Markets are shifting from the physical space to the digital sphere, and this change has resulted in a lot of benefits for businesses.
Transactions are easily done, records are better kept, and information is quickly disseminated. These advantages are the result of the most significant reason for going digital, and that is the amount of data that can be collected.
Because industries are migrating to the digital sphere, business operations have become more efficient in many ways. For example, a clothing company operating online can quickly identify what items are often bought, how customers are reacting to a certain product, and when the best time is to promote their items. In the aviation industry, the expected time of arrival can be determined more accurately through a variety of information collected immediately and over time.
We owe these advancements to huge bulks of data, which we can now effortlessly collect, process, and store. We owe this progress to what is commonly known as Big Data. Because of Big Data’s usefulness across industries, research shows that it’s bound to reach up to 4.55 billion USD by 2025, a huge leap from its 2019 value at 904.65 million USD.
What Was Life Like Before the Advent of Big Data?
Before Big Data, business leaders did not have access to information that could have given them the insight to run their company more efficiently.
Back then, they had to rely on intuition to make executive decisions with such a limited amount of time and little data to glean from.
In other words, traditional methods of data gathering impeded business growth.
Even PepsiCo, Inc., a company that’s been around since the 1960s, sees the magic of Big Data, something they did not have access to when they started out. In an interview with Tableu.com, PepsiCo’s Customer Supply Chain Analyst Mike Riegling discussed how collecting and processing regularly updated data has helped them provide excellent customer service by ensuring PepsiCo’s inventory matches the demands of their consumers. Big Data has also helped PepsiCo make decisions regarding promotions, product introduction, and merchandise costs.
Through traditional methods of data gathering, only limited information can be extracted, hampering the kind of progress that businesses like PepsiCo could achieve.
Put Big Data to Good Use Today
Big Data brought data gathering methods to great heights. One report notes that “as of 2012, about 2.5 exabytes of data are created each day, and that number is doubling every 40 months or so.” An exabyte is the equivalent of 1 billion gigabytes. In the same report, it says that companies that make data-driven decisions were generally “5% more productive and 6% more profitable than their competitors”.
With Big Data, companies can promptly assess the risks and advantages that come with their decisions, more accurately predict how they will perform in the future, and promptly determine what kind of adjustments have to be made. The power of Big Data is so easily accessible that it would be unwise not to put it to good use. NarraSoft is a big advocate of Big Data. We build data-analyzing software for businesses across industries and even create progress reports that give clients an in-depth look into their performance.