Neither the term nor the concept of big data in business is new anymore. However, there is still a misconception among some business owners and self-employed individuals that its use is reserved for large corporations.
Nor is the use of enormous amounts of information as inputs to build predictive models anything new, nor is the need to use vast volumes of information to improve decision-making. More than 7,000 years ago, in Mesopotamia, information on the growth of crops and herds was meticulously recorded. Later, in 1663, John Graunt attempted to create predictive models to detect the bubonic plague based on mortality figures in London.
- The volume of data collected and processed should be as extensive as possible.
- The data collected must be as closely tied to the company’s operations as possible—a concept known as information relevance. If it is collected in-house and generated directly from business operations, so much the better.
Fortunately, today’s technology is designed to gather information from virtually any activity. Machines generate it in factories; commercial transactions collect it from the Internet or the company’s internal system; and biometric cameras and other types of sensors capture information from the streets.
However, not all inputs have the same value for your business. We’ve already discussed the importance of relevance and volume; however, there are two other factors that determine the importance of big data for your business:
1. What Is Big Data in Business?
A relatively recent development in the business world dates back to 2005, when companies began utilizing a volume of data that could not be processed using conventional methods. This phenomenon represents the true significance of big data as a concept.
The ability to utilize vast amounts of data, classify it, process it, and analyze it has created a range of unique possibilities for today’s businesses. In fact, the effects of data analysis are evident across all areas of an organization, particularly in terms of productivity and competitiveness.
However, for the analysis to yield useful results, two fundamental conditions are required:
- The speed at which data is generated and processed, which ensures its timeliness.
- The variety of the data, which is often defined by the ability to extract valuable information from unstructured and semi-structured records.
With all this in mind, is your organization ready to benefit from the invaluable contribution of big data to your business processes?
2. The Importance of Big Data Analysts
However, accumulated data records, by themselves, are of no use without proper processing; they simply take up space. To address this, algorithms are used to develop models that provide predictions of behaviors, consequences, and decision paths.
Big data analysts are professionals highly trained in processing and analyzing large volumes of data. It is human minds that develop the processes and create the algorithms that enable specific answers to be derived from the available data.
Data analysis is just as important—if not more so—than any of the factors mentioned above. We can say that a good data analyst can achieve great results with a smaller volume of inputs, even if they are less varied or even outdated. Conversely, even if we have the best information, if we neglect the quality of data analysis, we may make completely misguided decisions.
Data analysis is a fundamental tool that allows us to convert questions into logical algorithms designed to provide precise and valuable answers. For example, it is possible to determine where time is being wasted in the production chain, identify points where the sales funnel is not functioning properly, or understand the aspects that most satisfy customers.
But the most important aspect of this data analysis lies not only in its ability to provide isolated answers , but also in its ability to combine them in multiple ways to draw highly valuable conclusions for decision-making.
Hiring highly qualified data analysis professionals may seem out of reach for many organizations. However, there are now companies specializing in big data processing that offer excellent data analysis services to third parties. Therefore, small and medium-sized businesses, as well as freelancers, can benefit from the same competitive tools available to large companies.
Image by vectorjuice on Freepik
Image by Freepik
