A recent report by consulting firm McKinsey & Company says that Big Data analytics will be used more in future for resolving some of the problems in transportation that are currently being faced. Big Data is the term used to denote analysis of large amount of data. This analysis can result in generation of important information and insights. This information can then be used for making better decisions.
The McKinsey report explains that big data analysis is being used for reducing road congestion in Israel. On a major highway in Tel Aviv – the capital of Israel- data from toll tax receipts is constantly analyzed to identify peak hours of traffic. In turn the toll taxes are raised during peak hours in order to control traffic in these hours and discourage those from using the highway that do not have a need for it. Toll taxes are reduced during off-peak hours in order to shift more of traffic to these hours.
Brazil is using big data analytics for reducing air traffic congestion. The country uses data from Global Positioning System (GPS) for optimizing air traffic, says the McKinsey report.
Other companies and institutions are likely to use more of big data analysis in order to solve transport related problems. Similarly private companies too will use more of big data analytics for solving issues related to logistics. For instance, a company can control logistics costs by analyzing data on transportation rates paid in the past and identifying periods when these rates are low. Then it can control some of its logistics costs by shifting more of its transportation needs to these periods.
The McKinsey report estimates that annual savings of $400 billion could be made globally if big data analysis is used for optimizing the usage of public infrastructure such as roads. . The use of big data analysis in the area of transportation and logistics is just one instance of how companies and institutions are using data analytical tools for optimizing their performance.
As companies and institutions use more of Big Data analytics for solving problems in the areas of transportation and logistics, the ability to operate big data analytical software will be an important skill for job candidates. It is the availability of large number of business intelligence software that has made analysis of large amount of data in real time possible.