Using Big Data Analytics to Drive Business Decisions

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  • 0:04 Defining Big Data Analytics
  • 0:54 Increasing Profitability
  • 1:57 Gaining a Competitive…
  • 2:43 Gaining Market Share
  • 3:22 Improving Workplace Safety
  • 4:13 Lesson Summary
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Lesson Transcript
Instructor: LeRon Haire
This lesson will define the meaning of big data analytics and will also discuss how this information is used to drive business decisions by allowing organizations to remain ahead of the competition.

Defining Big Data Analytics

From sports to the economy to businesses, numerical and non-numerical information or data is a vital component when it comes to making executive decisions. In particular, big data analytics is perhaps the most important component. The term big data analytics can be defined as the cumulative collection of large sets of data in an effort to predict trends and uncover other vital information.

In the business world, decisions are critical to the current and future existence of a company. Due to the sheer volume of information in big data analytics, it is of extreme importance that the information is carefully reviewed to determine if it's valid and how it can be used. Let's take a closer look at how big data analytics helps organizations to stay ahead of the competition and assists with driving business decisions.

Increasing Profitability

In business, earning a profit is imperative in order for an organization to succeed and remain competitive. For this reason, increasing profitability is one of the most important ways that big data analytics helps organizations stay ahead of the competition.

The information obtained by big data analytics includes vital statistics, which assist with forecasting. Forecasting can be best described as making an educated or projected estimate based on patterns and trends of the past. With this information, businesses can project what may happen in the future, which in turn allows them to remain at least one step ahead of the competition.

Imagine that you have received information from big data analytics that suggests the market for fresh fruit and whole foods is increasing (according to forecasting and trends). With this information, you are able to increase your profitability by acquiring more inventory of fruit and whole foods while reducing your inventory for other types of foods. This will allow you and your business to remain ahead of your industry rivals.

Gaining a Competitive Advantage

As previously stated, big data analytics is a driving force for making business decisions because of its ability to help companies stay ahead of the competition. Another method in which big data analytics helps with this is by gaining a competitive advantage. A competitive advantage is simply something that an organization does well that is unique and difficult to duplicate by competitors.

For example, let's say that you own a cleaning service that specializes in using eco-friendly products. Your business's competitive advantage is the fact that you not only clean but you perform those duties with cleaning agents that do not harm the environment. Big data analytics allows organizations to retrieve information that can help determine what the organization does well that competitors may not.

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