Top 5 Applications Of Big Data In Business
The applications of big data have profound uses in the world of business. The utilization of big data applications for business purposes has grown manifold in the recent few years. Want to know more about big data in business? We have the solutions for you.
In 2019, businesses spent around USD 187 billion on big data and analytics worldwide! Additionally, businesses using big data are 23 times more likely to gather new customers than businesses without data analytics, according to Leftronic. Besides, around 2.5 quintillion bytes of data are produced globally, every single day. Based on the estimates of Wikibon, the global revenues for the big data market in software and services is expected to touch USD 103 billion by 2027.
The world of big data is driven by the utilization of advanced analytical tools. Including data mining and predictive analytics to establish information from infinite big data and create meaningful insights for business.
Big data for business is characterized by volume, variety, velocity, variability, veracity, and complexity. Therefore, there are a plethora of uses of big data for business in the world. Following are the top 5 applications of Big Data in business:
1. For human resources and recruitment purposes:
Getting skilled and correct manpower is essential for a successful and streamlined business. Big data can be effectively analysed to recruit a smarter and more skilled workforce. The world of hiring and recruitment is completely transformed by the backdrop of big data and analytics.
Human resources departments no longer rely on cumbersome internal paperwork to understand the hiring demand of the business and the available talent acquisition. Similarly, candidates have also side-lined the rudimentary process of sending physical resumes and cover letters to business addresses.
The utilization of Big data has modernized and digitalized the recruiting process. Big data uses various algorithms to ensure that the right people with the right skills are seeing the recruitment positions. It also delineates the right candidates from the bulk of applications from the wrong and unqualified people. This makes the entire process of recruitment less arduous, highly efficient and extremely effective.
Besides hiring new candidates, big data also helps in the adjustment and management of the existing staff members of the company as it grows or shrinks over the years. It also assists the human resources department in identifying problematic areas and generates prospects to address. This significantly improves the probability of capturing the right candidate and keeping them.
2. For Banking and Securities
Various Banks and Securities exchanges use big data to assess and monitor customer-centric data and financial market activity, respectively. According to the estimates of GDC prognosis, the growth in banking sector data was expected to touch 700% by the end of 2020. Big data applications for banking and securities include the detection of credit card fraud, tick analytics, the transformation of customer data, misuse of cards and net banking, reporting of credit risk, early warning mechanism for securities fraud, business clarity, social analytics for commercial banking and trading, the trend of audit trails, money laundering, risk mitigation, policy compliance analytics, among various others. The banking industry has been a user of big data for long. For instance, Bank of America has been using SAS AML, an anti-money laundering software, for more than 25 years.
3. For Retail Industry
The unprecedented growth in the retail industry, especially the E-commerce segment, has been significantly driven by Big Data. Though the retail industry faces one of the fiercest competition, some of the retailers have found competitive superiority over others by utilizing big data analytics. The essence of retail success in the current competitive world lies in understanding customers. If retailers can connect with the customers’ requirements and understand how to realize those requirements, then they have the power to taste success.
This is where big data analytics has fortified its stance. Through the assessment of big data of the customers including their purchase pattern, spending ranges, frequency of purchases, and types of purchases, among others, retailers have strengthened their position in the retail market. The data of customers is gathered from various sources including social media platforms, credit card platforms, among others.
Big data has also played a pivotal role in building a consistent loyal customer base. According to the National Retail Federation, around 30% of the annual retail sales by Walmart, Costco, Sears and Holding, among others were accounted in November and December period due to Big Data. For instance, Aldo, a retailer firm in Canada, was going through a rough patch as it was unable to upsurge its sales figures, even during the black Fridays, wherein huge discounts were offered. However, with the utilization of a Big Data architecture, they were able to improve their sales exponentially by analysing the customers’ data and offering a seamless and stress-free buying experience to their customers.
4. For manufacturing business
Manufacturing and natural resource businesses are other segments where the application of Big Data has created a major difference. Big data has allowed the usage of predictive modelling to back effective decision-making ability for feeding and integrating bulk of data in the form of geospatial nature, graphical nature, and temporal data as well. This has created a vast range of interest in the fields of reservoir characterisation and seismic assessment and interpretation. Besides, the effective utilization of big data has significantly improved the quality of products, their reliability, efficient utilization of energy, and higher profit margins in the manufacturing sector. The application of big data in the manufacturing and natural resources segment has grown due to the consistent growth in demand particularly in the oil and gas sector, agricultural products, gems and metals, minerals, among others. The growth in demand created an increased data footprint in terms of complexity, volume, and velocity. This is where big data came in and derived wonderful results.
5. For Automobile Industry
Big data has played a pivotal role in driving growth results in the automobile industry. The role of big data encompasses analysing various trends in the automotive industry to understand supply chain management, assisting customers by making connected cars possible, connecting with low and middle-income customers effectively, among others. Big data has been the propeller for the automobile industry in recent years.
Big Data is the way forward
In a nutshell, Big Data has inculcated competition, innovation, and productivity in the business processes. It has created a platform for business to interpret bulks and bulks of data to create new products and services which are driven by data and provide impetus to production efficiency in a streamlined and robust manner.