4 Benefits Of Using Big Data For Your Business


It is hard to improve your business when you don’t have all the relevant information. Big data refers to a system that allows businesses, small or large, to analyze their company’s raw data.

This can reveal trends and insights into what their customers want and steer them towards better
decision making. It utilizes four main components: volume, variety, velocity and veracity, and it
encompasses a real-time system that produces the most accurate knowledge available.
Big data provides companies with widespread benefits, advantages and aids in enhancing overall
efficiency and productivity, as well as a better understanding of the market. Data mining, sharing
and storage are just a few characteristics that have helped various industries, such as the
healthcare, education, IT, retail and government sectors. (1) (2) (3)


1. Customer understanding

One of the biggest appeals of big data is the ability to understand customers better, and from
there to mold your business accordingly. Having a vague idea of what your customers want is
one thing; however, stepping into their shoes and understanding how they interact with your
online interfaces is indispensable. For this reason, many companies have been looking into
acquiring big data as a service, in order to better their customer service strategies and
approaches. (4)

Through the use of big data analytics, companies can allow for better customer personalization
and trust, and can also understand what motivates them. This ultimately enhances customer
experience, and allows companies to remain in-tune with their users’ needs and desires. For
example, Walmart used big data to reveal which products were performing better. Through
viewing factual product patterns, they were then able to confidently tailor recommendations for
specific customers. This use of big data allows businesses to obtain higher levels of customer
satisfaction. (3) (4)

2. Risk management

Big data offers banks and other financial institutions the ability to determine behavioral
anomalies amongst their users. It also enhances the organization’s overall integrity by detecting
fraudulent activity. Credit card fraud is a major issue, and can be detected more easily with
proper systems in place. Big data allows companies to analyze transaction histories, locations
and other vital information that may save you and your business a lot of time, money and pride.
Money laundering, insurance fraud and other forms of security threats can all be detected in a
more timely manner with big data. Big data makes this possible by predicting multiple types of
issues in advance. Understanding a potential threat before it happens will aid your company in
rectifying it faster. (5) (6)

3. Reliable

One of the biggest advantages of big data analytics is its reliability. According to Dataversity,
approximately 60% of the day for knowledge workers is dedicated to finding accurate
information. Sometimes information alone is difficult enough to acquire, without worrying about
its accuracy. Big data eliminates these struggles and offers almost immediate results, based upon
data drawn from multiple sources. (1) (7)

4. Cutting costs

Businesses can waste a lot of money when trying to improve their marketing strategies,
especially when they come up against competitors who have the same level of drive to draw
users in. As touched upon above, analyzing internal data of shopping trends and customer interaction enables businesses to be more specific with their advertising approaches. Understanding which products are more likely to be returned is another logistical advantage that
businesses can use big data to obtain. (8)

Steering your business in a direction based purely upon outward observation of what you think
the market wants may not benefit you or your wallet every time. Having correct, real-time data
will allow you to understand, evaluate and manage your company’s finances more efficiently;
this will lead to more effective marketing campaigns and overall business function.

In conclusion

Basing your strategic planning solely on what you predict your user may want, without any
accurate information, will not aid your company in producing high-quality, user-friendly
experiences. Understanding how and why your business functions in the way that it does,
through timely and reliable information, is key in rectifying problems and optimizing the ways in
which you interact and sell.

Big data is a technology that can not only offer you real-time information, but also allow your
company to achieve better marketing strategies, understanding of users and financial
management. From healthcare and academic sectors to the retail sector, big data ensures that it’s
users will be provided with a high volume of data from a wide variety of sources, leading to
better business productivity and overall management.


1. “Many Benefits of Big Data Analytics for Your Company”, Source: Many Benefits of Big
Data Analytics for Your Company – DATAVERSITY
2. “5 Benefits: Competitive Advantages of Big Data in Business, Source: 5 Benefits:
Competitive Advantages of Big Data in Business – NewGenApps
3. “What is Big Data – Characteristics, Types, Benefits & Examples”,
Source: What is Big Data – Characteristics, Types, Benefits & Examples 2019
4. “Using Big Data to Improve Customer Experience”, Source: Using Big Data to Improve
Customer Experience | Jigsaw Academy
5. “How to Improve Risk Management with Big Data”, Source: How to Improve Risk
Management with Big Data
6. “Big Data in the Financial Services Industry – From data to insights", Source: Big Data in the
Financial Services Industry – From data to insights
7. “Big Data, Predictive Analytics and Reliability – Moving Beyond Better Maintenance”,
Source: Big Data, Predictive Analytics and Reliability – Moving Beyond Better Maintenance –
8. “How to Use Big Data to Reduce Enterprise Costs”, Source: How to Use Big Data to Reduce
Enterprise Costs | SAP Blogs