Data is everything and with the right analytical tools, it can open a whole new world for young businesses. Black Swan, a company located in London, works with data relating to the FMCG sector to give insights into new preference patterns among the consumers
“Data is a precious thing and will last longer than the systems themselves,” said Tim Berners-Lee, inventor of the World Wide Web.
Data is everything and with the right analytical tools, it can open a whole new world for young businesses. Black Swan, a company located in London, works with data relating to the FMCG sector to give insights into new preference patterns among the consumers.
Through this data, companies can identify demands and trends by gender, age, or occupation groups.
Black Swan currently caters to giants like McDonald’s and PEPSICO which shows the level of importance of data and its analysis.
American Management Consultant and Author Geoferry Moore said that without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.
From popular data analytics tools like Domo, Google for data warehousing and Google Data Studio to custom-made visualization tools, the field of data science and machine learning is really hot right now.
As an example, you can build the most advanced product, and yet if you don’t find the right target audience and market it’s almost of no use. From ride-hailing service uber to famous on-demand laundry startup ByNext, both of these just act as aggregators but what really puts these startups ahead is their data mining and analytics systems.
In addition to finding the target audience, data is the backbone of automation processes. The right automation systems can cut down costs for a startup by a significant margin by eliminating unnecessary actions. However, an effective artificial logic can only be created with adequate and quality data.
Another field that has benefited from this data revolution is the e-commerce arena. Dealing with processes like delivery and returns, it becomes absolutely crucial to identify the right patterns and form an automated and quick response. That is why many popular e-commerce platforms use metrics like Delivery in full on time or DIFOT. It shows the efficiency of the supply chain and a low DIFOT can be fixed by having the right data.
But there are no other startups that benefit from data like those working in the media and entertainment industry. How do you think video platforms like YouTube and Netflix know what should be recommended to you next? It’s by analyzing the data that is churned out daily.
According to an estimate, the popular music streaming platform Spotify alone generates nearly 1.5 TB of compressed data. Spotify puts this data through its predictive analysis algorithms to create personalized playlists. This includes both music and podcasts. Through this, the company can create profiles of users and gain important insights into their inclinations regarding fields even other than music to offer new products.
According to data gathered by BuyShares.co.nz, AI startups have raised over $61.6bn in the second quarter of 2020, which is 35% more than the previous year.
Undoubtedly data-driven sectors are luring the investors because of the potential that it carries within. Whatever be the industry, data analysis has penetrated almost every sphere of life. Those who keep up with it can boost their growth multifold and for those who lag behind it’s going to be a difficult path up ahead.
Last Updated Apr 6, 2021, 2:26 PM IST