Emerging Methods

Big Data Analytics -Types, Tools and Methods

Big Data Analytics

Big Data Analytics


Big Data Analytics refers to the process of collecting, organizing, and analyzing large datasets (often called “big data“) to uncover patterns, correlations, trends, and other useful insights. This analytical process is typically powered by specialized software and high-performance computing systems, and it is used to help organizations make more informed decisions.

Types of Big Data Analytics

There are four primary types of big data analytics, each with its unique approach and level of insight generation. Here they are:

Descriptive Analytics

This is the most basic form of analytics. It involves examining historical data to identify what has happened in the past. Techniques used include data aggregation and data mining. For instance, a company might use descriptive analytics to understand the total sales it had in the last quarter.

Diagnostic Analytics

This takes the insights gained from descriptive analytics a step further by exploring why something happened. It often involves more detailed data examination and the use of statistical techniques to identify data patterns and correlations. For example, a company may use diagnostic analytics to understand why their sales dipped in the last quarter.

Predictive Analytics

As the name suggests, this type of analytics is all about forecasting. It uses statistical models and machine learning techniques to predict what is likely to happen in the future based on historical data. For instance, a company might use predictive analytics to forecast next quarter’s sales based on patterns identified in historical data.

Prescriptive Analytics

This is the most sophisticated level of analytics. It seeks not just to predict future outcomes, but also suggest actions to benefit from the prediction. It uses complex algorithms, computational modeling, and machine learning to recommend the best course of action for any given scenario. For example, it might suggest the best marketing strategy to increase sales in the next quarter based on the prediction made.

Big Data Analytics Methods

Big Data analytics involves the use of sophisticated methods to extract insights from large and complex datasets. Here are some of the key methods commonly used:

Data Mining: This involves exploring large datasets to identify patterns and trends that were not previously known. Techniques such as clustering, classification, association, and regression are often used.

Machine Learning: This is a branch of artificial intelligence that involves training a model on a large dataset, so that it can make predictions or decisions without being explicitly programmed to perform the task. Machine learning methods used in big data analytics include decision trees, neural networks, and deep learning.

Text Analytics: This involves extracting useful information and insights from text data. This is particularly useful in analyzing data from sources such as social media posts, customer reviews, and call center transcripts.

Predictive Analytics: As mentioned earlier, this involves using statistical models and machine learning techniques to predict future events based on historical data.

Data Visualization: This is a graphical representation of data. It enables decision-makers to see analytics presented visually, so they can grasp difficult concepts or identify new patterns.

Natural Language Processing (NLP): This involves applying computational techniques to analyze and understand human language. This can be particularly useful for analyzing large amounts of text data.

Neural Networks and Deep Learning: These machine learning techniques are designed to mimic the way the human brain works and are particularly effective for tasks such as image and speech recognition.

Graph Analytics: This method is used to understand the relationships between various entities such as organizations, people and transactions.

Big Data Analytics Tools

Some common Big Data Analytics Tools are as follows:

Apache Hadoop: This is an open-source framework that allows for the distributed processing of large datasets across clusters of computers using simple programming models. It’s designed to scale up from a single server to thousands of machines.

Apache Spark: Spark is another open-source big data tool known for its ability to handle both batch and real-time analytics on large datasets. It has in-memory capabilities which allow it to process data quickly.

Tableau: Tableau is a data visualization tool that is widely used in the big data industry. It allows users to create interactive dashboards to represent data trends and changes.

MongoDB: MongoDB is a database that’s designed to handle large amounts of data while also providing high availability and easy scalability. It is a NoSQL database and works well with big data applications.

Hive: Apache Hive is a data warehouse software that facilitates reading, writing, and managing large datasets residing in distributed storage using SQL.

PowerBI: PowerBI is a business analytics tool developed by Microsoft. It provides interactive visualizations and business intelligence capabilities with an interface that is easy to use for creating reports and dashboards.

Python and R: Both of these programming languages have strong support for statistics and data analysis, and many powerful libraries for data manipulation and analysis.

Google BigQuery: This is a web service from Google that is used for handling and analyzing big data. It’s part of the Google Cloud Platform.

Elasticsearch: It’s a search engine based on the Lucene library. It provides a distributed, multitenant-capable, full-text search engine with an HTTP web interface and schema-free JSON documents.

Kafka: Apache Kafka is a distributed streaming platform that’s used for building real-time data pipelines and streaming apps.

Examples of Big Data Analytics

Examples of Big Data Analytics are as follows:

Google Maps: Google uses Big Data analytics for real-time traffic conditions. Google collects data from various sources, including GPS signals from smartphones, local traffic sensor data, incident reports, and even location data from Google’s Android phones. All this information is analyzed in real time to provide users with the fastest route to their destination.

Uber: Uber uses Big Data analytics to determine price, minimize wait time, forecast demand, and find optimal routes. Data from the driver’s GPS location, estimated time of arrival, and local traffic conditions are all analyzed in real time to improve the efficiency of the ridesharing service.

Spotify: Spotify uses Big Data analytics to deliver personalized experiences to its users. By analyzing the songs that users listen to, Spotify can identify trends and preferences. This data is then used to recommend songs, create personalized playlists like “Discover Weekly,” and even to identify hits and inform Spotify’s decision when suggesting new music to users.

Applications of Big Data Analytics

Big Data Analytics has a broad range of applications across various industries and sectors. It can be used to make predictions, enhance operational efficiencies, improve customer service, and gain competitive advantage. Here are some examples:

  • Healthcare: Big data analytics can help in predicting outbreak of diseases, improving treatments and quality of life, and preventing unnecessary hospital admissions. The data can also be analyzed to identify trends and patterns that can lead to better disease management.
  • Retail: Retail businesses can use big data analytics for accurate trend forecasting, personalized marketing, improved supply chain management, and customer segmentation. They can analyze customer’s buying patterns to predict future trends and make strategic decisions.
  • Finance: Financial institutions use big data analytics for risk management, fraud detection, customer segmentation, and personalized product offerings. It can help banks and other financial institutions understand the spending behavior of their customers and provide tailored services.
  • Transportation: Big data can be used to optimize routes, improve fuel efficiency, predict potential maintenance issues, and enhance overall operational efficiency. It can also be used for better traffic management by analyzing traffic data in real time.
  • Telecommunications: Telecommunication companies can use big data analytics to enhance customer service, improve network performance, prevent fraudulent activities, and gain a competitive advantage.
  • Manufacturing: In manufacturing, big data can be used for predictive maintenance, which helps in preventing equipment failures. It can also be used to optimize the supply chain, enhance product quality, and reduce operational costs.
  • Education: Educational institutions can use big data analytics to improve student performance, optimize curriculum, enhance teaching methods, and manage the overall educational process more effectively.

Advantages of Big Data Analytics

Big Data Analytics offers several advantages across various sectors and industries. Here are some of the main benefits:

  • Better Decision Making: By analyzing large volumes of data, organizations can discover patterns, trends, and insights that can help them make more informed and strategic decisions.
  • Increased Efficiency and Productivity: Big data analytics can streamline business processes, reduce redundancy, and enhance efficiency by predicting trends and helping to allocate resources more effectively.
  • Improved Customer Service: Businesses can use big data to understand their customers better and provide more personalized experiences, thereby enhancing customer satisfaction and loyalty.
  • Risk Management: Big data analytics allows companies to identify potential risks and take preventive measures. This is particularly valuable in sectors like finance and healthcare.
  • Innovation: By identifying patterns and trends that weren’t previously visible, big data analytics can lead to innovative new products, services, or ways of doing business.
  • Cost Savings: Big data technologies like Hadoop and cloud-based analytics can bring significant cost advantages when it comes to storing large amounts of data. They can also identify more efficient ways of doing business.
  • Competitive Advantage: Companies that leverage big data analytics effectively can gain a significant edge over their competitors. They can understand market trends better, predict customer behavior more accurately, and react to changes faster.
  • Predictive Analysis: Big data analytics allows organizations to predict future trends and behaviors, which can be a significant advantage in today’s rapidly changing environment.

Disadvantages of Big Data Analytics

While Big Data Analytics can offer numerous benefits, it also comes with some challenges and potential drawbacks. Here are a few:

  • Privacy Concerns: One of the biggest concerns with big data analytics is the risk to privacy. As more and more data is collected, the potential for sensitive information to be misused or exposed increases significantly.
  • Data Security: With the volume of data being stored and analyzed, data breaches can have serious consequences. Ensuring the security of big data is a major challenge for many organizations.
  • Data Quality: The old adage “garbage in, garbage out” applies to big data analytics. If the quality of the data being analyzed is poor, the insights derived from it will also be poor. Ensuring data quality can be a significant challenge when dealing with such large volumes of data.
  • Complexity of Data: Big data isn’t just about volume; it also involves variety (different types of data) and velocity (the speed at which data is generated and processed). This complexity can make big data analytics challenging and requires sophisticated tools and technologies to handle effectively.
  • Lack of Skilled Personnel: There is a high demand for professionals with skills in big data analytics, including data scientists, data engineers, and data analysts. However, there is currently a shortage of such professionals, making it difficult for organizations to find the expertise they need.
  • Costs: While big data technologies can bring cost savings, the initial set up can be expensive. This includes the cost of data storage, analytics tools, and hiring skilled personnel.
  • Interpreting the Results Correctly: Even when the analysis is done correctly, interpreting the results can be challenging. Misinterpretation of data can lead to incorrect conclusions and poor decision-making.
  • Regulatory Compliance: Depending on the industry and type of data, there may be regulations governing how data can be collected, stored, and used. Ensuring compliance with these regulations can add another layer of complexity to big data analytics.

About the author

Muhammad Hassan

Researcher, Academic Writer, Web developer