The origin of the term big data can be traced back to a book by Erik Larson in 1989. However, economists and industry pundits have only started to discuss the impact big data has played in global organisations over the past few years. The impact has been incredible and will be even more significant by the end of the decade. Here are some of the applications brands are using big data.
Tax software
Taxes are one of the biggest challenges companies face. The United States tax code is currently 73,954 pages long. It becomes more complicated over time because Congress and ask new laws that all businesses must comply with.
In addition to dealing with the complexity of the United States tax code, organisations must also adhere to tax laws in other countries. The number of different tax authorities they must comply with is increasing as more organisations expand internationally in the new global economy.
Complying with these tax challenges would be nearly impossible without the assistance of modern technology. Fortunately, new tax management applications have simplified these problems. Big data makes it easier for organisations to stay in compliance. According to a study from Deloitte, they are turning their attention to predictive analytics models, rather than relying solely on historical based accounting practices to manage their tax policies.
Traditionally, tax data-gathering has focused on hindsight, dealing with data from transactions that have already occurred for business planning and compliance purposes. While hindsight remains important, tax organizations are looking to use data more for gaining insight, and even foresight into what lies ahead. Analytics can help move tax toward insight and foresight, changing its mindset from what do I need to do? to what do I need to know? writes Deloitte’s Beth Mueller.
HR and payroll
Human resources functions are also becoming increasingly complex. New laws are only a small part of the challenge. Brands must also respond:
- Larger workforce is due to industry consolidation and mergers
- Increasingly diverse organisations
- Structural changes created by the Gig economy, rise in 1099 contracting and remote workplace growth
New HR and payroll solutions are developed to address these problems. They have sophisticated algorithms to tackle the compliance and logistical HR problems brands must face every day. They can help organisations navigate employment laws and streamline production in an ever-expanding global workforce.
Smart Data Collective’s Sandra Sommerville states that big data-based applications will continue to evolve in the years to come.
Recent research revealed, that around 48.4% of Fortune 1000 companies are now achieving measurable results’ from Big Data ventures, while 80.7% of their executives described those investments as successful’. With so many opportunities on the table, the potential advantages of Big Data for HR and payroll “ both highly-data focussed fields “ would seem self-evident, she writes.
Marketing automation
Perhaps the most valuable role big data place in any company is with Marketing. Big data makes it easier for companies to leverage new insights on their customers. Marketing tracking and automation software help marketers test new campaigns to determine:
- Which customer demographics express the most interest in their offers
- The types of ads customers respond to the most
- The marketing mediums that provide the highest ROI
- The time of day and day of week that customers are most likely to convert
Over 70% of senior marketers state that marketing automation has played a very important role in meeting their business objectives. The data that drives these campaigns wouldn’t be as easily available if it weren’t for systems that integrate to share data in real time. For example, a company’s CRM, marketing and project management systems should all communicate to pass data back and forth that’s relevant to a customer’s buying journey as well as fulfilment.
Big data applications continue to transform organisations across the globe
It is difficult to pinpoint precisely when the big data revolution began. Many of these changes occurred very gradually. There is one thing that we do now-big data is helping organisations in countless ways. Big data will continue to have a profound impact on all organisations in the years to come.
