In today’s business and technology world you can’t have a conversation without touching upon the issue of big data. Some would say big data is a buzzword and the topic is not new at all. Still from my point of view recently, for the last two-three years, the reality around the data has been changing considerably and so it makes sense to discuss big data so hotly. And the figures prove it.
IBM reports we create 2.5 quintillion bytes of data every day. In 2011 our global output of data was estimated at 1.8 billion terabytes. What impresses it that 90 percent of the data in the world today was created in the past two years according to Big Blue. In the information century those who own the data and can analyze it properly and then use it for decision-making purpose will definitely rule the world. But if you don’t have the tools to manage and perform analytics on that never-ending flood of data, it’s essentially garbage.
Big data is not really a new technology, but a term used for a handful of technologies: analytics, in-memory databases, NoSQL databases, Hadoop. They are sometimes used together, sometimes not. While some of these technologies have been around for a decade or more, a lot of pieces are coming together to make big data the hot thing.
Big data is so hot and is changing things for the following reasons:
- It can handle massive amounts of all sorts of information, from structured, machine-friendly information in rows and columns toward the more human-friendly, unstructured data from sensors, transaction records, images, audios and videos, social media posts, logs, wikis, e-mails and documents,
- It works fast, almost instantly,
- It is affordable because it uses ordinary low-cost hardware.
Big data is possible now because other technologies are fueling it:
-Cloud provides affordable access to a massive amount of computing power and to loads of storage: you don’t have to buy a mainframe and a data center, and pay just for what you use.
-Social media allows everyone to create and consume a lot of interesting data.
-Smartphones with GPS offer lots of new insights into what people are doing and where.
-Broadband wireless networks mean people can stay connected almost everywhere and all the time.
The majority of organizations today are making the transition to a data-driven culture that leverages data and analytics to increase revenue and improve efficiency. For this a complex approach should be taken, so called MORE approach as Avanade recommends:
-Merge: to squeeze the value out of your data, you need to merge data from multiple sources, like structured data from your CRM and unstructured data from social news feeds to gain a more holistic view on the point. The challenge here is in understanding which data to bring together to provide the actionable intelligence.
-Optimize: not all data is good data, and if you start with bad data, with data-driven approach you’ll just be making bad decisions faster. You should identify, select and capture the optimal data set to make the decisions. This involves framing the right questions and utilizing the right tools and processes.
-Respond: just having data does mean acting on it. You need to have the proper reporting tools in place to surface the right information to the people who need it, and those people then need the processes and tools to take action on their insights.
-Empower: data can’t be locked in silos, and you need to train your staff to recognize and act on big data insights.
And what is big data for your company? Why do you use it? And how do you approach a data-driven decision-making model in your organization?
Would be interesting to hear your point.