Skip to main content

The problem with Big Data


I am NOT a BIG Proponent of BIG data for business use especially in identifying consumer behavior. It has a lot flaws that are being neglected in the present big data narrative.

The interesting part that most of us neglect is "How is it useful?" It tells us what people are doing. Inferring why they are doing is up to the skill of the researcher and that is where most people fail.

To give a short example it was only a few economists including the now famous Nouriel Roubini who predicted the 2008 recession. While all economists had access to the same data, most of them failed. There were cases where the predictions were almost divergent.

Another important part of big data is "what is it that we are collecting?" When we have truck loads of data to collect, it is important to collect relevant information. What that relevant information is depends again on the researcher's skill. When you have a lot of dots, your inference depends on which dots you choose to connect.

Finally where big data fails miserably is that it only tells us what people disclose. In an age where most of us are curating an online identity (and concealing the real self) do you think you can figure out accurately what is going on in their mind. I don't think so!

Agree with this? Share your thoughts below.

Popular posts from this blog

Social Networking on Mobile - The Big opportunity for marketers

Facebook has been the dominant social network for quite a while and has an active user base of more than 1.3 billion. Its proliferation in the 18-35 years of age group (52%) makes it ideal for most advertisers. An interesting statistic to observe is the number of people accessing Facebook through Mobile. One of the biggest shifts in social media behavior has been its greater usage through mobile devices (in particular smartphones).  According to a report , the internet traffic on mobile accounts for one forth the total internet traffic. Even more important is its growth, which is over 1.5 times per year and according to analysts would stay the same way in the years to come. This shift is even more significant for emerging economies where in a sector such as e-commerce organizations are witnessing close to 65% sales through mobile.

7 easy Instagram Marketing tips for beginners

Instagram started as a iOS only application and quickly became a huge social networking website with a presence on Android and the web. An active and rapidly growing user base has made marketing on Instagram important for brands, small businesses and startups. Instagram has more than 75 million daily active users, with a total user base of over 400 million. Instagram users in 2015 were sharing over 70 million photos per day.  Given its growing importance we'll explore some easy tips that can help you with Instagram marketing.

How do brands use Instagram to connect with fans?

Instagram is increasingly becoming a favorite platforms for Brands globally to engage with their customers. It's importance can be gauged by the fact that it is the world's largest mobile ad network. Instagram now has a community of over 500 million users liking over 4.2 billion photos and sharing over 95 million pictures daily. The format of Instagram makes it a great medium for visual story telling.