What is Big Data?
Big data is an evolving term that describes the large volume of data – both structured and unstructured and semi-structured– that has the potential to be mined for information and business on a day-to-day basis. It is used in machine learning projects and other advanced analytics applications. But it’s not the amount of data that’s important. It’s what organizations do with the data that matters. It can analyze for insights that lead to better decisions and strategic business moves.
Its concept has been around for years. Most organizations now understand that if they capture all the data that streams into their businesses. Then they can apply analytics and get significant value from it. In the 1950s, the decade before anyone uttered the term “big data. Business has used basic analytics(essential numbers in a spreadsheet that has manually examined) to uncover insights and trends. This blog is all about the Role of Big Data in Business spaces.
What is A.I?
Technology moves at breakneck speed. And we now have more power in our pockets than we had in our homes in the 1990s. Artificial intelligence (AI) has been a fascinating concept of science fiction for decades. But many researchers think we’re finally getting close to making AI a reality. It is a branch of computer science that aims to create intelligent machines. It has become an essential part of the technology industry. NPR notes that in the last few years, scientists have made breakthroughs in “machine learning,” using neural networks. Which mimic the processes of real neurons.
Artificial intelligence has the potential to offer $15.7 trillion to the global economy by 2030. We already encounter it every day. Think of all those times Amazon recommended a book to us or Netflix suggested a film or TV show. Those recommendations are based on algorithms that examine what we’ve bought or watched. The algorithms learn from those purchases, using them to suggest other things you might enjoy. Artificial intelligence lies behind those algorithms.
Why big brands are using Big Data and AI?
Analyzing businesses has become easier and more effective. This is possible due to business intelligence. The set of data tools that makes business intelligence possible is big data. Before big data has introduce, business intelligence has somewhat limited. However, now, business intelligence is consider a legitimate career. In fact, many Big brands like Starbucks, Burberry, McDonald’s, Spotify, The North Face etc are top brands that use Big Data and AI. They are taking advantage of this new influx of information by hiring business intelligence experts. This is to help take their company to the next level
Big Brands achieves an end by encouraging loyal customers to share their data through various reward and loyalty programmes. This valuable customer data is then use to offer tailored recommendations – and not just for online shoppers. In the store, sales associates use tablets to give shoppers personalized suggestions. Which are based on their purchase history and social media habits. For example, if Burberry knows that you bought a particular handbag recently, then in-store assistants could show you a coat that has proven popular with other buyers of the same handbag.
Further personalised recommendations can be given to customers thanks to RFID tags fitted to products in stores. These tags send information to customers’ mobile phones, delivering info on how the product in question was made or suggestions on how it could be worn.
A fast-food brand like McDonald’s have embraced modern technology by using big data and AI. Their updated mobile app allows customers to order and pay almost entirely via their mobile devices. To make the experience that much more enjoyable, they gain access to exclusive deals, too. In return for the convenience, McDonald’s collects essential information about their audience. They can see what foods and services customers order, how often or even whether they visit the drive-thru or go inside. All this data allows for more targeted promotions and offers.
One of the common and easy ways that AI has an impact on the business world is through social media like Facebook. In the coming months and years, there’s no question that personalized content targeting in real time will increase. All this has the ultimate goal of increasing sales opportunities. This is possible because AI can make use of effective behavioral targeting methodologies. An example of AI’s ability is here. Thanks to the enabled marketing stack, AI can effectively and accurately determine when someone on any platform begins searching for new customer relationship management (CRM) software. With this information, businesses can automatically respond, providing a better buying experience.
With big data, businesses can use the information available to reduce costs. By finding trends and predicting future events within the industry it can reduce costs. By knowing when something is likely to happen helps to improve planning and forecasts. Those in charge of planning now know when to produce and how much to produce. They can predict how much inventory is needed at a given time, ensuring customer fulfillment without excessive costs on their end. After all, it’s extremely expensive to maintain inventory.
Not only do businesses have to cover the carrying cost but also have capital tied up in unnecessary inventory. With big data analysis, it’s possible to predict when sales are going to occur and when production is necessary. More in-depth analysis can even show businesses when the ideal time for purchasing inventory is and how much inventory needs to remain on-hand. If you want to help your business achieve more, then embracing big data and AI is a must. The fact is, it isn’t going to be long before the businesses that have failed to embrace this new technology are going to be left behind.