Explore how big data analytics is transforming real-time decision making across industries...

The role of big data analytics in enabling real-time decision-making cannot be overstated...

Explore the rising significance of predictive analytics in transforming business decision-making, offering insights into future trends and strategic planning.

In the rapidly evolving world of data analytics, predictive analytics is emerging as a transformative force, enabling businesses to make more informed decisions. Within the past few days, the spotlight is on how organizations leverage predictive analytics not just to understand historical data but to anticipate future trends and outcomes.

Predictive analytics employs statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data. As businesses aim to stay ahead in competitive markets, this approach is proving invaluable. It helps in reducing risks, improving operational efficiency, and providing a competitive edge by anticipating customer needs and market trends.

One real-life example of predictive analytics in action is seen in retail. Major retailers are utilizing this technology to anticipate product demand, reducing both over-stock and stockouts, and thereby optimizing their inventory levels. A notable success story is Walmart, which significantly improved its stocking efficiency and customer satisfaction through predictive analytics, resulting in noticeable revenue growth.

In the financial sector, banks and financial institutions are using predictive analytics to assess credit risk by predicting the likelihood of customers defaulting on loans. By analyzing customer data and their transaction histories, banks such as JPMorgan Chase have fine-tuned their lending strategies, reducing losses and identifying new opportunities for customer engagement.

The healthcare industry is also acknowledging the power of predictive analytics. By predicting patient admission rates, healthcare organizations can better allocate resources, reduce waiting times, and improve patient outcomes. For instance, Mount Sinai Hospital deployed predictive analytics to forecast patient flow and improved the management of their healthcare delivery system.

As technology evolves, the adoption of predictive analytics is likely to accelerate, shaping how businesses plan and implement strategies. The recent developments indicate a growing trend where decision-makers are increasingly incorporating predictive data insights into their strategic arsenal, underscoring a shift towards analytics-driven business models.

Explore how predictive analytics is transforming industries by forecasting trends, enhancing customer experiences, and driving financial efficiency.

Predictive analytics has emerged as a significant technological advancement, offering businesses the capability to foresee future outcomes based on historical data. Beyond just number-crunching, it enables organizations to make informed decisions that drive growth and efficiency. Recent trends indicate a growing adoption of predictive analytics across various industries, providing tangible results in strategy formulation and operational enhancement. In financial sectors, predictive analytics is gaining traction for its ability to mitigate risks by identifying potential fraud activities. For instance, renowned firms such as Deloitte have leveraged these analytical tools to support banks in reducing fraudulent transactions, thus saving billions of dollars annually. By crafting algorithms based on past data patterns, financial institutions are better equipped to anticipate and address vulnerabilities before they escalate. The retail industry is no stranger to the benefits of predictive analytics either. Companies like Amazon use it to create personalized shopping experiences, tailoring product recommendations based on user behavior and purchase history. This not only enhances customer satisfaction but significantly boosts sales margins. Retail giants continue to invest in analytics solutions to refine their supply chain operations and optimize stock levels, reducing both waste and costs. Healthcare providers are also riding the predictive analytics wave, using data-driven insights to enhance patient care. Predictive models can flag potential health risks early on, allowing for prompt intervention. This proactive approach not only improves patient outcomes but also alleviates pressure on healthcare systems by reducing hospital readmission rates. Despite its benefits, embracing predictive analytics does not come without challenges. Data privacy remains a paramount concern, with companies striving to balance the need for insight with the obligations of regulatory compliance. The importance of maintaining data integrity and transparency in predictive practices cannot be overstated, as any deviation can lead to flawed outcomes and business decisions. As we navigate this evolving technological landscape, it's vital for businesses to invest not only in technology but also in expertise. Properly skilled data analysts are essential for interpreting complex data and extracting actionable insights. Organizations like PWC underscore the significance of continuous learning and adaptation in harnessing the full potential of predictive analytics. In summary, predictive analytics stands as a powerful tool in the corporate arsenal, delivering substantial advantages across myriad sectors. With careful implementation and a steadfast commitment to ethical practices, businesses can leverage analytics to predict trends, enhance operations, and secure their position at the forefront of innovation.

This article explores the role of predictive analytics in business decision making, highlighting its applications across industries like retail, finance, and healthcare.

In the past few days, the field of analytics has been buzzing with discussions around predictive analytics, which is emerging as a critical tool for business decision makers. Predictive analytics uses historical data, statistical algorithms, and machine learning techniques to forecast future outcomes. This has made it a game-changer for businesses aiming to stay ahead of their competition.

Predictive analytics can transform vast amounts of data into actionable insights. For example, in retail, companies like Amazon and Walmart harness predictive models to anticipate customer purchasing behavior and optimize their inventory levels accordingly. This capability not only reduces costs but also enhances customer satisfaction by ensuring that products are available when customers need them.

In the financial sector, predictive analytics is significantly influencing risk management. By assessing the likelihood of default on loans, financial institutions can make more informed lending decisions. A study by the International Finance Corporation highlighted that companies using predictive models reduced loan losses by over 20%, showcasing the real-world impact of this technology.

Healthcare providers are also leveraging predictive analytics to improve patient outcomes. By analyzing patient data, hospitals can identify individuals at high risk of chronic diseases and intervene earlier. Predictive models have proven particularly effective in managing diabetes and cardiovascular diseases, where early detection and lifestyle changes can lead to much better health outcomes.

The adoption of predictive analytics across various industries is not without challenges. Data privacy concerns are at the forefront, especially given the increasing amount of personal data being analyzed. Businesses must ensure compliance with regulations such as GDPR and CCPA to maintain consumer trust. Furthermore, integrating predictive analytics with existing business processes requires substantial investment in technology and skills development.

Despite these hurdles, the potential benefits of predictive analytics are pushing companies to invest heavily in this area. The global market for predictive analytics is expected to grow steadily, providing new opportunities for innovation and business growth.

As predictive analytics continues to evolve, it is crucial for businesses to foster a data-driven culture. Decision makers must promote the use of data in strategizing and operational planning to fully harness the potential of predictive analytics. By doing so, they unlock new ways to improve efficiency, reduce risks, and, above all, enhance customer experiences.

Ever since the invention of computers many developments have shaped human lives. The invention of the internet was a landmark achievement which set up the stage for more things that followed. Many would have thought that the internet was the biggest thing ever but it was only a lead-in to developments in the world of big data, AI and IoT.  Big data, AI and IoT have revolutionized the world we live in but what exactly are these terms?

AI, IoT, and big data are among the most talked about topics but still highly misunderstood. The tech jargons has been difficult to grasp for non-tech people but this article sheds a little light on the difference between the three terms, how they are related and how they differ.

The advent of social media and e-commerce led by Facebook and Amazon respectively shook the existing infrastructure. It also altered the general view of data. Businesses took advantage of this phenomenon by analyzing social media behavior through the available data and using it to sell products. Companies began collecting large volumes of data, systematically extracting information and analyzing it to discover customer trends. The word big data then became appropriate because the amount of data was orders of magnitude more than what had previously been saved. Basically, big data are extremely large sets of data which can be analyzed to reveal patterns, associations, and trends by using specialized programs. The main aim of doing so is to reveal people’s behavior and interactions, generally for commercial purposes.

Once the concept of big data had settled in and the cloud became a convenient and economical   solution for storage of huge volumes of data companies wanted to analyze it more quickly and extract value. They needed to have an automated approach for analyzing and sorting data and making decisions based on accurate information by businesses.

To achieve this, algorithms were developed to analyze data which can then be used to make more accurate predictions on which to base decisions.

Cloud’s ability to enable storage coupled with the development of AI algorithms that could predict patterns of data, meant that more data became a necessity and so was the need for systems to communicate with each other. Data became more useful as AI systems began to learn and make predictions.

The internet of things (IoT) is a collection of devices fitted with sensors that collect data and send it to storage facilities. That data is then leveraged to teach AI systems to make predictions These concepts are now making way into our homes as smart homes, smart cars, and smartwatches which are in common use..

In short, big data, AI and IoT are interrelated and feed off each other. They depend on each other for operations as AI uses the data generated by IoT. On the other hand, huge datasets would be meaningless without proper methods of collection and analysis. So yes, big data, IoT and AI are related.

The concept of big data has been around for a number of years. However, businesses now make use of big data analytics to uncover trends and gain insights for immediate actions. Big Data Analytics are complex processes involved in examining large and varied data set to uncover information such as unknown correlations, market trends, hidden patterns, and customer’s preferences in order to make informed business decisions.

It is a form of advanced analytics that involves applications with elements such as statistical algorithms powered by high-performance analytics systems.

Why Companies Use Big Data Analytics

From new revenue opportunities, effective marketing, better customer services, improved operational experience, and competitive advantages over rivals, big data analytics which is driven by analytical software and systems offers benefits to many organizations.

• Analyze Structured Transaction data: Big data allows data scientists, statisticians, and other analytics professionals to analyze the growing volume of structured transaction data such as social media contents, text from customer email, survey responses, web server logs, mobile phone records and machine data captured by sensors connected to the internet of things. Examining these types of data help to uncover hidden patterns and give insight to make better business decisions.
• Boost Customer Acquisition and Retention: In every organization customers are the most important assets; no business can be successful without establishing a solid customer base. The use of big data analytics helps businesses discover customers’ related patterns and trends; this is important because customers’ behaviors can indicate loyalty. With big data analytics in place, a business has the ability to derive critical behavioral insights it needs to retain uts customer base. A typical example of a company that makes use of big data analytics in driving client retention is Coca-Cola which strengthened its data strategy in 2015 by building a digital-led loyalty program.
• Big Data Analytics offers Marketing Insights: In addition, big data analytics helps to change how business operates by matching customer expectation, ensuring that marketing campaigns are powerful, and changing the company's product line. It also provides insight to help organizations create a more targeted and personalized campaign which implies that businesses can save money and enhance efficiency. A typical example of a brand making use of big data analytics for marketing insight is Netflix. With over 100 million subscribers; the company collects data which is the key to achieving the industry status Netflix boasts.
• Ensures Efficient Risk Management: Any business that wants to survive in the present business environment and remain profitable must be able to foresee potential risks and mitigate them before they become critical. Big data analytics helps organizations develop risk management solutions that allow businesses to quantify and model risks they face daily. It also provides the ability to help a business achieve smarter risk mitigation strategies and make better decisions.
• Get a better understanding of their competitors: For every business knowing your competitors is vital to succeeding and growing. Big data algorithms help organizations get a better understanding of their competitors, know recent price changes, make new product changes, and discover the right time to adjust their product prices.

Finally, enterprises are understanding the benefits of making use of big data analytics in simplifying processes. From new revenue opportunities, effective marketing, better customer services, improved operational experience, and competitive advantages over rivals, the implementation of big data analytics can help businesses gain competitive advantages while driving customer retention.

According to reports, the global big data as a service (BDaaS) industry is expected to grow significantly in the coming years. The sector was valued at $4.99 billion in 2018 but will likely reach more than$61 billion by 2026. This growth is attributed to the fast adoption of big data as a service in different industries. Other factors that are expected to drive the BDaaS industry are the rising demand for actionable insights and the increasing organizational data across businesses due to the digitization and automation of most business processes. Here are trends that you should expect in the BDaaS industry:

• The increased adoption of BDaaS by social media platforms will lead to growth

The increase in digitization and automation of business processes is the leading factor in the adoption of BDaaS and its subsequent market growth. With the ongoing deployment of the 5G infrastructure, this demand will become rapid as social media platforms such as Snapchat, Instagram, Twitter, Facebook, and YouTube, among others, embrace data as the main approach to reaching customers for growth. Consequently, social media platforms will play a crucial role in the rising global BDaaS market.

• Big companies will hold the largest share

Large multinationals continue to lead in the adoption of BDaaS solutions. With competition heating up, they are likely to continue investing in these solutions as they seek to access customer data and gather the right insights for improved decision-making. They help collect data scattered in various locations or departments to gain valuable insights through big data analysis. Large corporations are spending large amounts of money on training their employees and leveraging the benefits of BDaaS solutions as they seek to edge their competitors and know exactly what their customers want.

• Hadoop will continue in its leadership in this area

In the last year, Hadoop was a significant player in big data as a service. The Hadoop-as-a-service segment held about 31.6%, with the rest sharing the remaining 68.4%. Moving forward, this Hadoop segment is expected to grow exponentially, gaining more CAGR in the future as the craze for BDaaS continues rising. The growth will result from the continued adoption of Hadoop-as-a-service solutions among the small and medium-sized companies (SMEs) worldwide who seek to take advantage of this technology in their service provision. 

• North America will continue dominating BDaaS investments

In 2020, North America was leading in BDaaS investments with $ 6.33 billion. This region is expected to continue holding the leadership spot between now and 2026 in terms of adopting big data as a service and the revenue coming from this industry. This is due to the number of significant players that will invest in it and others such as Intel Corporation that will go on manufacturing chips that will help in the expansion of the existing storage. However, the Asia Pacific region will register a significant increase as countries such as India, China, Japan, and South Korea raise their investments.

• Large companies will embrace joint ventures to strengthen their positions in the market

Large companies that have a global presence are looking for better alternatives to stay ahead in the competition. One of the strategies includes mergers, acquisitions, partnerships, and joint ventures. In most cases, smaller companies are acquired by bigger ones, while others may strike partnership deals to compete favorably in the market. IBM is one of the companies with large big data as a service market share and has been launching solutions and building partnerships that help companies gather data of customers for use in marketing and decision-making activities.

While the coronavirus pandemic has left the world bleeding, it has also highlighted weaknesses in the global healthcare systems that were hidden before. It is evident from the response to the pandemic that there was no plan in place on how to treat an unknown infectious disease like Covid_19. Despite the challenges that the world is facing, there is hope in big data and big data analytics. Big data has changed how data management and analysis is carried out in healthcare. Healthcare data analytics is capable of reducing the costs of treatment and can also help in the prediction of epidemics’ outbreak, prevent diseases, and enhance the quality of life.

Just like businesses, healthcare facilities collect massive amounts of data from patients during their hospital visits. As such, health professionals are looking for ways in which data collected can be analyzed and used to make informed decisions about specific aspects. According to the International Data Corporation report, big data is expected to grow faster in healthcare compared to other industries such as manufacturing, media, and financial services. The report estimates that healthcare data will experience a compound annual growth of 36% by 2025.

Here are some ways in that big data will make a difference in hospitals.

1. Healthcare tracking

Along with the internet of things, big data and analytics are changing how hospitals and healthcare providers can track different user statistics and vitals. Apart from using data from wearables, that can detect the vitals of the patients, such as sleep patterns, heart rate, and exercise, there are new applications that monitor and collect data on blood pressure, glucose, and pulse, among others. The collection of such data will allow hospitals to keep people out of wards as they can manage their ailments by checking their vitals remotely.

2. Reduce the cost of healthcare

Big data has come just at the right time when the cost of healthcare appears to be out of reach of many people. It is promising to save costs for hospitals and patients who fund most of these operations. With predictive analytics, hospitals can predict admission rates and help staff in ward allocation. This reduces the cost of investment incurred by healthcare facilities and enables maximum utilization of the investment. With wearables and health trackers, patients will be saved from unnecessary hospital visits, and admissions, since doctors can easily track their progress from their homes and data collected, can be used to make decisions and prescriptions.

3. Preventing human errors

It is in records that medical professionals often prescribe the wrong medication to patients by mistake. These errors have, in some instances, led to deaths that would have been prevented if there were proper data. These errors can be reduced or prevented by big data, that can be leveraged in the analysis of patient data and prescription of medication. Big data can be used to corroborate and flag a specific medication that has adverse side effects or flag prescription mistake and save a life.

4. Assisting in high-risk patients

Digitization of hospital records creates comprehensive data that can be accessed to understand the patterns of a particular group of patients. These patterns can help in the identification of patients that visit a hospital repeatedly and understand their health issues. This will help doctors identify methods of helping such patients accurately and gain insight for corrective measures, that will reduce their regular visits.

Big data offers obvious advantages to global healthcare. Although many hospitals have not fully capitalized on the advantages brought about by this technology, the truth is that using it will increase efficiency in the provision of healthcare services.

Datanomix Inc. today announced the availability of its Fusion platform in the Microsoft Azure Marketplace, an online store providing applications and services for use on Microsoft Azure. CNC manufacturing companies can now take advantage of the scalability, high availability, and security of Azure, with streamlined deployment and management. Datanomix Fusion is the pulse of production for modern machine shops. By harnessing the power of machine data and secure cloud access, Datanomix has created a rich visual overlay of factory floor production intelligence to increase the speed and effectiveness of employees in the global Industry 4.0 workplace.

Datanomix provides cloud-based, production intelligence software to manufacturers using CNC tools to produce discrete components for the medical equipment, aerospace, defense and automotive industries with its Fusion platform. Fusion is accessible from any device, giving access to critical insights in a few clicks, anytime and anywhere. Fusion is a hands-free, plug-and-play solution for shop floor productivity. 

By establishing a data connection to machines communicating via industry-standard protocols like MTConnect or IO-Link, Fusion automatically tracks what actual production is by part and machine and sets a benchmark for expected performance. To measure performance against expected benchmarks, a simple letter grade scoring system is shown across all machines. In cases where output has not kept pace with the benchmark, the Fusion Factor would decline, informing workers that expected results could be in jeopardy. 

“Our Fusion platform delivers productivity wins for our customers using a real-time production scoring technology we call Fusion Factor,” said John Joseph, CEO of Datanomix. “By seeing exactly what is happening on the factory floor, our customers experience 20-30% increases in output by job, shorter time to problem resolution and a direct correlation between part performance and business impact. We give the answers that matter, when they matter and are excited to now give access to the Azure community.” 

By seeing the entire factory floor and providing job-specific production intelligence in real-time, there is no more waiting until the end of the day to see where opportunities for improvement exist. In TV Mode, displays mounted on the shop floor rotate through the performance metrics of every connected machine, identifying which machines need assistance and why.

“TV Mode has created a rallying point that didn’t exist on the shop floor previously. Fusion brings people together to troubleshoot today’s production challenges as they are happening. The collaboration and camaraderie is a great boost not only to productivity, but also morale,” says Joseph.  

Continuous improvement leaders can review instant reports offered by Fusion that answer common process improvement questions ranging from overall capacity utilization and job performance trends to Pareto charts and cell/shift breakdowns. A powerful costing tool called Quote Calibration uses all of the job intelligence Fusion collects to help business leaders determine the actual profit and loss of each part, turning job costing from a blind spot to a competitive advantage.

Sajan Parihar, Senior Director, Microsoft Azure Platform at Microsoft Corp. said, “We’re pleased to welcome Datanomix to the Microsoft Azure Marketplace, which gives our partners great exposure to cloud customers around the globe. Azure Marketplace offers world-class quality experiences from global trusted partners with solutions tested to work seamlessly with Azure.”

The Azure Marketplace is an online market for buying and selling cloud solutions certified to run on Azure. The Azure Marketplace helps connect companies seeking innovative, cloud-based solutions with partners who have developed solutions that are ready to use.

Learn more about Fusion at its page in the Azure Marketplace.

Discover the trend of new naming conventions in data science tools, enhancing clarity, accessibility, and inclusivity for better data-driven decisions.

In recent years, the rapid evolution of data science tools has transformed the way businesses operate and make informed decisions. Within this transformative landscape, a noteworthy trend has emerged – the shift towards new naming conventions for analytical tools. This trend reflects the dynamic changes in the field and signals a future of continuous innovation.

The adoption of intuitive and descriptive names for data science tools has gained traction as businesses seek more approachable and user-friendly analytical solutions. In the past, complex acronyms and jargon-heavy names made it challenging for non-technical professionals to navigate and effectively utilize these tools. Today, however, companies are gravitating towards names that convey functionality and simplify the user experience.

A notable example of this trend can be seen with Tableau, a data visualization tool that has embraced user-friendly terminology throughout its evolution. Instead of relying on technical acronyms, Tableau has focused on simplifying its product features, such as "Visual Explorer" and "Data Interpreter." By prioritizing clarity, Tableau empowers users across various departments to harness the power of data without needing deep technical expertise.

This shift aligns with the increasing demand for data democratization within organizations. As more departments seek to leverage analytical insights, the tools themselves must facilitate collaboration and ease of use. By employing clear and intuitive naming conventions, organizations encourage cross-departmental synergy and drive better business outcomes.

There's an evident parallel between the evolution of tool names and the growing emphasis on data literacy. As companies prioritize upskilling their workforce, simplifying tool nomenclature becomes integral to enabling employees to engage with data analytics confidently. This trend goes beyond mere branding; it's a strategic approach to foster engagement and encourage wider adoption of analytical tools.

Moreover, the new naming conventions reflect a commitment to accessibility and inclusivity. By adopting language that resonates with a broader audience, businesses remove barriers that have historically hindered data-driven decision-making. This approach empowers individuals to explore data independently, leading to innovative solutions that drive organizational growth.

As data science continues to evolve, embracing new naming conventions for analytical tools serves as a vital component of this evolution. By prioritizing clarity, accessibility, and inclusivity, companies enhance their competitive edge in an increasingly data-centric world. With an emphasis on empowering users, the future of analytical tools promises to be both transformative and engaging.

Data has become one of the most crucial resources in organizations today. Unlike in the past, no business can succeed without data which is vital in decision-making. With massive amounts of data being generated every second from business transactions, customer interactions, and sales figures emanating from various sales platforms, data has become the fuel that drives businesses. All this data is referred to as big data. Data from multiple sources coming to an organization needs to be gathered and analyzed to enhance decision-making. However, this is easier said than done. There are various challenges to big data that are encountered during this process. Here are some of the issues that you should manage in your big data initiative.

• Inadequate understanding of big data

Many organizations fail in their big data initiatives due to inadequate understanding of this concept and how it works. Most employees do not know what big data is, how it is stored, processed, and used in decision-making as well as its importance. On the other hand, professionals might be aware of it, but others may lack comprehensive knowledge that could have been helpful to their respective organizations.

• Too many big data technologies

Big data technologies are coming to the market thick and fast. Although this is a good thing for big data, it is easy for professionals and organizations’ leadership to get lost in the technologies that are now available in the market. For instance, choosing the right technology between Spark or Hadoop MapReduce will become a challenge. Similarly, it becomes difficult selecting one between Cassandra or HBase in the storage of data. Without the proper knowledge, the availability of these technological opportunities can hinder appropriate decision-making. This can only be sorted if those new to the world of big data seek professional help. Hire the right people for consultation.

• Data growth challenges

The rapid increase in the amount of data that requires storage is one of the most pressing challenges in the era of big data. The amount of data streaming into data centers and databases is rising rapidly. With this exponential growth, it becomes tough to handle data. Most of this data is in different formats, mostly unstructured, and comes in forms such as free-text, videos, audio, documents, and other sources. This data can be handled by adopting modern technologies such as tiering, compression, and deduplication. Doing so reduces the number of bits or size while deduplication removes duplicated data from a dataset. Tiering, on the other hand, enables companies to store data in different storage tiers.

• Inadequate data professionals

To effectively use big data technologies and tools, companies need skilled professionals. These professionals include data scientists, analysts, and data engineers, knowledgeable and experienced in working with tools and translating big data sets. As the adoption of big data increases, organizations continue facing a challenge in getting enough data professionals to help them in implementing their big data initiatives. This means that more actionable steps from different stakeholders are needed to sort out this issue and avail enough data scientists.

• Security

With data becoming a valuable resource for organizations, malicious actors look for ways to access it and use it for their personal gain. As such, securing data has become one of the biggest challenges of big data. Sadly, most companies concentrate on understanding, storing, and analyzing data while leaving security for the last. This is not a good move since unprotected datasets can become a target for malicious actors. This may lead to massive losses in case of a breach.

In the world today, we are facing three technologies that have the potential to take how we work or do things to a new level. These technologies are big data, the internet of things (IoT), and artificial intelligence (AI). These three technologies work together in many perspectives and can take different industries and businesses to the next level. Although they are closely related, they are so distinct in a variety of ways. The main question, however, is what will happen if two of these three works together? Here, we highlight the relationship between the internet of things and big data, two of the three technologies that are currently a buzzword in every tech discussion.

To understand the relationship between IoT and big data, we first have to look at the role of big data and its important characteristics.

What is big data?

Big data means massive amounts of information. It is data that comes from different sources in various forms. Until recently, organizations had the potential to collect massive amounts of data, but computers had no potential to process large amounts of data. However, this has been made possible by increasing computing power, allowing organizations to process and use data in their decision-making. Through advanced software and applications, businesses can now sift through large data for actionable insights, which are helpful in the decision-making

The primary characteristics of big data include what is known as the “four Vs.”. They include volume, variety, velocity, and veracity. The volume describes the massive amounts of data coming from different sources such as social media, sensors, emails, and online transactions. According to statistics, accumulated data is about 44 zettabytes. Data comes in various forms and types, such as social media posts, videos, plaintext, etc. This is where the attribute of variety comes from. Velocity describes the speed at which data is collected from various sources, while veracity refers to the truthfulness or accuracy of a specific data set.

Big data and IoT

IoT and big data are critical technologies in the world that is completely data-driven. The two helps businesses get actionable insights that can be used to make crucial decisions. Data gathered from different transactions can be leveraged by industry. IoT devices such as connected sensors and other “things” collect data and feed into an ocean of big data. These many sensors and “things” contribute to extremely large volumes of data gathered in different industries such as retail, supply chain, and smart homes and can be used to make certain decisions that can help in aspects such as asset management, tracking assets, or fleet, remote monitoring of patients and more.

There is no doubt that IoT makes it easy to gather data with the help of connection techniques in different appliances.  On the other hand, the big data and analytics tools are useful in putting together large data streaming from IoT devices to ease the management of data in organizations. Many IoT devices depend on cloud computing or communication with a remote server in the processing of data. However, there is now the idea of edge processing where the device can process data locally. Big data and IoT depend on each other for success. Both aim at converting data into actionable insight.  For example, shipping companies attach IoT devices to their trucks, planes, boats, or even trains to track aspects such as speed, the status of the engines, and the status of the items in transit. The sensors can also track things such as stops and routes to aid in fast decision-making concerning the need for maintenance and general performance.

The combination of IoT with big data analytics leads to cost savings, enhanced efficiency, and better use of the company’s resources.

2020 was a year with so many domestic and global challenges. But the big data industry seems to have grown, even more, gaining more force moving into 2021. The growth in this area was occasioned by the rise in online activities due to the pandemic. As we start a new year, big data is expected to grow even more to heights never experienced before. Despite the growth, many challenges should be expected in 2021. Here are some of the 2020 big data challenges that are not likely to go away in 2021:

• Growth of data

One of the biggest challenges for any big data initiative is the storage of data. This has been made worse by the exponential growth of data with time. With this, enterprises are now struggling to find ways of storing data that come from diverse sources and in different formats. The challenge is accommodating either structured or unstructured data in formats such as audio, video, or text. To make it worse, such formats, mainly unstructured, are hard to extract and analyze. These are the issues that impact the choice of infrastructure. Solving the challenge of data growth demands facilitation through software-defined storage, data compression, tiering, and duplication to reduce space consumption and minimize costs. This can be achieved through tools such as Big Data Analytics software, NoSQL databases, Spark, and Hadoop.

• Unavailability of data

One reason why big data analytics and big data projects fail is because of a lack of data. This can be caused by failure to integrate data or poor organization. New data sources must be integrated with the existing ones to ensure enough data from diverse sources is useful in analytics and decision-making.

• Data validation

As highlighted before, the increasing number of devices means more data from diverse sources. This makes it difficult for organizations to validate the source or data. Also, matching data from these sources and separating the accurate, usable, and secure data (data government) is a challenge that will linger for some time. It will require not only the hardware and software solutions but also teams and policies that will ensure this is achieved. Further, data management and governance solutions that will ensure accuracy will be needed, therefore increasing the cost of operations.

• Data security

Security continues to be one of the biggest challenges in big data initiatives, especially for organizations that store or process sensitive data. Such data is a target for hackers who want to access sensitive information and use it for malicious purposes. As big data initiatives increase, the number of hacking cases is expected to rise. The cases of theft of information are expected to rise. The loss of information can cost billions of dollars for a company due to lawsuits and compensation to the affected parties. The data security challenge will increase operational cost since cybersecurity professionals, real-time monitoring, and data security tools will be required to secure data and information systems.  

• Real-time insights

Datasets are a great source of insights. However, they are of little or no value at all if they are not insightful in real-time. Big data should generate fast and actionable data that brings about efficiency in result-oriented tasks such as new product or service launch.  It must offer information that will help create new avenues for innovation, speeding up service delivery, and reducing costs by eradicating service and operational bottlenecks. The biggest challenge going forward is generating timely reports and insights that will help satisfy customers who are becoming so demanding. This requires organizations to invest in more sophisticated analytics tools that will enable them to compete in the market.