What is Big Data?
Big Data is basically a type of data which are generated by the means of technology. With the increase in the use of technology in all sectors of work, data has become a new gold mine for every business. Big Data is very complex and not easy to manage by any company. Big Data is a new source of information that is generated with the help of the internet by each and every individual who work online, and there are millions of people working online, and millions of data are generated by each and every individual in a day thus the data generated by every individual are used by the various company to take a decision on the changing market and changing mindset of people is termed as Big Data.
Various companies classified this data under specific groups or category which is known as structured data and various companies simply collect data from various sources which is known as unstructured data.
With the increasing development of the financial sector, Big Data collect each and every financial transaction done on the internet. None of the activity that is carried out on the internet is now hidden. The financial sector mostly deals with various types of data and Big Data has created a great impact on the financial sector of any country within a few years. Big Data helps in taking better investment decisions to gain high returns.
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How Big Data works
These data are generated by sharing any of the information with the help of the internet which can be an image, video, mail, messages, etc. There are various companies in the market which collect this data, they just not collect it but also present it in various forms according to the need individual and sell them to a various individual who needs a specific type of data. Most companies purchase this data to know the real trend of the market and to know the customer’s perspective for a specific type of product. Companies can directly approach the customers to get various data and with the help of the internet legally they try to trash specific data. This data becomes difficult to store with a traditional system and new sources of software are used to store Big Data.
Big Data uses a concept of 5v to analyze and classify data
Volume means the amount of data generated by a particular sector.
Velocity is defined as the speed at which the data is generated.
Variety refers to the type of data that has been generated like an image file or video file or through email or messages likewise.
Veracity tells a particular firm that how accurate and trustworthy are the data for their firm.
Value refers to the result of the decision taken on the basis of the data.
Thus, Big Data helps any company in various ways.
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The Use of Big Data
Big Data is used in each and every sector today likely in Banking, health, communication, education, government, insurance, security, transportation, etc. The major use of Big Data in any of this sector is to monitor the changing environment in the market and changing preference in their target customer and this may help the organization to take corrective decisions on a particular time as and when need. Big Data is collected from a number of sources and this helps the company to collect data according to their need to meet new challenges that are waiting in the market. If any company is trying to launch new products in the market then with the help of Big Data they can select their target audience and can also predict the overall customer reaction to their product and with the right and accurate data they can make the best decision for their product or service or anything.
Under, structure data type data are recorded into a particular category or type or format according to the need of the company. This means that whatever data is generated is classified under a fixed format for better and easy analysis. Data generated in the image format is recorded under that category likewise data generated through video, email, text, etc will be classified in that particular category.
Under unstructured data type whatever the data is generated is randomly recorded in the database of the company. The analysis of this data is time-consuming for any company. It does not take format or type of data into account it just recoded each and every data generated at any point in time.
Geographic data are related to a particular place, location, or area. With the introduction of the online map system, geographic data are timely added in the software to get a better and accurate route to locate.
Real-time media Data
Real-time media data is related to the data generated from two different locations at the same time from the same platform. Whenever a person streams live from any of the online social media platforms and data generated through this medium is considered as real-time media data.
Time series generally recorded data that are generated over time to know the future trend and future conditions that are going to occur. On the basis of past data near-future trends in any sector can be analyzed this data is mainly used in the weather forecast, GDP rate of the country, market ups and downs, etc.
Network Data is a type of data that are generated from various social media platform like Facebook, Instagram, Twitter, etc or from various web search site. Whatever we search or whatever we post on any social media is been recorded immediately in form of data and this data is known as network data.
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Advantages of Big Data
- The biggest advantage of Big Data is that it helps the business in taking accurate decisions and making strong strategies that result in huge profits for any business.
- With the help of Big, Data the company can anticipate market trends and customer needs which help the company to make appropriate changes in their current business and help in launching new products or services.
- With the proper classification of data, Big Data reduces the time for any company to analyze its need.
- Nowadays company also mentions a reputation on an online platform with the increase in technology Big Data helps the company to maintain its online reputation.
- In the banking sector, Big Data helps to detect fraud that happened by doing online transactions or credit or debit card transactions. Big Data helps banks to know that something went wrong and banks can immediately stop further transactions happing on that platform. Thus, Big Data help in fraud detection in the company and in any financial sector.
- Big Data has helped the various company to analyze data quickly and accurately which has resulted in to increase in productivity of any company and this has also resulted in an increase in innovation that is nowadays taking place in the market
Disadvantages of Big Data
- The main disadvantages of Big Data are that sometimes user doesn’t even know that he or she is giving permission to some unknown person to track data because with the increase and technology and with the increase in online work there are many individuals who work unethically to collect this data and sell in the market unethically. Thus, privacy consent is the main disadvantage under Big Data.
- As this concept is not that much in practice in the market various companies need expert people who can analyze the data but very fewer people are involved in this area.
- Sometimes Big Data cost a huge to any company for the store of data and to analyze it for a special purpose.
- The use of Big Data for short-term purposes become too costly and it’s also not useful in comparison for long term purpose.
The Bottom Line
Big Data is a new form of change happing in all the sector of the economy and if any company does not accept such kind of change then this may very adversely result in its performance. Big Data is just not a bunch of data collected by various organizations but in reality, it’s a kind of thing that is going to dominate the market in near future. Currently, many companies are paying lots of money to data analysts to accurately analyze the king to data which may result in a huge profit. If we properly look for it then it, not a really new concept traditionally big company use to collect data directly from their customer, employees, or various stakeholder to anticipate market and future trend of the market with the increase in the technology and internet this all data are made available online and Big Data is introduced. Thus, Big Data is not a collection of various data but information that helps to take such a decision which helps the company and government to increase its performance.
Author: Charmi Mehta
About the Author: Charmi Mehta is currently pursuing MBA with a specialization in Finance from the Department of Business Administration, Bhavnagar. Charmi is very much interested to work with data and its analysis and she is also fascinated about financial market.