The Value of Big Data
Big data is an umbrella term, referring to enormous sets of data that are accessible by businesses from varying technological sources. The data in the rawest of states does not necessarily make sense to the business; hence it needs to be analyzed in order to reveal certain patterns and trends to work with, in order to promote better decision making processes and strategic planning. The skyrocketing growth of digital technology has made the availability massive; be it mobile phones, web logs, sensors and any other kind of electronic device. By the year of 2020, it is prophesized to generate 1.7 megabytes of data every second.
Simply collecting this data does not divulge its value; in fact, a McKinsey survey revealed that only 18 percent of companies have the appropriate skills to use insights efficiently. Oftentimes, a major chunk of the data remains unused, due to lack of relevance. This is where companies recruit “translators”, who are professionals who can bridge varying functions within the organization and promoting healthy communication between them.
Big data analytics is being used widely in several industries in order to gain a deeper understanding of customer preferences, buying patterns and key influencers in decision-making processes. IT in particular has a major role in integrating big data analytics into business operations. Some of these areas include:
• Digitalizing data: Converting paper-based documents that can be mined for big data aggregations into digital format.
• Data generated through Internet of Things (IoT): This data is generally unstructured and mostly machine data. The current aim of IT departments is to collect and rationalize this data into useable formats.
• A drive for quicker analytics and actionable data for business leaders.