Modern technologies based on artificial intelligence assist management by providing predictions so that companies can minimize risks and prepare for upcoming changes. One way to maintain stability, therefore, is becoming to take advantage of the opportunities offered by Big Data predictive analytics.
The market turmoil resulting from the pandemic has shaken many economies. Disruptions in production and supply of components have hit almost all industries and have led to a situation where global markets are seeing record levels of inflation. Eurostat data shows that HICP inflation in the Eurozone will reach a record 9.1 percent in August 2022. Rising inflation levels directly affect the operations of all companies, forcing them to take measures to minimize losses, but also to seek solutions that will ensure stable growth, regardless of rapid market changes.
Most companies have already taken steps to reduce costs. The challenging situation is also focusing managers’ attention on investments in tools to help solve the problem of losses and on measures to increase competitive advantage, such as by improving product quality or improving transparency with customers.
Big Data Analytics – a Weapon in Crisis
In times of rapid market changes, the blockbuster solutions based on Big Data are coming to the rescue. It is thanks to the ability to generate and collect large data sets that predictive analytics has changed it’s face. Analyses aimed at predicting future sequences of events use historical data, but also data generated in real time. They are subjected to analysis by artificial intelligence (AI), which uses appropriate algorithms for this purpose. The analysis results in predictions or proposals for the most optimal solutions.
Improving artificial intelligence (through machine learning) makes it possible to obtain increasingly precise forecasts – this makes it possible to create decision trees that determine the costs and benefits of each option. Thanks to forecasting based on large sets of reliable data, business management has acquired a different quality.
Big Data – Examples of How to Use Data
Predictive analysis is used in various areas and is being developed more and more, including in commerce, where it is used to optimize processes and inventory levels. The results of analysis prepared with the use of appropriate algorithms are used to predict trends, consumer habits, but also the performance of machines, demand for given products, or components in production.
Artificial intelligence needs data, and these are collected on an ongoing basis by, for example, sensors, i.e. sensors placed on transported products that require special conditions, such as maintaining proper temperature and humidity. Thanks to them, we minimize the risk of losses due to a break in the cold chain.
The loggers allow us to react in real time in case of anomalies. They also provide customers with a guarantee of transporting products while maintaining their quality. Such solutions, providing reliable real-time data, also increase the transparency of customer relations, which strengthens trust in the transport company.
Big Data Analytics vs. Insurance
The use of prediction in businesses also provides support for corporate insurance. Data analysis is helpful in determining risk and estimating premiums. The data made available by sensors monitoring the goods being transported and stored allows insurers to provide faster quotes, but also affects the price of insurance.
As Daria Roszczyk-Krowicka, Sales and Marketing Director at Blulog, a company providing modern supply chain and warehouse monitoring solutions, points out: Prediction is a support for insurance. It reduces the risk associated not only with the emergency situation, but also the time spent on the entire insurance reimbursement procedure. In addition, it reduces the costs that the insurer has to pay.
The challenge for modern companies is no longer just to collect data, but also to use it skillfully, that is, to transform it into useful, beneficial information for the organization. Interest in forecasting based on Big Data analytics is not waning. More and more companies are opting for solutions using artificial intelligence. In the near future, the latest technologies based on big data sets will be on offer from exhibitors at the SIDO Lyon technology fair (September 14-15) and IoT Tech Expo Europe (September 20-21) in Amsterdam.