In case you haven’t caught on to the new buzz word in the business world, let me break it to you – it’s “Big Data”. Consider the following fact – 90% of the data in the world today has been created in the last two years alone. This data may include search queries on Google, clicks on Facebook (Brands and organizations on Facebook receive 34,722 “Likes” every minute of the day) , tweets on twitter (Twitter processes 7 terabytes of data every day), purchase transaction records (Wal-Mart handles more than one million customer transactions every hour)… the list is endless.
Analysis of this “Big data” has helped generate big profits for companies. Consider Google’s search business for example, where speed is a key success metric. Google’s search system can predict a query before it is fully typed based on aggregating the billions of searches it gets each day. Wal-Mart is another “Big-Data” pioneer. Wal-Mart uses predictive analytics to better identify customer preferences on a regional basis and stock their branch locations accordingly. This analysis helped Wal-Mart outdo their competitors, much to its shareholder’s delight.
Big Data is now finding applications in other fields as well, such as FCPA (Foreign Corrupt Practices Act) Monitoring and flu spread prediction. It’s no wonder then that investors put a high value on big data (Facebook’s $67 billion market capitalization is a testament to that fact). So, if you’re a start-up aiming to compete against industry giants with “Big data”, does that put the start-up at a significant comparative disadvantage? The answer is more complicated that a simple Yes and No.
Let’s analyze the stakeholders involved in the process – There are individuals like you and me, who are constantly feeding companies with data, then there are companies who own the data and hire data scientists who analyze the data and provide insights, which companies use to drive more revenues. The entire process is dependent on individuals willingly providing and allowing analysis of data.
By analyzing your personal data companies can easily infer facts such as such as an individual showing early signs of Parkinson’s disease, or that an individual is unconsciously
drawn toward products of a particular color. As an individual shopper, would you be comfortable with companies utilizing such information to drive their profits?
Privacy concerns relating to use of “Big Data” are already being voiced. Ovum, a research and consulting firm, in a recent survey of about 11,000 people across 11 countries, found that 68 percent said they would use a do-not-track feature if it was easily available on a search engine. The survey tells me two things – first, people place a high value on their privacy and second, there is an opportunity to serve segment of customers that value how companies use their personal data (any start-ups listening?)
The “Big Data” era will
be turbulent and exciting as legal departments and business managers walk a thin line to balance privacy concerns with big data insights, while investors realize true returns on their bets on big data. As an article in Standford Law correctly states – The tasks of ensuring data security and protecting privacy become harder as information is multiplied and shared ever more widely around the world. Information regarding individuals’ health, location, electricity use, and online activity is exposed to scrutiny, raising concerns about profiling, discrimination, exclusion, and loss of control - Despite the risks and concerns, I don’t expect big companies to implement stringent data-use policy anytime soon. I’ll be monitoring closely as the situation develops. How do you picture the “Big Data” world? Share your opinion in the comments section below
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