Users are constantly generating data: when they shop, get directions on maps, leave search queries, go for a run on their smart watch, publish posts on social networks, order food online, and generally perform habitual actions. This is how big data is obtained, which is collected and analyzed by different companies and successfully used to achieve their goals. If you are considering using big data as a service, then this article is for you. You will learn about the advantages and disadvantages of using big data.
What Is Big Data
Big Data is a huge array of unstructured data stored on digital media. In a broader sense, this term refers to technologies for searching, processing, and using unstructured data in a huge amount.
How much data can be considered “large”? To answer this question, we have to turn to history. The term “Big Data” was first used in 2008. Computer scientist Clifford Lynch refers to this term as any array of heterogeneous information with a volume of more than 150 GB per day. By the way, today, according to rough estimates, there are more than 50 zettabytes of data in the network. This is over 50 billion terabytes of information.
Thus, to classify data as Big Data, a 3-V rule was created:
- Volume: more than 150 GB / day.
- Velocity: the data is updated regularly and cannot be processed in traditional ways.
- Variety: information is presented in a heterogeneous and unsystematic manner.
A little later, two more Vs were added to them:
- Variability: information has peaks and valleys, it is characterized by seasonality, and so on, so it is impossible to manage it without the use of special processing technologies.
- Value: data have different complexity for perception and processing.
The source of big data can be Internet resources (for example, websites, social networks, forums), data from reading devices (for example, meteorological probes, communication sensors), company databases, archives, and so on.
Advantages And Disadvantages of Using Big Data
Big Data can be a valuable business tool if used wisely. With the help of big data, you can learn valuable information about customers, analyze competitors, optimize internal business processes, build effective promotion strategies, and much more.
Positive aspects of Big Data:
- High speed of processing and decision-making. With the help of modern technologies, it is possible to process huge amounts of information in a matter of seconds, which allows you to make informed and timely decisions. For example, this is applied in the field of unmanned transportation. The systems analyze the environment, traffic, and many other factors, responding to any changes in less than 0.1 seconds. No experienced driver has a similar reaction speed.
- A solid basis for decision-making. Big data is based on figures and facts and therefore reflects the real picture of the world. This will help you make informed decisions. For example, based on purchasing activity in a particular area of the city, companies decide to expand points of sale.
- Efficiency. Accurate information obtained from Big Data analysis allows you to determine the target audience and influence it at the right time. For example, through contextual advertising, you can analyze user behavior and make personalized offers.
- Identification of patterns. A huge array of information, its randomness, and fragmentation complicate the identification of cause-and-effect relationships. Big Data allows you to determine these patterns.
However, working with Big Data also has a number of disadvantages. First, it requires a reorganization of business processes. To collect and process huge amounts of data, a company needs a good technical foundation (software, powerful servers, large storage) and a strong team (primarily analytics). And secondly, when working with big data, there is a risk of leakage, which threatens the company with serious financial and reputational losses.
Using Big Data in Business
You probably already know the benefits of using big data. Let’s look at them in more detail using the example of working with clients:
1. Drawing up a portrait of the client.
Every user leaves a “digital footprint” every day. These are likes and publications in social networks, search queries, and selections of goods in online stores. Thanks to Big Data, it is possible to simplify the collection and processing of this data. User information will allow you to create content that is guaranteed to attract attention and interest, create personalized offers for everyone, fine-tune advertisements, and much more. For example, the MTT voice robot, acting in tandem with Big Data, makes individual offers to customers, which increases the conversion by several times.
2. Increasing the effectiveness of marketing campaigns.
Setting up the next campaign in the advertising account and analyzing its results using analytics systems, we don’t even think about using Big Data as a service tool. However, they allow you to collect, store and analyze information, which allows you to set up advertising for specific users from a huge audience, record their actions (transitions, impressions, session duration), and then evaluate the effectiveness of the campaign. By determining the relationship between different indicators, it is possible to identify causes, evaluate trends, and as a result, increase the effectiveness of these same campaigns.
3. Tracking mentions.
You have probably seen more than once how representatives of large brands communicate with users of social networks and forums, react to their criticism, give feedback, etc. Of course, these companies do not have special departments in which hundreds of employees monitor all sites every day. Big Data technologies are used here. With their help, you can track brand mentions in social networks, on forums, and in the media. This allows you to respond in a timely manner and increase customer loyalty.
Conclusion
Real-time data analysis allows companies to create effective strategies. Sales data, industry trends, and market metrics can help organizations stand out from their competitors by better understanding customer behavior and the products and services they prefer. If you are looking for reliable big data as a service provider, we recommend that you contact Mydigicode.com. The company has extensive experience in cooperation with companies whose business is related to fintech, healthcare, digital learning, and other areas.