Big Data in companies
The concept of Big Data refers to the amount of large-scale data, structured and unstructured, that we can find in a company on a regular basis. What is important is not the amount of data generated, but how companies use it.
What is Big Data?
For companies, Big Data is more than a tool. When we talk about this concept we are not only referring to data, but above all to the ability to exploit it to extract valuable information and knowledge for our company.
Through Big Data we can select any source and analyze the data to:
- Reduce costs.
- Optimize times.
- Develop new products and offers.
- Make decisions based on data.
Many experts define Big Data in terms of the five “Vs”, that is:
- Volume: I.e., the size of daily data generation.
- Velocity: Referring to the flow of data.
- Variety: Thanks to the different sources from which the data comes from.
- Veracity: The analysis of the data to ensure its reliability.
- Value: The need to select data that is useful in order to make it profitable.
How do companies use Big Data?
The use of Big Data in companies is increasing every day, since it brings numerous benefits such as those we set out below:
- Customer experience: Companies collect information that allows them to configure a much more accurate customer profile and thus provide greater value to the service.
- Product development: Big Data predicts user needs and allows companies to anticipate the demand for a product and/or services. This makes it possible to further refine the strategy and generate a greater number of sales.
- Fraud prevention: It is an important ally for cybersecurity, as it facilitates data patterns that can lead to fraud in the system.
- Innovation: Big Data becomes not only a tool to enhance a service or product, but also the improvement of processes and communication behind them.
Likewise, the more data your company can process, the greater the advantages and possibilities of performing any operation in a more intelligent format. For this, it is advisable to acquire functional systems for storage, analysis and data processing.
Sectors in which Big Data is gaining more relevance
As we have already mentioned, the use of Big Data in companies is causing an earthquake in many sectors.
Banks, telecommunications companies, energy companies, big commerce giants, logistics companies, marketing and digital advertising agencies are the sectors that use it the most.
Big Data offers companies the opportunity to have a greater decision-making capacity and thus avoid intuition in data analysis.
Are all companies ready for Big Data?
Today, only 38% of companies have a digital business strategy in place. Therefore, it is clear that not many companies are prepared; either due to lack of knowledge or lack of information.
This situation has generated that the most updated profiles to the digital transformation and with greater ability to implement digital strategies in companies are increasingly quoted and demanded. Knowledge of Artificial Intelligence, Blockchain, Big Data or Machine Learning have become essential for more efficient and profitable companies.
In short, Big Data is undergoing a clear increase in demand due to the value it has in companies, therefore, the analysis of large amounts of data must be subject to monitoring and interpretation, in order to extract the value to manage the strategies of the different departments of the company.
Letslaw es una firma de abogados internacionales especializada en el derecho de los negocios.