"Data-driven business" is a term you might have heard around in the last few years. But what does it mean? Simply put, it means that businesses in any industry are using data analytics to make better decisions. Indeed, having access to the right data at the right moment can improve every aspect of a business, from production to marketing.
Let's find out more!
What are data analytics?
In a nutshell, data analytics is the process of turning large and small data sets into actionable business insights. This can be done through a number of methods, including:
- Descriptive analytics
Using data to understand what has happened in the past. For example, analyzing past sales to see which products were most popular.
- Predictive analytics:
Using past data to predict what will happen in the future. For example, analyzing customer behavior to identify which customers are most likely to buy a certain product.
- Prescriptive analytics:
Using data to prescribe a course of action. For example, using predictive analytics to identify which products are most likely to be popular in the future, and then plan a marketing campaign to promote those products.
What is Big Data?
Big data refers to the large and growing volume of data sets that businesses are now able to collect, that are too large or complex to be dealt with by traditional data-processing application software. It includes everything from customer information (such as age, gender, location, etc.) to data on production processes, sales, website traffic, competitors, and more.
However, Big Data isn't just about volume, it's also about:
- velocity: the speed at which data is generated,
- variety: the different types of available data,
- veracity: the accuracy of the data.