Big data, combined with advanced machine learning programs. Make business more intelligent and wiser and specific company efforts — more precise and efficient. In this article, you’ll see what is the influence of big data on business.
The most critical business applications of big data analytics include, above all, the following:
- recommender systems,
- resource management systems,
- modification of firms’ operating procedures,
- systems to match advertising to customers,
- stock market prediction systems,
- designing drugs and medical procedures,
- automated chatbots.
Recommender systems are programs that. On big data analytics, can accurately predict the preferences of website users, online store customers, etc.
Thanks to big data, recommender systems help companies ensure a significant increase in revenue through cross-selling and up-selling. For example, by presenting relevant products based on an analysis of other users. The user’s previous behavior logged on to an online store website.
Resource management is based on analyzing sales data for different locations, demand for a product, etc.
Thanks to big data analytics, resource management programs can ‘learn’. How to manage a company’s resources so that appropriate goods are always at hand in stores. At the same time, delivery and production costs are kept to a minimum.
For example, with big data analytics, a chain of stores can predict. How many rolls of toilet paper may be needed in each store. So, plan warehouse distributions so that all locations have the exact supply needed (neither too little nor too much).
Modification of Firms’ Operating Procedures: Big Data on Business
Another advantage of big data is enabling a business to use information analysis to minimize downtime. Reduce the costs of activities. Big data makes it possible to use production and transport equipment. E.g., trucks, ships, or planes) and human resources more efficiently.
Modifications may include determining the best possible transport routes, delegating the number of staff required at a given plant, etc.
Matching Advertising to Customers
Another application of big data in business is matching advertising to customers. It includes both websites which display advertisements (such as Google, Facebook, Instagram, etc.) and companies that create their ads.
Thanks to big data analytics, websites that feature advertisements can better adjust ads displayed to specific users. On an analysis of customers’ interests, queries, etc.
Companies can currently create several ads for their business. So, using big data analytics, select those that will ensure the highest conversion rate.
Stock Market Prediction Systems: Big Data on Business
It is estimated that the majority of stock exchange transactions are carried out by relevant systems which, using big data analytics, can execute such transactions much faster and with higher accuracy than people.
Automated trading systems are not perfect yet. However, with the advances of machine learning research (intense learning and deep reinforcement learning), their skills increase each month significantly.
Automation (Unmanned Stores, Automatic Vacuum Cleaners, Autonomous Ships, Cars, Drones, etc.)
Another way of using big data in business is to create unmanned machines (vacuum cleaners, cars, etc.) or locations (shops, cinemas, etc.).
Nowadays, the most frequently used autonomous machines are probably vacuum cleaners, which can create a map of the user’s apartment and plan a route so that the entire space is cleaned, thanks to visual data analysis.
Other autonomous devices (such as drones or cars) are still in the research phase. However, as the demand for such products will be very high in the future, many serious players make considerable investments in research on such vehicles.
Many startups use big data to improve specific systems used in autonomous devices (camera image analysis, LIDAR image analysis, route map design, etc.).
Therefore, business combining big data and automation is already exciting, and in the future, it will become an increasingly lucrative industry.
Designing Drugs and Medical Procedures
Big data is also used in the medical and pharmaceutical industries, e.g., in designing new drugs and medical procedures.
Analyses of large data sets help significantly shorten both the stage of searching for promising drug components and procedures and the testing and implementation stage, thus reducing business costs and increasing the chances of success.
Automated Chatbots: Big Data on Business
Automated chatbots also use extensive data analysis to understand users better and respond to their requests and needs.
Big data is used to create better and better language models to improve the understanding of user statements and to develop conversation skills, ensuring higher conversion.
Data Collection for the Future
The big data applications described here do not exhaust the possibilities of using large data sets in the business. Practically every company with enough data available can create innovative systems based on big data tailored to the needs of a particular industry or company.
That is why it is so important to collect data that, even if not yet usable, may turn out to be precisely the type of data that will make the company grow even more dynamically.