What's Planergy?

Modern Spend Management and Accounts Payable software.

Helping organizations spend smarter and more efficiently by automating purchasing and invoice processing.

We saved more than $1 million on our spend in the first year and just recently identified an opportunity to save about $10,000 every month on recurring expenses with Planergy.

King Ocean Logo

Cristian Maradiaga

King Ocean

Download a free copy of "Indirect Spend Guide", to learn:

  • Where the best opportunities for savings are in indirect spend.
  • How to gain visibility and control of your indirect spend.
  • How to report and analyze indirect spend to identify savings opportunities.
  • How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend.

Big Data Analytics: What It Is and Why It Is Important

Big Data Analytics

In today’s business world, data is king. Organizations must collect and analyze vast amounts of data to make informed decisions and improve their operations. But how can businesses effectively manage this data?

One solution is to use big data analytics. This innovative field uses sophisticated algorithms and techniques to extract insights from large data sets. By crunching numbers in novel ways, big data analytics can help organizations identify trends and patterns, identify potential problems, and make better decisions.

What is Big Data Analytics?

Big data analytics is the process of examining large data sets to uncover hidden patterns, correlations, and other insights. This information can then be used to make better business decisions or improve operations.

One of the benefits of big data analytics is that it can help businesses identify opportunities and threats that may not be apparent when looking at smaller data sets. For example, a company might be able to use big data analytics to predict customer behavior or track competitor activity.

Another advantage of big data analytics is that it can help organizations reduce costs and improve efficiency. By identifying inefficiencies in their systems, businesses can make changes that will improve performance.

Big data analytics is also useful for understanding customer sentiment. Organizations can use big data to track customer feedback on products and services, as well as social media commentary. This information can help companies make changes that will improve customer satisfaction levels.

The 5 Vs of Big Data

Big Data is often described as having a number of charcteristics. The most common form of this is the 5 Vs of Big Data: Volume, Velocity, Variety, Veracity, and Value. It can be extended to include other characteristics too. Variability is the most common additional charteristic considered.

  1. Volume

    The size and amounts of data the company manages and analyzes.

  2. Velocity

    The speed the data is collected, stored, and managed. This could be the number of social media posts per day, etc.

  3. Variety

    The types of data. Including unstructured, semi-structured, and raw. This could include feeds from commercial and government resources, social media, etc.

  4. Veracity

    The accuracy of the data. How trustworthy the data is will impact how influential it will be when used to make deisions.

  5. Value

    The value to the business from insights provided by the data. The quantifiable benefits could impact improvements in operations, customer relationships, etc.

How Big Data Analytics Works

Big data analytics is a process that uses data science with special software and algorithms to help businesses make sense of all this data.

This software can partition the data into manageable chunks, which makes it easier to analyze. The algorithms then identify patterns and trends in the data that can help businesses make better decisions about their products and services.

  1. Data Collection

    Data collection is the first and most important step, but the process looks different for every business.

    Businesses can collect structured, semi-structured, and unstructured data from various sources such as cloud computing and storage, mobile apps, Internet of Things (IoT) gadgets, supply chain software, and other sources.

    Some data will be stored in data warehouses where business intelligence tools and solutions can easily access it. Raw data that is too complex for a warehouse can be stored in a data lake and assigned metadata.

  2. Data Processing

    After you’ve collected and stored data, you must organize it to ensure accurate results from predictive analytics and other queries. This becomes increasingly important as data sets become larger and are unstructured.

    The available data businesses have for decision making is growing rapidly, which makes data processing more challenging.

    Businesses can use batch processing, stream processing, or a combination of the two. The way you process data influences how useful the insights from it become.

    • Batch Processing

      Batch processing is a technique used in data processing to speed up the execution of a task by dividing it into a series of smaller tasks that can be executed concurrently.

      This technique is often used when the task involves I/O operations, such as reading or writing data, or when the task requires access to resources that are shared among several processors.

      Batch processing allows tasks that are I/O-intensive to be executed on multiple processors simultaneously. This can improve performance by reducing the amount of time required to complete the task.

      Another benefit of batch processing is that it can improve resource utilization by allowing multiple tasks to share resources, such as memory and CPUs.

      Batch processing can also improve reliability by allowing tasks to be executed in parallel. If one task fails, the other tasks will continue to execute.

    • Stream Processing

      Stream processing is a type of data processing that deals with data streams as they are generated. In other words, the data is processed as it comes in, in real-time.

      This makes stream processing well-suited for applications that need to respond to changes in data as they happen, such as financial trading or fraud detection. Stream processing can also be used to quickly aggregate and process large amounts of data.

  3. Data Cleansing

    No matter the amount of data you have, it requires regular cleaning or scrubbing to improve quality. Your data needs to be formated correctly. Duplicate and irrelevant data needs to be removed or otherwise accounted for. “Dirty” data can result in poor insights that mislead you and

  4. Data Analysis

    • Data Mining

      Data mining is a process of extracting valuable information from large data sets. It is used to find patterns and trends that can help businesses make better decisions. Data scientists use various techniques, including statistical analysis, machine learning, and artificial intelligence, to extract insights from data.

      Data mining can be used to identify customer trends, predict future behavior, and improve marketing strategies. It can also be used to detect fraud and other security threats. By analyzing large data sets, data scientists can find correlations that would otherwise be impossible to detect.

      The benefits of data mining can be seen in a wide range of industries. Banks use it to identify fraudulent transactions, retailers use it to determine what products to stock on their shelves, and healthcare providers use it to improve patient care.

      The potential uses of data mining are endless and continue to grow as new technologies are developed.

    • Predictive Analytics

      The term predictive analytics is used to describe a number of different analytical techniques that allow businesses to make predictions about future events.

      These techniques can be used to predict everything from the likelihood that a customer will defect to the probability that a particular product will be returned.

      Predictive analytics is made possible by advanced analytics techniques such as machine learning, data mining, and artificial intelligence. These techniques allow businesses to analyze large amounts of data in order to identify patterns and correlations. Once these patterns have been identified, businesses can use them to make predictions about future events.

    • Deep Learning

      Deep learning is a subset of machine learning that utilizes artificial neural networks to learn from data. It has been shown to be more effective than traditional machine learning methods in many cases.

      Deep learning algorithms are able to learn feature representations of data that are much more accurate than those learned by other methods. This makes them better at tasks like classification and prediction.

“Big data compiles all your company’s data sources into a central location for processing and analysis.”

Big Data Benefits

Big data has many challenges and opportunities, it has revolutionized the way businesses operate. By analyzing large amounts of data, companies can make better decisions, identify opportunities and threats, and improve their products and services.

  • Cost Savings

    By identifying inefficiencies in business processes, big data can help businesses streamline their operations and save money.

  • Market Insights

    Big data can help businesses understand their customers better. Businesses can gain insights into customers’ needs and wants by analyzing customer data. This helps businesses create products and services that appeal to their customers.

    Big data can also help businesses improve their marketing efforts. By analyzing customer data, businesses can identify which marketing campaigns are most effective and which ones need improvement. This helps businesses allocate their marketing resources more effectively.

  • Product Development

    Product development is an important area where big data can be used to improve results. Businesses can determine what products people want and need by analyzing customer data. They can also figure out how to create those products in the most efficient way possible.

    Big data is also useful for improving the distribution of products. By tracking sales data, businesses can identify which areas are selling more products and which areas need more attention. This allows them to allocate their resources in the most effective way possible.

Big Data Challenges

  • Data Accessibility

    The promise of big data has always been its ability to help organizations make better decisions by providing insights that were hidden in the vast sea of data. However, making big data accessible and usable is a daunting challenge. There are three primary factors that make big data inaccessible: volume, variety, and velocity.

    Volume refers to the sheer size of the data. The amount of data being generated today is staggering, and it is growing at an alarming rate. With high volume comes complex data that makes processing more difficult.

    Variety refers to the different formats that the data can take – text, images, video, etc. Velocity refers to the speed at which the data is being generated and changes.

    All of these factors create a challenge for organizations trying to make use of big data. The volume alone is enough to overwhelm most traditional analytics tools. The variety makes it difficult to find the relevant data and create a cohesive dataset.

  • Data Quality Maintenance

    The volume and variety of data can be overwhelming, and without proper maintenance, the quality of the data can suffer. This can lead to inaccurate analysis and decision-making, which can be costly for businesses.

    Have a plan for data management. This includes specifying who will be responsible for maintaining the data quality, setting standards for how the data will be collected and processed, and establishing protocols for correcting errors.

    Another key factor in maintaining data quality is having accurate and up-to-date information about the source data. This includes tracking where the data comes from, how it is formatted, and any dependencies it has on other datasets.

  • Data Security

    As organizations amass ever-larger data stores, they become a more tempting target for cybercriminals. Data breaches can have serious consequences, including loss of customers, damage to reputation, and financial losses.

    Implement a data security plan that includes multiple layers of protection. Ensure that your employees are aware of the risks associated with data theft and are trained in how to protect sensitive information.

    Use secure methods for storing and transmitting data. This includes using strong passwords, encrypting sensitive information, and using secure networks.

    Regularly assess your security posture and make changes as needed to keep up with the latest threats.

  • Using the Right Tools and Platforms

    Big data analysis is great for businesses, but if you’re not using the right tools and platforms, you won’t be able to make the most of your data sources and the information they provide.

    New technologies for processing and analyzing data are developed frequently, so your organization needs to invest resources into finding the right solutions to work within your ecosystem. This often means finding a solution that’s flexible enough to grow and scale with you as your infrastructure changes.

Big Data Analytics Tools

  • Hadoop

    Hadoop is a powerful big data tool that can be used to store, process, and analyze large amounts of data. It can be used for various tasks, such as processing log files, analyzing customer data, or creating machine learning models.

    Hadoop is designed to scale to meet the needs of large organizations, and it can handle huge volumes of data. It also offers a variety of features and options that allow you to customize it to your specific needs.

  • YARN

    YARN, or Yet Another Resource Negotiator, is a tool that helps manage resources on a Hadoop cluster by negotiating with other services and applications for access to the cluster’s resources.

    This allows Hadoop to make better use of its resources and helps keep other services running smoothly as well. In addition, YARN provides an easier way to add new services or applications to a Hadoop cluster since it eliminates the need for them to compete for resources with Hadoop itself.

  • NoSQL Databases

    NoSQL databases are becoming more popular as organizations move to big data solutions. These databases are designed for scalability and can handle large-scale data processing. They are also non-relational, meaning that the data structure is not constrained by traditional relational database models. This flexibility makes them a good choice for big data solutions.

  • Apache Spark

    Apache Spark is a powerful open-source data processing engine built on the Hadoop Distributed File System (HDFS). Spark can run on clusters of commodity hardware and makes it easy to process large datasets quickly.

    Spark offers several advantages over traditional Hadoop MapReduce jobs. Spark can execute jobs up to 100 times faster than Hadoop MapReduce, thanks to its in-memory data processing engine.

    Spark’s programming model is much more concise and user-friendly than MapReduce, making it easier for developers to write code.

    Spark also provides a number of built-in libraries for data analysis, including support for streaming data, machine learning, and graph processing.

  • Tableau

    Tableau is a data visualization software that helps you turn your data into informative and visually appealing graphs, charts, and maps.

    Tableau can be used for small or big data and helps you make better business decisions by clearly understanding your data.

    With Tableau, you can connect to various data sources, including Excel files, SQL databases, cloud services, and social media platforms. You can then create interactive visualizations with just a few clicks and share them with others in a variety of formats.

  • MapReduce

    MapReduce is a programming model for processing large amounts of data. It was created by Google and has become popular among big data enthusiasts.

    The basic idea behind MapReduce is to break down a problem into smaller pieces, which can then be processed more easily. The smaller pieces are then combined to create the final result. This approach can be used for tasks such as sorting data, calculating averages, or finding duplicates.

    MapReduce can be run on multiple machines simultaneously. This makes it ideal for processing large datasets. In addition, the code is written in a language called Java, which is widely used in the software industry.

Wrap Up

Big data analytics is an important tool for businesses of all sizes. By taking advantage of the vast amounts of data that are available today, businesses can make better decisions, improve their products and services, and create a competitive edge.

While big data analytics can seem daunting at first, it is a powerful tool that can be used to give you a competitive advantage.

What’s your goal today?

1. Use Planergy to manage purchasing and accounts payable

We’ve helped save billions of dollars for our clients through better spend management, process automation in purchasing and finance, and reducing financial risks. To discover how we can help grow your business:

2. Download our “Indirect Spend Guide”

Download a free copy of our guide to better manage and make savings on your indirect spend. You’ll also be subscribed to our email newsletter and notified about new articles or if have something interesting to share.

3. Learn best practices for purchasing, finance, and more

Browse hundreds of articles, containing an amazing number of useful tools, techniques, and best practices. Many readers tell us they would have paid consultants for the advice in these articles.

Business is Our Business

Stay up-to-date with news sent straight to your inbox

Sign up with your email to receive updates from our blog

This website uses cookies

We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you’ve provided to them or that they’ve collected from your use of their services.

Read our privacy statement here.