Big Data Analytics: What It Is, How It Works, Benefits, And Challenges

All businesses in the world are dealing with loads and loads of data. It starts from the customers’ services, the applications, and websites from the customers’ end and includes the ones the employees generate and use to keep your business moving and developing. The existence and importance of data have become undeniably strong. Without the generation of such an abundant amount of data, your business will not function properly.

Therefore, as you can neither ignore nor terminate large amounts of data production, you need data analytics services to analyse and manage it efficiently and effectively. And that brings us to our further discussion of knowing what Big Data Analytics is, how it functions, what benefits it can bestow on you and your business, and the challenges related to it. Therefore, without any further delay, here we initiate our discussion about Big Data Analytics.

What is Big Data Analytics?

While your business is continuing at its pace, there are truckloads of data generating out of it. The data generation occurs from the customers’ who tend to have a service from you, from the customer services they avail, and from your employees who are constantly working to make your business grow and develop. Here, the data is extensive in volume and velocity and is more complex; therefore, it has Big Data.

But what to do with all these data?

Here comes the role of management and analysis. In the simplest way of describing it, the complex and advanced techniques are used to analyse and manage these vast, structured, unstructured or semi-structured data from various sources and vary in sizes from terabytes to zettabytes.

How does Big Data Analytics work?

Big Data Analytics has precise four steps or operations that come together to make Big Data Analytics work. The following are the four steps that integrate sequentially to help Big Data Analytics work.

  • Data Ingestion

If you want to know what data ingestion is, it is sorting the available data in the most general terms. Big Data includes structured, unstructured and semi-structured data. Their source, too, varies and their size range from terabytes to zettabytes. The data is immensely complex and are carry large volumes, velocity and varieties. Therefore, the first important step is to organise and sort out the available data. For data ingestion, the raw data undergoes data extraction, transformation and loading of data are the prime steps.

  • Storage and Processing of Data

Big Data varies according to its level of complexity as well. Therefore, based on how complex the data is, the storage occurs by placing them either in data lakes or cloud data warehouses. And, from their respective place of storage, the Business Intelligence Tools can effortlessly access them as and when necessary.

After the storage process is over, then comes the processing of data. From the appropriate placing of the data, they undergo processing to transform into a readily digestible form. There are four types of processing- centralised and distributed, and batch and real-time processing.

  • Data Cleansing

To ensure the best quality of data, before analysis, the data undergoes the process of cleansing. All errors, corrupted areas and damaged areas are repaired, eliminated, or scrubbed in this process. The incorrect formats, duplicates and inconsistencies undergo eradication. Therefore, with the cleansing of data, the quality of it has refinement and correction and then comes the last step of the process.

  • Data Analysis

The last step is crucial as it is here when the data has transformed into actionable and valuable insights for the businesses and companies. There are multiple techniques for data analysis, and the following list lays down all of them before you.

  1. Text mining
  2. Sensor Data Analysis
  3. Natural Language Processing
  4. Outlier Analysis, which has the other name of anomaly detection


Benefits of Big Data Analytics

Big Data Analytics has some unique and irreplaceable benefits for businesses and companies. The following list points out all the prime benefits that Big Data Analytics bestows upon your businesses.

  • Efficiency Enhancement

Data analytics services include taking feedbacks from the customers, analysing the recent marketing trends and the like factors that are immensely beneficial for your business. Therefore, it helps in enhancing the efficacy of your business procedures to an optimal level.

  • Optimisation of costs

Big Data Analytics helps figure out and instil the various methods your business can save money yet work equally efficiently. And therefore, it essentially aids in optimising costs for your business.

  • Integrates innovation

Big Data Analytics offers you insights that help you discover different methods and strategies to innovate your business and its procedures. Therefore, Big Data Analytics is practical for instilling innovation in your businesses.

  • Managing Online Reputation

Big Data Analytics includes sentiment analysis. It includes taking and processing feedbacks from your customers and clients. Therefore, you can readily supervise and manage the online reputation of your business through Big Data Analytics.


Challenges of Big Data Analytics

The following are the challenges related to Big Data Analytics that businesses often struggle with within their journey.

  • Insufficient Understanding

Many businesses are yet to understand the working and processing of Big Data Analytics. And, due to the lack of understanding and knowledge about it, companies cannot make the most out of this immensely vital aspect for every business in the present world.

  • Confusion regarding opting for the tools of Big Data Analytics

There exists widespread confusion about choosing the ideal tools of Big Data Analytics. And, therefore, the companies do not have the perfect results because of the lack of proper use of the means of Big Data Analytics.

  • Lack of proper storage

Big Data includes an abundant amount of data that is often difficult for businesses to store appropriately. Therefore, Big Data for analytics is another major challenge.

  • Insufficient number of professionals

To get the ideal results and working of the Big Data analytics, you need data professionals. And, there is an insufficient number of data professionals available, which has become another challenge related to Big Data Analytics.



Big Data Analytics is an essential, irreplaceable aspect for every business today. It has multiple advantages and also several challenges related to it. But, appropriate use, hiring of professionals and effort to have sufficient knowledge about it can help every business flourish with the benefits of Big Data Analytics.


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