The world is excited about big data and high precision analytics not only because the data is extensive but also because its’ potential impact is huge. Successfully capturing this potential of advanced data analytics can bring in sea changes in every sector that touches life. The impact of big data analytics in aspects, though subtle, must be talked about.
Banking – The use of big data and advanced analytics is not exactly a new phenomenon to the banking and financial services industry. It has been used for atleast a decade to help make sense of the massive troves of unstructured data captured by information technology (IT) systems. Improved and advanced analytics can be used as a tool to generate more revenue, as banks get valuable insights on customers and markets. Using analytics, banking institutions across the globe are also trying to solve business problems too complex to be processed using conventional software.
Retail – The importance of gathering and managing the right consumer data, applying analytics to generate valuable insights and translating those insights into effective front-line action cannot be emphasized enough for companies, especially those that are directly consumer-facing. Vast access to data that captures information on every transaction on every store help marketers find answers to questions like – what products should we develop and sell? What is the customer willing to pay for the product? What features is the customer looking for? Which products can be discounted and when and what vehicles of marketing and promotion is likely to have the maximum impact? Big data and analytics help retailers track consumer behaviour and accordingly improvise their strategies.
Insurance – The business of insurance is dependent on information, analysis and relationship management. Its main function of profitable risk management relies on its ability to apply the required mathematics vis a vis data on exposures, markets and investments. To compete profitably and successfully, insurance companies must identify and act on emerging trends, new customer insights, and an improved understanding of natural and man-made hazards. This can be possible only via the use of predictive and advanced data analytics. . Optimizing customer experience becomes a challenge that insurance companies must acknowledge and face. Optimized customer experience is also a critical element in efforts by insurance companies to retain and upsell products to their customers, which can actually account for a majority of their revenue source, compared to acquiring new customers.
Healthcare – At the centre of big data and advanced analytics is the need to garner insight from complex, noisy and heterogeneous data to answer questions in the healthcare sector that were hitherto unanswered. Big data analytics is becoming increasingly important in the healthcare sector since standard medical practice is moving from relatively ad-hoc and subjective decisions to evidence based, personalised care. Big data analytics can be used successfully to glean insights from vast amount of patient data available in terms of which medical compositions will effectively cure patients, or those that can trigger allergic reactions. Medical practices that can help faster and better recovery as well the limitless possibility of use in evidence based medicine, genome analytics, pre-adjudication of fraud medical claims, remote patient monitoring, etc.
Logistics and Supply chain Management – Big data analytics is a big deal, especially in the logistics and supply chain management, where this technology is highly applicable, yet equally underutilized. Traditionally supply chain managers have used analytics to help design facility networks, determine economic order quantities, and define safety stock parameters. This however, is a small piece of a very large pie because most of these are applied situationally rather than systematically. Big data analytics as a whole not only involves collecting and analysing large quantities of data in real time or close to real time but also handling the vast data collected in myriad contexts using cutting edge technologies like statistics, mathematics, econometrics, simulations, and optimizations. The most frequent benefits citiedof advanced analytics were better customer service, more effective fulfilment, faster responses to supply chain problems, and increased end-to-end efficiency.
Sports – Big data and advanced analytics are on the cusp of scoring major points in sports. From coaches to players and managers to businesses, analytics can play a major role in changing game strategies, scoring points and signing contracts, both on and off the field. As with the ongoing ICC Cricket World-Cup, big data analytics does a real time analysis of batsmen strike rate, runs required, baller consistency and even in a nail biting game, there can be some possibilities of predicting outcomes. Or when it comes to the field, coaches can use analytics to gauge opposing team’s tactics and accordingly change team dynamics and strategies not only from historic player data but also real time strikes/scores. Analytics by marketing firms on player dependability, career graph, brand value etc. help them make decisions while signing a player on as a brand ambassador.
Agriculture – As the world population hits over a 9 billion by the year 2050, the hunger gap may only set to widen. Experts believe that the only means to combat this problem lies in greater agricultural produce and collaboration across countries – a process and prospect fraught with uncertainties. In order to achieve this, scientists are increasingly looking towards big data for food security. Big data farming, also called ‘precision farming’, will thus hopefully play a range of significant roles like offering fairly weather forecasting, real-time optimization of farming machinery, cloud-hosted information resources for farmers, automated irrigation recommendations, monitoring of grain prices, and management of inventories and budgets. This will help optimize decision making and consequently reduce resource waste as well as enable farmers make decisions on the go.
Thus big data and advanced analytics have immense potential and far reaching effect on a lot of aspects of human life.
Author: Richa Kapoor
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