In today’s world, data is becoming more and more valuable with time. Every successful firm in the world is now turning towards the use and implementation of data. This happens because big data helps these firms by providing them with more and more growth opportunities and ultimately helping them form new categories that can combine and analyze technical data that is used in the long run to increase efficiency and profitability.
What is Big Data?
Before moving on to the main advantages and disadvantages of Big Data, it is necessary to know what it is. By definition, Big Data refers to vast and massive data sets that can either be structured or unstructured. Big Data Analytics is further used to make good use of the data available. This is the necessary process of examining massive data sets to study trends and patterns.
What are the advantages and disadvantages of Big Data?
Like everything around us, big data also has a fair share of pros and cons. These pros and cons are studied and researched to make sure that their use and implementation is effective. Both large and smaller firms can use big data, and hence their benefits are not only limited to a specific type of business or industry.
The first significant advantage is that the use of big data increases efficiency. Using data tools that are readily available online can significantly reduce the time taken to complete a specific task. Getting work done more productively and in a little amount of time can substantially improve efficiency. Secondly, making appropriate use of big data can give a firm a competitive edge. Analyzing big data can result in a major improvement in certain aspects of operations. For instance, big data can help retailers to improve their inventory management. Appropriate use of big data can also lead to effective detection of fraud. Banks and other financial institutions are known to optimize security systems using big data. Conclusively and collectively, all significant advantages lead to the last point, which is related to costs and profits. Big data does ultimately cut down costs and leads towards higher profits.
There are some downsides to big data as well. Most common is the one that this technology is also used by firms that exploit the dark web. Also, for proper implementation of big data, technical expertise is required. The previous point means that a firm needs to hire IT experts that are expensive and also difficult to manage. Moreover, an aspect related to privacy concerns also exists. This is a significant concern with big data because the framework itself may be prone to a data breach as is usually the case with most technologies.
Even though these cons need to be looked up, there is no denying that the advantages greatly outweigh them. There is a reason why organizations are moving towards business data analytics, and the proper use of big data seems to be the answer to this question.