Importance of Big Data in Business Organizations

This article discusses the importance of big data in business organizations, including the techniques and technologies applied. It also covers the benefits of using big data, such as time-saving, customization, and smart decision-making. The article is relevant to courses in business, IT, and data analytics.

use of big data in business organizations
APRIL 19, 2018
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Table of Contents
Introduction.................................................................................................................................................1
Project Objective.........................................................................................................................................2
Project Scope...............................................................................................................................................2
Literature Review........................................................................................................................................3
What we understand by big data?............................................................................................................3
Data Forms..............................................................................................................................................4
Structured............................................................................................................................................4
Unstructured........................................................................................................................................4
Importance of Big data in Business Organizations..................................................................................5
Techniques and Technologies Applied by Big Data................................................................................5
Techniques...........................................................................................................................................5
Technology..........................................................................................................................................6
Benefits of Using Big data business organisation................................................................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Introduction
Big data is one of the concept that has currently been leading in the world. This idea of this
concept being chosen is because of the big data usage in business institutions that have been
discussed significantly in the manners with what they portray and what it is associated with
them. With this era of information massive volume of data nowadays have really been available
to many makers of the decision. Big data can be defined to data sets that may not be big but also
they have a high variety and velocity making them difficult in handling them when we use
traditional tools and the techniques. This growth of data being rapid have led to more studies to
be done to help provide knowledge in using this big data and hence the value extracted helping
in informed decisions in this big business organizations.
Additionally, makers of the decision are also to gain a lot of valuable insights varying from our
daily transactions to the customer we interacts with and the social network data. The values
provided may help in the usage of big data analysis which is one of the application that is
advanced analytics techniques on the big data (Zeng, 2010). The paper aim is analyzing the
different analytics methods and how this tools are applied to big data in business organizations
and much more the opportunities that arose when the big data is used in specific decisions
domains
Project Objective
The objective of data mining in any company is discovering the inside unstructured data,
extracting the meaning of data that is so noisy and much more discover patterns randomly, using
the gathered data in knowing the trend to follow, correlations, probability and future
possibility/predictions and the trends in competition that the company can use its own data in
making the data to be more meaningful in bettering the position of the company on the current
technology waving in and out each and every day (Marasoiu, 2016).
Project Scope
Big data influence in business organizations especially in the IT industry have grown very
rapidly. So many questions has been raised that it’s very hard in managing and using big data in
business organizations. Microsoft quoted that big data has potentially changed the government
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ways , business organizations ways have been conducting business and making discoveries and
this has been seen like not to likely to change (Tek, 2013).
Literature Review
What we understand by big data?
The mentioning or talking of big data has been seen as a new jargon that is very hard to
understand but for easy understanding it is termed as the volume that is exponential with
structured and unstructured data that consist vast amount of datasets of which is very hard in
processing by the older traditional DBMS methods and their related software techniques. When
we consider the volume of big data and the capacity of data encompassed in by carrying itself
within the potential that it will help many business organizations. Big data review lie in many
concepts and can be interpreted differently depending on the topic and the definition that
corresponds.
Big data has been characterized by three V’s namely the volume, the variety and the velocity.
The volume covers the size of the data and how enormous the data is. The velocity as a
characteristic is the rate to within which data changes and often created. Lastly but not least is
the variety which consists of the formatting and data types and the usage and how that data is
analyzed. It’s good to note that big data primary attribute is data volume. The volume can be
quantified by size in terms of terabytes which maybe inform of records, daily transactions, tables
and files.in additional big data description may be based through its velocity or its speed which
made on the basis on the frequency data is generated or delivered to the users. In business
organization uses of big data the edge of it has been categorized much in streaming of that data
and this collected and gathered in real-time from the websites. This has been termed as an
additional characteristics named as veracity which focuses on the data quality. Veracity has been
known for its characteristics in the quality of big data to be either bad, good or even undefined
which may be caused due to the deception, a lot of approximations, inconsistency of data,
latency, the ambiguity and lastly is the incompleteness.
Big data is terms to be as the data volume that is beyond the capability that a technology can be
able to store, manage or even able to process in an efficient manner (manyika, 2015). Another
review of big data is that it is termed as the high tech, speed, volume and complex that
multivariate the available data in capturing storing, distributing, managing and enhancing the
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decision made and much more discovery of insights and optimization of processes
(TechAmerica, 2012). Big data tech is new in the gen of the tech and the architecture which were
designed for extracting value for multivariating high volumes of datasets where it provide high
speed that helps to capture, discover and to analyze (Reinsel, 2018). Lastly is that big data is
termed as a way of combining definitions that varies such as the cluster methods and the tech
through which the forms which are new and how they are unified to re-counting the concealed
values in diverse, showing some complexity and the high volumes of data sets (Hasheem, 2015).
Data Forms
Structured
Talking about data that is structured we try to mean that if the data is placed in the current data
warehouse in RDBMS the structure of RDBMS being enforced on the specific current data
warehouse system then there will be an understanding and the meaning that is associated with it.
Here we can know the columns and rows associated within each table and the spaces in table.
Format of such data can be in different forms that is numerical or text but the best thing to note is
knowing the unique identifier that uniquely identifies the person in this era. The entire data will
be organized in terms of the entities that is through the semantic chunks.
 Understanding the relations
 The attributes
 Schema which is the description of entities and their associations
Semi structured
The movement from structured to semi-structured brings some little demarcation and often in
differentiation lines that they may go blurry. Data is available in many formats when dealing
with the semi-structured data such as the Db systems, file systems e.g. the web data and the data
exchange formats. Another thing we need to know is that you don’t need to have the completely
structured that is partially and most if it all it includes the similar entities being grouped and
organized semantically , entities that don’t have same attributes in groups, the order the attributes
that are not important and the attribute that may not be required.
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Unstructured
This type of data is very difficult in indexing. If this is referred then we try to bring the purpose
of queries, reference of relational tables and analysis. This has helped in including the file types
and associated with videos, audios and the image files including such as.
 Data which can be of any kind
 Being non-format and also absence of sequence
 Data that have absence of rules
 Not predictable how data is spread.
Importance of Big data in Business Organizations
The importance can be defined to how efficient the notion has always been for many
organizations to improve in their most used KPI’s, however this is with the data an organization
has where they have the insights they use in helping to generate. Data is really taken in
multiplying different multiple sources and the integration across the environments in which
analysis help us in answering the following scenarios.
i. There is time saving and the reductions of cost
ii. Customization and optimization of offered markets and the development of new products.
iii. Smart decision making and strategic development
The business decisions to be made in a business are to used and considered in the following basis
of data and the analytics that are associated and the simple terms hence being defined as Big
Data,. The combination with motorized analytics and the lot of businesses that is related to the
tasks to be accomplished and this may include (Ms. Vibhavari Chavan, 2014).
1. Analysis of the root-cause that may be piloted in real-time for all related defects, fails or
any issues.
2. POS that has a basis on coupons that are generated on the behavior of consumers
3. Portfolio risk where we might have calculations done very fast and within minutes.
4. Fraud detection performance where there is usage of frauds analytics before it hits a
business institutions
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Techniques and Technologies Applied by Big Data
There are techniques that drive the use of big data and that could be used when one is starting a
project. This tools are summarized and explained briefly as follows
Techniques
Association rule learning which used for discovering the interest in relationships. Some of the
association rules are among the variables that are in large in Dbs. The other technique is data
mining which is one of the terms that is related with the data-driven in making of the decisions
and much more it’s described as a tool for searching or digging in to (Laney, 2011).
Cluster analysis is another technique which is a data mining type that subdivides the large group
in to groups that are small but similar and the characteristics of how similar they are is known in
advance. Crowd sourcing is used for gathering data technique from a group that is large through
calls that are open and it is usually web2.0 tool. Crowd sourcing is used for collecting data rather
than analyzing the collected data.
Technology
The same case with techniques in analytical there are many software packages and the available
technologies in facilitating the big data analytics (Cebr, 2012). The following list is of the used
technologies in big data.
i. Enterprise data warehouses which is a database that is used by data analytics.
ii. Visualization of products
iii. Reduce of maps
iv. Hadoop
v. NoSQL databases.
Usage areas of big data in most business organizations. Big data usage has be welcomed and
effectively applied in many meadows and disciplines as follows.
 Oil & gas industry
 Sector of telecommunication
 Field of medicine
 Retail sectors
 Media and Show business
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 Tech that is high industries
 Sector of automotive
 Services of finance
 Travel sector
 Transport Sector
 Social media
 Online services
 Services in public
 Education industry
 Law industry
 Defense industry etc.
Benefits of Using Big data business organisation.
Each and every tool in tech world comes with benefits. The organizations have to lay down
strategy in the management and dealing of the big data and this is knowing where, and the lace
of storage once the acquisition of that specific data is done (Bakshi, 2012). Some of the old
methods of storage of data and the way they data that is structured are retrieved includes
RDBMs, data marts and the data warehouses in general. The way big data works is just
uploading to the store area from the already stored operational data where we use the Extract-
Transform-Load (ETL) or also Extract-Load-Transform (ELT) tools which is are used in
extracting the outsiders data, transforming that outsider data in fitting the operational needs and
finally loading that data in to the db or to the data warehouse (Cuzzocrea, 2009).
The benefits of such application of big data can be discussed in many ways but here are some of
the benefits and the way a business organization can feel and be helpful in all ways. The
following are some of the ways a company can get implement and put in to place the usage of
big data in the business operations in daily to daily lives.
One of the use of big data in business organization is that the company get to know the customer
and much more knowing all of them in real time. Traditionally we used to use questionnaires and
the focus groups in knowing where the customers are .this was always termed to be outdated and
the time the results were analysed then it would have been like obsolete as so many changes may
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have happened in between. The introduction has made it possible in real time and hence the use
such traditional methods is not necessarily helpful in all ways. The big data has gone to the
extent of allowing the business organizations of mapping the DNA of their clients in all fields.
This understanding and having the knowledge of the customer has helped the business
organizations in selling will and much more effectively.
This understanding of knowing one customer has given so many recommendations and showing
so many advertising that are custom-made to ones needs. Amazon is a business organization that
has mastered in the perfection of giving recommendations to its customers and hence to them
this is not a coincidence. Some of the engineered functions are such as the virtual shopping cart
that have been highly rated and viewed by many clients to be very effective and efficient.
Secondly is that big data has led to co-creation, improving and much more innovating one’s
products in real-time (Manyika, 2011). Traditionally customers had panels for discussion to what
they want and showing them the finished products and finding what they think of it. Emergence
of big data has helped many organisations in getting a better understanding what customer will
think of the product. When we listen such on social-media on what people says or talk about a
given item we happen to understand the concept and more information is given to than it would
have been if questionnaire were to be applied. The allowing of these big data in companies has
led to running real time simulations where thousands of test or testing a new or any improved
product in a digital manner.
Thirdly is that big data helped the business organization in determining the risk an organization
faces. In determining the risk the risk of a customer who is potential or any supplier there must
be placement in a certain category where each have to be determined according to its category.
Big data has helped in determining the risk class for each potential client on the basis of data
they may have collected from the past and what they have currently in the real time. Considering
the insurance company the prognostic analyses are always used in determining the amount of
money in future the client will be costed. Usage of big data techniques such as the pattern-
recognition, analysis-in-regression, textual-analysis, aggregation-of-social-data and lastly is the
sentiment-analysis with view of the potential customer created.
Fourth is that the big data has been used to personalize the website and the prices in real time.
Company have used split-tests and the A/B tests for many years in determining the best layout to
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be used by their customers. Big data have effected on the prices ordered. The use of algorithm
have become possible in reaction to events in the market or actions of the rivals in real-time as
adjusting prices accordingly.
The other use of big data in business organizations is that it has helped improving the service
support for customers. This has been made possible in monitoring machines from great distance
and checking how they are performing. Nowadays it is easy to send data to the manufacturer and
they will be stored for real-time analysis immediately.
The other major use of big data in business organizations is finding the new markets and
opportunities in new businesses. Many governments have stimulated companies in making use of
the massive amounts of open data that is collected by the government in one way or another
(Sreedhar C, 2014). When we do pattern regression analysis we own our data and this might
finds the need and much more the wishes of the customers one never knew about (Newgen,
2017).
Use of big data has led to many organizations understanding one competitors and to always stay
and be ahead of them. Use of big data analytics can help in finding out the examples if ones
competitor changes their prices and this can help in on changing the prices automatically in order
to stay competitive in the market (EMC, 2012). One can also monitor the other actions of the
competition such as new tastes and preferences and how this has responded to the competitive
market (Datafloq, 2018).
Lastly is the use of big data in helping business organizations in organizing one’s company in a
way that is effective and the business organization can save money and time. This logistics in an
industry can be efficient when they use them in ways that they may use the big data in sources
that are available in the supply chain. The discussed usecases are just a small part of the vast
possibility of big data, however it may show that there opportunities which are endless and
taking the advantage of it. This has made to think of figurimg how an institution can benefit for
big data and hence able to know if one has big data and whether one might be willing to share
with others on the big data platform. In everything that discussed and invented to be used
globally it always have some challenges. Big data has been noted to have some diverse set of
challenges and many obstacles that lies from the management to use of it (White, 2012). Some of
this challenges have been contributed by this large amount of data and they may be termed like
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the collecting and retrieving the big data and the overall visualization of data that is very
complex when being accessed and used (Stough, 2014).
Conclusion
This study about the use of big data in business organizations there before was seen as a new
jargon but after understanding the study the whole concept from the techniques and technologies
and the importance and benefits of using the big data the concept has sink in and very easy to
understand and even implementing it. The understanding of such has made me to know how to
define the models and categorize the elements that are associated with the big data. Lastly the big
data analytics techniques have made this topic on big data to be easy and much more appealing
and interesting who now have the whole concepts of what big data can do or can help the
business organizations (Elgendy, 2013).
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