Analytics-Terms to Know
Definitions from TechTarget
Big Data can be characterized by 3Vs: the extreme volume of data, the wide variety of types of data and the velocity at which the data must be must processed. Although big data doesn’t refer to any specific quantity, the term is often used when speaking about petabytes and exabytes of data, much of which cannot be integrated easily.
Because big data takes too much time and costs too much money to load into a traditional relational database for analysis, new approaches to storing and analyzing data have emerged that rely less on data schema and data quality. Instead, raw data with extended metadata is aggregated in a data lake and machine learning and artificial intelligence (AI) programs use complex algorithms to look for repeatable patterns.
Big data analytics is often associated with cloud computing because the analysis of large data sets in real-time requires a platform like Hadoop to store large data sets across a distributed cluster and MapReduce to coordinate, combine and process data from multiple sources.
Although the demand for big data analytics is high, there is currently a shortage of data scientists and other analysts who have experience working with big data in a distributed, open source environment. In the enterprise, vendors have responded to this shortage by creating Hadoop appliances to help companies take advantage of the semi-structured and unstructured data they own.
Big data can be contrasted with small data, another evolving term that’s often used to describe data whose volume and format can be easily used for self-service analytics. A commonly quoted axiom is that “big data is for machines; small data is for people.”
Definition from TechTarget (Big Data)
Business Intelligence (BI) is a technology-driven process for analyzing data and presenting actionable information to help corporate executives, business managers and other end users make more informed business decisions. BI encompasses a variety of tools, applications and methodologies that enable organizations to collect data from internal systems and external sources, prepare it for analysis, develop and run queries against the data, and create reports, dashboards and data visualizations to make the analytical results available to corporate decision makers as well as operational workers.
The potential benefits of business intelligence programs include accelerating and improving decision making; optimizing internal business processes; increasing operational efficiency; driving new revenues; and gaining competitive advantages over business rivals. BI systems can also help companies identify market trends and spot business problems that need to be addressed.
BI data can include historical information, as well as new data gathered from source systems as it is generated, enabling BI analysis to support both strategic and tactical decision-making processes. Initially, BI tools were primarily used by data analysts and other IT professionals who ran analyses and produced reports with query results for business users. Increasingly, however, business executives and workers are using BI software themselves, thanks partly to the development of self-service BI and data discovery tools.
Business intelligence combines a broad set of data analysis applications, including ad hoc analysis and querying, enterprise reporting, online analytical processing (OLAP),mobile BI, real-time BI, operational BI, cloud and software as a service BI, open source BI, collaborative BI and location intelligence. BI technology also includes data visualization software for designing charts and other infographics, as well as tools for building BI dashboards and performance scorecards that display visualized data on business metrics and key performance indicators in an easy-to-grasp way. BI applications can be bought separately from different vendors or as part of a unified BI platform from a single vendor.
Definition from TechTarget (BI)
Business analytics (BA) is the practice of iterative, methodical exploration of an organization’s data with emphasis on statistical analysis. BA is used to gain insights that inform business decisions and can be used to automate and optimize business processes. Data-driven companies treat their data as a corporate asset and leverage it for competitive advantage. Successful business analytics depends on data quality, skilled analysts who understand the technologies and the business and an organizational commitment to data-driven decision making.
Examples of BA uses include:
- Exploring data to find new patterns and relationships (data mining)
- Explaining why a certain result occurred (statistical analysis, quantitative analysis)
- Experimenting to test previous decisions (A/B testing, multivariate testing)
- Forecasting future results (predictive modeling, predictive analytics)
Once the business goal of the analysis is determined, an analysis methodology is selected and data is acquired to support the analysis. Data acquisition often involves extraction from one or more business systems, cleansing, and integration into a single repository such as a data warehouse or data mart. The analysis is typically performed against a smaller sample set of data. Analytic tools range from spreadsheets with statistical functions to complex data mining and predictive modeling applications. As patterns and relationships in the data are uncovered, new questions are asked and the analytic process iterates until the business goal is met. Deployment of predictive models involves scoring data records (typically in a database) and using the scores to optimize real-time decisions within applications and business processes. BA also supports tactical decision making in response to unforeseen events, and in many cases the decision making is automated to support real-time responses.
Recognizing the growing popularity of business analytics, business intelligence application vendors are including some BA functionality in their products. More recently, data warehouse appliance vendors have started to embed BA functionality within the appliance. Major enterprise system vendors are also embedding analytics, and the trend towards putting more analytics into memory is expected to shorten the time between a business event and decision/response.
Definition from TechTarget (BA)
The Internet of Things (IoT) is an environment in which objects, animals or people are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. IoT has evolved from the convergence of wireless technologies, micro-electromechanical systems (MEMS) and the Internet. The concept may also be referred to as the Internet of Everything.
A thing, in the Internet of Things, can be a person with a heart monitor implant, a farm animal with a biochip transponder, an automobile that has built-in sensors to alert the driver when tire pressure is low — or any other natural or man-made object that can be assigned an IP address and provided with the ability to transfer data over a network. So far, the Internet of Things has been most closely associated with machine-to-machine (M2M) communication in manufacturing and power, oil and gas utilities. Products built with M2M communication capabilities are often referred to as being smart. (See: smart label, smart meter, smart grid sensor)
IPv6’s huge increase in address space is an important factor in the development of the Internet of Things. According to Steve Leibson, who identifies himself as “occasional docent at the Computer History Museum,” the address space expansion means that we could “assign an IPV6 address to every atom on the surface of the earth, and still have enough addresses left to do another 100+ earths.” In other words, humans could easily assign an IP address to every “thing” on the planet. An increase in the number of smart nodes, as well as the amount of upstream data the nodes generate, is expected to raise new concerns about data privacy, data sovereignty and security.
Kevin Ashton, cofounder and executive director of the Auto-ID Center at MIT, first mentioned the Internet of Things in a presentation he made to Procter & Gamble in 1999. Here’s how Ashton explains the potential of the Internet of Things:
“Today computers — and, therefore, the Internet — are almost wholly dependent on human beings for information. Nearly all of the roughly 50 petabytes (a petabyte is 1,024 terabytes) of data available on the Internet were first captured and created by human beings by typing, pressing a record button, taking a digital picture or scanning a bar code.
The problem is, people have limited time, attention and accuracy — all of which means they are not very good at capturing data about things in the real world. If we had computers that knew everything there was to know about things — using data they gathered without any help from us — we would be able to track and count everything and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling and whether they were fresh or past their best.”
Although the concept wasn’t named until 1999, the Internet of Things has been in development for decades. The first Internet appliance, for example, was a Coke machine at Carnegie Melon University in the early 1980s. The programmers could connect to the machine over the Internet, check the status of the machine and determine whether or not there would be a cold drink awaiting them, should they decide to make the trip down to the machine.
Definition from TechTarget (IoT)