IMPACT OF BIG DATA IN BUSINESS

Karishma Hentry
Mphil scholar, Dept of commerce,Kariyavattom campus, University of Kerala

Abstract

Data plays a huge role in understanding valuable insights about target demographics and customer
preferences. From every interaction with technology, regardless of whether it’s active or passive, we are
creating new data that can describe us. With data being captured through products, video cameras, credit
cards, cell phones, and other touch points, our data profile is growing exponentially. If analyzed correctly,
these data points can explain a lot about our behavior, personalities, and life events. Companies can leverage
these insights for product improvements, business strategy, and marketing campaigns to cater towards the
target customers. The concept of big data and its importance has been around for years, but only recently
has technology enabled the speed and efficiency at which large sets of data can be analyzed. As data - both
structured and unstructured - grows substantially in the coming years, it will be collected and examined to
reveal unexpected insights and even help predict the future. Big data will change how even the smallest
companies do business as data collection and interpretation become more accessible. New, innovative, and
cost-effective technologies are constantly emerging and improving that makes it incredibly easy for any
organization to seamlessly implement big data solutions. The paper throws light in analyzing the various
aspects of big data followed by the applications and effect of big data in business.

Keywords: Data points, innovative, cost-effective, big data solutions.

INTRODUCTION

The digital era has created an overwhelming amount of information, with total amount of data projected to
rise to 44 zettabytes by 2020. This massive amount of data has proven to be immensely valuable to large
enterprise companies - for the first time, enterprises are able to integrate disparate data into meaningful
sources for AI algorithms to manipulate and understand behaviors. By the end of 2017, adoption of big data
in companies had reached 53%.
Big data can be defined as: “high-volume and/or high-variety information assets that demand cost-effective,
innovative forms of information processing that enable enhanced insight, decision making, and process
automation.”
Every day, we create 2.5 quintillion bytes (one quintillion bytes = one billion gigabytes) of data,
so much that 90% of the data in the world today has been created in the last two years alone. This
data comes from everywhere: sensors used to gather climate information, posts to social media
sites, digital pictures and videos, purchase transaction records, and cell phone GPS signals to name
a few. This data is big data. The advent of technologies such as software and hardware that
instantly analyzes natural human language, and massive amounts and varieties of big data flowing
from sensors, mobile devices, and the Web, are helping today’s data pioneers find solutions to
many problems. Everyday enormous amount of data is being produced worldwide. Big Data
analytics has brought a big opportunity for organizations. Companies capture trillions of bytes of
information about their customers, suppliers, and operations. IT organizations are exploring the
analytics technologies to explore web-based data sources and extract value from the social
networking boom. In the western world, organizations are wondering about the kind of business
intelligence they could derive from all the information they have at their disposal. The
organizations are trying to leverage Big Data by trying to make sense from the data that they have
and by securing it. In the next three to five years, there will be a widening gap between companies
that understand and exploit Big Data and companies that are aware of it but do not know what to
do with it. Already the forward thinking players of the banking, insurance, manufacturing, retail,
wholesale, healthcare, communications, transportation, construction, utilities, and education are
successfully using big data by exploiting meaningful information from all the Data they have and
using those information in formulating their strategic moves. Those companies who will be able
to use Big Data successfully will be clearly ahead of those who will react slowly to capitalize on
Big Data.

CHARACTERISTICS OF BIG DATA

The term big data most often refers to the avail of predictive analytics or other developed methods
to extract value from information and rarely refers to a particular size of the information set. The
feature of precision in big data may lead to the confident and better decision making and this aid
in developing greater operational efficiency, reduction in the cost and reduction in the risk. The
big data includes the sets which are larger than the commonly used software tools to capture, curate
and manage and process information within a defined time. The size of big data is continuously
increasing as it has increased from few terabytes to petabytes. The big data represents the data
assets characterized by high volume, velocity, and variety to need specifically applied science and
analytical ways for its change into value. The big data has many characteristic and they are as
follows:
 Volume
 Variety
 Velocity
 Variability
 Veracity
 Complexity
1. Volume: The volume is a characteristic that explains about the quantity of the information
that is produced is very vital in the present context, it is the size of the data that explains
the value and potential of the information and whether it can be viewed as a big data or
not.
2. Variety: The next characteristic of big data is the variety and it determines the class to
which the big data belongs to and it is also an essential factor that the data analyst should
know.
3. Velocity: In the present context the term velocity refers to the speed of production of the
information.
4. Variability: The variability is characteristic and it causes an issue to the people who
analyze the information.
5. Veracity: The quality of the information being captured may vary a lot and the precision
of analysis depends on the veracity factor of the source information.
6. Complexity: The management of the data can become a difficult process when huge
information comes from different sources. All these information needs to linked, correlate
and connects with each other to acquire the data that is supposed to be transferred by this
information. Such a condition of big data is called as the complexity.
BIG DATA APPLICATIONS IN BUSINESS

Using and understanding big data is a crucial competitive advantage for leading corporations. To the extent
companies can collect more data from existing infrastructure and clients will give them the opportunity to
discover hidden insights that their competitors don’t have access to.

Big data can present an abundance of new growth opportunities, from internal insights to front-facing
customer interactions. Three major business opportunities include: automation, in-depth insights, and data-
driven decision making.

1. Automation

Big data has the potential to improve internal efficiencies and operations through robotic process
automation. Huge amounts of real-time data can be immediately analyzed and built into business processes
for automated decision making. With scalable IT infrastructure and decreasing cloud computing costs,
automating data collection and storage is within reach.

2. In-depth insights

Big data can also be used to discover hidden opportunities that were unknown to organizations before the
ability to review large sets of data. Complex data sets can even be used to develop new products or enhance
existing ones. Proprietary data within the market can prove invaluable in the competitive landscape.

3. Faster, better decision making

With the speed of data analytics technology, paired with the ability to analyze new sources of data,
businesses are now able to analyze information instantly and make smart, informed decisions.

HOW TO HARNESS THE POWER OF BIG DATA

The market for big data analytics is huge - over 40% of large organizations have invested in big data
strategies since 2012. However, with endless possible data points to manage, it can be overwhelming to
know where to begin. Before choosing and implementing a big data solution, organizations should consider
the following points.

1. Experienced big data team

Create a team of experts in data collection, analytics, and strategy to help build an ideal big data approach
that results in positive returns for the company. This team should include individuals who understand
modern analytic methods, able to manipulate big data sets, and experienced consultants who understand
overarching business goals.

2. Identify end goals

Having the right objectives is crucial for successfully implementing a big data solution. The data and
analytics must be properly aligned with the organization’s end goals (i.e., greater profit, brand recognition,
market share).

3. Capture the right data

Once the underlying business goals have been defined, the next step is to have a full understanding of the
data before its application. Identifying, capturing, and tracking the right data will be the backbone of the
entire big data process. Utilizing the wrong data sets can result in catastrophic consequences that leads the
entire company in the wrong direction.

4. Apply proper analytic methods

Professional data analysts are skilled in translating big data into valuable insights efficiently and accurately.
Visual summaries of the data that are easily digestible help supporting teams quickly process the data
analysis and make quick business decisions.

BIG DATA - A NEW COMPETITIVE ADVANTAGE

Using Big Data has been crucial for many leading companies to outperform the competition. In
many industries, new entrants and established competitors use data-driven strategies to compete,
capture and innovate. In fact, you can find examples of Big Data usage in almost every sector,
from IT to healthcare.

When it comes to healthcare, data pioneers have been analyzing the outcomes of pharmaceuticals.
Companies have focused on discovering the risks and benefits that were not clear during initial
clinical trials. Big Data can lead to a better analysis of the trials, and help predict outcomes. Some
other early adopters of the concept have been using data from the sensors embedded in various
products, ranging from industrial goods to children’s toys. This helps companies determine how
products are used in the real world. With such knowledge, it becomes easier to create new services
and design future products.

According to experts, Big Data can create a lot of new growth opportunities. It can even give rise
to a new category of businesses, such as the ones that analyze and aggregate industry data. Most
of these companies will be sitting in the middle of large information flows about services and
products, suppliers and buyers, consumer intent and preferences, and more. Companies across
industries should start building their Big Data capabilities aggressively.

In addition to the broad scale of big data, the high frequency and real-time nature of data are
crucial. For instance, the ability to estimate metrics, including consumer loyalty, was previously
handled retrospectively. With Big Data, such practices are being used more extensively. This adds
a lot to the power of prediction. Similarly, high frequency allows businesses to test theories in real-
time.

Besides these general benefits, Big Data helps a business organization in many different ways.
Currently, Big Data is used in both the public and private sectors. This helps the business in the
following ways.

1. Dialogue with Consumers

These days, consumers are smart and understand their priorities. Before making a purchase,
consumers look around and compare different options. They even talk to businesses through social
media channels and demand special treatment. In fact, most customers want to be thanked for
buying products from a company.
Big Data allows a business organization to profile such customers in a far-reaching manner. This
allows a business to engage in a real-time, one-on-one conversation with consumers. In tough
competitive times, this isn’t a luxury. You need to treat customers how they want.

A good example is about a customer entering a bank. When a customer enters the establishment,
the clerk can use Big Data to check his or her profile in real-time. The clerk can learn about the
customer’s preferences and desires. This allows him to advise relevant products and services to
the customer.

Big Data also plays an important role in integrating physical and digital shopping spheres. An
online retailer can easily suggest an offer on the mobile carrier. This can be done on the basis of a
consumer inclined toward increased social media usage.

2. Re-Develop Products

Big Data is one of the best ways to collect and use feedback. It helps you understand how
customers perceive your services and products. Thus, you’re able to make the necessary changes
and re-develop your products. When you analyze unstructured social media text, it allows you to
uncover general feedback from your customers. You can even disintegrate the feedback in various
geographical locations and demographic groups.

In addition to this, Big Data allows you to test numerous variations of high-end computer-aided
designs within seconds. For instance, you can gather information about lead times, material affect
costs, performance and more. It allows you to raise the productivity and efficiency of various
production processes.

3. Perform Risk Analysis

Success depends on a lot of different factors. It’s not just about how you run the company.
Economic and social factors play an important role to determine your accomplishments. Since Big
Data leads to predictive analytics, it allows you to analyze and scan social media feeds and
newspaper reports. Thus, you can permanently keep up with speed on the latest trends and
developments in the industry.
4. Data Safety

Big Data tools allow you to map the entire data landscape across the company. This allows you to
analyze all kinds of internal threats. With this information, you can keep sensitive information
safe. It’s protected in an appropriate manner and stored according to regulatory requirements.

Due to this, most industries have been focusing on Big Data to ensure data safety and protection.
It’s even more important in organizations that deal with financial information, credit and debit card
information, and other such practices.

5. Create New Revenue Streams

Big data provides you with insights from analyzing the market and consumers. However, this data
is not only valuable to you but also for other parties. You can sell the non-personalized trend data
to large industries operating in the same sector.

There’s no doubt that Big Data will continue to play an important role in many different industries
around the world. It can definitely do wonders for a business organization. In order to reap more
benefits, it’s important to train your employees about Big Data management. With proper
management of Big Data, your business will be more productive and efficient.

EFFECT OF BIG DATA ON BUSINESS

With the help of big data, companies aim at offering improved customer services, which can help
increase profit. Enhanced customer experience is the primary goal of most companies. Other goals
include better target marketing, cost reduction, and improved efficiency of existing processes.

Big data technologies help companies store large volumes of data while enabling significant cost
benefits. Such technologies include cloud-based analytics and Hadoop. They help businesses
analyze information and improve decision-making. Furthermore, data breaches pose the need for
enhanced security, which technology application can solve.

Big data has the potential to bring social and economic benefits to businesses. Therefore, several
government agencies have formulated policies for promoting the development of big data.
Over the years, big data analytics has evolved with the adoption of agile technologies and the
increase of focus on advanced analytics. There is no single technology that encompasses big data
analytics. Several technologies work together to help companies procure optimum value from the
information. Among them are machine learning, artificial intelligence, quantum computing,
Hadoop, in-memory analytics, and predictive analytics. These technology trends are likely to spur
the demand for big data analytics over the forecast period.

Earlier, big data was mainly deployed by businesses that could afford the technologies and
channels used to gather and analyze data. Nowadays, both large and small business enterprises are
increasingly relying on big data for intelligent business insights. Thereby, they boost the demand
for big data.

Enterprises from all industries contemplate ways of how big data can be used in business. Its uses
are poised to improve productivity, identify customer needs, offer a competitive advantage, and
scope for sustainable economic development.

HOW BIG DATA IS USED IN BUSINESSES ACROSS INDUSTRIES

Financial services, retail, manufacturing, and telecommunication are some of the leading industries
using big data solutions. Business owners are increasingly investing in big data solutions to
optimize their operations and manage data traffic. Vendors are adopting big data solutions for
better supply chain management.

1. Banking, Financial Services, and Insurance (BFSI)

The BFSI sector extensively implements big data and analytics to become more efficient,
customer-centric, and thus more profitable. Financial institutions use big data analytics to
eliminate overlapping, redundant systems as well as providing tools for easier access to data.
Banks and retail traders use big data for sentiment measurement and high-frequency trading,
among others. The sector also relies on big data for risk analytics and monitoring financial market
activity.

2. Retail
The retail industry gathers a large amount of data through RFID, POS scanners, customer loyalty
programs, and so on. The use of big data assists in reducing frauds and enables the timely analysis
of inventory.

3. Manufacturing

A large amount of data generated in this industry remains untapped. The industry faces several
challenges, such as labor constraints, complex supply chains, and equipment breakdown. The use
of big data enables companies to discover new ways to save costs and improve product quality.

4. Logistics, Media, and Entertainment

In the logistics sector, big data helps online retailers manage inventory in line with challenges
specific for one or another location. Companies within this sector use big data to analyze customer
personal and behavioral data to create a detailed customer profile.

5. Oil and Gas

In the oil and gas sector, big data facilitates decision-making. Companies can make better decisions
regarding the location of wells through an in-depth analysis of geometry. Agencies also leverage
big data to ensure that their safety measures are up to the mark.
Companies have started to take greater advantage of big data. Taking into account the benefits of
big data for business, they turn to analytics and other technologies for managing data efficiently.

However, the usage of big data in several industries, such as healthcare, oil & gas, and so on, has
been slow. The technology is expensive to adopt, and many companies still don’t use the majority
of data collected during operations.

Also, business silos and a lack of data integration between units affect the use of big data. The
information is not always consistently stored or formatted across a company. And finding
employees who possess the skills to analyze and use data optimally is a challenging task.
CONCLUSION

The big data market is expected to witness remarkable growth over the forecast years. An
important reason is a rapid increase in the amount of structured and unstructured data. Among
other factors are increased technology penetration in all spheres of life and the spread of
smartphones. That lead to the generation of larger amounts of data. The escalating need for
analyzing data will lead to the rise of demand for big data over the forecast period. Furthermore,
the number of online businesses in the industry is also growing, owing to enhanced profit margins.
Other industries, such as healthcare, utilities, and banking, will widely use online platforms to
provide improved services to customers. All the factors mentioned above are expected to
contribute to the global big data market growth.

REFERENCES
1. S.Kaisier, F. Armour and J.A. Espinosa, “Effect of big data in business in boosting
competitive advantage”, Hawali International Conference on System Sciences,
no.49th,2018.
2. A.A Tole, “Overview on big data and its applications”, Dataase System Journal, vol.6,
no.3, pp.31-40,2018.
3. Jason,” Big data for big business”, 28th National conference on artificial intelligence,
Quebec city, Canada,2016.
4. A.Hazra, C.Holan and Y.E.Le,” Implications of big data in MNCs ” IBM (International
Technical Support Organisation), vol.red paper(ibm.com/redooks), January 2015.
5. D.S Kiran, S.Preeti and Anusha “Recent trends in business analytics”, IJCST,vol.6, April-
June 2015.
6. P.S Duggal and S.Paul, “Role of big data in enhancing business competitiveness”,
International Conference on Business Intelligence, RGPV, Nov 13-15,2013.
7. “Pattern-oriented strategies: getting value from big data ”, Gartner group press release.
Availale at http://www.gartner.com/it/page.jsp? Id=173196, July 2011.
.