What are Big Data, how are they generated and why are they so important for companies, the public sector and individuals? Let’s see what they are and all their benefits and advantages
What Are Big Data
By now we’re all aware of the importance of Big Data. Everyone’s talking about them in terms of opportunity and during other discussions, for example on privacy. But do you really know what they are?
In short, Big Data are an enormous volume of information produced according to three key concepts: velocity, volume and variety. Indeed, these data reach increasingly large volumes, with greater variety and growing velocity.
In other words, Big Data are an enormous set of complex, fast information impossible to process with traditional methods. These data have a variety of origins and it’s necessary to use data analytics methods assisted by advanced technologies like Analytics, AI and Intelligent Data Processing, which enable us to use and analyse them.
All these data – whether structured or unstructured – must be transformed from raw data into useful information in order to make companies competitive and to improve our lives.
The Advantages of Big Data: a Strategic Market
The importance of Big Data is not limited to the amount of data possessed by companies or the public sector; it also lies in the ability to analyse and use them. Indeed, handling this information correctly helps us reduce to costs and times, as well as to develop new offers and products.
The Analytics market is constantly expanding, and the benefits are clear both in the production processes and in the management of emergencies and of the flows of goods and people.
Big Data Help Companies
For companies, whether small or large, analysing all these data is useful in order to personalise their communications and make more informed decisions, with important financial benefits. Data Analysis and Data Management projects make it possible to:
- Increase sales volumes;
- Improve client engagement and competitiveness;
- Reduce costs and increase profit margins;
- Optimise offers;
- Pinpoint new markets;
- Create new jobs;
Monitor the flow of people in an area.
Benefits of Big Data on People
Big Data help people understand complex socioeconomic and natural phenomena. In other words, there’s a good side to data; UNICEF’s “Magic Box” is an example. This charitable platform uses real-time anonymised data generated by smartphones to monitor critical situations. So Big Data can help governments prevent and monitor environmental disasters in real time.
Another example? During the COVID-19 emergency, the collection and analysis of Big Data helped us collect and process reliable data to check infection trends and make timely decisions based on the spreading of the disease.
So Who Needs all these Data? Everyone!
Big Data are used in a wide range of fields, including:
- Banks and banking services
- Retain industry
- Public sector
Due to the constant growth of the Big Data Analytics market, companies of all sizes need to invest more in this sector. Larger companies have already taken important steps towards data analysis, but too many small and medium-sized enterprises still don’t understand its potential, and thus haven’t yet redesigned their processes according to a data-driven perspective.
Today, a simple algorithm can process an enormous amount of data in just a few minutes. Translating these data into visual information, the algorithm creates new and unprecedented interpretation models we can no longer do without.
Examples of Big Data in Your Daily Life
We exchange our data with devices and applications every day. In the marketing sector, recommendation systems are a simple example of Big Data in daily life; in other words, when Netflix and Amazon recommend content based on our actual interests.
When we surf the net, we leave traces of our behaviour based on the products we review, the websites we visit, our purchases and much more. All these data are processed so as to enable companies to recommend products we might be interested in and offer targeted discounts, courses or TV shows.
Isn’t it fascinating to be able to process all this information and to know how to interpret it? If you’re curious about the world of Big Data, apply for our free course to become a Data Analyst!