Part 9: Big Data – Collection, storage, structuring and further processing of data

My last article had focused Internet of Things (IoT) in order you to better understand and classify the technical developments in the context of digitization and digitalization. Now let’s take a look at big data to understand how this term relates to digitalization and what you need to know to transfer relevant aspects onto your business.

With this article you will get answers to the following questions:

1. Big Data – What is it and how does it work?
2. Big Data – What does it mean? (Consequences)
3. Big Data – Relevance to the question of “How to Dominate your Market”

1. Big Data – What is it and how does it work?

While experts focus on data, media discussions tend to tempt non-experts to think about big data in the context of privacy risks. Of course, every development not only brings positive features, which is why the other side of the coin is to be considered as well. But especially entrepreneurs should not fall into this trap but focus on what is essential for their company. The relevant questions are: What kind of technological development do we face? How does it work and what impact does it have on my business?

First of all, let me explain the term big data:

Large amounts of data are called big data if, because of their size and complexity, they cannot be processed using traditional methods.

Technological advances offer immense possibilities for the collection, storage, structuring and further processing of these large amounts of data, and thus an added value for our everyday life.

By using these technologies we can analyze patterns, understand relationships and use this information in many areas. Here are some examples:

• Online companies can use this information to make further offers to interested parties.
• In the field of medical research, mass data can help to find the best therapies for cancer.
• In the field of traffic research the data can be used to avoid traffic jams.

Only in the context of the processing of personal data does the topic become complex, why the term has received a negative connotation through the focus in media.

But how does big data arise? It’s very simple: We all feed big data with every click while surfing, online shopping, inputs into navigation devices, financial transactions, phone calls, gym visits, new friends on social networks etc.

2. Big Data – What does it mean? (Consequences)

Successful companies have already understood the relevance: The more data available, systematically evaluable and reusable, the more valuable the company based on its innovative power. Or in other words: Processible mass data is the biggest asset of competitive and future-oriented companies.

And if we look at successful companies, we can recognize that they have understood how to leverage existing data: They are using existing data to create and implement new ideas, products and services.

For example, Google was using their data collected by Google Maps and Google Streetview and combined it with the AI-Technology of Stanford University to work on a Self-Driving Car Project called WAYMO since 2009. Waymo One, a fully self-driving taxi service, is rolling out in the Metro Phoenix area first. Over time, they will expand to new places and more people.

But big data cannot only be used for innovation. It can be also used in terms of cost-effectiveness. For example, airlines use collected data to analyze passenger behavior. E.g. No-shows of passengers can be identified on different routes and times to provide forecasts for future flights. Based on these results, more tickets will be sold if needed to ensure the aircraft’s capacity utilization even with expected no-shows. This helps not only to avoid losses for the airline, but also ensures that the ticket prices do not rise. Because persistent no-show rates and a non-utilization of flights would have a long-term effect on ticket prices if the airline does not want to go bankrupt.

In the end, it’s a win-win situation for both sides. Most passengers do not even realize that more tickets have been sold because the analysis and forecasts are so good that it rarely happens that more passengers want to travel than seats are available.

3. Big Data – Relevance to the question of “How to Dominate your Market”

As you can see, big data can be used in many cases, especially to develop innovative business ideas, too. It doesn’t matter what kind of products or services you offer today. If you have already collected data, make sure you use it to create and implement new ideas and products or services. And don’t be worried if you don’t have any data collected yet: In this case build a platform that collects and systemizes data to help you develop (new) products, services, and innovations that deliver real value to your customers. Because in fact, 90% of all data has been generated in the last 2 years, which really seems incredible, but at the same time shows how quickly data can be collected.

Conclusion

This article on big data is another indication of how important it is for you as an entrepreneur to be familiar with the terms of digitalization:

If you understand the value of Big Data, you will surely find useful application areas in your field, which is quite important because it will help you to conquer the market of the future.

So, if you haven’t done it yet, you should check your knowledge about digitization, digitalization and digital transformation, to find out what you already know and where you still have a lack of information.

Take your chance and do the test now: Click here for the Digi-Check!

Note: If you belong to the first ones you’ll also get the opportunity for a free 30 minutes online coaching session with me on top to talk about your results and your next steps.

Do you want to get more insights from Yasemin about digitization, digitalization and digital transformation? Next Part is coming soon – so stay tuned. It is worth it!

© Image: Scanrail – stock.adobe.com