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Big Data Analytics: Shaping Business Strategies in the UK
Jamie Finch
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January 26, 2024
Digital transformation has helped to revolutionise how we do business and go about our day-to-day lives. For example, working digitally makes communicating with others easier and streamlines processes so you can work more efficiently. To benefit from big data, you will need computing power and the appropriate software. HP has a range of computers and other tools capable of handling big data analytics for business.
One of the biggest benefits of digital transactions is that every transaction, no matter how small or large, is recorded and stored. Digital transactions can also provide valuable information like your target customer’s demographics and seasonal trends.
This information gathering has evolved into “big data,” which gives you access to business analytics that can help your company prosper.
What is big data?
Big data can be defined as data sources that offer the three Vs, which are:
Variety
Big data requires a wide variety of data to help form an accurate profile of your target audience and help you spot key trends. For example, big data can give you details on your audience’s age group, helping you optimise your marketing efforts accordingly. The more information you collect, the more insights you will have, so make sure to capture as much data as possible.
Volume
Big data also means large volumes of data to work with, which will help to make your analytical platforms more accurate. Fortunately, this data is collected and stored automatically, so there’s little additional work for you. As such, it’s a good idea to integrate assets like websites with analytical platforms if you haven’t done so already. Google Analytics 4 is among the most popular platforms because it offers deep insights into your visitors for free.
Velocity
Big data also means data that comes to you at high velocity. In other words, the data is available to you as soon as transactions have occurred. Access to high-velocity data gives you extra time to react to changes in the markets and trends as they happen, giving you an edge over the competition.
The role of big data in modern business
The information provided by big data helps businesses better understand their customers and the market. The business can then adjust its products and processes accordingly to help ensure customers have the best possible experience.
While big data can focus heavily on important human traits, it can also take raw financial data that can give insights that help you optimise pricing. The data can also help you identify areas that could be improved financially, improving your bottom line.
Technological advancements in data analytics
As our technology advances, big data becomes increasingly effective as new tools are developed. For example, you will find a range of analytical platforms that collect data and present it in a way that’s easy to digest. For example, such platforms will often create charts and graphs that tell you key information at a glance.
In recent years, big data has also seen the development of machine learning and AI, which give businesses even more power over how they use their data. For example, Google Analytics 4 (GA4) uses machine learning and AI to predict a visitor’s behaviour, helping the platform show ads and other information that’s most likely to positively influence prospects. As AI and machine learning continue to develop, we can expect them to deliver more.
Solutions are also developed as businesses face new challenges in using big data. One example is extracting useful data from raw sources, including photos and handwritten notes. To do so, new technologies have been developed that can read and interpret images and text and extract meaningful information from them.
Technology developed to help us extract and store information will also often have other benefits. These include streamlining workflows by automating processes to help a company work more efficiently.
Big data drawbacks
When used correctly, big data can help transform a business’s fortunes. However, it is not without its drawbacks, including:
Requires investment
Making the most of big data will often involve financial investment. For example, you will need analytical tools, secure storage facilities and other factors that drive up costs. Some businesses will also need to hire expert analysts to help make sense of the data so managers can make the right decisions.
Although the initial cost of adopting a data and analytics strategy for business can be high, the benefits usually recoup financial costs many times over. Also, as mentioned above, third-party data storage companies can offer the most sophisticated protection available at affordable prices. Using this approach is also more convenient because it requires less maintenance and management headaches.
Although you can outsource the bulk of your big data analytical operations, your office will still need computers powerful enough to process the data. This typically means computers with powerful central processing units (CPUs) and plenty of random access memory (RAM). These speed machines can power through vast volumes of data and present it to you in an easy-to-understand manner.
HP has a selection of powerful business computers with the computing power you need to maximise your benefits from big data. You will also find HP computers offering other tools and features, including top-level data security and connectivity. Regardless, feel free to browse through HP’s website to find the ideal model for your needs.
Training often needed
Big data analytical platforms can be complex, offering numerous options often accompanied by technical jargon. This means that initial learning curves can be steep, and staff will need thorough training to maximise the benefits. Not only will this mean trainees are unavailable for their day-to-day tasks, but you will also need somebody to train them, which often means outsourcing to another business.
Legal hurdles
Many governments take the protection of personal data seriously, and this typically involves creating new legislation. And with data protection a serious issue for the authorities, falling foul of the law can have serious penalties.
Not only can legal hurdles potentially get you penalised, but they can also effectively bar access to valuable information. Although a sensible safety measure to help keep people safe, this limitation of data can have a significant impact on the volume and quality of data available.
To overcome the issue, many marketing departments have become more proactive in gathering quality data legally and ethically. For example, some businesses offer something of value (like an eBook), so prospects are willing to hand over their data.
Unreliable data issues
“Garbage in, garbage out” is a common term in computing-related industries. The term refers to the fact that the end data is only as good as the data it’s using. Some companies will inadvertently collect poor-quality data, potentially leading to flawed decision-making.
Among the biggest reasons for unreliable data is that you need vast volumes of it for accurate results. With smaller data sets, outliers and other anomalies can skew the data, leading to misleading conclusions. In many cases, it is recommended to let your platforms collect data for weeks or months before using them to ensure a high level of reliability.
Data security and privacy concerns
Whenever UK businesses collect data on their prospects and customers, they are legally bound to keep that information safe from loss and theft by nefarious parties. Not only can breaches result in official penalties, but they can also lead to a loss of trust, which can be disastrous for a company.
Maintaining data security means using the latest security hardware and software to prevent online threats like hacking. Data storage also needs to be protected physically, preventing the loss of data by theft and damage. However, many businesses outsource data storage and security to third parties, making top-level protection more affordable. Outsourcing is also more practical because you won’t have to store and maintain the hardware yourself.
While businesses are expected to store all data safely, they face other challenges, such as dealing with data protection laws. For example, the EU’s General Data Protection Regulation (GDPR) rules can limit which data companies can collect. As such, it is common now for website owners to ask permission to use cookies for tracking to keep within the law.
Summary
Businesses that use big data analytics wisely can give themselves an edge over the competition by using tools that help them make the right decision. For example, big data can give you deep insights into your target audience’s needs and preferences, helping you to adjust accordingly.
Adopting big data will often require upfront financial investment, and you will also take the responsibility of looking after other people’s private information. As such, many companies will use third-party data storage companies instead to access the technology and security they need. You will also need the right hardware in your office, and HP has a range of devices ideal for the task.
