What Is 'Big Data'?

  |  March 21, 2012   |  Comments

Is it the latest in a series of technology fads or does it hold great potential for analytics?

2012 will be the year of the election you couldn't win without "Big Data." It will be the year when big data could help you increase your margin by 60 percent. Big data also means I could track everything my customers do and store it forever. Big data sounds brilliant doesn't it? But admit it; we still don't really know what it practically means for most of us.

When I first heard the phrase "Big Data" a year ago I didn't think, "Hey, that sounds cool." I actually cynically thought, "Here we go again. The big technology companies have thought up a new tag line that will hook us all into thinking we need to replace all our old systems with new, faster, expensive servers." I worried that the analytics industry was about to go down another cycle of technology-led implementations rather than thinking about how to use data we already have in an imaginative, insightful way. But there's still time for us to grab the phrase and define what it should mean. Here are some thoughts:

Is big data about getting a huge new server to process billions of records and petabytes of data?

No. A great thing about the discussion about the phrase "Big Data" is that it gets people talking about the huge increases in computer processing power. But how about that focus being on the laptop on which you are reading this column rather than a focus on some server sitting in the basement and only the grumpy IT team knows how to use? Most laptops are powerful enough to process millions of records of data, thereby freeing analysts from the constraints of needing major database systems to analyze customer behaviors. This democratization of data should mean more individuals in your company can mine the data you already own. Invest in an analytical tool like SAS or SPSS or even good old Excel, get a data extract on your laptop, and start mining.

Does big data mean I can collect every bit of information about my customers? Storage isn't expensive and I can use the cloud to keep all my data.

No. The problem with this laissez-faire attitude about your data is you can fall down the trap of having the analytics team driven by long-term development projects rather than focusing on the here and now. If you are storing everything, you are not placing value on key customer data that can give you the edge over your competitor. It stops you thinking. It moves the weight of your job to data collection and technology rather than asking questions about data that already exists. What's the killer stat you need to put in front of your CEO so he remembers your name? Take a step back and think about what you need to calculate that. That's the data you should be collecting and more of it - not everything else.

Is big data about investment in infrastructure?

Well if it is, let that investment be in people and process, not technology. Let it be about an analyst investing thinking time and the development of their data mining skills to find value in data already available to them. Web analytics is still dominated by technology people who can write brilliant tagging code but think division is the summit of all mathematical achievement. If we are going to make use of data, there must be an investment in more data scientists and statisticians to lead the web analytics industry.

Within two years, we'll look back and be able to say what big data came to mean. Let's hope that most of us are thinking that this was the year we were released from the constraints of not being able to access and analyze our data rather than thinking big data was the latest in a series of technology fads that we blew our operations budget on.


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John D'Arcy

John D'Arcy is the Head of Numbers at Seren, a Foviance Group company. Seren is a U.K.-based consultancy that utilizes data analytics and user experience to help improve customer experience. John has helped clients measure and optimize their marketing communications for over 15 years across digital and traditional media. He's been able to utilize the modeling and statistical skills he learned in the offline world to bring a more rigorous approach to the digital analytics industry. John's team at Seren are certified professionals for a number of technologies including Google Analytics, Adobe-Omniture, and Webtrends.

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