According to a range of studies, the big data analytics market is set to reach $103 billion by 2023. In addition to this data, it is expected that by 2020 every person will generate 1.7 megabytes in just a second. So how are analysts and companies going to use it?
Big data and analytics
You might ask yourself, what is big data anyway? Gartner’s definition, circa 2001: Big data is data that contains greater variety arriving in increasing volumes and with ever-higher velocity. Big data is focused on the 3 V’s, these being, variety, volumes, and velocity.
Big data analytics work to uncover hidden patterns, correlations and other insights through the use of AI, the application of software and backed by skilled analysts. It is used across industries such as banking, life science, manufacturing, health care, government, and retail to make informed decisions, remain nimble and form cohesive strategies.
Big data is pulled from a wide range of sources, not just your Internet browsing history! Data is derived from a wide range of sensors, devices, video/audio, networks, log files, transactional applications, web, and social media — much of it generated in real-time and on a very large scale.
Big data and AI
AI or artificial intelligence has a lot to do with big data analysis and disruption. Take the banks in Australia for instance — the banks had a duopoly for so many years, with the “four pillar banking system,” allowing for very little competition or product differentiation.
Artificial intelligence is transforming a variety of banking functions and allowing tech start-ups to compete with some of the largest banks for a market share of key services, including lending and wealth management.
Where traditional banks are filled with time-consuming processes, paper-heavy transactions and have a turning circle of the Titanic, the new FinTech market entrants have been built from the ground up using big data, AI and innovation as their platform to build growth at an epic pace.
Big data and online travel
Big data isn’t just the banking industry, it is also branching out to the online travel industry, which has been a major disruptor to how we travel, has leveraged big data in five key ways.
Other industries big data is infiltrating include revenue management, reputational management, strategic management, enhancing customer experience and market research.
It has allowed the travel industry to make more evidence-based decisions and include the ability to anticipate future demand more accurately, optimize pricing strategies, target marketing more precisely and improve the customer experience.
Big data is all around us, and companies that embrace it can make “evidence-based” decisions in real-time, making them nimble, more profitable and highly accountable. Where traditional business models and statistical analyses were completed reactive, big data is a proactive, predictive business tool that is changing the way we all live, work and consume.