Big Data - is there value in volume?

“Big Data” is understood to refer to a huge volume of data that cannot be stored and processed within an expected time frame using traditional approaches. But it is more than just volume, as it is also characterised by its velocity, variety and increasingly by its value. However, to realise its value, an organisation has to be able to manage its Big Data.

Big Data encompasses structured and unstructured information. Traditionally most data collected by businesses is stored in structured formats i.e. data organised and formatted in a tabular format using applications (for example, Microsoft Excel). However, increasing amounts of unstructured data is now collected and stored by the many devices that nowadays generate data - for example, printers, electronic or biometric entry devices, smartphones. One illustration of the Big Data explosion is the data stored by social media companies including uploaded videos, comments on people’s posts, location and communication history. Taking Google as an example, it is said to receive an average number of 3.5 billion of search queries per day! Another valuable insight reported by IBM is that 90% of the data in the world today has been created in the last few years alone!

Organizations can realise value from Big Data if it allows business decision-makers to have relevant insights to help their companies compete and grow.  Big Data can also aid in the resolution of business challenges where traditional means may not work - for example, helping financial institutions to detect attempted fraudulent electronic payments.  In addition, Big Data empowers organizations to have a better understanding of their customers by providing answers to questions such as “What types of information will help my customers reduce their costs?”, “Is there any generated data that could bring personalized offers and solutions? “or “Can I deliver service to my customers in a more efficient manner?”. This will allow a more granular segmentation of customers and enable more tailored products or services, and with this greater innovation, increased productivity and ultimately increase revenue.

You have heard it said that “size is not everything”, and indeed whilst significant volume of data can be of great value, the size of the data is not the most critical factor; instead the bigger priority is the right data.  Quality not quantity!

Despite the value that Big Data can bring to the table, many organizations are not effectively using data strategically. Senior executives need to develop a habit of asking questions such as “What does the data say and where did the data come from?” “What kind of analysis was conducted?” and “How assured are we in the results?”.  This kind of attitude can help crystallise insights to enable organisations to better harness big data.

The exponential increase in data collected and processed demands having appropriate tools in order to achieve the strategic objectives and might require management to invest in an effective and competent data management unit and data management solutions or applications. But again, a data management solution must be fit for purpose - if too complex for the team to understand, or too large a system for the business's needs, or an insecure system, then it will not yield the intended results.

In summary, leadership should demand more insight from the data available and use more of this for decision-making, and the focus should not be on the data points themselves but rather the observations, conclusions and predictions that you can derive from them.  This requires investing in the right talent and appropriate technology that will effectively plough through and analyse data in order to realise the benefits of big data…. or “Value from Volume”!

By Najma Hussein, Senior Associate in the Risk Assurance Services.