Adoption of IoT is surging as the scale and importance of IoT projects grow and barriers to entry are breaking down. Integral to IoT is big data, and in this article, we aim to explain its importance and why businesses who haven’t invested in it should now.
What is big data?
Although the term big data can be traced back almost 70 years, its current context is attributed to circa 2001 when Doug Laney articulated what is viewed as the characteristics of big data as the three V’s, i.e. variety, volumes and velocity.
Whilst the definition continues to evolve – incorporating additional V’s such as veracity and value and often plagiarised to suit vested interests – we find the following definition incorporating the key characteristics of big data useful:
Big data refers to the large, diverse sets of information that grow at ever-increasing rates. It encompasses the volume of information, the velocity or speed at which it is created and collected, and the variety or scope of the data points being covered.
Why are businesses investing in big data?
So why is big data so important? Why are some companies including data valuations on their balance sheet?
Big data is considered valuable, as with all this data comes information and with that information comes the potential for innovation. Simply, it’s about turning information into insight and insight into action.
Importantly, the underlying principles to this are:
- the more data you have about something – i.e. situation, process, consumer behaviour, etc. – the more you can gain increased insights and make future predictions.
- the more data you have at your disposal the more reliable predictions are likely to be.