Companies utilize big data to make decisions concerning their operations to maximize opportunities. Big data involves massive data from different sources such as social media platforms, sensors, and weblogs. Firms collect, store and evaluate the data to make valuable insights. Organizations depend on big data analytics to upgrade their marketing strategies, design learning and training programs, and forecast future market trends. Having extensive data concerning market trends enables organizations to enact changes that enhance service delivery, quality, and overall productivity, improving revenue.
The more a company collects its data from different sources, the more it is likely to grow. Big data analytics provide insights that help save costs and time, comprehend market trends, and improve services and products. Using data analytics, companies can know the products that are likely to be in high demand and the skills that employees will require to remain competitive (Choi et al., 2018). Such knowledge helps reduce costs by enabling organizations to focus on the most important programs that will increase a company’s revenue. Using data on customer behavior to make strategic decisions reduces costs of general marketing that may never be successful. Additionally, big data analytics can enhance a firm’s supply chain, customer relations, and overall performance (Oncioiu et al., 2019). All these advantageous effects of big data help increase organizations’ revenue.
Big data is a potential disruptor of organizations’ business models because it can change market operations and alter a whole industry. For instance, companies will be forced to use big data to increase the speed of innovation and solve issues that have been ignored for decades. By combining novel big data technologies with sophisticated data analytics to attain new levels, understand customer needs, and uncover market insights, disruption, and alteration of the existing business model will occur (Choi et al., 2018). Companies focus on utilizing the opportunities provided by big data analytics to unravel new opportunities for better customer relations, quality products and services, and improved revenue streams.
In conclusion, big data is an innovative tool for companies to reduce costs and devise innovative and disruptive changes to unravel new market segments and revenue generation approaches. Furthermore, firms can make informed decisions by depending on big data analytics. Such details assist organizations in gaining and maintaining a competitive advantage over their rivals by forecasting future markets trend in relation to factors such as consumer behavior, skill sets, and technological changes.
References
Choi, T. M., Wallace, S. W., & Wang, Y. (2018). Big data analytics in operations management. Production and Operations Management, 27(10), 1868-1883.
Oncioiu, I., Bunget, O. C., Türkeș, M. C., Căpușneanu, S., Topor, D. I., Tamaș, A. S. & Hint, M. Ș. (2019). The impact of big data analytics on company performance in supply chain management. Sustainability, 11(18), 4864.