Why Companies Need Big Data Technology

Big Data  

One of the biggest benefits of implementing big data strategies as a company is that they can greatly increase efficiency. Properly leveraged, the information collected can be used to change production processes in a way that wasn’t achievable before. As reported by Villanova University, even the federal government uses big data to improve efficiency.

Sensors connected to a big data analytics platform via a Wi-Fi connection can continually report different information regarding minute changes in processes in the different components of a factory production line. All this information will be collected and stored over a period of days, months and years. If this information is processed by data analytics software, ways to improve efficiency on the factory floor will become apparent. In fact, the system can be used to spot bottlenecks well before they ever materialize so that the manager or automated production system can make timely adjustments.

Big Data Creates More Personalized Customer Service

While big data can be used to increase the efficiency of the mechanical processes of an industrial company, it has much more human applications as well. One area of business where big data can make a big difference is customer service. Over the years, a person may have many interactions with a company. In the past, this information was not stored and could not be leveraged in any significant way to improve service for that customer.

Thanks to big data, however, all that information is recorded and stored indefinitely. It can then be accessed immediately by customer service reps when a specific customer calls in with a problem. If that customer had the same problem on previous calls, the service rep will know. This will allow for far more personalized and accurate customer service than what was possible before big data. It can make a big difference for long term profitability. As statistics show, it’s six to seven times more expensive to obtain a new customer than it is to sell products to an existing customer.

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It Can Help You Plot Business Strategy

The collection of big data also means you have far more data to comb through to help you plot both short term and long term strategy for your company. While this may sound like a lot of work, big data analytics programs that work with big data streaming pipelines like Apache Kafka can do all the work for you.

After the data has been stored, the analytics software can parse and analyze the data to find trends. It can be used to create things like sales forecasts based on previous months and years for particular products. This is of course an excellent tool to have. It can remove much of the guess work from planning what products to stock when so that far less money is wasted on overstock. If a product is underperforming versus other products that are outperforming expectations, you can make the proper adjustments to maximize profit.

Overall, big data is an amazing tool to have. There are almost limitless applications for big data analytics for a business of nearly any size. Certainly consider stream processing big data to improve different processes within your company. It can help make your business more efficient and profitable.

By  Kevin Faber	Embed
Kevin Faber is the CEO of Silver Summit Capital. He graduated from UC Davis with a B.A. in Business/Managerial Economics. In his free time, Kevin is usually watching basketball or kicking back and reading a good book.