Big Data and Analytics Takeaways
Autor: eteryushkov1 • February 9, 2016 • Essay • 562 Words (3 Pages) • 1,040 Views
Big Data and Analytics Takeaways
In today’s digital age, big data analysis plays a crucial role in business by aiding firms’ marketing strategies by creating digital portfolios on customers through information minded from social media sites, search engines, and purchase history. This information is used to determine trends, customer preferences and it allows some firms to market their products or services based on customer interests. Big data can be beneficial to big companies, generating as much as $3.5 for every dollar invested in the project; however, some drawbacks of big data projects are ethical and privacy concerns as well as poor reliability of data and lack of value to the companies.
Big data is characterized by its volume, variety, velocity, veracity and value. In order to determine the value and veracity (or validity) of data, it must first be processed and analyzed by companies who seek to benefit from such information. Volume, variety and velocity describes the amount of data being collected, type of data being collected and how fast the data is generated. After analysis of the data, companies use the trend information in order to make business decisions and implement long-term projects based on these trends. The information collected from big data is used by supermarkets and manufacturers to develop marketing and advertising strategies.
On the other hand, big data raises ethical and privacy concerns. Processing of big data sometimes involves gathering information on a particular customer which usually involves breaching individual privacy. For example, recently, Target supermarket was able to predict pregnancy of a teenager based on her purchase trend and web browser searches. Facebook’s face recognition allows Facebook to accurately match an individual to a posted friend’s photo even if the person is on the background of the picture. Big data raises few concerns due to the frequent privacy invasion; however, it is an essential tool for survival of new businesses.
...