Big data isn’t just the latest buzz word; it is something that is changing the business world as we know it by increasing insight and improving decision making for businesses of all shapes and sizes. As such, every entrepreneur needs to know a few things about big data if they are to be successful…
What Exactly is Big Data?
Put simply; big data is data that is collected from a variety of different sources, including the internet, corporate databases, apps and even market research. Once data has been collected, it can be stored and analyzed to provide vital insights to corporations, governments and, well, anyone who might need access to data!
What Kind of Data is Being Stored, Exactly?
If you were to conduct a file analysis of the average company’s computer system, you’d find data regarding customer names and addresses, payment details, and purchase history – these are all aspects of big data that you would commonly expect businesses to gather. However, big data refers to much more than that, things like search engine searches and results, location data from apps and even the preferences of various demographics are collected and stored routinely by a whole host of people.
How is Big Data Collected?
Companies can collect data from a variety of sources. Right now, the most common ways to collect data are via software that captures customer behavior as they use and shop in websites, via background software running in apps, via search engine queries and via on and offline market research. As an entrepreneur, you need to ensure that you are using some or all of these techniques to capture data if you want to gain valuable insights into your customers, and thus tailor your business to better suit them and make more money. If you aren’t doing this, you’ll very quickly fall behind the competition!
What Do You Do with Big Data?
Once big data has been gathered, you will be left with thousands, even millions of pieces of information that need to be analyzed and interpreted if you want to be able to use it successfully.You will either need to hire a data analyst to pick out the information you need or invest in software that will do the same. For example, using a data management system like Latize Ulysses, you can find out which demographics are using your website most, how much a typical customer spends on products in your niche or even how much people are willing to pay for a particular product or services.
What Can Companies learn from Big Data?
Companies can learn pretty much anything from big data. So much data is captured every day now that it’s just a question of working out what you need to find out about to make your business venture successful and then analyzing the data to gain insights.
Some businesses use data to improve their products or increase staff productivity, some do it to improve their reach or advertising, and some simply use it to work out what they are doing right and what could be improved upon – there is no right or wrong way to use big data, providing you are doing so legally!
As you can see, big data can be a powerful tool for any entrepreneur. If you want to compete in your market, and you aren’t using big data, now is the time to start, lest you get left behind!