Slideshow An Expert Explains Why Big Data Works

Published
  • July 19 2015, 3:11pm EDT
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An Expert Explains Why Big Data Works

Everyone talks about big data. Everyone is excited about big data. How many know exactly what that term means? At HDM’s Healthcare Analytics Symposium, Paul Sonderegger, a big data strategist at Oracle, provided an excellent tutorial. (Photo: Fotolia)

Quick Definition

Big Data is the capture and use of more data in more daily activities. It is the economic rise of data capital, the collection of the recorded use of information necessary to produce a good or service. (Photo: Fotolia)

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The Big Deal

What makes big data so important is that it is proprietary. Sonderegger used the Uber car service as an example. Uber’s surge pricing kicks in when demand for rides soars, straining capacity. Data is collected from all the rides hired, and that data drives the pricing algorithm, which the company is trying to patent. Uber is able to do this through ongoing analysis of its data, while its competitors cannot. (Photo: Fotolia)

Another Example

Consider the Wi-Fi order buttons for Tide detergent or other products. You can put a Tide button on your washer and when detergent runs low, press the button and automatically order more. That obviously increases sales, but Tide and other companies want more—they want the data of what you will buy and how often, Sonderegger said. (Photo: Fotolia)

Game Changer

Data capital is disruptive, Sonderegger said. Data changes the competitive landscape and disrupts rivals until they, too, follow suit. Data capital also is disruptive within organizations, including hospitals and other providers. For 40 years, providers have been asking the IT department to do something, and they do it. Now, others in the hospital are doing analytics at their desks. (Photo: Fotolia)

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Laws of Data Capital

Sonderegger explained three laws of data capital. The first law is that data comes from activity. If an organization does not grab the data when the opportunity arises, that opportunity is forever gone. (Photo: Fotolia)

Data Law 2

Data tends to make more data. Every time Uber implements surge pricing, it learns more about how much consumers will tolerate in terms of payment during periods of heavy usage. (Photo: Fotolia)

Data Law 3

An enterprise analytics platform offers better results, as the platform colonizes activities and captures data, and everyone in the organization wins because they are using the same data. In healthcare, the opportunity to work on the same data is particularly beneficial for hospitals and insurers. (Photo: Fotolia)