Why Is Big Data so Important?
The future of analytics
We hear the term big data getting thrown around, especially in the tech industry. It kind of makes sense since almost everyone uses technology in some fashion of their lives. But what exactly is big data, and why do we need it?
Data is all the information collected from users while they enjoy a product online. It’s gathered from many sources such as videos, social networks, sales records, navigation trails, images, and so much more. Big data refers to the volume of data available.
With vast amounts of interactions held online, it allows companies to record and analyze all of it.
The goal of analyzing this data is to uncover patterns that were once deemed invisible. Looking for connections from your users to help forecast the future of your company. Valuable insights will emerge from your user base that was once hidden before the collection of data online.
The collection of big data is a simultaneous event of providing a product and service and collecting market research. Let’s use Facebook as an example. Facebook users navigate the app or website to interact with their friends and family. Every click and scroll you command is collected and analyzed by Facebook. Creepy right?
Facebook then uses this data to improve their algorithms to provide you with the most relevant information. Are you always visiting sports pages? You’ll be seeing more of those in your suggestions soon.
The longer you spend on their site, the more money they make.
Businesses use this data to gain an edge over the competition. It allows the company to gain insights into its user’s interests. If you can provide your customers with more of what they like, then you essentially will make more money.
Not only are companies sifting through your data, but they also sell it. Huge organizations such as Facebook, ADP, Google, Amazon all sell their data to third party companies. These companies, too, want insights into users so they can effectively target them with sales campaigns.
Large companies are not the only ones using this data. Anyone can start an ad campaign on Facebook and Instagram. That, too, is selling data.
Selling data is a significant revenue source, especially when you have an advertisement business model. It’s estimated that the average American’s data is worth about 30 cents. The amount can fluctuate depending on how much information you provide about yourself online.
With Facebook having around 200 million users in the U.S., the total data is worth 60 million dollars. And that’s only referring to a one-time sale. This data is sold multiple times as well as new data being poured in every day.
Facebook has around 2.2 billion users outside America; you do the math.
The availability of having a virtual data warehouse enables companies to thrive on their users. More effective marketing campaigns, improved customer experiences, highlighted revenue streams, new trends, and the ability to sell to others only touches the surface of what big data can do for you.
With data scientists specializing in predictive analysis, forecasting, data mining, and visualization, it enables companies to drive innovation. The ability to make real-time decisions decreases the time between consumer insight and implementation.
The visualization of data allows you to see commonalities easily. Raw data is hard to understand; it must be merged into a specific format depending on what you’re trying to see.
This visualization includes but is not limited to bar graphs, area/scatter maps, tree maps, pivot tables, and charts such as line, bar, pie, column, and area.
The possibilities are endless when it comes to visualizing data. As new data is collected, it naturally increases the demand for its use. There’s always someone who wants it.
Enterprises can now make extremely accurate decisions quicker than ever. Anything quick and precise will always thrive in the business world.
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Big Data is Here to Stay
The globalization of big data analysis is a clear indication that it’s here to stay. Always having the ability to gain competitive advantages over your competition is what big data can do for you.
With the world continually increasing its shift to an online presence, the accumulation of data will only go up. The more we share about ourselves online, the more insights we are giving to corporations.
The accumulation of data does not only involve posts and tweets, but also clicks and scrolls. Our cursor is just as important as our words. Tracking how and where we navigate gives almost more insights into our interests than our words do.
Big data will continue to become normality in business practices. Having consumer insights up your sleeve at all times is priceless.
You have to decide ethically what you’ll do with it.
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