Big Data in the 21st Century can be referred to as Oil in the 18th Century as an immensely valuable untapped asset. Like oil, for those who see Data’s fundamental value and learn to extract, organize and use it there will be huge rewards.
In a digital economy we live in, data is more valuable than ever. It’s the important pillar to the smooth functioning of everything from the government to local companies to all businesses. Tapping the potential of the data has the potential to improve businesses. Without it, progress would halt.
Data-Driven Decision Making
Big Data is the new reality of almost all businesses and stands for an immensely huge pool of data which cannot be de-jargoned with ordinary methods of data interpretation. Such huge data-sets form the basis of all reasonable aspects of businesses. Data-driven decision-making is gaining an advantage and is providing more authenticity to modern ways of life.
It is not just about big data but the various correlations which can be drawn between two completely different data-sets that have led to an explosion in the value of the unstructured and unsorted datasets. Such analysis is highly cumbersome and complex as most data comes in an unorganized format which takes painstaking efforts to extract, analyze, organize, retrieve and model the mine of data. Another major obstacle after all this is accurate interpretation and presentation of the results. This step is essential to draw relevant conclusions and actionable knowledge.
Data management and analysis gives rise to novel challenges to the experts. This creates a need for appropriate investment of resources and time to streamline the processes further, to create more economic value for the businesses. To tap the potential of Big Data businesses have to come up with evolved and revolutionary approaches to completely turnaround traditional modes of data analysis tools and systems.
Data Infrastructure as a Profit Center
For many organizations, their data infrastructure is still a cost center nowadays and should become a profit center by utilizing the data to improve everything, day by day. Companies must begin treating data as a valuable enterprise-wide corporate asset while also managing the data locally within business units.
This enables the sharing of data about products and customers, which provides the base for selling, improving customer service and retention rates. By using internal data along with external data, there is a huge opportunity for every organization in the world to create new products and services across lines of business.
Organized Data Beats Haphazard Opinion
When business is growing, many people have opinions about which steps need to be taken. It helps to work with a philosophy of ‘good data beats opinion’. Practically everything can be tested, measured and improved. Anything we can measure it, we can improve it. A test which we are measuring is never worthless. At least we get new insights about if it’s working or not and in the best scenario, we get insights and improvement in our business directly.
We need to make sure to have real-time access to the most important data in our business. Only knowing total revenue, profit or costs is not enough. Knowing which KPI’s influence them and other business goals is equally important because through it we learn how to improve our business. In reality, the value lies in micro data, not in macro data. Making decisions based only on flashy macro trends while ignoring micro data is a recipe for failure. So, along with macro data, micro data is also equally valuable. Making informed choices based on the available data instead of doing haphazard decision on the basis of opinions of others gives businesses the opportunity to improvise their performance.
Monitoring Big Data
There are many challenges one faces to realize the full potential of big data. These can be broadly categorized into three types:
Volume: A large amount of data is the biggest challenge which experts have to face. This data is highly disorganized and it needs to be properly refined and restructured to draw valuable conclusions for businesses.
Variety: Big Data stands for the variety in types of data, representation modes, and interpretation modes.
Velocity: This represents the rate at which data is generated and arrives with experts for further analysis.
Monitoring involves collecting, processing, aggregating, and displaying real-time quantitative data about a system. Monitoring is essential to tap the full potential of big data which helps to organize the data for further analysis and to derive intelligent conclusions.
Applications of Big Data
Data is being generated at an unprecedented rate as it is playing important role in supporting many human endeavors. There are numerous applications of Big Data in fields like Business analysis, scientific analysis, education, healthcare etc. All scientific disciplines work on facts which are mostly supported by numbers. Big Data helps to draw new conclusions and interpretations by analyzing the data. Big Data can be used to improve the performance of businesses, education systems, and the healthcare industry and in any field and disciplines which are data driven. All the intensively data-driven fields can derive incredible benefit from tapping the potency of Big Data.