so many applications, sometimes it’s difficult to remember them all. Businesses seem to be the ones with the biggest advantages derived from this technology.
Big Data can offer businesses valuable insights. From understanding consumer behaviour and preferences to getting a better overview of the competition, this technology can offer business ventures an array of insightful information in different areas of interest. But enough with the chit-chat, let’s see how business management and Big Data are intertwined in today’s business landscape.
From Silicon Valley Standard to Global Standard
Initially, big data was used internally by tech companies in Silicon Valley. This helped them to get more information on their clients, consumers, target audience, but also competitors and the market landscape, as a whole. Although, traditionally, analytics were done manually in large proportions, coders in the Valley have created smart, machine-learning powered protocols to pull and analyse data from all available sources and make incredible predictions. Machine learning and econometrics, modelling that predicts which pages are going to get more clicks at what times of the day, these all have their roots in the biggest tech hub in the world.
But since this technology has emerged, it has become standard practice for a growing number of businesses in different areas of the globe.
Changing business management
Business managers today rarely make decisions without being backed by data. And business management students at Cambridge Economics Summer School learn how to leverage it, how to analyse it, and how to make decisions based on it, too.
Today, big data has become standard protocol in business management and prestigious academic institutions emphasize its importance in the courses they design. But how has business management changed since this technology has been made available on a global scale?
Tech giants like Microsoft and Google are the best examples of how management is changing in today’s tech landscape. Not a single change in the search algorithms at Google is made without experimenting and getting tons of data on each experimentation. Only changes, products and services that successfully pass the test are released to the wide audience.
Real-time data collection and analytics
Because real-time data collection is a real prospect today, business managers can improve their capabilities and management skills. Because today data can be collected and processed instantly, using it to improve company performance and automate the decision-making process becomes a realistic expectation.
Today, companies regardless of their dimension can gather and analyse data effectively. Big data implementation has become affordable, which has contributed to this aspect tremendously. This offers small businesses a competitive edge. Smart systems can help businesses access and leverage data from different mediums and systems they already have. For instance, the data in CRM, ERP and CPM systems remains trapped and unexplored to its full potential, in most cases. When big data analysis systems are deployed, it becomes widely available. The data processed from such systems, becomes actionable information, helping business managers make informed business decisions.
Smooth decision-making process
Good decision-making is the cornerstone of successful enterprises. However, the process is usually strained by unforeseeable issues and obstacles. Fortunately, big data is here to help business managers once again. Paired with automation, big data can offer business managers new opportunities, stemming from the need of making more accurate predictions. This technology can be leveraged in the decision-making process in different industries. From healthcare to insurance, we have them all, below.
· The banking industry. After the 2008 financial crisis, banks were no longer willing to take risks and offer credits on a first-sight application analysis. Over the past few years, they have started to use big data and automation to determine each applicant’s credit-worthiness. Today, banks and other financial institutions are able to determine how fit for a credit each applicant is, thanks to big data and automation. Previously, bank employees were under a huge load of applications, and human error was always a severe issue for them.
· Healthcare. Big data can also help health providers make more informed medical decisions. Wearables and health trackers can provide sufficient data for medical professionals and medicine today has shifted to the evidence-based approach.
· Better operational protocols. Operational standards can now be improved, thanks to a constant flow of data and information. Decision-makers can change and adapt their business operations in such a fashion to increase efficiency and eliminate unnecessary steps from their procedures. As a side-effect, this can help business managers lower operational costs and boost profits. Similar technologies can find applications in HR in the hiring process and not only. Such technologies can also be used to analyse in real-time performance indicators in their employees.
Leveraging old data for new insights
Leveraging old data can offer new insights on different matters. Business managers can use it to answer business policy questions more accurately.
Although this method is not widely used today in business processes, social studies already use it to perfect their scientific protocols. Besides, businesses in the financial industry also seem to mine data from Google Trends and Twitter to find social patterns and developments, which might help them make more accurate decisions in the future. For instance, information coming from Google and Twitter databases can help businesses predict stock trends, weather events, unemployment trends and even predict flu outbreaks. All this information might help them make better decisions, based on social developments, as they have evolved historically.
Business management is not the only sector where big data can find palpable applications. All industries today rely heavily on the information coming from data gathering and processing protocols. And in the future, big data will become a standard in all aspects of our lives.