We live in a world that is more digitally connected than ever before, and this trend will continue well into the foreseeable future. Mobile phones, televisions, washers and dryers, self-driving cars, traffic lights, and the power grid – all will be connected to the Internet of Things. It has been said that by 2020 there will be 50 billion connected things. These devices produce exponentially growing amounts of data such as emails, text files, log files, videos, and photos.
The world will create 163 zettabytes (a zettabyte equals one sextillion bytes) of data annually by 2025. Enterprises of all sizes can gain competitive advantages and valuable insights by incorporating big data and predictive analytics into their business strategies to fuel growth and drive operational efficiencies. But with all this data at hand, it’s vital to understand which data is actionable, and how it needs to be considered. Here are two examples of ways businesses are utilizing big data to improve the bottom line.
First, big data analytics can reduce customer churn. Predictive models are being built using customer demographics, product profile, customer complaint frequency, social media, and disconnect orders to flag customers who are likely to churn. Companies can identify these customers to better understand their issues and improve inefficient business processes. They can also recommend products that meet customer feature and price needs.
Second, big data can help prevent network outages. This is especially critical with government, medical, and emergency services networks, where outages can have severe impacts. Predictive models can ingest network logs to look at past device performance and predict hours in advance when an outage may occur, giving network engineers time to replace faulty equipment […] Read more »