Big data analytics refers to the possibility of gathering and analysing a substantial amount of data through advanced Business Intelligence (BI) software systems. This sort of analysis consists of finding hidden correlations and patterns, with the aim of building situational awareness, which will, in turn, allow organizations to take strategic decisions. The following are some real-world applications of big data and BI.
Big data in risk management
BI systems allow companies to analyse and filter a plethora of statistical data and select relevant information which is used to quantify and model risks. Organizations can then use such data to identify weaknesses and create smarter threat mitigation strategies. Big data analytics is crucial for financial institutions, which may incur losses if risk management strategies are not properly executed.
Big data for customer acquisition, conversion and retention
Several online retailers are using big data to map their customers' buying patterns. The data gathered, allow these companies to offer each client a tailor-made shopping experience. Big data is also used to create clusters of clients to be targeted by automated marketing campaigns, such as e-newsletters.
Big data in supply chain management
Supply chains can use big data to get better insights and build more structured supplier networks, by leveraging higher level of contextual intelligence and therefore reduce the possibility of losses. For instance, companies in the fast-moving consumer goods industry can use big data analytics to ensure that retailers can replenish their shelves with the appropriate volume and type of goods. By analysing sales data, production and shipment volumes can also be forecasted.