One of those business terms that may sound like yet another meaningless buzzword is “big data”. While big data may appear to be a nebulous term, it can actually have very concrete implications for a business that can help it become more competitive for the long term.
Big data refers to the collection of massive volumes of digital information that can later be analyzed by powerful software. It can be used to improve business processes in nearly every department within a company. According to a report by Information Week, spending on big data by businesses will soon reach $187 billion a year.
With that in mind, it may seem like big data is something that can only be taken advantage of by the largest multinational corporations. That is simply not the case. Below are some of the ways big data can also help small businesses.
Improved Operational EfficiencyOne of the biggest benefits for small businesses in harnessing the power of big data is being given the ability to improve the efficiency of many different business processes. If your business uses a factory to create products, for example, sensors can be set up on the production line to collect data regarding production workflow that can then be sent via Wi-Fi connections to a central hub or even to a third party cloud hosting supplier.
Later, big data analytics software can access this information and analyze it to give you an overview of the efficiency, or lack thereof, in your factory. You should be able to use this analysis as a source of intelligence on how to alter the production processes to lower costs and shorten turnaround time. According to a report from the United Kingdom, big data analytics will lead to an increase in efficiency in the manufacturing sector of about 14.7 billion pounds.
Improved Customer ServiceBig data can also provide significant improvements in customer service that can greatly benefit small businesses. In the old model of customer service, a customer calls in with a complaint regarding a product or service, and the customer service representative has to try to solve that person’s issue from scratch with no additional information to draw upon. That is not the case with big data. Thanks to big data platforms, every single interaction a customer has with a company can be preserved indefinitely. This information can then be pulled up instantly when a specific customer calls in.
This allows that service representative to provide tailored serviced based on that customer’s history. He or she will know exactly what kind of issues they dealt with in the past. With that in mind, much better and effective service should be supplied thanks to having immediate access to this information. The platform may even be able to predict the likelihood certain issues based on the data alone before the customer even calls in.
More Efficient Inventory ControlBig data can also make a big difference for a small business’s inventory control procedures and warehouse protocols. If your goal is to create an automated warehouse, big data can certainly help make that a reality. With big data analytics software, shortages in stock can be predicted days, weeks or even months before they occur. Alternatively, the same data will also prevent overstock from being ordered. Instead, a sweet spot will be achieved in which just the right amount of stock is in the warehouse at all times.
Without the ability to collect and analyze as much data, the task of inventory control isn’t nearly as efficient. That can be a big deal in regards to profitability. Ordering overstock or running out of stock costs companies as much as $1.1 trillion a year.
Overall, big data can help a small business achieve greater profitability through increased efficiency. In competitive markets, you need every advantage you can get. Your own data is a valuable resource you shouldn’t let go to waste.
SOurce: https://datafloq.com/read/how-big-data-will-help-your-small-business/2956
Big data refers to the collection of massive volumes of digital information that can later be analyzed by powerful software. It can be used to improve business processes in nearly every department within a company. According to a report by Information Week, spending on big data by businesses will soon reach $187 billion a year.
With that in mind, it may seem like big data is something that can only be taken advantage of by the largest multinational corporations. That is simply not the case. Below are some of the ways big data can also help small businesses.
Improved Operational EfficiencyOne of the biggest benefits for small businesses in harnessing the power of big data is being given the ability to improve the efficiency of many different business processes. If your business uses a factory to create products, for example, sensors can be set up on the production line to collect data regarding production workflow that can then be sent via Wi-Fi connections to a central hub or even to a third party cloud hosting supplier.
Later, big data analytics software can access this information and analyze it to give you an overview of the efficiency, or lack thereof, in your factory. You should be able to use this analysis as a source of intelligence on how to alter the production processes to lower costs and shorten turnaround time. According to a report from the United Kingdom, big data analytics will lead to an increase in efficiency in the manufacturing sector of about 14.7 billion pounds.
Improved Customer ServiceBig data can also provide significant improvements in customer service that can greatly benefit small businesses. In the old model of customer service, a customer calls in with a complaint regarding a product or service, and the customer service representative has to try to solve that person’s issue from scratch with no additional information to draw upon. That is not the case with big data. Thanks to big data platforms, every single interaction a customer has with a company can be preserved indefinitely. This information can then be pulled up instantly when a specific customer calls in.
This allows that service representative to provide tailored serviced based on that customer’s history. He or she will know exactly what kind of issues they dealt with in the past. With that in mind, much better and effective service should be supplied thanks to having immediate access to this information. The platform may even be able to predict the likelihood certain issues based on the data alone before the customer even calls in.
More Efficient Inventory ControlBig data can also make a big difference for a small business’s inventory control procedures and warehouse protocols. If your goal is to create an automated warehouse, big data can certainly help make that a reality. With big data analytics software, shortages in stock can be predicted days, weeks or even months before they occur. Alternatively, the same data will also prevent overstock from being ordered. Instead, a sweet spot will be achieved in which just the right amount of stock is in the warehouse at all times.
Without the ability to collect and analyze as much data, the task of inventory control isn’t nearly as efficient. That can be a big deal in regards to profitability. Ordering overstock or running out of stock costs companies as much as $1.1 trillion a year.
Overall, big data can help a small business achieve greater profitability through increased efficiency. In competitive markets, you need every advantage you can get. Your own data is a valuable resource you shouldn’t let go to waste.
SOurce: https://datafloq.com/read/how-big-data-will-help-your-small-business/2956
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