The whopping increase in the amount of data generated every second is a result of the use of the internet, which is accessible easily nowadays. The use of the term Big Data started in the year 2005, which is referred to the large sets of data that are either in structured or unstructured form and have outgrown simple databases and data handling architectures. Big Data analytics aid in examining large volumes of data to unravel the hidden patterns, correlations, consumer behavior, trends, etc., making storing, transferring, data curating, analyzing and sharing easier than ever.
The term Big Data might seem a recent concept but it gained popularity owing to industry analyst Doug Laney who propounded the 3 V's of Big Data in the year 2000, described as follows:
1. Volume –Companies collect various kinds of data such as business transactions, social media updates, changes in demand and new trends in markets, etc. Storing such data that exponentially increases every second is now possible with Big Data.
2. Velocity– Since data is created constantly at high speeds, it is essential that the data must be dealt in real time basis for proper storage and future analysis.
3. Variety –Data is generated in a variety of forms such as numbers, alphabets, videos, audio, photos, financial transactions, etc., which may be in structured or unstructured form.
While a few decades back, business data analytics was extensively used to retrieve valuable business information, the new age Big Data technology helps to present relevant data in the most accurate form with high speed and efficiency. This kind of data representation forms the base for identifying the future business threats and opportunities, while accelerating decision-making process, thereby, enhancing the competitiveness quotient by multi-folds.
According to COSO IT, rather than centralizing the whole effort in revolving around the humongous and rising volumes of data, Big Data arms businesses with vital information that can help in attaining the following:-
1. Reduction In Cost – Businesses can save huge costs owing to the effective utilization of Big Data technologies like Hadoop and cloud-based analytical tools. This is because they aid in storing the large amounts of data and also provide reports and relevant data that help in improving the efficiency level in various internal and external work processes.
2. Innovative Product & service launches – Owing to the greater ability of businesses to gauge customer's needs and preferences through analytics, organizations get relevant data promptly, thus helping them devise innovative products and services that aptly suit the needs of their target customers in various locations. Comparative analysis, marketing analytics, target marketing,etc., are some of the techniques Big Data employs for acquiring real-time information and feedback from customers.
3. Quick & Better Decision Making - Big Data techniques like Hadoop and in-memory analytics along with the faster evaluation of new sources of information enable businesses to extract vital information that can pave the way for more accurate and quicker business decisions.
4. Aids In Amending Strategies &Actions – Pertinent business strategies and actions like a launch of new marketing techniques, products or services or execution of plans for growth and expansion, etc., can be easily amended as Big Data analytics help in the timely determination of failures, defects or issues.
5. More Accurate Risk Management - Forecasting critical business scenarios is now easier and more accurate with advanced analysis techniques of Big Data that helps in re-evaluating the risk portfolios within minutes.