We are all familliar with the term, "big data." In recent years, big data has taken the world by storm. Companies have utilized big data as their core means for innovation, production, and growth. As experts in data integration, we wanted to investigate how the future of big data will effect a few of the various industries that we support. For the sake of this blog, we chose to focus on retail, ecommerce, and financial services.
Let's start by taking a look at what the future of big data has in store. IDC predicted the big data market will reach $23.8 billion in 2016 and $43.3 billion in 2017. Gartner estimated big data spending on big data infrastructure and services will total $232 billion by 2016. Those projections might be understating it. According to Wikibon, big data spending was over $27 billion already in 2014.
Now that we have an idea of the numbers, let's dive into the industries
Retail usage of big data analytics will continue to increase, with sales analytics usage expected to increase by 58% in 2016. Why is this? Two words...predictive analytics. Retailers began utilizing predictive analytics to forecast future trends, probabilities, and buying habits. Now, there are Four times as many high-performing teams using predictive analytics. Predictive analytics isn't the only retail aligned big data use. Big data can be utilized in retail for: fraud detection, customization and personalization, supply chain management, and target marketing. If executed correctly, a retailer using big data to the full could increase its operating margin by more than 60 percent.
Merchant retailers are not the only ones who will continue to utilize big data in the form of predictive analytics. Online retailers, or etailers, will extend use of predictive analysis in recommendation engines. As it stands, recommendation engines are among the most popular uses of big data today. Customization is also key. Etailers will utilize big data to personalize web content, both on page and through deliverables. A more personalized shopping experience will encourage brand loyalty and promotion.
Identify theft and fraud pose a huge issue in the world of Financial Services. In the United States alone, the average number of identify fraud victims annually is 12,157,400, with the average loss per theft being $5,130. Big data will lead the way in fraud detection through the use of models and algorithms to find patterns of fraud and anomalies and predict customer behavior. Big data analytics will segway into improved customer service and client ease of mind.
When we think of these industries and big data analytics, one thing stands out; real time data integration is key to providing the activity metrics for analytics and reporting. The Youredi iPaaS platform is designed to process millions of integrated data elements at any time, transforming them when needed, providing standard data metrics.
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