How Industries Are Being Transformed by Big Data

Throughout human history, industry, on the whole, has always been driven by new technology. As soon as any new technology became affordable enough for the widespread use and easy to implement, it transformed industries. Not surprisingly, that is precisely what is happening today with big data.

Industries can now access a massive volume of data and have the technology to process that data quickly and efficiently. That has pushed big data to the forefront of organizations big and small in both the private and public sectors, harnessing its potential for their various needs.

This article will look at how big data is being used to drive performance, improve outcomes, and increase competitiveness in many industries on a level that hasn’t been seen since the onset of the digital age.

Retail

None would argue that the arrival of the internet completely revolutionized the retail industry. However, one thing to keep in mind is that the internet has changed how consumers purchase goods. Big data is transforming why they purchase. Using big data’s treasure trove of consumer minutiae, retailers more fully understand what their customers desire. Big data gives retailers deep insight into the mindset of the consumer. They can then precisely match their marketing and advertising to individual consumers, including pricing, trends, and advertising thanks to the help of big data services. These changes, as you might imagine, have improved sales outcomes significantly.

Healthcare

Picture going to the hospital and, based on your outward symptoms and nothing more, your doctor could diagnose your medical problem accurately. No tests, no exams, only the big data they collected from an app installed on your smartphone (technically, thousands or millions of smartphones). That’s how big data is transforming the healthcare industry, using data collected from a huge swath of the population. This data empowers medical professionals to utilize evidence-based medicine in addition to performing tests and exams. This critical data improves outcomes, speeds the recovery process, and lowers costs significantly. Big data is also being used to track the spread of disease, a benefit that was driven home by the recent pandemic.

Sports

Big data has had a surprisingly varied impact on the sports industry, from the way teams recruit players to fantasy league strategies and selling tickets. It’s even used to make on-field decisions during game time and provide play-by-play analysis after a game ends. The biggest sports in the world, including baseball, American football, soccer, basketball, and others, have fully embraced big data and the valuable insight it provides. From perfecting a golfer’s swing to tracking a player’s emotional well-being and predicting what fans want, the sports industry and big data go together like baseball and hotdogs.

Insurance

Imagine if the insurance industry had the ability to improve access to insurance services by 30%, reduce insurance costs by upwards of 70% and detect insurance fraud at a rate that’s 60% better than currently feasible. Impossible? Actually, not only are all three scenarios possible, they are the reality today in the insurance industry. From customer acquisition and retention to risk assessment, fraud prevention, and fully-personalized services, big data has had a massive impact on the insurance industry. According to YFS Magazine, all of the numbers above are now being witnessed in the industry.

Transportation

Big data has resulted in significant improvements in the transportation industry, including fuel efficiency and operational flexibility. Safety improvements have been seen across the board, and fuel consumption significantly lowered thanks to big data and the useful details it provides. Traffic jams? Big data has been instrumental in reducing them and reducing delays in the airline industry. Big data provides the fastest route for individual drivers, improving delivery speeds dramatically. It also has been instrumental in improving fleet deployment, delivery times, and compliance.

Banking and Finance

Big data is meeting and overcoming many of the biggest challenges in the banking and securities industry, including credit card fraud, enterprise credit risk reporting, IT compliance, trade visibility, etc. Today, for example, the SEC is using big data to successfully catch illegal trading activity, something historically difficult (and costly) to achieve. From predictive analytics to anti-money laundering, fraud mitigation, and risk management, big data is one of the biggest boons to the banking and securities industry since the arrival of blockchain technology. On the consumer side, big data is being used to process loan applications, calculate risk factors and evaluate the potential of various investments.

Government

The impact of big data is no more obvious than in the realm of government, where it’s being used in an expansive variety of applications. That includes processing Social Security data and cross-checking it with medical data to improve decision-making and prevent fraud. Big data significantly improves transparency and helps build trust among citizens. It’s being used to reduce global security threats and reduce criminal activity. After a natural disaster, big data can be utilized to determine where help is most needed and better allocate resources. Also, to prevent water scarcity and prevent widespread health issues.

In Conclusion

Big data has now reached the point where the ability to unlock the treasure trove of information it contains has become affordable on a wide scale. By embracing big data, industries across the board will improve at every level, from consumer interactions to decision-making, predicting market trends, reducing fraud, improving profit margins, and so much more. Big data has positively affected every industry, and its influence will continue to reverberate for years to come.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan