Skip to content

JA6. Using Big Data in Business

Statement

Evaluate two ways that businesses can add value to their organizations using big data. Discuss the benefits of each way. Also explain how it can promote their business, and how it affects their business decisions.

Answer

Introduction

Value refers to the usefulness of the data to the organization or the problem that is being solved. Collecting and analyzing data that is irrelevant is a waste of resources and time (Firican, 2017).

Value is the most important of the Vs because it is the motivation behind the entire workflow; and if such a big data workflow does not have any added value (usually should lead to more profit), then it should be discontinued.

There are various ways that businesses can add value to their organizations using big data; the text will discuss two ways: Personalized User Experience and Predictive Analysis.

Personalized User Experience

User experience is an important matter for businesses which is a way to fine-tune the user journey according to the user’s preferences, personality, and behavior.

The most important aspect of personalized user experience is to know the user and then classify them into the right groups; this is where the big data comes in. The historical data from all users are analyzed to generate the right groups along with the rules that put a user in a specific group (Simon, 2023).

The benefits of personalized user experience include happier customers, higher customer satisfaction, retention, and conversion rates. All of these benefits lead to more profit and a better reputation for the business, thus more value and also promoting the business to new customers.

Personalized user experience affects business decisions as it shifts the thinking from a general group that includes all users to more groups that guarantee better segmentation and targeting, customized content, and recommendations that are more likely to be accepted by the user (Simon, 2023).

Predictive Analysis

Predictive analysis is a way to make an informed prediction about the future based on historical or near-real-time data. It is still a prediction and may not happen as expected, but the business will be better prepared.

The window for predictive analysis is very wide to the point that it may be included in any process that the business plans to do; examples may include predicting the next successful product that most customers will like, predicting the date when a specific process will fall short, or predicting if a user is a hot or cold lead (Kyanon Digital, 2021).

The benefits of predictive analysis include better decision-making, better resource allocation, better risk management, and better customer targeting. All of these benefits promote the business as it will be prepared correctly while competitors may fall behind.

Predictive analysis affects business decisions as it can be used to fine-tune product catalogs; predicting process failures gives the business a chance to fix the process before it causes any major monetary loss; and predicting the user’s behavior gives the business a chance to target the user with the right content or product, and although this may fall under the personalized user experience, it is still affecting the decisions made by the business.

Conclusion

Both personalized user experience and predictive analysis are useful in adding value to the business; and while the line between the two may be blurry, the personalized user experience relies on changing the user’s journey based on classified groups, while predictive analysis relies on predicting future events based on historical or near-real-time data.

References

‌