There are some fundamental things to know about Big Data. Start with the ambiguous term itself. It’s important because it is affecting each of us already and the impacts are rapidly increasing.
I wrote a piece for “C-Suite Insider” that does a high level Big Data intro. This post is a follow-on to that.
There are multiple elements that create the value of Big Data, that make it “Big” in scope as well as importance. Start with a collection of data sources and technologies that enable new measures of predictive analytic insight. Use all of this to gain techniques that enable rapid decision-making leading to competitive advantage.
A collection of data sources…
In addition to the immense size of data sets, the new technology takes advantage data types beyond traditional relational and transactional databases. This incorporates semi-structured data from social media and unstructured data such as text, photos and video. It is this variety of sources, taken together with data sets that were previously neglected that are providing brand new value and insights.
A murder study applied standard health tracking methods to data on Newark N.J. murders and developed their conclusion that the spread of homicide can be predicted. It spreads in the same way diseases do.
Santa used data from “millions of sources worldwide”, including report cards, detention records, chore charts and text messages to determine who was naughty or nice. Suspend your disbelief.
Big Data is being employed to make Academy awards predictions which are based upon other awards already given, historical trends, Las Vegas bets and more with weekly updates to keep the predictions on track right through February 24th - when Argo will win best picture. Watch.
What are the Big Data business implications?
By most indications, impacts will be felt across all industries. Many are well on their way, particularly insurance, finance, retail and manufacturing. It is being used to detect fraud, analyze customer satisfaction, or enhance risk analysis for banks. A McKinsey study estimates the impacts of data analytics on US health care could be $300 billion in savings.