If you consider a new generation of technology capable of processing and analyzing a large volume of varied data in real-time, you should look to Big Data’s potential application for your business.
This article is set to explore the concept of the big data archetype and the most common applications of big data.
In recent years, the increasing importance of data analysis to organizations has led to rapid change in data collection and management, which lead to the introduction of Big Data. According to Mark Beyer and Douglas Laney, “Big Data” can be defined as high-volume, high-velocity and high-variety information assets that demand cost-effective, innovative forms of information processing for enhanced insight and decision making. This new technology comes with unique attributes of larger volume space, speed, variety, and veracity for storing, processing, and analyzing data as opposed to the traditional information management and data analysis methods. In general, most companies can utilize Big Data projects to improve performance in several aspects of the business. Beside primary benefits of cost reduction, process efficiency enhancement and customer experience improvement, the immense scope and scale of Big Data application also gives rise to the need of better security measures in anticipation of cyber attacks targeted at organizations possessing large amount of data.
Applications of Big Data in the Banking and Securities industries
Perhaps the business domain that is embracing Big Data analysis most vehemently is the Finance industry. At the regulatory level, the U.S. Securities Exchange Commission is using Big Data to monitor financial market activity and detecting illegal trading conducts in the financial markets while regulated institution like banks and investment funds are using the technology in trading analytics in search of gaining an upper hand over the general market.
Regarding the retail banking sector, the amount of financial data generated keeps growing exponentially and the need to store and analyze this data has remain. Analyzing this kind of data can help deter fraudulent acts in this sector. Many anti-money laundering software programs, such as SAS AML, use big data analysis to identify suspicious transactions and customers’ information.
Big Data providers specific to the Finance industry includes 101 data, Panopticon Software, Streambase Systems, Nice Actimize, and Quartet FS.
Big Data analysis in the Media and Entertainment industry
Media consumption on digital devices are becoming more prevalent, so is the amount of data generated from such activities. This has led to the warm welcome experience by Big Data technology in the Media and Entertainment industry. Businesses in this vertical have realized the importance of Big Data and have been able to utilize it to grow their business, namely by analyzing customer data along with behavioral data to create detailed customer profiles that can be used to:
- Create content for different target audiences
- Recommend content on demand
- Measure content performance and consumer’s interest
An example is the Wimbledon Championships leveraging Big Data to deliver detailed sentiment analysis on its tennis matches to multiple platforms in real-time, or Netflix famously analyzing consumption data to customize movies and shows’ thumbnails that are displayed to its customers. Netflix even takes data analysis to another level by creating TV shows with desirable themes, plot progression and other attributes according to its consumer’s interest trends.
Big Data providers in this industry include Infochimps, Splunk, Pervasive Software, and Visible Measures.
Big Data in the Retail and Wholesale industry
Despite the modern trend of shopping moving away from brick and mortar stores to ecommerce storefronts, data analysis has found its use in improving businesses in both offline and online shopping environments. The goals of such analytics operations range from enhancing the customer experience, boosting retention and improving inventory management to gaining deeper benefits like reducing fraud and optimizing staffing through data from shopping patterns.
The industry can utilize data not only from customer loyalty programs, POS or store inventory, they can also tap into data from social media platforms for customer prospecting, customer retention and promotion of products.
Big Data providers in this industry include First Retail, First Insight, Fujitsu, Infor, Epicor and Vistex.
The use of Big Data in Marketing
Customers were traditionally polled and approached one-on-one with traditional marketing techniques years ago. Companies would place huge banners on the roadside and advertise on radios and TV channels during that time. They had no idea how their ads would affect the customer, until advanced analytics found its way into the advertising industry.
In recent years, Big Data allows marketing professionals to collect huge amounts of data and gain a deeper understanding of customer preferences within seconds. Marketers use the data to run campaigns, boost conversion rates, put relevant ads, improve the product, and learn about the nuances to reach their target audience.
The future of Big Data
More and more businesses are adopting Big Data in search of market advantages right now and the technology can only be more prevalent in the future. Business domains mentioned in this article are only the most significant adopters of Big Data in recent years. There is no doubt that other industries will follow suit since there is a role for data analytics in every kind of business operating in every market.