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Multimatics Insight

Get to Know More about Big Data and the 5 V's!

Get to Know More about Big Data and the 5 V's!

Data is not a new thing in business, but nowadays it has become one of the main issues that enterprises need to be able to address as it is growing at an unprecedented pace due to digital transformation. In today’s digital era, more advanced devices and social applications are extensively used, resulting in rapid data growth. This data set is so enormous that traditional data processing software will not be able to manage it. Therefore, enterprises need Big Data to manage the data.

Big Data and the 5 V's

Big data refers to the large and diverse sets of information that is growing at ever-increasing rates. Big data can be collected from publicly shared comments on social networks and websites, voluntarily collected from personal devices and apps, through questionnaires, product purchases, and electronic check-ins which later will be mined for information and used in machine learning projects, predictive modelling, and other advanced analytics applications. The data will be stored in computer databases and is analysed using software specifically designed to handle large and complex data sets.

Big data is often characterized by the 5 V's: volume, velocity, variety, veracity, and value. Volume refers to the initial size and amount of the data that enterprises have collected. The data can be considered as big data if it is relative and is likely to change. While velocity refers to the speed at which most data is generated, collected, and processed. This is a crucial aspect for enterprises requirements that need their data to flow quickly, so that the data will be available right when they want to make the best business decisions.

Meanwhile variety refers to the data types that are often stored in big data system. Enterprises might obtain data from several different data sources and the data can be categorized into three types. The variety of big data will be further discussed in the following paragraph. Next, veracity refers to the quality and accuracy of data. This relates to the level of trust there is in the collected data. Lastly, value refers to the value that big data can provide, and it is directly related to what enterprises can do with that data.

Variety of Big Data

The enormous growth of data from diverse sources is changing the complete scenario of the database world. The different forms of data available in the digital world require different data models for their storage, processing, and analysis. The variety of big data consists of three types of big data which will be further discussed in the following paragraphs.

Structured data is usually categorized as quantitative data. This data is easy to enter, store, and analyze. Structured data is stored in the form of rows and columns which are easy to manage with a language called Structured Query Language (SQL).

On the other hand, semi-structured data (e.g., JSON, CSV, XML) is like the bridge between structured and unstructured data. It uses metadata (e.g., tags and semantic markers) to identify specific characteristics of data and scale the data into records and predefined fields.

While unstructured data cannot be processed and analyzed through conventional data tools and methods as there is no predefined data model. Thus, it is best managed in non-relational (NoSQL) databases and another way is by using data lakes to preserve it in raw form.

Why Big Data Matters

Organizations using Big Data will know what their customers want, who their best customers are, and why people choose different products, resulting in better customer service. They can use historical and real-time data to assess ever-changing customer preferences. Then, organizations can improve and update their marketing strategies which make them more responsive to customer needs.

As a result, organizations will be able to improve their operations, create better marketing campaigns, and take other actions that can increase revenue and profits. They will also have a potential competitive advantage because they can reduce the amount of time and resources required to make business decisions, gain market adoption, target customers, and to ensure customers remain satisfied.

Conclusion

To sum up, Big Data is proven to increase business effectiveness and revenue. In addition, it allows enterprises to have a potential competitive advantage. Therefore, enterprises should get to know more about Big Data, including its characteristics and variety, to understand why it matters to their business growth.

Reference:
Gillis, A. S. (2021, March 24). 5 V’s of big data. SearchDataManagement. https://searchdatamanagement.techtarget.com/definition/5-Vs-of-big-data
IBM Cloud Education. (2021, June 29). Structured vs. Unstructured Data: What's the Difference? IBM. https://www.ibm.com/cloud/blog/structured-vs-unstructured-data
Segal, T. (2021, January 1). Big Data. Investopedia. https://www.investopedia.com/terms/b/big-data.asp
Team, T. (2021, June 16). Why Big Data – Benefits and Importance of Big data. TechVidvan. https://techvidvan.com/tutorials/why-big-data/

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