Over the past few years, industry 4.0 has taken shape, with new technologies emerging that transform every aspect of business. At the core of this transformation is data. The amount of data generated is huge, with organisations struggling to keep up.
Understanding what data you really need, and how best to utilise it has become one of the biggest challenges for businesses. Both predictive data analytics and real-time data analytics play an important role here.
For example, in manufacturing, predictive data analytics can be used for forecasting predictive maintenance, in addition to demand forecasting, price optimisation and product development. In marketing, predictive data analytics can be used for understanding consumer behaviour, lead generation and to better align sales and marketing tactics.
But, when big data is integrated with machine learning (ML), devices become smarter and their ability to perform complex analysis increases. As a result, advanced ML solutions can lead the market and increase the demand for such devices. It’s therefore no surprise that some of the most innovative businesses are using AI/ML to succeed at changing customer experiences, adapting their business models and measuring the effectiveness of the introduction of AI in streamlining processes.
Some real-world examples can be seen by looking at the likes of Amazon, Spotify and Netflix. Amazon uses predictive analytics in targeted marketing, in order to increase customer satisfaction and loyalty. They’ve developed an anticipatory shipping model that predicts products that customers are likely to purchase, and when. What this means is these items are sent to the customer’s local warehouse, before they’ve even ordered them, ensuring fast, efficient delivery.
Spotify has used the data they are able to garner surrounding listening habits in order to curate playlists that users might find interesting. This ‘Discover Weekly’ playlist is algorithm based, and is one that regular users of the platform have come to love, and rely on. Netflix on the other hand, uses a users watch history to recommend other programmes or movies to ensure viewers stay engaged and continue to pay for their monthly subscription
What we are seeing here, is the increasing deluge of data, whether it be structured, unstructured or raw, is changing the way businesses use information, and the way organisations manage and derive insight from it.
While you’re here, you may also want to take a look at our whitepaper entitled What every CEO needs to know about digital transformation. It explores digital transformation and its benefits in more depth. Download the whitepaper now, or contact us to find out more.