Optimize Business using Big Data and Implementing Strategies

FORMING YOUR STRATEGY FOR BIG DATA AND DATA SCIENCE
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Table of Contents TOC \o "1-3" \h \z \u Table of contents PAGEREF _Toc64737422 \h 2Executive Summary PAGEREF _Toc64737423 \h 3Big Data Opportunities PAGEREF _Toc64737424 \h 4Value Creation Using Big Data PAGEREF _Toc64737425 \h 6Strategies for Implementing a Big Data Strategy PAGEREF _Toc64737426 \h 75 V’s of Big Data PAGEREF _Toc64737427 \h 9Conclusion PAGEREF _Toc64737428 \h 10References PAGEREF _Toc64737429 \h 11
Executive Summary
Big Data analytics can help businesses improve their operations. Most companies are investing in mining more data and finding new uses to give them leverage in businesses. Companies that harvest huge amounts of data from consumers, such as Google, are selling that information to businesses to find new ways to optimize operations and increase revenue. Businesses used big data to forecast demand and optimize their operations to meet it. Big data can be used to create new revenue opportunities. New features such as smart baskets that profile customers and help them shop faster and more conveniently are some of the new applications of the technology in increasing revenue. Big data can be used to personalize the experience each customer would get from the business, including what products to be recommended for purchase and offering a competitive but dynamic process to influence the customer to make a purchase. Businesses devise strategies to implement big data, which necessitate them to define their objectives, conduct assessments, develop strategy and determine their big data road map. All these processes are informed by the 5 V’s of data; volume, velocity, variety, veracity, and value.
Big Data Opportunities
How Big Data can be used optimize your business
According to Mckinsey, Big Data Analytics in a retail chain can improve the operating margin by around 60% (Aeologic, 2020). There are many areas big data can improve in retail, including; doing targeted marketing, finding and bringing back sleeping/cold customers, enhancing customer satisfaction, mining and listening to social media, data-driven store layout, and staff management, optimizing the discounting system to target customers to build the strong and healthy customer-retailer relationship, analyzing customer preferences and purchase behaviors, introducing smart pricing for maximum revenue, etc. These are some of the areas retailers can leverage big data to optimize their businesses.
To create new revenue, a business can use big data to do better forecasting. Predictive analytics uses big data to find patterns and forecast customer sales. This helps businesses to make informed decisions on how to serve their customers. One way the business can create new opportunities is by predicting the demand for flash sales and planning promotions. Cyber Monday and Black Friday are some of the busiest days in the retail industry. Leveraging on consumer data, businesses can predict demand and optimize the pricing of their products for maximum profits. Amazon Fulfillment Centers rely heavily on predicting demand. Amazon ships some products before they are purchased from their website (Bensinger, 2014). Using such technologies that can o...