Today, we are creating and collecting more data than we have at any point in the past. All this data is coming from different sources including social media platforms, our phones and computers, healthcare instruments and wearable tech, scientific instruments, financial institutions, and more. When combed with big data, this provides businesses with the opportunity to understand consumers much better than they could before. Businesses are now using specific information as well as insights about their customers and their behavior from the data they collect to transform themselves while tweaking their sales and marketing strategies at the same time. Big data is at the center of it all.
What is Big Data?
Big data sounds like one of the buzzwords that have emerged over the past few years and become a cliché in certain circles. It can be a scary concept for companies that do not understand it and who do not know how to leverage the power of big data analytics for their organizations’ digital transformation.
Big data is the large volume of data that is collected by organizations every day. Big data is characterized by its sheer volume, variety, and complexity that makes it harder to process using traditional data management practices. Because of this, big data requires new and innovative data processing methods, and this is where data analytics comes in.
Data analytics processes big data to help organizations extract useful information from it – information that organizations can then use to make marketing and business decisions while undergoing complete digital transformation.
Relationship Between Big Data and Digital Transformation
Digital transformation has helped companies embrace change and remain competitive in a world that is increasingly going digital. The value of big data in digital transformation comes from the ability of an organization to combine both of them in their efforts to enable both the digitization and automation of business operations. This digitization and automation is what improves efficiency, spurs innovation, and leads to new business models.
Big data analytics also allows businesses to have granular information about specific or different groups of customers. This can be information about what they do when on their websites, what they buy, how often they buy it, and if they will purchase the same products in the future. Using all this information, businesses can implement changes to meet the future needs of their customers while setting goals on how to meet these needs. To complete their digital transformation, therefore, businesses need to adopt big data and data analytics.
Have Some Goals in Mind
One of the biggest challenges to using big data and data analytics in your business is the data itself. Many businesses collect a lot more data than they need. In some cases, they also collect types of data they do not need.
As the volume and type of data that a business collects increases, the complexity of analyzing this data also increases. Businesses should therefore narrow down the types of data that would be most useful to them which can help reduce the volume of data they collect in the process. Before the data is collected, a business needs to identify the biggest challenges it faces both in the short- and long-term. With this list of challenges, a business can start breaking down the data it collects to glean useful insights that it can use to make decisions and drive success.
As more businesses realize the value of following this formula, the demand for employees with data analytics skills will keep growing. This is one of the reasons why data science and analytics skills are in such high demand. For other reasons why these skills are in such high demand, you can visit this website that offers more information and insight.
When setting the goals, it is important to be as specific as possible. Objectives such as “improve the bottom line” are not specific enough. Instead, a business should focus on the how and what. For example, it could set specific goals such as reducing operational costs and retaining customers, both of which help improve the bottom line.
Collect the Right Data
Once you have identified your goals, you should focus on collecting data sets that will help you meet those goals. For example, if you want to gain new customers, you can focus on data that comes from your social media platforms and sales channels as that is the data likely to tell you if your customer acquisition strategies are effective.
Data Management Is Vital
Big data and data analytics can hinder digital transformation in some instances. This often happens in organizations where data is not managed properly. Having access to more data means very little if an organization cannot organize and manage this data so that it can be used easily.
To see the value of advanced analytics and machine learning models, the data that is fed into these systems has to be trustworthy. This is why it is so important to not only collect the right data, but to also manage it in such a way that it is not tainted by data from unrelated sources. By ensuring the data can be trusted first, organizations can see the most benefit from using this data.
While businesses need to hire a data analyst to make sense of the vast volumes of data they collect, small businesses that collect a small volume of data or those that cannot afford to hire a data analyst do not have to follow this path.
There are lots of tools and platforms that let business owners collect data, segment it into sets, manipulate it, and organize it in a way that their teams can evaluate and understand. Additionally, these tools can help small business owners see the impact of the decisions they make using this data as well as current trends and projections.
Once a business has the tools to analyze big or small sets of data either through tools or by hiring a digital analyst, the company can start making strides in its digital transformation. This digital transformation can then be used to gain a competitive edge in a given market.