issy litany: What Every Business Needs to Know About Big Data

Friday, October 12, 2012

What Every Business Needs to Know About Big Data | E RADAR ...

?Big data.? There?s no escaping it. It?s catchy. It?s generic enough that everybody is using it for everything. It?s a one-size-fits-all phrase.

It?s so all-encompassing that the best definition I?ve seen recently is from Stephane Hamel,Director of Strategic Services at?Cardinal Path,?who put it this way: ?The simplest definition of big data is It doesn?t fit in excel.?

So with ?big data? on everybody?s lips, here?s all you (the marketing executive) need to know to keep up your end of the conversation.

Disk drives got cheaper so we can store more data.?The ways and means of collecting all sorts of data have proliferated faster than Twitter traffic or TSA lines at the airport. We have more of data, more types of data, and it?s coming at us faster (real time) than ever dreamed possible. That?s what makes up ?volume, variety, velocity.?
So, the ability to replace big disk drives with many smaller, cheaper drives that we can wire together is the first, significant technical advance.
We can split up the processing.?The second advance is the ability to augment the great big processors with many smaller, cheaper servers. We have distributed the processing to the data instead of waiting for the data to rocket back and forth from disk farm to processor.

So what?

So, there are two things to keep in mind when your marketing budget is being allocated to what seems like pure IT projects.

The more data you throw into the pot, the more likely you are of finding some sort of relationship (correlation) to act on.
This practice of splitting up the data, solving smaller problems, and bringing it back together is very useful for some specific types of processing. Getting this under your belt gives you voting rights when discussing options.
Big analytics processors are very good at finding hidden pieces in a hurry. (Show me all the customers who have bought in the past three months after clicking on these special offers and abandoning their shopping carts.)

But those types of questions are known unknowns. You know the things you?re going to ask and the entire database is set up that way. You know you?ll want to see things by date, by region, by product line, etc. That is what gives these enterprise data warehouses their power: they are designed in advance to answer the questions you know you might ask, and they can answer them very quickly so you can refine your questions ? as long as you have deep knowledge about what data you have and how it is structured in the database.

But the other data ? the messy data ? is chock-full of unknown unknowns. We know the information might be valuable, but we don?t know what to ask.

MapReduce is a low-cost storage medium for unstructured data and for refining that data into a more structured form for heavy analysis. Social media data, call center transcripts, clickstream data, website content, and sensor data all start out unstructured.

MapReduce is ideal for pre-processing text, turning all those tweets into numerical models of opinion (sentiment analysis), which can then be fed to the big analytics machines for correlation discovery and problem solving. It?s great for asking slower questions of larger amounts of data. It?s great for finding a representative sample of data so the big processors don?t have to juggle?all?of the bits at once.

eMetrics Summit

I?ll be discussing Big Data at this year?s eMetrics Summit in London on 27^th-28 November (www.emetrics.org /London/) No doubt we?ll be discussing these issues further and more importantly, where are big data and analytics going next?

About the Author:

Jim Sterne is founder and producer of the eMetrics Summit, founding Director and President of the Digital Analytics Association and author of Web Metrics, Proven methods for Measuring Web Site Success and Advanced Email Marketing. Jim Sterne has presented his unique perspective on Internet marketing at conferences around the world, and has lectured at Stanford, Oxford and MIT. He stays active as a public speaker and as a consultant, helping each client set Internet marketing goals and determine customer relationship strategies.

Jim Sterne ? who has written 1 posts on E RADAR | Smarter business online.

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