What Are the Three Distinct Characteristics That Distinguish Big Data From Traditional Data?
In the fast-paced world of finance, big data is quickly becoming a key player in the decision-making for corporate executives. “Big Data” is the term applied to unstructured and complex information produced by various sources such as telecommunications networks, sensors, computer networks, social networks, and the Internet. Today’s economic, social, and business climates have increased interest among companies in Big Data and its corresponding tools and services. But what are the three distinct characteristics that distinguish big data from traditional data? Following are answers to that question.
The first difference between big data and traditional data is the size. Big data usually refers to information volume. Traditional data on the other hand refers to the condition, number, and quality of the data items. While the quantity of big data may increase over time, traditional data tends to be more easily accessed and used. This facilitates improvement in decision-making processes, especially when it involves complex decision models and mathematical formulas.
The second difference between big data and traditional data relates to time. As mentioned earlier, big data is often produced in large quantities that it takes time to analyze the relevant data. Big data is also a rather new technology and thus it may not be established yet. While some traditional data sets are still decades old, big data sets tend to be up to date and are more commonly available.
The third difference refers to time. Big data is often produced in real time. Traditional data sets are retrieved over time. When traditional data sets are retrieved over time, certain biases that may affect the valuation of the particular set are introduced. This introduces errors and mispricing risks. By contrast, big data can be analyzed in real time and thus produces unbiased results.
In addition to the above three differences, big data also allows for more precise calculation and forecasting. Traditional data sets only allow for approximations. By the time that traditional data sets are calculated, they already contain a great deal of information and may no longer be updated. As a result, the value of the output is affected by information that is outdated.
In the future, many industries may make use of big data analytics in order to facilitate strategic decision-making. It will be used to simplify processes and cut costs. In the short term, companies may make use of big data analytics for obtaining statistical insights on their customers, competitors, product mix, etc.
No matter what the industry or the nature of the business, big data is the inevitable solution. Today, most businesses realize that the traditional data sets that they are currently making use of are too complex and prone to error. Organizations are seeking solutions that will provide them with more accurate, up-to-date and reliable data. Big data analytics is the new wave of the business world, which makes more sense than asking, “What are the three distinct characteristics of big data?” It’s time for companies to upgrade their data systems so that they can compete in today’s increasingly competitive markets.
If you’re not sure how data science fits into your overall business strategy, then ask your business partners and managers to explain it to you. You’ll be surprised at the different perspectives that each of them will have. After all, everyone has a different view of what big data is and how it can help their business succeed. Just keep in mind that big data will always be an integral part of your company’s success.
When you ask the question, “What are the three distinct characteristics of big data?” it’s important to define the term. According to The Dictionary, the word “big” means “compelling and important,” while “data” means “put together in a meaningful way.” Although many business executives might view it as just another buzzword, data science actually covers a wide range of specializations within the field of information technology. One of the most popular applications is known as software engineering, which seeks to improve the design of computer systems by evaluating software requirements as well as applying various techniques to derive optimization solutions.
Just like every other form of technology, big data will continue to evolve and grow. It’s important for companies to understand what will happen to the data once it is collected. Traditional data gathering methods often lead to the creation of duplicate records and errors, which in turn can result in ineffective management. Companies have already begun to embrace big data by building more powerful analytical tools and frameworks to help them analyze data in-house.
However, one of the fastest and most effective ways of exploiting big data is through the development of predictive analytic tools. These tools apply mathematical algorithms to massive amounts of data and then predict what the future holds in store for any given set of data. This allows for the extraction of actionable intelligence from massive amounts of unstructured data at the speed of thought. The answers you receive from predictive analytics provide a fast and effective framework to initiate change and implement strategy. Understanding what are the three distinct characteristics that distinguish big data from traditional data will help you determine if your company needs to embrace this powerful technology.