What is one benefit of big data and business analytics that can help improve decision-making?
To help you benefit from big data and business analytics, we asked business professionals and leaders this question for their best insights. From assessing product fit to seeing the bigger picture, there are several benefits you can gain from using big data for decision-making.
Here is what 7 thought-leaders had to say:
- Assess Product Fit
- Measure to Manage Better
- Craft the Right Story
- Identify Patterns
- Find New Opportunities
- Collect Customer Feedback
- See the Bigger Picture
Assess Product Fit
Understanding the current market trend, competitor analysis and knowing the product's current stage in its lifecycle are the predominant decision-making strategies for an organization's/product's success. Analysis of massive data using big data analytics aids to forecast trends of customer behavior, markets, prices and so on. Business Analytics helps organizations better adapt to the changing or upcoming competitive environments. Thus big data and business analytics can help in improving decision making through the predictive analysis for a perfect product-market fit.
Sri Sagar Kalisetty ’20 MBA, Product Manager at Markitors
Measure to Manage Better
In my field of marketing, business analytics and real-time data help marketers and business leaders make decisions based on real-time campaign performance. Being able to quickly see what campaigns are driving brand awareness, qualified leads for sales and customer conversion helps marketers optimize campaigns to improve metrics and drive measurable business results. This helps to reduce marketing spending by focusing on the right channels and tactics that are driving optimal performance while improving overall ROI and revenue impact. Without big data and business analytics, marketing would be working in a silo instead of seeing how their campaigns are impacting the bottom line.
Elyse Flynn Meyer ’07 BSBA (Marketing and International Business), President and Founder of Prism Global Marketing Solutions
Craft the Right Story
When you're faced with a challenge such as allocating budget, determining product features or building a selling presentation for a customer, it's incredibly important to have the right data to be able to do that effectively. Data can come in the form of case studies, projections based on similar products and more qualitative measures such as market research studies. If you have this data, you can craft stories such as "buying this product from us will increase your sales 15 percent". The sell story will only be convincing if you have the data to make the benefits clear to the other party.
Evan Reed ’14 BSBA (Marketing), Associate Category Development Manager at The Wonderful Company
Identify Patterns
One benefit big data and business analytics can help improve decision making is by identifying patterns. Identifying problems and providing data to back up the solution is beneficial as you can track whether the solution is solving the problem, improving the situation or has an insignificant effect.
Joseph Romani, ’22 MBA, MBA Consultant at Chewy
Find New Opportunities
No matter how much you think you know, there is always more to discover. Big data and analytics can help you make sense of where you stand and make better plans going forward.
Are you totally sure your marketing campaigns are as effective as possible? Is there an untapped market for your product lines that you’re missing out on? With big data and business analytics, you can plug holes in your strategy or find new opportunities to bring in more business.
Randall Smalley, Cruise America
Collect Customer Feedback
Big Data tools and analysis can help you collect customer feedback and make heads or tails of it, and decide what to do about it. What if customers rate your products or services highly online, generally expressing satisfaction, but aren’t returning for more? Big Data can help you comb through their opinions and observations to figure out why and if such trends are limited to one region, sector or demographic. Using this information, you can redirect if needed.
Allan Switalski, LendThrive
See the Bigger Picture
In the day to day running of your business, it’s often the case that you can’t see the forest for the trees. It’s natural, as you have a lot to focus on. Big data can help you see the bigger picture and business analytics can help you figure out what it all means. With all of the information gleaned, you can bolster your decision-making with hard facts to back it up.
Guy Katabi, Lightkey
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FAQs
Benefits and advantages
Big data offers opportunities to make better decisions over time. Benefits of using data for business insights include: Being able to more quickly adapt to volatile market conditions. Having a better understanding of the customer, their behaviors, and habits.
What are the benefits of big data decision-making? ›
Benefits and advantages
Big data offers opportunities to make better decisions over time. Benefits of using data for business insights include: Being able to more quickly adapt to volatile market conditions. Having a better understanding of the customer, their behaviors, and habits.
What is the benefit of using data to make decisions? ›
With data-driven decision-making, there is a clear framework for accountability, and the ability to understand and measure the impact of decisions. Improving both transparency and accountability can bring a variety of benefits to your company, including: Fewer internal conflicts or disagreements. Greater efficiency.
How is big data used to make decisions? ›
Big data analytics uncovers insights that provide firms a competitive edge, enabling educated business decisions. It involves analyzing large amounts of raw data to identify trends, patterns, and correlations, aiding in data-informed decisions.
What are 4 benefits of big data? ›
7 Benefits of Using Big Data
- Using big data cuts your costs. ...
- Using big data increases your efficiency. ...
- Using big data improves your pricing. ...
- You can compete with big businesses. ...
- Allows you to focus on local preferences. ...
- Using big data helps you increase sales and loyalty.
- Using big data ensures you hire the right employees.
Impact on Decision-Making
The use of Big Data in decision-making can lead to more efficient operations, improved customer experiences, and increased profitability. For instance, by analyzing customer data, businesses can personalize their offerings, leading to higher satisfaction and loyalty.
How do data science and big data help in the decision-making process? ›
Data Exploration and Analysis for Decision-Making
With the help of data science techniques, businesses collect this data and work on it. Data scientists explore the data to study and recognize patterns, trends, and relationships, offering valuable information to help with strategic decision-making.
What is the use of data in effective decision-making? ›
Data analysis is critical in making informed business decisions, as it ensures continuous growth and consistency. By leveraging data, companies can identify new opportunities with a higher likelihood of success, generate more revenue, and prepare for future growth by accurately predicting trends.
What are the 3 most important sources of data for effective decision-making? ›
in a general context, effective data sources for data-driven decision-making depend on the nature of the organization. Common sources include customer feedback, sales data, market trends, employee performance metrics, and financial records.
How does big data help us? ›
Increased agility and innovation
Big data allows you to collect and process real-time data points and analyze them to adapt quickly and gain a competitive advantage.
The impact of big data on businesses is exponential. Big data will change how even the smallest companies do business as data collection and interpretation become more accessible. New, innovative, and cost-effective technologies are constantly emerging, facilitating the seamless implementation of big data solutions.
How to use big data effectively? ›
How big data analytics works
- Collect Data. Data collection looks different for every organization. ...
- Process Data. Once data is collected and stored, it must be organized properly to get accurate results on analytical queries, especially when it's large and unstructured. ...
- Clean Data. ...
- Analyze Data.
The 5 V's of big data -- velocity, volume, value, variety and veracity -- are the five main and innate characteristics of big data.
What are the 4 C's of big data? ›
There are generally four characteristics that must be part of a dataset to qualify it as big data—volume, velocity, variety and veracity.
What is the primary benefit of using big data? ›
Improved efficiency and productivity
One of the primary benefits of big data is its ability to boost efficiency and productivity. By analysing operational data, organisations can identify bottlenecks and inefficiencies in their processes.
Why is data management important in decision making? ›
Data management helps minimize potential errors by establishing processes and policies for usage and building trust in the data being used to make decisions across your organization. With reliable, up-to-date data, companies can respond more efficiently to market changes and customer needs.
Why is data important in strategic decision making? ›
Data-driven decision making also reduces risk and minimizes guesswork. By better understanding market trends and customer behavior, companies can design strategies that are more effective and responsive to market changes.
What are the benefits of data-driven decision making in education? ›
Data-driven decision-making can be a critical tool to address resource disparities, enhance student success, and promote equitable outcomes. Collecting and analyzing relevant data gives insights into student performance, attendance patterns, disciplinary actions, and more.
