What is Big Data?

Although the term ‘Big Data’ was initially phrased by Roger Mougalas in 2005, its principles can be traced back as far as 1676, via John Graunt’s publication of Natural and Political Observations Made upon the Bills of Mortality, in which Mr Graunt made public his analysis of the mortality rate in London. This book is accepted as the first piece of statistical analysis ever recorded.

But what is Big Data? 

The term ‘Big Data’ refers to a large and complex collection of data with exponential growth. The rate of this growth combined with its diversity and complexity, renders any traditional methods of processing the data inefficient. To counter this inefficiency, many SaaS companies, through specifically designed software, specialise in managing this type of data.

From an organisation's perspective, the fundamental purpose of accumulating Big Data is to break it down into manageable and actionable insights, in order to provide the organisation with information. Once obtained, this information provides the organisation with predictive analysis which allows better decision making, while simultaneously optimising their operational efficiencies and reducing risk. “The goal is to turn data into information, and information into insight.” – (Carly Fiorina, former CEO of Hewlett Packard)

Examples of the use of Big Data

Spotify: Not only does Spotify use Big Data to boost its recommendations engine, but with over 24 million registered users and 600 gigabytes of data generated per day, Spotify also had time to demonstrate just how powerful the use of Big Data really can be. Back in 2013, Spotify analysed its streaming data by breaking down its user’s listening preferences and decided to make a prediction on the winners of the upcoming Grammy Awards. Four of the six of Spotify’s predictions proved to be correct.

Starbucks: With 90 million transactions a week and 25,000 stores worldwide, Starbucks is using Big Data in many ways to boost its marketing efforts. With the release of its rewards programme and mobile app back in 2008, Starbucks today accumulates data from 17 million active users. This data, including when and where customers buy coffee and what coffee they prefer, allows Starbucks to personalise their customer’s experience.

The Future of Big Data

Many companies using Big Data appear adamant that they want to fully embrace a data driven culture. In fact, in a 2019 NewVantage survey, 98.6% of executives said they are in the process of creating such a culture. However, only 32.4% reported having any success on this front. 

Is a data driven culture essential for a company’s survival and growth in today’s age? If so, what can be done to advance the process?

Look forward to your comments.

References:

1: Ultimate Guide to Big Data in Healthcare, Marina Turea. https://healthcareweekly.com/big-data-in-healthcare/

2: Investopedia Report, 2019, Troy Segal. https://www.investopedia.com/terms/b/big-data.asp

3: How Big Data Enabled Spotify to Change the Music Industry, Dr Mark van Rijmenam. https://datafloq.com/read/big-data-enabled-spotify-change-music-industry/391

4: Big Data and AI Executive Survey, 2019.  https://newvantage.com/wp-content/uploads/2018/12/Big-Data-Executive-Survey-2019-Findings-Updated-010219-1.pdf