Before we start getting on the nitty-gritty details of why big data is important for businesses today, let’s take a brief look at the definition of the term itself. To put it in simple words, big data refers to humongous sets of data that can be both structured and unstructured in nature. In industry, big data is explained and handled with a 3V model, so we will start with understanding the model first.
The 3V Model: Volume, Velocity, and Variety
Volume – This is the methods involved in the storage of collected and accumulated data.
Velocity – Velocity is how we use real-time data that is time-sensitive and must be utilized immediately.
Variety – Big data comes in a variety of text and media (image, audio, and video) formats, so the arrangement of the data accordingly is important to processing it for results.
The Relationship Between Interpreting Big Data and Understanding Market Conditions
When you have access to data regarding how your target customers are spending their money and on what, you gain an immediate understanding of market conditions. This enables you to prepare your own products/services in line with what is selling.
Predicting Market Trends of the Future is Made Possible by Big Data’s Availability
It is possible for data scientists and business analysts to process and interpret big data to not just understand what the current market trends are, but also to predict what future trends are most likely going to be. In order to do so with maximum accuracy though, you will need a certificate in data science. This will give you the knowledge and skills necessary for accurate analysis and prediction of large data sets. Given that a comprehensive online course in data science or business analytics from Merrimack College can be completed right from your home, it’s a lucrative career path to consider due to the importance of big data in current and future business, which we are discussing today.
Interpretation of Big Data is Key to Improving Business Reputation
In a customer-centric market, delivering true value to one’s customers is essential to maintain a reputation, and reputation is of absolute importance as far as success is concerned. Large sets of data regarding customer opinion do not just help businesses in determining what kind of reputation they have in the market, but it also helps them understand where they are doing well and what they need to improve upon. This is particularly true in the case of online businesses, but it certainly isn’t exclusive to them either. Data from offline sources are also uploaded and become part of the big data in general.
There is no denying that collection, storage, and interpretation of big data can be expensive at the beginning for SMEs, but in the grand scheme of things and for businesses that are here to stay, those expenses are well worth it, especially as new technology continues to get better at helping us collect and decipher big data.