Businesses are generating an immense amount of data. It is now considered the “new oil” owing to its immense worth. However, possessing a massive dataset that is not used efficiently holds little significance. To realise data’s true potential, it must be studied, organised, managed, and analysed in a manner that conveys insight to business pioneers. Additionally, it should be presented in an accessible format. In today’s environment, the hurdle with massive data is the intricacy required to perform such actions.
In the following paragraphs, we will delve into the common complexities linked with data management and the remedies adopted by companies across all sectors. Initially, we will analyse the present interpretation of massive data, followed by a discussion on its advantages, before finalising with an assessment of barriers that may hinder maximising these benefits. Furthermore, we will review attainable solutions revealed by businesses for the presented issues. Please refer to our previous blog post for more insights on data management and business intelligence.
The Four Tracks of Big Data
The meaning of ‘Big Data’ has evolved with time and is currently described by the ‘four wheels’ or ‘four Vs’: ‘Volume’, ‘Velocity’, ‘Variety’, and ‘Veracity’.
Volume:It is no shock that the phrase ‘Big Data’ pertains to the size of the dataset. Industry experts project that billions of gigabytes worth of data is generated each day.
Velocity:The swift evolution of digital infrastructure, including the internet and 5G networks, has enabled the creation, circulation, and analysis of data to happen at an ever-increasing speed. Thus, the velocity of data interchange is rapidly expanding.
Variety:It’s clear that there are numerous origins of data available, from corporations and individuals to online communities.
Veracity:It is imperative to ensure the veracity of data when dealing with raw data. While volume, velocity, and variety are essential factors contributing to the adequacy of data, outdated or incorrect data can lead to suboptimal decisions rather than serve as a source of assistance.
The Benefits of Big Data
Apart from what has already been mentioned, by managing it correctly, businesses can derive several other advantages from big data.
Improvement in customer satisfaction: Contemporary consumers demand a positive customer experience (CX), which necessitates customization and convenience. Companies can utilise big data to gather and evaluate customer behaviour and preferences, intending to increase customer fidelity and encourage positive word-of-mouth promotion.
Increased success in promotional campaigns: The same data that assists companies in comprehending and fulfilling the preferences of their clients can also make promotions more relevant and effective. This is one approach that big data can aid corporations in reducing the inefficacy of their marketing strategies.
Customized products and services: Proper analysis and evaluation of big data can provide priceless perspectives into the types of products and services that are likely to appeal to a specific market. This understanding can propel businesses forward and help them reach their desired levels of success, depending on their aspirations and objectives.
Increased efficiency: Big Data has the potential to elevate internal operations and enhance customer service. By tracking employee and equipment performance, companies can spot inefficiencies and utilize this data to improve productivity and reduce costs.
Are there any Hindrances to Big Data Analytics?
Despite the growth of the Big Data field, some challenges persist. The list below highlights some of these issues, followed by potential solutions to tackle them.
Finding a needle in a haystack: Unprocessed data is like a haystack; the valuable insights it contains are comparable to a needle in the haystack. With voluminous data sets, it can be challenging to determine where to begin investigating answers or how to arrange the data for convenient analysis.
Inaccurate data: As mentioned earlier, credibility is essential to producing dependable information. Incorrect or outdated data can hinder effective decision-making rather than support it.
Data Silos: Multiple organisations do not have a uniform method of gathering information, resulting in silos of data in each department. This circumstance can be detrimental since it would be beneficial for the company to have some or all of the data in a unified location. For example, it can be difficult to evaluate the effect of marketing and customer service on revenue if data silos are incompatible.
Lack of Security: It is crucial to protect data properly to avoid misappropriation. Regrettably, many corporations do not prioritise the security and privacy of their clients, which can result in security breaches, damage to brand reputation, decreased sales and regulatory issues.
Lack of Knowledge or Expertise: Data engineers are in high demand in the IT sector, but there is a scarcity of adequately qualified professionals to fill these positions. As a result, many companies face challenges in hiring the appropriate personnel to undertake these specialized functions.
The Challenges of Big Data Today and How to Overcome them
To take advantage of the opportunities offered by Big Data, businesses must address numerous challenges, such as inadequate storage, novel technologies, poor data quality, and excessive data management costs. As a result, the implementation of a Big Data governance strategy and execution plan is critical. It is no surprise that businesses are increasingly seeking to hire a Chief Data Officer (CDO).
Once a program is established, the next step is to incorporate the various data sources, choose an appropriate data management platform, enhance data quality and precision, safeguard user data, and provide training to data engineers, if required. Depending on the starting point, the duration required to complete the implementation can range from a few months to a year or more. Considering the critical role data will play in the future, such measures will be helpful in the long run.
The Influence of Big Data on Policymaking
Challenges and risks associated with Big Data: It is crucial for businesses to contemplate the implications of Big Data for their activities and explore the potential benefits it may offer. It is essential to choose the most appropriate solution for the unique requirements of the business. As Big Data gets more widely adopted, organisations should be prepared to leverage its capabilities.