On a daily basis, companies are flooded with large amounts of data. The term “Big Data” became the buzz word to describe this topic. Big Data is high volume, high velocity, and high variety information, that when properly and effectively analyzed, enables improved decision making, discovery of new insights, and process optimization to organizations.
To gain an advantage, organizations need to effectively analyze Big Data. The amount of data that is being created continues to grow and organizations need to learn how to effectively use big data. A survey reported that more than 37.5% of large organizations state that analyzing Big Data as their biggest challenge. Properly analyzing Big Data may help organization cut cost, time, spot problems, and identify trends.
Relation to Topics in MIS 2502
In Data Analytics, our class explores how to analyze business data to enhance firm competitiveness. We have learned about the Analytical Data Store, which is the foundation of business intelligence. We also covered the topic of association rule mining, which is a form of analysis of Big Data to predict the occurrence of certain transactions and events and uncover patterns. Furthermore, Clustering and Segmentation is another form of Big Data analysis companies use to understand and summarize data.
Big Data in Today’s World: VISA
Visa experienced the challenge of combating credit card fraud while maintaining a seamless service to customers. Customers had complained of payment rejections on vacations and business trips. However, by using advanced tools, Visa was able to analyze up to 500 unique variables in real time when analyzing risk of transactions. By performing clustering and segment analysis, Visa was able to determine the difference between a fraudulent act and when a client was on a trip. Big Data has enabled Visa the potential to prevent $2 billion of fraudulent payment annually.
Bertolucci, Jeff. “10 Powerful Facts About Big Data.” Information Week, UBM. Web. 13 Apr. 2016
“Big Data: What it is and Why It Matters.” SAS. SAS Institute. Web. 13 Apr. 2016
Real, Renee. “10 Interesting Facts About Big Data.” Channelinsight, Model N. Web. 13 Apr. 2016