Five Facts You Need To Know About Big Data For Small Business

How To Lock Down Your IT Network, A Guide For Small Business Owners-Chispa MagazineBy now, you have probably heard the term ‘big data’ many times over. It’s one of those buzzwords that doesn’t appear like it is going away anywhere soon. And businesses around the world are spending tens of billions of dollars on it. The trouble is, few people know what it is—or how to put it to good use. We thought we would take a closer look at five essential facts about big data, and see how it can be positive—or negative—for your business.

What is it? Big data is a term used to describe the digital information that is collected from people’s actions online. It’s an all-encompassing term that takes in results from searches, social media, analytics and much more. One important thing to understand about big data is that there is an awful lot of it. Some of it is structured, but a lot of it is also completely unstructured, and it can be difficult to handle with regular databases or software. It means that businesses need to invest in specialized analytics to turn that data into valuable information.

How do we use it? That said, investing in the right analytics models can help you sift through a lot of your data and put it to better use. It can help you find out about problems your customer might be experiencing, for example. It can also help you build up a picture of your average customer, too, for marketing purposes. You can also use big data to make predictions about the successes or potential failures your business might experience in the future. There is value in big data, then – and analytics is the key to success.

Where do you keep it? First of all, you can buy or build your own data center. You can keep it in-house, or invest in a remote location away from your business in a safer environment. However, using colocation services—where you rent managed space for your data center—can be more cost effective. Colocation pricing can be an attractive pull for smaller to mid-sized businesses. You can also store your big data with a third party service. The rise of cloud technology has made this option a lot more appealing to smaller businesses, due to low costs and flexibility. In essence, you only pay for the space you need, and as you grow, you can invest in a little more.

Is it risky? Big data can include a lot of information about your customers, which makes it incredibly appealing to nefarious types. All that information is valuable. Consider credit card numbers, or think about the personal information used in identity theft. Security is of ultimate importance—which involves further costs.

Is it worth it? The truth is there is still a significant skills gap when it comes to big data. For most small businesses, it takes far too much time and effort to sift through all that information. You then need to analyze it and turn it into actionable plans. That said, there’s a good chance that you are already using big data. You might use Google Analytics or Facebook Insights, for example. Is there any need to invest in big data right now? For smaller businesses, perhaps not. But it’s certainly worth keeping an eye on in the future.

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Milo Senalle

Milo Senalle

Managing Editor at Chispa Magazine
As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.

Milo Senalle

As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.