Big data is a term that simply describes large volumes of data. Big data is a term that has been floating around for quite some time now but holds some confusion as to what it is and what it does.
The concept of big data came around due to the wealth of data businesses and large corporations gathered from staff and clients. Nowadays, almost every action we take leaves a digital trail. From browsing through social media apps and online shopping to using GPS-equipped smartphones to find our way to our next destination. Almost everything we do leaves a trail which is tracked somewhere.
However, it’s not what organisations do with the data that matters, it’s how this data is analysed for insights for strategic business moves and decisions.
How does big data work?
Big Data works on the principle that the more you know about anything or any situation, the more you can make an accurate and educated prediction on future actions and decisions.
These data sets are so voluminous that traditional data processing software just can’t manage them. But these massive volumes of data can be used to address business problems you wouldn’t have been able to tackle before. Although the concept of big data is new to many of us, the concept of large data sets goes back to the 1970s when the world of data was just getting started, with the first data centres and the development of the relational database.
Why is Big Data Important?
Every business or organisation uses data differently, to make business decision that positively effect the day to day operations and the quality of service they provide to clients. Analysing all of the data accumulated allows 3 major factors to take place:
Reduce overheads – Analysing big data can often bring cost advantages to a business. Big data allows organisations to identify the most efficient way of doing business and eliminate costly factors that are not making an impact.
Time Saving – Big data analytics can help to identify aspects of projects that are going over predicted time scales and allow businesses to develop new efficient processes. Businesses can pinpoint costly time wasting elements in their services to help provide a more effective service.
Measure markets – By analysing big data you can get a better understanding of current market conditions. For example, by analysing customers’ purchasing behaviours, a company can find out the products that are sold the most and produce products according to this trend. By this, it can get ahead of its competitors.
The use of Big Data is becoming more and more mainstream as businesses are using it as a tool to outperform competitors where possible. Big data is not about the quantity of information gathered, but how businesses use this to grow and analyse their business. Big data provides businesses with a greater chance or success when analysed thoroughly.