Importance of Value for Big Data

As a well-known fact that the bulk of data have no meaning if it is not converted into something useful. Just collecting a large amount of data from various sources with an outstanding speed level is meaningless if we cannot interpret it. Hence, value stands for extracting the vital information from the vast data set. With the help of advanced data analytics, useful insights can be derived from the collected data (Sheriff, 2019). As such, value is the most crucial element of 5V’s of big data in terms of the decision-making process since it gives long term enterprise value.

The value gathered from big data helps companies to improve their marketing strategies. From the data gathered, businesses are able to build different customer profiles for their segmentations. Today, almost everybody is exposed to a significant number of marketing contents even if it is relevant, engaging, personalised or not. Thus, most of these contents are tuned out and deleted. To avoid this situation, businesses should use the data they collected to build different customer profiles for their segmentation with customization of product and market offerings.

According to Washington State University businesses are turning to omnichannel marketing to create seamless and connected customer interactions across all devices and platforms. With the help of advanced analytics, marketers are able to identify who is accessing to the content on which devices, what type of content they are engaging, their state in the buying cycle, the products they are interested, and their location information give marketers the advantage of the ability to create highly personalised contents. Hence, it leads to better outcomes in engagement, conversion and brand loyalty.

Furthermore, companies can benefit from their big data in terms of determination of new opportunities by using their historical data as a predictor of the future development and they can focus on predictive analytics to expand their target markets. Datasets in which each data point may incorporate less information, but when taken in aggregate may provide much more (Martens and Provots, 2014). This concept is essential for predictive analyses since it transforms datasets into future insights. Companies like Netflix and Procter & Gamble are now able to leverage this data to drive product development. They use the data to build predictive models for new products by curating the attributes of past products and the relationship between those attributes and their commercial success (RapidMiner, 2020). As an outstanding example, Amazon designed a shipping system based on the predictive studies which predict what buyers are going to buy before they purchase it and ship the products right into their doors before people click to purchase. Predictive analytics has captured the support of wide range of organisations, with a global market projected to reach approximately $10.95 billion by 2022, growing at a compound annual growth rate (CAGR) of around 21 per cent between 2016 and 2022, according to a 2017 report issued by Zion Market Research (Edwards, 2019).

References

RapidMiner. (2020). Extract Big Value from Big Data | RapidMiner. [online] Available at: https://rapidminer.com/glossary/big-data/ [Accessed 16 Feb. 2020].

Edwards, J. (2019). Predictive analytics: Transforming data into future insights. [online] CIO. Available at: https://www.cio.com/article/3273114/what-is-predictive-analytics-transforming-data-into-future-insights.html [Accessed 16 Feb. 2020].

Martens, D. and Provots, F. (2014). Predictive Modeling With Big Data: Is Bigger Really Better? | Big Data. [online] Mary Ann Liebert, Inc., publishers. Available at: https://www.liebertpub.com/doi/full/10.1089/big.2013.0037 [Accessed 16 Feb. 2020].

WSU Online MBA. (2020). The Value of Data in Marketing and Business. [online] Available at: https://onlinemba.wsu.edu/blog/the-value-of-data-in-marketing-and-business/ [Accessed 16 Feb. 2020].

Sheriff, S. (2019). Understanding the 5Vs of Big Data - Acuvate. [online] Acuvate. Available at: https://acuvate.com/blog/understanding-the-5vs-of-big-data/ [Accessed 16 Feb.