It can be said that almost every organisation that’s currently active in the market makes use of big data. And nearly every department in a company can benefit from the insights that big data can offer. But handling vast amounts of information can come with problems as well as benefits, which we will explore later on in this post.
But first, what is big data? And how is it categorised?
Big data is the term used to describe a collection of data sets that are so large and complex that they require more than just the conventional means of processing. Big data is easiest to understand in terms of the 3 Vs: Volume (the amount of data), Velocity (the speed at which data is generated) and Variety (the different formats of data)).
Big data is typically categorised as structured, semi-structured or unstructured:
Structured data is information that’s highly organised and formatted. It’s typically numeric in nature and represented by columns and rows in a database, e.g. Excel or CSV files. Databases that hold data in tables like this are called relational databases.
Semi-structured data is information that doesn’t reside in a relational database - it doesn’t consist of structural data - but has similar organisational properties that make it easier to analyse, e.g. HTML code.
Unstructured data is qualitative. It’s information that does not have a pre-defined structure. Because of this, unstructured data can be difficult to deconstruct. It comes in the form of images, social media posts, pdfs, text files, video, audio, application data and so on. Unstructured data is the most abundant and is growing at the rate of 55-65% per year.
A couple of decades ago, in the 1990s, big data referred to volumes of digital information that were too big, varied and disparate for a business’s software to handle. Of course, the data didn’t stop growing. As we know now - the opposite happened. However, thanks to the likes of cloud computing and technological advancements, it’s now possible to utilise big data; accurately store it and discover patterns and correlations that offer valuable insights to inform business decisions.
Research shows that we are generating almost 30 times more data today than we were 10 years ago. This isn’t too surprising when you think about how digital has advanced over the past decade with the growth of data-generating devices, the IoT (Internet of Things), and peoples’ ever-increasing dependence on, and utilisation of, AI (artificial intelligence).
But let’s talk numbers - 2.5 quintillion bytes of data are created each day. On average, office workers each receive 110 to 120 emails daily, equaling approximately 124 billion emails on any given day. And by the end of 2018, there was an estimated 22 billion internet of things (IoT) connected devices in use around the world.
As with most aspects of business, and life in general, there are both benefits and drawbacks to consider. Let’s take a look at some of the primary pros and cons of big data right now.
This year (2021), a report created by NewVantage Partners surveying 85 Fortune 1000 industry-leading firms found that, of those surveyed, 96% acknowledged that big data and AI efforts were yielding results, an increase from half that number (48.4%) just half a decade ago. What’s changed? With things like advanced analytical insights and data integration, organisations can now utilise big data for the benefit of the company. Here are some of the main ‘pros’ that big data can provide:
The information that businesses now have at their fingertips leads to strategic moves within the market as well as enhanced targeting and identifying and/or preventing emerging threats.
It’s true that the advantages that big data has for companies globally are many. But there are also some prominent drawbacks, too.
Let’s explore the cons of big data:
NewVantage Partners found that 90.9% of firms surveyed cite people and process challenges as the biggest barriers to becoming data-driven.
Related reading: What is a Data Warehouse?
For companies to survive and thrive in a rapidly changing, data-driven market, considering both the pros and cons of big data is essential.
Businesses can expect to experience challenges such as cultural change, integrating legacy systems (outdated computing software and/or hardware that is still in use), additional expenses, security risks and so on. That being said, oftentimes the pros outweigh the cons, allowing organisations to utilise the advantages that big data has to offer, and take preventative measures to safeguard against the potential threats of big data.
Conclusion
As the volume and sources of data continue to grow, more businesses are speculating on how to transform their large volumes of information into a usable, valuable and competitive tool.
The overall goal of gathering and analysing big data is to increase the rapidity of products getting to market, reduce the number of resources needed to gain market adoption and optimise customer experiences. From Fortune 500 companies to fresh start-ups, big data is becoming increasingly more important for companies operating in different markets all over the world.
Each organisation will have their own, individual reasons for utilising big data, and the more efficiently it’s collected and actioned, the more successful they will be when it comes to drawing relevant insights and achieving their full potential.
But with the amount of information available today, for those wanting to utilise big data, it’s important to ensure GDPR compliance, accurately collect and analyse data and ensure the safety of both customers and the company when embarking on their data-driven journey.
Book a free demo today to see how Hurree can help you transform your company reporting and improve your sales & marketing output 💌 Don't hesitate to get in touch via contact@hurree.co if you have any inquiries - we’re happy to chat!