Is your business ready to thrive in 2024? Big data analytics is key to faster decision-making, uncovering new opportunities, and boosting efficiency—just like Amazon and Marriott have done. Read on to learn how you too can dominate your industry by leveraging big data
Introduction
Big data analytics are an integral component of the modern business realm. Companies like Amazon and Marriott are strong examples of the success brought about by big data analytics, driving industry dominance. In this blog, we’ll outline why big data analytics are crucial to businesses striving for success today, and into 2024 and beyond.
The growing importance of big data analytics
In 2023, the global big data and business analytics market was estimated at USD 307.51 billion. Projections reflect it reaching USD 924.39 billion by 2032 – representing an impressive compound annual growth rate (CAGR) of 13%. This demonstrates the rising importance of big data within today’s business world.
Nevertheless, even with such impressive figures, many companies still employ outdated data management practices. This blog seeks to demonstrate how leading firms use big data analytics to fuel their success. We will further explore case studies that demonstrate why adopting modern data analysis techniques brings about numerous advantages.
Understanding big data
Before moving ahead, it’s important to answer a core question: What is big data?
Big data refers to large stores of digital information. It can be in a structured form, unstructured, and/or semi-structured. Analyzing big data enables businesses to uncover trends, patterns, and relationships related to customer behavior and business operations.
Manufacturers use big data to manage extensive information sourced from their machines, processes, and supply chains. Thorough analysis can reveal invaluable insights that enable more informed decision-making and improve operational efficiencies.
Reasons why big data analysis is essential
Traditional databases often fall short when handling increased three V’s of data – volumes, varieties, and velocity. In order to effectively handle such challenges, businesses’ best bet is an advanced data analytics tool.
Big data analytics facilitate faster decision-making and problem-solving. Additionally, it identifies new business opportunities and growth areas. Hence, companies that utilize big data can gain a competitive edge and propel to success.
How big data analytics benefit leading companies
In this fast-evolving digital world, many industry giants have successfully employed big data analytics. Let’s explore how these businesses have taken advantage of big data to achieve outstanding results.
1. Amazon
Amazon as a global leader in e-commerce is projected to hold 50% of the market by the end of 2024. A vital role is played by big data in Amazon’s strategy for improving customer experiences while streamlining operations and optimizing supply chains.
Amazon conducts extensive data collection, reflected from the reported 1 exabyte (approx.) of past customer data it collects annually. This helps drive its sales strategies, implements dynamic pricing models, and enables customized product recommendations. Such a vast data repository stems from various sources such as Amazon’s online marketplace, Alexa, Kindle, and third-party providers.
Amazon’s predictive analytics capabilities allow it to meet its marketing objectives with more precision. Their recommendation system analyzes recent purchases, wish lists, and shopping cart activity to predict user preferences. They then tailor product suggestions and marketing campaigns accordingly and effectively.
Big data analytics also aid Amazon in optimizing its supply chain. By working directly with manufacturers and monitoring inventory levels, Amazon ensures efficient order fulfillment. Amazon uses analytics to locate the closest warehouses to reduce shipping costs. It also uses such data-driven insights to adjust pricing and encourage additional purchases per order.
2. Marriott International
Marriott International employs big data analytics to set optimal prices for its services by forecasting demand. Initially, Marriott integrated internal and external data through a Revenue Optimization System. This allowed for real-time analysis as well as demand forecasting features. With this tool in place, optimal prices could be determined.
Later on, to handle both unstructured and semi-structured data, Marriott implemented a big data insights solution. This allowed Marriott to better analyze early-stage data patterns as well as scale new services globally by using big data. By harnessing big data insights, their decision-making and operational efficiency were enhanced.
Marriot Bonvoy leverages big data and artificial intelligence (AI) to monitor competitors, conduct targeted marketing, and offer personalized customer services. This approach increases Marriott’s ability to engage customers while responding effectively to market trends.
3. Bosch
Bosch, an automotive parts manufacturer, leverages big data analytics to improve quality control in its production processes. By utilizing sensor data from production equipment, it monitors products throughout their manufacturing cycle. Upon detection of any potential defects, it immediately takes corrective actions.
Bosch has created an advanced big data analytics system to assist in its projects. It utilizes advanced tools for data analysis along with platforms leveraging machine learning, deep learning, and natural language processing technologies. Furthermore, cloud computing supports Bosch’s analytics capabilities allowing it to scale as needed and scale-out data analysis flexibly.
In order to enhance its manufacturing processes and promote the creation of new products and services, Bosch utilizes big data analytics. This commitment to data-driven decision-making results in continual improvement and innovation within the company.
4. UPS
UPS, the worldwide leader in package delivery and logistics, employs big data analytics to optimize its supply chain operations. They analyze package data such as destination, weight, and delivery time in order to streamline delivery routes and decrease delivery times.
UPS uses behavioral and preferential data to develop innovative solutions such as faster delivery options and real-time updates that enhance its operational performance and efficiency.
It collects and analyzes data from its warehouses, vehicles, and distribution centers – such as warehouse pick-up times or downtime – in order to maintain high service levels while minimizing downtime. By employing big data analytics solutions, the company strengthens both competitive advantage and operational effectiveness.
Final thoughts
Big data analytics is an integral investment, that businesses should make to better understand their operations and customers. Implementing big data can bring competitive advantage, reduced operational costs, improved customer retention rates, and customer acquisition efforts. As technology evolves and data accessibility grows exponentially, it becomes even more critical that businesses adopt appropriate analytics tools for effective data mining.
Selecting an effective big data analytics platform is central to data-driven decision-making. Consider Omniconnect™, an IT/OT convergence platform leveraging big data to collect, transform and analyze manufacturing data in real-time using IoT sensors, third-party devices, and machine learning technology. It provides actionable insights to users, that drive positive business outcomes and increased returns on investments.
Reach out to our experts if you want to learn how big data analytics can propel the success of your business, and leverage big data for the prime competitive edge.
By: Asmar Atif
Chief Intrapreneur & Vice President Operations at Octopus Digital
Octopus Digital is at the forefront of today’s fast-evolving industrial manufacturing landscape, empowering businesses to harness the full potential of their unstructured data. By integrating industrial IoT technologies with advanced AI and ML techniques, Octopus Digital enables efficient, data-driven decision-making. Central to this capability is OmniConnect™—a cloud-native IT/OT convergence platform that unifies, enriches, and analyzes disparate manufacturing data in real time, transforming it into actionable insights that enhance business performance.
