So what is ‘big data’? I’d heard this word being thrown around so often last year but I only just found out what it really means. Big data refers to a massive volume of both structure and unstructured data that is so large that it’s difficult to process using traditional database and software techniques. Data has flooded into every industry and business function and is now an important factor of production, alongside labor and capital. Big data can unlock significant value by making information transparent and usable at much higher frequency. For instance, data from blogs, social media networks, machine sensors, and location-based tools can help companies uncover facts and patterns they weren’t able to recognize in the past. Bid data analytics opens up infinite opportunities.

Leading companies are using data collection and analysis to conduct controlled experiments to make better management decisions. Others are using data for basic low-frequency forecasting to high-frequency nowcasting to adjust their business in time. Big data allows narrower segmentation of customers and therefore much more precisely tailored products or services. Big data can also be used to improve the development of the next generation of products and services. For example, several manufacturers such as Ford are using big data obtained from sensors embedded in products to improve their products as well as create innovative after-sales service offerings such as proactive maintenance. Therefore the effective use of big data will play a key role in giving individual firms a competitive advantage and in increasing productivity growth.

Of course, with every technological advancement come several issues such as policies related to privacy, security, intellectual property, and liability and these will need to be addressed in order to capitalize on the full potential of big data analytics.

Interesting fact: Obama used big data in his campaign to win the election.See how he did this HERE!