Analytics Magazine Analytics Magazine, July/August 2014 | Page 35

environment. This process meets computational demands as it allows users to run virtual machines within managed data centers, freeing them from worrying about acquisition of new hardware and networks. UNSTRUCTURED SOCIAL MEDIA DATA According to a study by International Data Corporation (IDC), mankind created an estimated 150 exabytes (1 billion gigabytes) of data in 2005, a number that jumped to 1,200 exabytes in 2010. A more recent study by IDC and EMC put the amount of data created in 2011 at 1.8 zettabytes (1 followed by 27 zeroes), a number the study researchers expected to double every two years. Only 5 percent of this data is structured (comes in a standard format that can be read by computers). The remaining 95 percent is unstructured (photos, phone calls and free-flow texts). A large chunk of such unstructured data is in text format. Posing challenges owing to the sheer volume, depth and complexity, such data, however, holds immense potential for organizations. The key lies in identifying patterns from the data and gaining relevant insights. REAL-TIME ANALYTICS Not long ago, analyzing data and generating business intelligence reports A NA L Y T I C S depended on the time-intensive ETL process (extract, transform, load). Depending upon the system and data complexity, analytics could be delayed by hours, days or even weeks while data management put it all together. In today’s business landscape, minimizing the lag between acquiring data and generating actionable insight has become the key differentiator. Acting in real time to respond to an event can result in huge profits and improved customer relationships for a firm. Real-time analytics can benefit in multiple business scenarios, including: • High-frequency trading (sophisticated algorithms to rapidly trade securities) • Real-time detection of fraudulent transactions • Real-time price adjustment based on competitor information • Real-time feedback from social media for a product firm about its new launch • Real-time recommendations by retail stores based on customer’s location • Real-time traffic routing based on information about vehicle frequency, direction, etc. Social media content comes from users without any vested interest, thus their opinions beget more trust. Organizations whose products and services J U LY / A U G U S T 2 014 | 35