What you should know about big data if you are an entrepreneur?
There is a concept highly important known as “Big Data” in the entrepreneurship world, but what is exactly big data? A big number in a report? Or maybe some facts about the area? Well, no to any of those questions! This term goes beyond that, and it’s an incredible tool to know more about the business, the audience, the area, and why not even the worldwide market. Keep reading to find out how big data works and what its benefits are for entrepreneurs.
What is big data?
Technically, this process analyzes a huge volume of data that will present valuable information for different aspects of the business. This data can be structured or unstructured, as the information provided can help know more about the processes, the competition, the brand, and even the consumers.
The big data works following the 5 Vs.: volume, variety, speed, truthfulness, and value; check them out.
- Volume: this is the amount of data a business will report every second through different virtual channels like social media, email, and apps.
- Variety: This is more about where and how the data is stored to be extracted later for its study.
- Speed: so this word doesn’t start with a V, but this one is about the speed in which the data is analyzed that normally tends to be very high, there we have a V. The analyzes occurred at the exact moment when the information is created, for example, a transaction with a credit or debit card.
- Veracity: because of the amount of data that must be analyzed, some of it is false, but working with big data will allow you to filter that information. Moreover, when data has several sources, the results can prove its integrity.
- Value: the main goal of getting, analyze and study data is to find valuable information for the brand, company, or organization. In the end, this data must be used to improve processes and the environment.
A professional of big data is in charge of analyzing the incoming and storage data using specialized software. That way, this person or team can pinpoint the valuable information that will help the organization. This professional or team can use the 4 analyzes that are done with big data, which are:
- Predictive Analysis: this data science uses patterns that are easily found in the information, which will help to predict future possibilities about the behavior in the market and even how the customers will respond to a certain campaign.
- Prescriptive Analysis: with this Analysis, the team can present the possible consequences of any campaign, decision, and movement in the market. With them, the strategies and processes can be changed according to the information presented in the Analysis.
- Descriptive Analysis: this Analysis is all about given information about the present situation using historical data, contributing to making decisions in real-time.
- Diagnostic Analysis: The team takes the results and evolution of ongoing actions and strategies, making adjustments and changes to improve them.
Big data for entrepreneurs
Entrepreneurs can use big data in many ways. They can bring many benefits for the business and its different areas. For example, marketing and customer services are two areas that can benefit when professionals in big data present their Analysis. Moreover, every company can show huge changes while using this data, helping with their growth.
Big data can be exactly what any entrepreneur uses as their library to understand how the market, customers, and even the own business changes and adapts to the new times, among the other benefits we can find:
- Prevent fraud of any kind, from financial to legal.
- Help to identify new business opportunities.
- It can help study the process and reduce the cost-saving money invested in other areas.
- Increase customer satisfaction just by improving the customer service area meeting the needs and demands of the client.
- Decisions are no longer a hard task. They can be easily done by having all the necessary data.
To a better understanding of big data, these two famous companies can be the perfect example of how to use it to even launch a new service:
The famous sports brand uses big data for its new series of services focused on a healthy lifestyle. Nike Running Club, Nike Training Club, and Nike App are the apps that the sportswear brand uses to be close to their customers and users. They use big data to improve the services while giving users a whole new experience through wearable devices. This presents information about speed, heart rate, distance traveled, and more. Even any user can share this through their social media. This shows interest in the user’s health and helps with their loyalty to the brand and the brand reputation.
United Parcel Service is a logistic service preferred for many to charge their shipping across the globe. But UPS uses the big data to improve their services from delivery time, successful shipping, and even save fuel for many more deliveries. All these have helped their company, increasing user experience and the effectiveness of their employees.
So now you know, big data is highly important to a deeper understanding of how the business is going and what is around it. Plus, this information will never be wasted, even when several years have passed. After all, some things are bound to come back. Keep in touch with the magazine to learn more about the business world.
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