Big data and Big Data analytics have been buzzwords for many years. However, it still often happens that different terms are confused and the individual added value of Big Data is not clear to many organizations as a result. In our blog post, we will explain what Big Data is and what benefits it brings.
What is Big Data actually?
Big Data refers to a large, heterogeneous mass of data. It is mostly characterized by the fact that it is constantly increasing. In this context, Big Data is clearly to be understood as a concomitant of digitalization. This is because, due to the digital transformation encompassing all industries, disproportionately more data is being generated than in the previously analog world. This phenomenon can be observed above all in the so-called Internet of Things, where objects such as washing machines, cars or industrial robots are equipped with sensors. These are supposed to continuously collect application data in order to perform optimizations, for example. Such large volumes of data can then be analyzed with the help of Artificial Intelligence or Machine Learning. This in turn is called Big Data Analytics.
Big Data reads between the lines
The applications are used to identify patterns in the data that previously could not be identified by humans or only with great effort. As an example of use, an energy supplier can optimally balance its power grid by evaluating user behavior at certain times, such as holidays or weekends. In a production plant, in turn, operating data can be used to accurately predict when certain machines need maintenance. This use case is called predictive analytics.
A clean database prevents fishing in the mud
When it comes to Big Data, a fundamental distinction must be made between structured and unstructured data. Structured data already has a standardized format that can be analyzed. Unstructured data, on the other hand, is not standardized and therefore often has to be prepared before it can be analyzed. Therefore, a central challenge is to filter out the really relevant information from the data fog. Solutions suitable for this are increasingly available as a flexible service from the cloud.
The most important advantages of Big Data
Understanding the customer better
The right use of Big Data helps to ensure that companies no longer have to guess what their customers want. Through targeted analysis of available data, they can read it accurately. That, in turn, leads to better products, fewer support requests, and higher customer satisfaction.
Whether it’s the delivery of digital ads, ordering processes or even production processes, Big Data helps to leverage previously hidden optimization potential. The advantage is that algorithms can extrapolate savings opportunities or improvements more easily than humans. This is also related to the psychological insight that many people tend to shy away from change. A well-adapted Big Data AI does not know this problem – it confronts the user with all neglected opportunities.
Improve supply chain management
Big Data helps users reduce costs when sourcing goods or services. For this purpose, the algorithm compares, if necessary every minute, with which provider the best prices can currently be found. High savings can also be realized in warehouse management and in the planning of transport capacities through the use of Big Data. This happens, for example, when destinations that are close to each other can be combined into one delivery.
Based on past purchases, Big Data can predict very precisely what kind of products are of interest to a specific buyer segment. In this way, so-called targeted advertising can be carried out. Targeted advertising is the display of digital advertisements that are aimed precisely at the user in question.
Optimize error detection
Until now, it has been difficult to identify the causes of numerous problems, especially in large companies. This was because the underlying data sets were too extensive for analysis. Big Data helps to identify machine anomalies more quickly, for example, or to eliminate cost eaters. It can also help identify and block unusual cyber activity in a timely manner.
Our experts will be happy to explain further individual advantages of using Big Data in your company. Book a personal meeting today!
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