In today’s business landscape, big data has become the most valuable asset for any business. The more a business can harness big data, the better its position becomes from where it can carry out analysis that helps to develop useful business decisions. Across every industry, big data is being heavily used to predict future trends, recognize patterns, and draw new conclusions. However, like every technological advancement, it also comes with equal shares of advantages and disadvantages of big data. Let’s have a look at them.
Key advantages of big data
Here’re the biggest advantages of using big data.
- Improved business processes: Probably the biggest advantage of big data is it helps businesses to gain a huge competitive advantage. Apart from being able to understand, as well as, target customers better, analyzing big data can result in the improvement and optimization of certain facets of business operations. For instance, by mining big data retailers can not only explore patterns in consumption and production but can also promote better inventory management, improve the supply chain, optimize distribution channels, among others.
- Fraud detection: This advantage of using big data comes from the implementation of machine learning technologies. It helps banks and other financial institutions to detect frauds like fraudulent purchases with credit cards often before even the cardholder gets to know about it.
- Improved customer service: One of the most common goals among big data analytics programs is improving customer service. Today’s businesses capture a huge amount of information from different sources like customer relationship management (CRM) systems, social media together with other points of customer contact. By analyzing this massive amount of information they get to know about the tastes and preferences of a user. And with the help of the big data technologies, they become able to create experiences which are more responsive, personal, and accurate than ever before.
Key disadvantages of big data
Despite the advantages of big data, it comes with some serious challenges that make its implementation difficult or risky. Here’re the biggest disadvantages.
- Privacy and security concerns: Probably the biggest disadvantage of big data is that it can make businesses a softer target for cyber attackers. Even giant businesses have experienced instances of massive data breaches. However, with the implementation of GDPR, businesses are increasingly trying to invest in processes, protocols, and infrastructure to be able to maintain big data
- Need for technical expertise: Working with big data needs a great deal of technical proficiency and that’s one of the key reasons for which big data experts and data scientists belong to the highly paid and highly coveted group in the IT landscape. Training existing staff or hiring experts to handle big data can easily increase the cost of a business considerably.
Despite the advantages and disadvantages of big data we discussed here, it just cannot be denied that data powers almost everything these days and businesses have only started to scratch the surface of the possibilities. While in the future, the complexity might be higher, but we can surely hope to see more advanced big data operations to sail through the challenges.
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