Question

Elaborate on the costs and benefits of relying on big data or machine learning in a business context.

Answer 1

Benefits of Big data are:

Big data is not just how much data a company has but how a company uses the data it gathers. Each company uses data in its own way; the more efficiently a company uses its data, the greater its potential to grow. The company can take data from any source and analyze it to find answers that will enable:

Cost savings: when large amounts of data are to be stored, some tools can bring cost advantages to business, and these tools also help identify more efficient ways of business.

Time Reductions: The high speed of tools such as Hadoop and in-memory analytics can quickly identify new data sources that help companies evaluate data instantly and make fast learning-based decisions.
New Product Development: By understanding consumer desires preferences and satisfaction through analytics, you can build products according to consumer wishes.
Understand the market dynamics: You can get a deeper understanding of existing market trends by analyzing big data. By observing the purchasing habits of consumers, for example, a company may figure out the goods that are being sold the most and manufacture products according to this pattern.

Disadvantage of Big data are:

Concerns about privacy and security: The greatest drawback of big data is possibly that it can make companies a easier target for cyber attackers. Even giant enterprises have had instances of massive data breaches. However, with the introduction of GDPR, organizations are increasingly having to invest in systems, protocols and technology to sustain big data

Need for technological expertise: working with big data requires a lot of technical ability and this is one of the key reasons why big data experts and data scientists belong to the highly paying and highly respected category in the IT landscape