What is Big Data? Application of Big Data in business
24 Oct, 2023
Under the explosive development of the 4.0 technology era , Big Data applications have brought many developments in business for businesses. Therefore, focusing on Big Data applications is also a top priority for businesses. So what is Big Data? Or how to apply it in business? Please read the article below to answer the above questions!
1. What is the concept of Big Data?
Big Data is a term to describe large, complex data sets. These data sets are so large and difficult to process that traditional software is not capable of collecting, managing and processing data in a reasonable time.
This large data set will include structured, unstructured, or semi-structured data. Each data set can be used by businesses to exploit and gain insights.
2. Outstanding characteristics of Big Data
Outstanding features of applying Big Data to the business model include 3 "V" characteristics as follows:
– Volume (volume of data) : Businesses will collect data for Big Data from different sources. Some specific sources such as: smart devices, media, transactions, industrial equipment, images, audio, video, etc. Now businesses can store all data quickly, Cheaper costs thanks to the use of data records and cloud storage to reduce the burden.
– Velocity (processing speed) : In the period of strong development of the Internet of Things, data transmission speed is required to be very fast and processed promptly. And RFID tags, sensors and smart meters are helping businesses drive the demands of processing these data streams in near real time.
– Variety (varied data) : All data is collected from many different formats. Including digital data, structured data, unstructured text documents, stock ticker data, financial transactions, video, email, audio.
3. Big Data technology
Some technologies that can solve problems related to data storage and processing include: Data lakes, Apache Hadoop, Apache Spark,...
3.1. Data lakes
Data lakes technology is a data warehouse that contains large volumes of raw data, in the original format, to the user who needs to use the data. These factors help Data Lakes technology accelerate the development of IoT. And develop other digital movements.
3.2. Apache Hadoop ecosystem
Apache Hadoop is one of the most commonly used technologies and has a close relationship with Big Data. Hadoop is an open source software development project for computers (PC). This technology is developed and possesses good scalability as well as easy dispersion.
It can be said that the Apache Hadoop software library is a certain template, helping users easily process and distribute large data sets in computer groups using extremely simple programming models. Now, this technology is designed to scale more easily from one server to thousands of others. And each machine is typically hosted locally and provides computations.
3.3 Apache Spark Ecosystem
This is considered a technology with an important component in the Hadoop ecosystem with calculation templates used to support Big Data processing in Hadoop. A distributed messaging system that distributes high amounts of information and is often used with Hadoop.
3.4. NoSQL Databases
NoSQL databases provide constraints, storing and managing data in a way that allows high speed of operations. Along with that is extremely great flexibility and speed. Besides, many NoSQL databases can also scale horizontally across hundreds or thousands of servers.
3.5. In-memory Databases
The IMDB in-memory database management system mainly relies on main memory, Ram, instead of HDD. In particular, in-memory databases will be faster than disk-optimized databases. This is also one of the important points for using Big Data analysis. And create data warehouses and metadata.
4. Role of Big Data
Big Data plays an important role in the business models of businesses today. Some of the most notable roles include:
4.1. Identify the right target customers
Based on the analysis of Big Data collected from many different sources such as browser history, social networks,... businesses can exploit the demographics of target customer files. Includes current customer information, behaviors, preferences and needs. From there, businesses will have plans to implement business goals according to that target customer file.
4.2. Ensuring network security and minimizing risks
Big Data helps businesses preserve information, prevent confidential information theft or system intrusion.
4.3. Capture financial transactions
The e-commerce industry is growing extremely strongly around the world. Because of this, financial transactions on e-commerce apps and websites are increasing. And is most clearly shown through customers' shopping behaviors. Big Data algorithms provide suggestions and customer transaction decisions. This helps businesses increase their order closing rate.
4.4. Cost optimization
Through data collected from Big Data, businesses can clearly understand the price levels in the market as well as the desired price of consumers today. From there, set appropriate prices to increase competition more effectively.
5. Applications of Big Data in business
Now, Big Data is being applied more and more commonly in many significant fields such as:
5.1. Big Data applied in Digital Marketing
Applying Big Data to Digital Marketing, businesses will accurately determine who the target audience is on social networks. Based on demographic information such as gender, age, interests, etc. In addition, Big Data helps personalize search activities on Google and Email Marketing. Even suggest displaying appropriate ads according to advertising campaigns.
5.2. Finance and banking sector
For the banking and finance industry, Big Data helps identify locations with the most potential customers. From there, businesses can research and come up with directions for building new branches. Or combine CRM customer management software applications to improve customer experience and save costs. In addition, Big Data also helps detect fraudulent activities and financial reports of experts. To bring the most secure and confidential financial transactions to banks.
5.3. E-commerce field
In the field of e-commerce, businesses that provide good direction for applying Big Data will create a competitive advantage in the market. In addition to analyzing customer behaviors, preferences, needs, etc. Big Data helps businesses identify the products that are of most interest. From there, optimize display time or manually send that product promotion code to customers in the shopping cart.
The above article has partly answered readers about the concept of Big Data. What are the applications of Big Data in business? Finally, whether you are a small or large business, you should consider applying Big Data technology to effective business