The term ‘big data’ has been roaming the halls for a while now. It’s a phrase used to describe large volumes of data, both structured and unstructured, generated on a daily basis. But it’s not the volume of data that counts.
You can have all the data in world, but it’s what you do – or can do – with that data that makes the difference. And the possibilities are endless.
The ability to access or analyse big data, especially in real-time as it streams in, can have an enormous impact on a business, particularly if it is used to predict the onset of an event or provide insight into how to transform a process or operation.
In simple terms, its ‘Actionable Intelligence’.
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Consider the fleet industry for example. By collecting data about the location, performance, usage and status of vehicles and drivers, fleet operators obtain meaningful, real-world information about the inner workings of their organisation. This, in turn, can be used to change driver behaviour, dramatically reduce crash rates and ultimately save lives.
Generate data for change
Entry-level tracking software enables customers to trace the whereabouts of vehicles and drivers – an ideal solution for smaller, perhaps local businesses whose operations rely on accurate, real-time location information.
Vehicles can be located on a map, giving those behind the screens the opportunity to plot their next move, improve utilisation, and reduce misuse and theft. Integrated fleet management solutions, however, offer much more potential coupled with solid return on investment.
Powerful software platforms allow operators to not only track, but to manage, monitor and measure the performance of their vehicles and drivers and be notified, in real-time, about events, deviations, infringements or impending dangers.
Think of integration add-ons such as in-cab video to monitor driver behaviour, implement change and avoid false claims or collision avoidance, fatigue, and distraction detection technology that triggers a series of physical driver interventions before catastrophe strikes.
Reduce insurance risks
Link such data to insurance, for example, and not only does telematics allow risk to be assessed more accurately, but remedial action can be taken to reduce the chance of any future losses occurring.
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In fact, rich individual and collective driver behaviour analysis can be done across the fleet allowing for risk-rating algorithms or scorecards to be created from the data. This can go a long way to reducing insurance premiums for the business and enabling better cost management.
From the insurer’s perspective, more accurate information can be provided not only around vehicle usage and storage activities, but can be utilised for improved risk management profiles and incentive schemes for good driving behaviour.
The insurance industry is fundamentally based on analytics and probability. As such, the more accurate and in-depth data they have about their clients’ lifestyle and risk, the better - as much of the guesswork can be eliminated when calculating risk and subsequently cover and premiums.
What’s more, insight into such data can also open up new revenue streams and offerings.
Telematics companies are sitting on a data goldmine and with the power of data analytics, this data can be transformed into real decision-making power.