MMC 3420 Chapter Notes - Chapter 1: Information Overload, Economic Surplus
27 May 2018
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Module 1
1.1 – Big Data Fundamentals
McKinsey Report on Big Data
• This study makes the case that the business and economic possibilities of big data and its
implications are important issues that business leaders and policy makers must tackle
• Examines the potential value that big data can create for organizations
• $600 to buy a disk drive that can store all the world’s music
• Exhaust data – data that are created as a by-product of other activities
• Big Data – refers to datasets whose size is beyond the ability of typical database software
tools to capture, store, manage and analyze
o Can vary by sector, isn’t quantified on purpose
• Data can create significant value for the world economy, enhancing the productivity and
competitiveness of companies and the public sector and creating substantial economic
surplus for consumers
• Ability to store, aggregate, and combine data and then use the results to perform deep
analysis
• Issue:
o A shortage of the analytical and managerial talent necessary to make the most of
big data is significant
o Need to ensure correct infrastructure
o Incentives and competition in place to encouraged continued innovation
o Safeguards in place to address public concern
• Key Insights:
o Data are in every industry and business function, and now part of production
▪ Big data can be manipulated the most in developed economies like
Europe’s, but can’t underestimate the ability of developing countries to
utilize it
o Big Data creates value in several ways (5 ways to leverage big data)
▪ Creating transparency – making big data accessible can make processing
more efficient
find more resources at oneclass.com
find more resources at oneclass.com
