Why It's So Important to Understand "Big Data"

"Having an appreciation for this area is really worth it."

This post is presented in partnership with Monash Business School.

If you have never come across the term "big data", you are most certainly not the only one. It is not exactly something you hear about on a daily basis. Yet, an increasing number of brands are harnessing big data to rekindle their growth, and to identify valuable business opportunities.

So, what exactly is big data? Is it the massive amount of school assignments you have on your USB? Well, no. To be honest, big data is a complicated subject, and it can actually be a bit tricky to wrap your head around the concept.

That is why we reached out to Monash Business School Associate Professor Simon Angus to help us comprehend exactly what big data is, and why it is so crucial for business students to understand.

"Big data is typically collected or arises through business or government activity at scale, without a specific use, case or research question in mind," Associate Professor Angus tells Student Edge.

"But it has enormous potential for insights down the track."

Basically, big data is large volumes of data that businesses collect on a day-to-day basis, which they can analyse and use to identify valuable customers and create new services.

For example, Netflix collects huge amounts of data every day to create detailed profiles of its subscribers. Then, using data analytics, the streaming service works out what movies and television shows to recommend based on their subscriber's preferences to give them a more personalised experience. 

As Associate Professor Angus explains, every business from a bakery to a car dealership is collecting big data, whether they realise it or not.

"You wake up one day and you realise you’ve got this large database, which you haven’t collected for a specific purpose, but you find that you have a lot of data," he says.

"There’s this notion that this data may be helpful for a whole lot of things."

We know it sounds complicated, but with more and more businesses using big data to achieve their various goals, Associate Professor Angus says it is essential for business graduates to be able to work with big data.

"For most graduates, if they don’t think it’s an area they want to add to their skills, big data presents an enormous possibility for the conversations they’ll have, and the impact they’ll have with their employers in the future," he says.

"Their mindset will be that it’s a resource. What can we actually do with this for the aims of the company to serve our customers better?

"If you don’t really have that understanding and ability, then graduates will be increasingly missing an opportunity that’s being harnessed by literally every company that understands this."

As Associate Professor Angus points out, the Australian government’s COVIDSafe App is a real-life example of big data in practice, and why it is vital that graduates understand the privacy issues surrounding the use of it.

After all, while it's natural to be sceptical about the implications of big data on privacy, it can be used to better understand disease, prevent conflict and improve education. 

"For those who installed the app, it is collecting data on the phones minute by minute. It’s collected specifically for the purpose of contact tracing," he says.

"What staff had to work out was how they could design something that would fulfil the aim but would also balance and protect the privacy principles that Australians hold onto.

"That’s commonly where a graduate that’s working with big data would have to have an understanding and come up with solutions."

For those who are interested in studying big data, Associate Professor Angus suggests considering undertaking a Bachelor of Business, Bachelor of Commerce or Bachelor of Economics. On top of that, you should choose units that will expose you to business analytics, big data, data science or computer science. If you want the extra challenge, you could even do a double degree.

Although, Associate Professor Angus believes even having a basic knowledge of big data can go a long way.

"It can seem overwhelming but knowing a bit about the basic techniques really helps," he says.

"I know it’s a bit like maths, but you don’t have to go very deep, and having an appreciation for this area is really worth it."

Interested in studying big data at uni? Find out more about Monash Business School's wide range of single and double degrees (including degrees where you can study big data), and see why employers prefer their graduates for a reason.

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