Definition Of Big Data And The Benefits In Business

Posted on
Definition Of Big Data
Illustration Source Pexels

In our daily life, we use Information only for personal purposes. While in the business sphere, Information is needed to make decisions that affect the company being managed. This collection of large amounts of Information is often referred to as big data. How does it affect your business world? Then, what is the Definition of big data?

Definition Of Big Data

Definition Of Big Data. Big Data is a term that describes a large volume of data that is difficult to manage, whether structured or unstructured. Big Data is also known as a large and complex data set that continuously grows.

In simple terms, Big Data is collecting and using Information from various sources to make decisions.

You could say Big Data is a concept of the ability to collect, analyze, and process large amounts of data that come in every day.

Big Data Type

There are three types of big data, and they have different forms, functions, and processing techniques. The three types are:

1. Structured Data

This type of data refers to Data that has been stored sequentially and systematically. Generally, this Data is compiled in excel or spreadsheet form.

This structured Data is much easier to access and analyze because it comes from various databases using simple search engine algorithms.

The structured data created includes all data that occurs in every internet activity. Examples are when someone enters a link on the internet or an e-commerce site, company sales, employee personal or customer data. 

Well, that activity becomes Data, and you can use it to find out all consumer behavior and acts.

2. Unstructured Data

Next is unstructured data. This Data has an unsystematic and regular form and does not have a clear format in its storage,

Thus, it is difficult to read and analyze this type of data. Generally, unstructured data has several sources and a combination of data such as images, text, videos, and others. Therefore, to analyze it, you need to do data processing manually.

3. Semi-Structured Data

The structured and unstructured data areas are blurred in this type of data. Because most of the semi-structured data look like unstructured data.

This data type has not been classified but still contains important Information, such as documents with keywords used to process documents easily. JSON, CSV, and XML are examples of data that fall into this type.

Big Data Concept 

Big data involves collecting and processing all the generated Data appropriately to produce an expected value.

The concept of big Data is divided into three types, namely:

a. Data Integration

Data integration is collecting data that has been created, which will become big data. The data will be recorded in the system to be later used as material for further processing.

b. Data processing

All data generated must be managed properly during the storage process. Therefore, you need large storage space. Usually, the website with a hosting service will be chosen to meet the data activity needs of a company. Later, the Data on the website will be sorted into a storage system so that it is easy to find when needed.

c. Data analysis

Data analysis is all data that has been stored and grouped according to its type, which will be used for further needs.

For example, the shopping history of an online store in your store this Data can be Information on what products we are looking for and what is worth offering when the consumer is shopping. And the products that will be provided can be relevant to what consumers need.

Big data provides convenience as well as challenges for its users
Image Source Pixabay

Big Data Characteristics 

Data can be called big data if it fulfills the characteristics of big data itself. Then, what are the factors?

1. Volume

The characteristic of Big Data is a large amount of data as a whole and based on the platform that manages it. This Data includes transactions, smart devices, video, industrial equipment, images, audio, social media, and so on.

2. Velocity

the velocity of Big Data is the speed at which the Information is received. This process can take place instantly and in real-time with the help of an internet connection.

3. Variety

The variety in question is the various types of data available. Traditional Data is usually a type that is more structured and numerical. However, with the development of the data, some data sources do not yet have a structure, such as an email, audio, video, and financial transaction data.

4. Veracity

Veracity or data correctness is the accuracy of the Information provided by the data set. With a suitable level of data truth, the decisions taken by processing the data will produce maximum data.

5. Value

The last one is value. Value or value is the meaning of data after the data through processing. Data will be valuable if the Information obtained from the processing results can help someone make good business decisions.

Big Data Challenge 

Big data provides a lot of conveniences, but it does not mean there are no challenges in using it. Some of the difficulties you may experience are as follows.

1. Lack of skilled human resources

We need professional experts who can process big data. However, with the condition of technology that is always developing, not many experts can manage it optimally.

2. A System That Must Always Be Up To Date

Always updating Big Data is a must. The reason is that the generated data will always develop and no longer relevant data. As a result, the accuracy of the Information is reduced.

Undeniably, when updating data regularly, you need speed and space to store a lot of data.

3. Quite Complicated Management

The amount of Data certainly makes the management process complicated. The rapid development of big Data is also an obstacle. So vulnerable to data damage, data duplication, and others.

4. Vulnerable Privacy Data Security

The more data users can access, the more security potential it can cause, such as cybercrime. So, to provide security and protection from that Data, you need to use a hosting service with reliable security features.

The Benefits of Big Data for Business 

big data in business
Image Source Pexels

After you know the types, concepts, and characteristics of big data. You also need to understand the benefits of using big data for its users. The four benefits include:

1. Boost Innovation

By using big data, you can identify consumer interest, which can be seen through the type of product or by the number of transactions on a product.

After that, you can use the data to create new product innovations that match the trends and needs that are sought after by consumers.

For example, when many consumers prefer to use the payment method via transfer or credit card when making purchases. 

It can be concluded that, when shopping, consumers want convenience in making payments.

2. Designing a User-Friendly UX

The interactions that consumers mostly do through applications or websites can determine the level of product sales. Big data will help you save the shopping history of consumers who come.

Then, you can analyze that data to make interactions more enjoyable.

For example, when many consumers leave the website on the product page. Then you can learn about the product page’s quality, appearance, speed, and ease of accessing the page.

Furthermore, you can improve and improve it so that the shopping process carried out by consumers can be faster and easier

3. Easier Product Development

Big data can help companies develop better value and quality products that follow consumer needs.

For example, if the product you are marketing has a more eye-catching packaging, you can make more.

And vice versa, if a product has a low selling value, you can analyze the cause from the existing data. Then decide whether to repair it or stop production.

4. Avoiding Data Manipulation Risk

Not only the three benefits mentioned above, it turns out that big data also has a role in security issues. With big data, you can identify patterns that do not match the Data that should be and are considered detrimental to the business you manage.

For example, if there is a higher rate of expenditure on the purchase of raw materials than it should be. You can use big data to get the information quickly. So, you can evaluate and prevent data manipulation because all Data is recorded and can be accessed easily.

As stated above, big Data is a large and complex data collection. It is increasing all the time resulting from internet activities for personal and business purposes.

With the number of activities carried out online, data growth is growing rapidly. The characteristics of this increasingly large big data require proper management to produce accurate data. 

The use of big data is certainly very beneficial for its users. Most companies use big data to identify value from consumers. On the other hand, using big data can also help improve marketing and make it more effective.

Leave a Reply

Your email address will not be published. Required fields are marked *