5 Ways Big Data Helps Small Startups Compete with Industry Giants

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Big data is unquestionably beneficial in the world of business. Ninety-four percent of businesses have already started employing big data in some capacity. 

Most of the fascinating case studies on big data technology come from major corporations. Walmart is among the companies that have proven the fantastic benefits of data-driven business models. The retail giant used Hadoop and NoSQL to mine customer data and provide more reliable recommendations, which in turn increased their conversion rates. Uber has also used machine learning technology to anticipate demand for their ride-sharing service on various days of the week or special events.

However, large corporations aren’t the only ones that can make use of big data. New startups are also using big data. In fact, data technology is arguably even more important for startups, because they need to level the playing field in an era where corporations hold so many of the cards.

But how can small businesses use big data to their advantage?

There’s no denying the reality that big data has had a profound impact on business. In fact, it has become one of the most important variables driving growth in global commerce. The share of companeis investing in big data increased 16-fold between 2015 and 2016. Modernized IT infrastructures have driven innovative and unique solutions with data that enable entrepreneurial ventures to maximize their full potential, regardless of their size. From cloud computing to high-speed internet, companies that are willing to make use of them are setting themselves up for success. With that said, here are some benefits of modern data technology solutions to businesses.

A siloed organization that chooses to wall off technology restricts its ability to make sound decisions because it essentially puts itself in a position where access to information is limited. And every decision made could cause more problems than it solves. However, by implementing data technology into the business's overall strategy, a company can make more informed decisions because it will have a much broader perspective. In other words, the decisionmakers know what needs to be done and how to go about things because you've got data to support your choices and resolutions.

By now, everyone knows that modern technology can drive productivity through data on various areas like sales figures and ROI. However, it can also be beneficial on an individual level. Using big data can enable everyone to perform at their very best, from using a data management platform that can make heads or tails out of unstructured data to bots that will automatically remind you of overdue tasks.

Besides elevating a company’s productivity, a sound data infrastructure also helps improve consumer collaboration. For example, people have become much more comfortable with the prospect of shopping online amidst the global COVID-19 pandemic. Big data helps companies provide relevant online product recommendations. Customer relationships management (CRM) software also relies heavily on data to help companies provide better customer service. 

Thanks in no small part to the implementation of features mirroring the in-person experience of shopping, such as product videos and assistive bots, big data solutions have instilled a level of confidence in online shoppers that they never had in the past.

Modern cybercriminals have become more sophisticated and effective in their efforts, and old-fashioned security postures that rely entirely on antivirus software and firewalls are no longer enough to stay protected against malicious software and data breaches. But new advances in data technology have added a greater level of cybersecurity training and tools into your organization. As a result, you'll be able to effectively counter the threat ofcyberattacks through data-driven cybersecurity initiatives. 

There are many ways that big data can help boost cybersecurity. They are able to use machine learning to distinguish between legitimate users and hostile actors, which is important for intrusion detection. They can also use AI to automate certain cybersecurity protocols to stop cyberattacks in their tracks. 

Advertising has become more accessible today than it was in the past. Through digital marketing strategies like search engine optimization, pay-per-click advertising, and content marketing, even startups are able to compete with their more established counterparts. 

In the past, digital marketing efforts mostly focused on reaching as many customers as possible. Analytics technology has helped companies hone in on their core customers and get better conversion rates instead. With modern technology, businesses gain greater consumer insight that allows them to market their offerings more effectively. Due to the benefits it provides, companies are expected to spend nearly $4.7 billion on marketing analytics in 2026. 

Modern technology has created much better team dynamics within businesses because it makes it easy for the employees to interact, regardless of location or proximity. For example, factory managers can easily communicate with their shipment coordinators from different locations. As a result, it’s unlikely for distrust and tensions to develop.

Technology plays a crucial role in the success of any business endeavor regardless of trade or industry. So if you aren't making full use of modern technology, make sure that you begin prioritizing it. It will make a difference to your bottom line.