We are currently witnessing a turning point in history. Big data technologies are transforming all industries and society as a whole. Also, more and more companies use big data to improve their operations. However, some people think that big data is just a momentary fad. Regardless of whether this statement turns out to be true or not, the fact is obvious. Big data technology has forever revolutionized both our world and the entire business world. The examples that we will present to you in this article prove it.
Companies collect, store and analyze vast amounts of data to improve their operations, increase revenues and optimize their services. Series tailored to users’ tastes, clothing tailored to different types of athletes, garments individually managed based on data about preferences in your style. The power of big data seems endless as the amount of available and usable data grows, computing power grows, and algorithms’ intelligence is strengthened. Big data affects the brand’s relationship with customers, changes the organization of companies, and impacts the final product. Before discussing the best examples of using big data in business, let us remind you what this exciting term exactly means.
The Definition of Big Data
Big Data is a set of tools that will enable the processing of masses of data that traditional data management systems cannot manage. One of the big data’s main challenges is identifying the different dimensions of system data that we want to analyze.
In short, big data represents the art of collecting, storing, and processing large volumes of data to offer your business new perspectives. There are plenty of examples of successful and unsuccessful use of big data in business solutions. This article will introduce you to those thanks to which brands could achieve their business goals.
Example 1: Netflix and its recommendation engine
With over 200 million subscribers in over 50 countries, the streaming service provided by Netflix currently accounts for a third of US internet traffic during peak hours. These millions of subscribers generate tons of data, collected and monitored to understand viewers’ habits better. Netflix uses the latest analytical techniques to analyze this data. One of the primary uses of big data via Netflix is to determine what users will enjoy watching.
In 2015, a letter from Netflix to shareholders showed that the big data strategy was bearing fruit. 4.9 million new subscribers were registered in the first quarter of 2015, compared to 4 million in the corresponding period of 2014. Likewise, 10 billion hours of content was released this quarter. Thanks to the intelligent use of big data, Netflix’s influence continues to grow.
Example 2: Uber and Advanced Trip Valuation
The Uber smartphone app connects passengers and drivers through a big data principle. For each trip, Uber collects data and analyzes it to define the scope of the demand by geographic area. The company maintains a large base of drivers in all the cities it covers. So when a passenger is looking for a ride, the most suitable person is immediately contacted. In addition, Uber has developed algorithms to monitor traffic conditions and travel time in real-time. In this way, the company can adapt prices to changing demand and travel times.
Moreover, thanks to big data, drivers usually get behind the wheel when they are needed most. Uber patents this big-data-based pricing method. That is called “jump pricing.” In addition, it implements “dynamic pricing” already widely used by airlines and hotel chains to adjust the price to demand in real-time through predictive analytics.
Example 3: Apple Improves IOS
Apple constantly uses data and big data solutions to improve its products or create new ones. The brand that designed the first Mac more than thirty years ago, and since then, based on information gathered about users, has been looking at what people do with their computers and mobile operating systems and adapting them accordingly. In recent years, one of the areas of particular interest in using big data is wearable technology. Thanks to smartwatches, the company can collect data about its customers in record time and analyze what users of the equipment do during the day.
Example 4: Nike Clothes that fit you perfectly
Nike uses the collected data from the Nike + users profile in the application and analyzes athletes’ preferences to create a new clothing collection tailored to their expectations. For example, if a user of the Nike Fit app scans their feet, the algorithm will tell them which shoe size they should choose. This information is then stored in Nike + profile data and used to suggest measures when customers buy online and in-store shoes. What is the effect of these actions? Thanks to big data, the brand’s turnover increased to such an extent that in 2019 it decided to purchase the Celect start-up specializing in big data. We can therefore be sure that the effects met the expectations of the clothing company.
Example 5: Amazon: Nothing Without Big Data
Another great company that knows how to recommend what you are going to acquire. Surely you remember the list of recommended and complementary products for this new gadget you bought on Amazon. It is a personalized recommendation system created based on the analysis of your purchasing patterns, including the items you have purchased or the most frequently searched products. For example, if you add a tablet to your cart, you will most likely see a case dedicated to it in the recommended items. In the case of Amazon, we can see how much power big data has. This technology generates as much as 35% of annual sales on the platform.
Big Data is Changing the Business Landscape
Big data and its implications affect every business, from sole proprietorships to Fortune 500 companies. Today, even the smallest companies produce data. Big data enables them to collect more and better marketing data, allowing them to understand better what the customer wants, what they will be using, and what channels they usually use to buy. So even if someone agrees with the thesis presented at the beginning of the article that big data is a fad of the moment, he cannot deny that big data has already opened a whole new world of possibilities and continues to change the way we do business.