CIMA E1 Syllabus B. Technology In A Digital World - Big Data - 4Vs - Notes ^{2 / 12}

Big Data is the collection and analysis of a large amount of data

It then helps find trends and understand customer needs

Benefits:

1. Conversion to useful information

2. Gaining competitive advantage

3. Driving innovation

4. Market segmentation

5. Enhanced transparency

Drawbacks:

1. High cost

2. Loss and theft of data

3. Incorrect data can lead to incorrect conclusions

4. Strict laws relating to collection, storage and use of data

5. Employee monitoring can lead to ethical issues and loss of privacy

The 4 V's

Big data has a role to play in information management

1. Volume

   There's just more data available nowadays

   For example, data captured from social media.

2. Velocity

   You can get data much quicker. 

   This considers the speed of the data that is being fed into the organisation as data systems must be able to process live data.

3. Variety

   Modern data takes many different forms - Video, audio, written etc

   (Structured data is often numerical data whereas unstructured data may be in the format of email or video)

4. Veracity

   This considers the reliability and truthfulness of the data being received. 

   For example, if a phone / credit card was loaned to someone else, then the data recorded on the phone or the card will appear as though it belongs to the original owner, which it does not, therefore corrupting the data. 


   Veracity can be improved by:

   - The finance function, as it plays a vital role in data cleansing
   
- By comparing locations recorded from the GPS on someone’s mobile phone to social media updates