2019 October

The significance of big data for complience

In the modern world, where technical progress goes hand in hand with digitization, it’s no surprise that Big Data is on the rise. We produce 2,5 QB of data every day, and this number will skyrocket to an astonishing 163 ZB by 2025, according to an IDC report.

The majority of businesses in virtually every industry have to deal with big data and analyzing it is the hardest part. Considering frequent cyberattacks and recent data breach scandals, the public was outraged and deeply concerned for the privacy of their data, and so stricter regulations to ensure their safety started to appear. As a result, businesses that wish to benefit from the exciting prospects that big data opens must establish a way to analyze data appropriately and avoid breaches by detecting and closing loopholes in time.

What is big data?

The term is not so transparent as it may seem. It can both mean a large volume of structured and unstructured data and ways to analyze, mine and extract value from it. Traditionally, big data is characterized by the three V’s: volume, velocity, and variety.

Volume is the amount of data collected from multiple sources such as social media, real-time IoT sensors, customer databases, business transactions and more.

Variety is the types and formats of data which can be structured like in databases, unstructured (text, images, audio, video files) and semi-structured (web server logs and sensors data).

Velocity refers to the speed at which data is generated and must be processed to deal with business challenges and gain valuable insights. Things like IoT sensors and smart metering necessitate dealing with data in real-time.

Some organizations expand on the mainstream definition by adding another two Vs: veracity and variability. Veracity is the quality of gathered data which can vary greatly due to the sheer number of sources. Bad data can negatively affect analysis and compromise the value of business analytics.

Variability concerns inconsistencies in data, a multitude of data dimensions from numerous data types and sources and unpredictable data load speed.

The companies that deal with big data need to abide by the regulations of different compliance bodies. They must provide detailed reports on the type of data they obtain, how they use it, whether they make it available to vendors, and the employed security measures to avoid data breaches and leaks.

As we mentioned before, it’s not easy to analyze big data. The process calls for highly sophisticated analytical tools and qualified specialists that would guarantee the fulfillment of compliance requirements. Although it sounds overwhelming, the enormous benefits are worth the trouble.

The connection between big data and compliance

Big data impacts the compliance process since companies must keep track of its flow in their systems. Regulatory agencies pay close attention to every stage of data handling, including collection, processing, and storage. The reason for such strict control is to make sure that the company keeps its data out of reach of cybercriminals.

To get the compliance status, the company needs to develop solid risk mitigation strategies. When analyzing data, you’re expected to demonstrate how each of these strategies work and their efficacy. Penetration tests must also become a necessary procedure to protect the company’s infrastructure and data. It involves simulating a malware attack against a system to detect any vulnerabilities. A thorough report on the data security system will help the company to become certified faster.

Unlike the organizations that rely on small data, handling big data during the compliance process is costly, since the company must use sophisticated analysis tools and employ qualified experts. But it’s necessary in order to harness big data power to predict cyberattacks.

The benefits of big data for the compliance process

One of the biggest advantages of big data is its ability to detect fraudulent behavior before it reflects badly on your organization. CSO online report states 84% of organizations use big data to detect cyber threats and report a decline in security breaches. However, 59% noted their agency was still jeopardized at least once a month because of the overwhelming amount of data, lack of the right systems and specialists, and obsolete data.

We’ve already covered the importance of qualified staff and powerful tools, and these are not the most important factors. The most crucial one is the automation of tasks so that data can be sent to analysts without delay.  Using machine learning and AI to develop a predictive analysis model will also greatly fortify the company’s IT infrastructure since it both helps fend off known ransomware but also predicts the new. All this speeds up the compliance process and gains customers’ trust.

Big data also helps to manage the risk which arises from sharing the company data with a third party like vendors. Analyzing their ability to protect your data, you can decide whether to share it or not.

To get a compliance certification, the company must prove its customers are satisfied with the way their data is handled. Applying big data analytics will help understand the customers’ behavior. Based on these insights, the company can adjust its decision making, thus simplifying the compliance process.

If your organization wants to obtain and benefit from compliance certifications, you must adopt big data analytics and develop a preventive compliance strategy instead of the reactive one. It will allow to identify threats from a mile away and take appropriate security measures.

Clutch named DataLabs a top B2B company in Ukraine and Eastern Europe

DataLabs is among Ukraine’s and Eastern Europe’s Highest-Rated Business Service Providers, according to the latest Clutch report.

Clutch, the leading B2B rating and review platform, revealed in a new report a great number of accomplished service providers in Ukraine and Eastern Europe. There are 567 development firms, 82 creative and design agencies, 72 information technology or business support firms, and 34 advertising and marketing companies. DataLabs is listed as one of the best IT and business support enterprises.

“The Ukrainian firms in Clutch’s report have shown they can provide high-quality results for their clients,” said Clutch Business Analyst Dustin Sammons. “Our research can help those seeking an app developer, UX designer, or other business service in Ukraine feel more confident in their search.”

DataLabs was founded in 2015 as a consulting company that provides BI-based solutions for successful business management.

Our specialists are developing integrated solutions for the extraction, analysis, cleansing and visualization of large volumes of data from various sources. Unlocking the full potential of clients’ data, we make it flexible and dynamic, therefore turning it into valuable information.

Our team of certified experts has extensive experience in implementing solutions for various business sectors, such as logistics management, personnel management, sales, finance, etc.

Data analytics: an investment that leads to success

The continuous growth in data has led to the constant development of tools and solutions in the field of analytics. With the rise of technologies like IoT and the increase in computing ability of systems, data is becoming richer, more diverse, and of higher quality. The statistics show that we make 5 bn search queries every day. It was also revealed that we send 500 m tweets and 294 bn emails, and share 95 m photos on Instagram on a daily basis. Additionally, one connected car generates around 4 TB, and wearable devices are expected to produce 28 PB by 2020. We create 2.5 EB of data each day, and if it seems like a lot, consider this analysis predicting that in 2025 we’ll be producing staggering 463 EB.

A McKinsey Global Institute report states that machine learning—a practice of using algorithms so that computer systems can learn from data and perform tasks without being thoroughly programmed—is at the leading edge of analytics. Growing investments in computing clusters, mostly accessed as cloud services, further contribute to the upsurge in data analytics.

According to a SaS report, 72% of organizations are benefiting from analytics, reporting that it helps them glean actionable insights. The study responders mentioned other advantages such as less time spent on data preparation, more confident decision making, faster achievement of insights, and so on.  As a result, 60% of enterprises became more innovative once they started employing analytics resources, while 66% significantly improved their core business operations.

Analytics is transforming the market landscape, as business leaders use it to increase revenue, enhance operational efficiency, respond to new trends, and revamp marketing strategy to leverage their competitive advantage.

Moving customer interactions into the digital realm is also gainful for commerce, marketing, and product development, and the success of companies like Uber and Spotify are proof of that. For them it was easier to build new models from the ground up than rework the existing ones.

Business executives can rest assured their investments in the analytic platform will pay off, as McKinsey calculated that productivity gains of investing organizations will approximately increase by 6-8%. Putting it into perspective, that doubles the companies’ investments within a decade.

But, having recognized the power of data analytics, how do you start harnessing it? It’s clear the transition to a data-driven company can’t happen overnight. The first step is to develop a concrete strategy. Business leaders need to pinpoint the organization’s weak spots and opportunities and set KPIs for each of them. This will help focus on the right aim and determine how data analytics can aid in achieving it.

Upon integrating data analytics into the core strategy, the next stage is fostering a data-driven culture within the enterprise.  As Murli Buluswar, AIG chief science officer points out: “The biggest challenge of making the evolution from a knowing culture to a learning culture—from a culture that largely depends on heuristics in decision making to a culture that is much more objective and data-driven and embraces the power of data and technology—is really not the cost.” It’s equally important to develop data infrastructure and the appropriate talent in employees.

Data-advanced powerhouses like Google, Netflix, and Spotify, who heavily invested in cloud-based data analytics, transformed their culture accordingly and can adjust to AI innovations, are the ones at the forefront of customer insight and experience. As evident from their prosperity, the need to invest in data analytics is indisputable.

DataLabs meetup

DataLabs team gathers in Dnipro to hang out and have fun!

In August it was decided to organize a week-long business trip from Kyiv to Dnipro for the Litvinchuk brothers, who work for DataLabs remotely. On the 30th of September, we were finally meeting Danylo and Yevhen in the office. The following week was productive and fun as we took breaks during a workday to play cards and board games and, of course, to plank!

Nothing relieves the strain of the excruciating exercise better than Danylo’s signature jokes that we had a chance to appreciate in real life.

The week culminated in a shared trip to the laser tag club on Friday. Even though it was coming down the whole day, everyone’s mood was elevated as we were excited to unwind after a busy day.

The game itself comprised 4 levels, 15 minutes each, having a different goal. We were divided into two teams and competed against each other. Although there was a slight gap in performance between the teams, everyone still enjoyed themselves.

By the time we finished playing, the rain had let up, and we headed to a nearby Georgian restaurant. The food was delicious and the atmosphere friendly. It was a perfect end to the good evening, and we look forward to future meetups.

The advantages and drawbacks of BI dashboards

BI plays a major role in the vitality of almost every business today. BI solutions manage big amounts of data and help companies to stay competitive on the market. Dashboards are instrumental in the process because they visualize complex information and make it user-friendly. They consolidate data from many sources into one comprehensible custom sheet that highlights the performance within the whole company. Visualizations can also help control inventory both for SMEs and large organizations.

What is the purpose of BI dashboards?

BI dashboards track KPI, different metrics and data points pertinent to a business aspect, department, or some process. Their goal is to present information in such a way that gives valuable insight and inspires immediate action. Therefore, they use visual tools like graphs and charts to simplify the information and make it accessible for everyone within the organization. As a result, the end-users can actively interact with data instead of passively consuming it.

Advantages of BI dashboards

BI dashboards can bring a lot to the table when you prepare them with clear objectives in mind. Here are some benefits a well-built dashboard can offer:

Customization

It’s possible to customize dashboards in relation to users and expectations. Dashboards can be tailored to managers at all levels of the organization to display the most relevant information. This allows each person to see just enough detail to do their job efficiently and achieve set goals.

There are many customizable solutions. You can opt for strategic, analytical, operational, or tactical dashboards, each having a specific purpose. Likewise, you can choose the environment where to build them, i.e. a cloud-based software or the on-premise one.

Immediate visibility

A good business dashboard is easy to read and understand. But when we say that visualizations simplify complex data, we don’t mean they dumb it down. Dashboards are nuanced, and they enable their users to drill into detail by selecting a variable or an object. Plus, most BI software is mobile-friendly, meaning anyone, no matter where they are, can view and interact with dashboards.

Thus, BI visualizations provide on-demand access to the information needed to respond to ever-changing market conditions. Which brings us to the next point.

Cost and time effectiveness

Before, one had to log in to multiple systems to compile chunks of data into a decent report. But by the time they’re done, the report might not be applicable anymore. Even worse, the company could lose money because it wasn’t able to react adequately to changing conditions.

Now, thanks to BI dashboards, organizations can adapt to fluctuations on the market and sometimes even predict them.

Forecasting

Utilizing historic data on the customers’ buying cycle, it becomes easier to determine what the next demand will be. In response, businesses can build a strategy to cope with fluctuating demands setting realistic targets and deliverables for guaranteed success.

Observing consumer trends

This ties in with the previous point but mostly concerns BI dashboards shedding light on current patterns in customers’ behavior. Businesses can get higher retention rates and increase revenue if they know on what customers they should focus their marketing efforts the most.

Inventory management

For sales staff, BI dashboards will be of great use since they keep managers informed of what products are in store and where they are located. Leaning on historic data, BI dashboards can optimize the supply chain and minimize the risk of stockouts or overstocks.

Identifying inefficiencies

When it comes to Key Performance Indicators (KPIs), BI dashboards are indispensable. They help managers detect and close performance gaps across all business areas before the situation gets out of hand. As the old saying goes, ‘What gets measured, gets managed.’

Enhanced decision-making

If you take all the above-mentioned points into account, it’s clear that BI dashboards can positively affect the ability to make informed decisions. Thanks to BI dashboards, organizations can analyze key data quickly and in-depth across many departments. Visualization tools break down intricate data and empower nonspecialists to evaluate it and act upon the gained knowledge.

Once you create a BI dashboard with the right questions in mind, the answers you receive will unveil the current state of your business and help you take measured data-driven decisions.

Drawbacks of BI dashboards

When you implement something new, it’s important to know what difficulties you may encounter along the way. Like any other innovation, BI software is imperfect, that’s why it keeps evolving. Nowadays, most of the complaints regarding BI dashboards stem from either their cost or challenges during the implementation. Most BI solutions are self-service, which means IT specialists need to install them. Here are some other complications:

  1. Inexperienced users, afraid they may leave out something important, tend to clutter the sheet with unnecessary information. Such dashboards are unfocused and meaningless because their creator didn’t decide what questions they wanted to address.
  2. If there aren’t some regulations on who’s responsible for what dashboard metrics, there will be a mess in reports. So, it’s important to establish that from the beginning.
  3. Due to some technical failure, attaching supporting data may be troublesome. There can also be a problem with data refreshing automatically if the BI tool is incompatible with the business system. As a result, both tasks must be done manually, defeating the purpose of the BI dashboard.
  4. The working principle behind building a BI dashboard may differ from that of the software already implemented in the company. This leads to initial confusion on the part of the employees, but it gets better with experience and proper guidance.

Most of these problems are easily solved with the right approach. Considering the number of benefits, it’s worth investing in something that in the long run can help your company thrive. Because the future lies in big data and analytics, and sooner the company adopts it, the more competitive advantage it will hold later on.

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