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NewsThursday August 13th, 2020

Getting to Know BIG Data and Why…

In today’s digital transformation era, there is one more thing that has caught the world’s attention; it is Big Data. Today’s big businesses are investing large sums of money specifically for Big Data. So, what is big data, and why is it so important now (maybe even in the future)?

Every day, human activities on computers/smartphones, surfing the internet, on social media, in marketplaces/e-commerce generate data. The data collected is in the form of pictures, writings, videos, purchase notes, and so on. All of this data is stored by devices, websites, browsers, etc.

As these online activities are carried out every day, the data also changes every second. It certainly is a headache to be processed traditionally. 

Definition of Big Data

There is no standard definition for Big Data. Big Data is a term to describe an extensive, fast-changing, and complex data. As the data is gigantic, it becomes impossible to process it using traditional methods.

There are three characteristics in big data, namely volume, velocity, and variety.

  1. Volume. Big data includes a large size of data, which is quite challenging to handle.
  2. Velocity. About the speed at which data is received and processed for immediate use. This speed is close to real-time.
  3. Variety. Variety relates to the types of data available, structured, or unstructured. Such data are, for example, text, audio, and video, which take time to be processed.

Why is Big Data Important?

Big Data becomes essential when you know how to use it. Data that is created every day and increases every second will become trash if it is only stored. Meanwhile, to process all those data is complicated because of the large volume.

But in reality, Big Data attracts big businesses to invest a large sum of money. There must be something in Big Data that attracts these gentlemen in big companies. For a visionary person, Big Data allows people to find answers to several problems such as:

  1. Reduced costs
  2. Reduced time
  3. New product development
  4. Smart decision making

Big Data, combined with high-power analytics, can be a powerful and beautiful combination. Various problems in business can almost certainly be answered with these two things, for example, to:

  1. Determine the root causes of failure, problems, in real-time
  2. Knowing customer habits
  3. Calculating risk in minutes
  4. Detecting fraudulent behavior
  5. And many more

According to www.wartaekonomi.co.id, Big Data is used in almost every industry in Indonesia, especially in the current industrial 4.0 era. Several companies in Indonesia are known to have used Big Data for business purposes.

Kredivo, for example, makes Big Data analysis as the basis for credit scoring in their applications. Other IT-tech-based companies such as Go-Jek, Grab, OVO, etc. also use Big Data both for product offerings and for solving problems.

Reference:

https://www.sas.com/id_id/insights/big-data/what-is-big-data.html

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