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Why Is BIG Data Important?
Why Is BIG Data Important?
| March 2012 | 1
www.navint.com
Why is BIG Data Important? | March 2012 | 2
The complex nature of big data is primarily Big Data Value Potential(*)
driven by the unstructured nature of much of the $300 billion annual value to US healthcare
data that is generated by modern technologies, more than twice the total annual healthcare
such as that from web logs, radio frequency Id spending in Spain.
(RFID), sensors embedded in devices, $600 billion potential annual consumer surplus
machinery, vehicles, Internet searches, social from using personal location data globally.
networks such as Facebook, portable computers, 60% - potential increase in retailers operating
smart phones and other cell phones, GPS margins possible via use of big data.
devices, and call center records. In most cases,
in order to effectively utilize big data, it must be Big Data Industry Examples
combined with structured data (typically from a Major utility company integrates usage data
relational database) from a more conventional recorded from smart meters in semi real-time
business application, such as Enterprise into their analysis of the national energy grid.
Resource Planning (ERP) or Customer Pay television providers have begun to
Relationship Management (CRM). customize ads based on individual household
demographics and viewing patterns.
A major entertainment company is able to
Similar to the complexity, or variability, aspect
analyze its data and customer patterns across
of big data, its rate of growth, or velocity aspect, its many and varied enterprises e.g. using park
is largely due to the ubiquitous nature of modern attendance, on-line purchase, and television
on-line, real-time data capture devices, systems, viewership data.
and networks. It is expected that the rate of The security arm of a financial services firm
growth of big data will continue to increase for the detects fraud by correlating activities across
foreseeable future. multiple data sets. As new fraud methods are
detected and understood, they are used to
Specific new big data technologies and tools encode new algorithms into the fraud detection
have been and continue to be developed. Much system.
of the new big data technology relies heavily on
massively parallel processing (MPP) databases,
which can concurrently distribute the processing
of very large sets of data across many servers.
www.navint.com
contactus@navint.com
888.607.6575
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Why is BIG Data Important? | March 2012 | 3
For example:
The proliferation of smart phones and other GPS devices offers advertisers an opportunity to
target consumers when they are in close proximity to a store, a coffee shop or a restaurant. This
opens up new revenue for service providers and offers many businesses a chance to target new
customers.(**)
Retailers usually know who buys their products. Use of social media and web log files from their
ecommerce sites can help them understand who didnt buy and why they chose not to,
information not available to them today. This can enable much more effective micro customer
segmentation and targeted marketing campaigns, as well as improve supply chain
efficiencies.(**)
Other widely-cited examples of the effective use of big data exist in the following areas:
Using information technology (IT) logs to improve IT troubleshooting and security breach
detection, speed, effectiveness, and future occurrence prevention.
Use of voluminous historical call center information more quickly, in order to improve
customer interaction and satisfaction.
Use of social media content in order to better and more quickly understand customer
sentiment about you/your customers, and improve products, services, and customer
interaction.
Fraud detection and prevention in any industry that processes financial transactions on-
line, such as shopping, banking, investing, insurance and health care claims.
Use of financial market transaction information to more quickly assess risk and take
corrective action.
www.navint.com
contactus@navint.com
888.607.6575
This message and any attachment are confidential and may be privileged or otherwise protected from disclosure and solely for the use of the person(s) or
entity to which it is intended. If you are not the intended recipient, be advised that any use of this message is prohibited and may be unlawful, and you must
not copy this message or attachment or disclose the contents to any other person.
Why is BIG Data Important? | March 2012 | 4
www.navint.com
contactus@navint.com
888.607.6575
This message and any attachment are confidential and may be privileged or otherwise protected from disclosure and solely for the use of the person(s) or
entity to which it is intended. If you are not the intended recipient, be advised that any use of this message is prohibited and may be unlawful, and you must
not copy this message or attachment or disclose the contents to any other person.
Why is BIG Data Important? | March 2012 | 5
Navint is a different kind of management consulting firm, excelling in large scale business process
change. With offices in New York, Chicago, Boston, Pittsburgh, Philadelphia and Rochester, Navints
consultants specialize in managing the alignment of people, processes and technology when
organizations face operational restructuring and IT transformation. A unique blend of experience and
innovative thinking allows Navint consultants to address clients' business challenges in imaginative
ways. http://www.navint.com/
www.navint.com
contactus@navint.com
888.607.6575
This message and any attachment are confidential and may be privileged or otherwise protected from disclosure and solely for the use of the person(s) or
entity to which it is intended. If you are not the intended recipient, be advised that any use of this message is prohibited and may be unlawful, and you must
not copy this message or attachment or disclose the contents to any other person.