Big Data Explained In Less Than 2 Minutes…

By Leaderonomics|29-05-2015 | 1 Min Read

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… to absolutely anyone

There are some things that are so big that they have implications for everyone, whether we want them to or not. Big Data is one of those concepts and is completely transforming the way we do business and is impacting most other parts of our lives.

It’s such an important idea that everyone needs to have a basic understanding of what it is and why it’s important.

What is Big Data?

‘Big Data’ means different things to different people and there isn’t, and probably never will be, a commonly agreed upon definition out there. But the phenomenon is real and it is producing benefits in so many different areas, so it makes sense for all of us to have a working understanding of the concept.

So here’s my quick definition

The basic idea behind the phrase ‘Big Data’ is that everything we do is increasingly leaving a digital trace (or data), which we (and others) can use and analyse. Big data – therefore, refers to that data being collected and our ability to make use of it.

Of course, data collection itself isn’t new. We as humans have been collecting and storing data since as far back as 18,000 BCE. What’s new are the recent technological advances in chip and sensor technology, the Internet, cloud computing, and our ability to store and analyse data that have changed the quantity of data we can collect.

Things that have been a part of everyday life for decades — shopping, listening to music, taking pictures, talking on the phone — now happen more and more wholly or in part in the digital realm, and therefore leave a trail of data.

The other big change is in the kind of data we can analyse. It used to be that data fits neatly into tables and spreadsheets, things like sales figures and wholesale prices and the number of customers that came through the door.

Now data analysts can also look at ‘unstructured’ data like photos, tweets, emails, voice recordings and sensor data to find patterns.

How is it being used?

As with any leap forward in innovation, the tool can be used for good or nefarious purposes. Some people are concerned about privacy, as more and more details of our lives are being recorded and analysed by businesses, agencies, and governments every day.

Those concerns are real and not to be taken lightly, and I believe that best practices, rules, and regulations will evolve alongside the technology to protect individuals.

But the benefits of big data are very real and truly remarkable.

Most people have some idea that companies are using big data to better understand and target customers. Using big data, retailers can predict what products will sell, telecom companies can predict if and when a customer might switch carriers, and car insurance companies understand how well their customers actually drive.

It’s also used to optimise business processes. Retailers are able to optimise their stock levels based on what’s trending on social media, what people are searching for on the web or even weather forecasts. Supply chains can be optimised so that delivery drivers use less gas and reach customers faster.

But big data goes way beyond shopping and consumerism. Big data analytics enable us to find new cures and better understand and predict the spread of diseases.

The police use big data tools to catch criminals and even predict criminal activity. Credit card companies use big data analytics to detect fraudulent transactions.

A number of cities are even using big data analytics with the aim of turning themselves into “Smart Cities”, where a bus would know to wait for a delayed train and where traffic signals predict traffic volumes and operate to minimise jams.

Why is it so important?

The biggest reason big data is important to everyone is that it’s a trend that’s only going to grow.

As the tools to collect and analyse data become less expensive and more accessible, we will develop more uses for it — everything from smart yoga mats to better healthcare tools and a more effective police force.

And, if you live in the modern world, it’s not something you can escape. Whether you’re all for the benefits big data can bring, or worried about it, it’s important to be aware of the phenomena and tune in to how it’s affecting your daily life.

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Bernard Marr is a globally recognised expert in strategy, performance management, analytics, KPIs and big data. He helps companies and executive teams manage, measure and improve performance. His latest books are ‘25 Need-to-Know Key Performance Indicators’ and ‘Doing More with Less’. To connect with him, email editor@leaderonomics.com or comment in the box provided. For more Consulting Corner articles, click here.

 
Reposted with permission and published in English daily The Star, Malaysia, 30 May 2015

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