Big Data- Importance of Analytics

Let us understand about the big data first;

“Big data are high volume, high velocity, and/or high variety information assets that require new forms of processing to enable enhanced decision making, insight discovery and process optimization."

So why are Big Data or Big Data technology so important for companies? First of all they help companies to understand and to extract the meaning from the whole range of information which is in the world. Companies and organizations gathered and stored data, which were part of each transaction. This information was primarily used for tracking or forecasting the future. Today this data are exploding. It is possible to gather information about every customer, who visits your website. So marketers can gather information about every customer´s conversation about their product or brand. These sources are treasure for companies, because they can provide a glance into customer’s minds. However this requires implementation of new processes, technologies and mechanism called Big Data. The data are here and they hide valuable information, it is just needed to find the way, how to mine it.

5 ways of how Big Data create value (McKinsey Global Institute, 2011): -

1.It can create transparency by being more widely available to the new potential.

2.It enables companies to set up experiments. For example experiments for process changes, they can create and analyze large amounts of data from these experiments to identify possible performance improvements.

3.Big Data can be used to create a more detailed segmentation of customers to customize actions and prepare specific services.

4.Analysis of Big Data can support human decision making by pointing to hidden correlations or some hidden risks. An example can be a risk or fraud analysis engines for insurance companies. Low decision making can be even automated to those engines in some cases.

5.Data can also enable new business models, products and services or can improve the existing ones. Data about how products and services are used can be used to develop and improve new versions of the product.