5 Things You Need to Know about Big Data

Editor's Note: Take a look at our featured best practice, Six Building Blocks of Digital Transformation (35-slide PowerPoint presentation). Digital Transformation touches practically every function in the entire organization. This thus requires an unprecedented amount of coordination among people, process, and technologies throughout the organization, leading to a difficult Transformation program. The Six Building Blocks of [read more]

Also, if you are interested in becoming an expert on Digital Transformation, take a look at Flevy's Digital Transformation Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

Big data has been a buzzword in recent years. Big companies like Coca Cola, Airbnb, and American Express, among others, are all using massive data. There has been a huge increase in demand for jobs related to such fields, such as data scientist and analysts. Despite this, there are still many people who do not understand what exactly big data is. That said, the rest of this post will list down some of the most important things you need to know.

1. What Is Big Data?

To start, let us first define what exactly it means. According to Forbes, big data is “a collection of data from traditional and digital sources inside and outside your company that represents a source of ongoing discovery and analysis.” While some might assume that it refers only to data derived from digital inputs, it is actually inclusive of information that is generated from traditional sources, including financial records and product transactions.

2. How Is It Different?

Big data is not to be confused with traditional data. Yes, they both deal with data, but they work in different ways. One of the main differences is with regards to the storage size. Traditional data can be huge, but this is nothing compared to the size of big data. In the case of the latter, we are talking about petabytes and more. The accuracy and quality of data are also different. Plus, because of the processing system, big data also tends to be more accurate.

3. What Can Big Data Do?

The possibilities are endless when it comes to what can big data do. This will depend on the specific industry. Generally, big data can help to make well-informed decisions, improve customer service, learn more about consumer behaviors, enhance the effectiveness of marketing strategies, improve security in an organization, and improve the productivity of employees, among others. It can be used across almost all industries that need to deal with massive information and make sense of data they are confronted with.

4. Who Is It For?

One of the most common mistakes about big data is the assumption that it is exclusive to big businesses. Truth is, while most of its users are large global corporations, small businesses can also use big data. Small and medium-sized enterprises can take advantage of big data for lead tracking, marketing analytics, and marketing effectiveness, among other things. The concept may be intimidating but even small organizations should use big data to fuel success.

5. How Much Does It Cost?

While big data can offer big gains, to make the most out of it, there are big costs that are involved. After all, one of the prerequisites is to have professionals who will manage the data for the business. And since data science is a lucrative profession, companies will need to spend a lot to harness and retain talent in such a field. Nonetheless, depending on the scale of implementation and use, big data can also be affordable, which is why even small businesses are using such.

6. What Are the Careers Related to Big Data?

There are many careers that are promising and financially rewarding in the field of big data. Among others, one of the most popular is being a data scientist. In a list compiled by Glassdoor, being a data scientist tops the best jobs in the United States for 2019. Aside from this, there are other careers that you can pursue, such as being a data analyst, data architect, data engineer, business intelligence developer, and applications architect, among others.

7. What Are the Problems?

Despite all the benefits, there are problems with big data. Among others, the most serious would be privacy concerns. It is important for organizations to have a robust policy on how they use data, making sure that there will be no breach. Data discrimination is also an issue. Plus, it is important to make sure of data integrity and quality to make it relevant.

In sum, to fully understand the benefits of big data, take note of the things that have been mentioned above. Big data is going to be critical in the transformation of businesses but there are some issues that should be addressed.

Want to Achieve Excellence in Digital Transformation?

Gain the knowledge and develop the expertise to become an expert in Digital Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects—operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage.

For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy—characterized by social distancing and a minimization of in-person activities—organizations must go digital. This includes offering digital solutions for both employees (e.g. Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g. E-commerce, Social Media, Mobile Apps, etc.).

Learn about our Digital Transformation Best Practice Frameworks here.