Big Data is the buzz word that’s been pulsating in the business community since around 2011. It has launched conversations from some of the tech industries leading businessmen, and it’s what Tech Republic calls “an exploding new field.”

The Importance of Protecting Your Data

In a Wall Street Journal article, it was reported that Netflix “turned to Big Data following an outage in 2008 that left some customers without service for three days.” It was immediately noted by the company that the “tools of the CIO and the IT department” must grow together in “strategic importance.”

The company lost some customers, but learned a big lesson. “Netflix moved its storage from internal data centers to Amazon’s cloud.” The cloud is infinitely better for storage because it can be instantly backed up. Internal data centers can crash and it can take days to recovery.

Although the cloud is a safer location for Big Data, it’s not safe from hackers and information thieves. The only way to truly protect your data is with advanced security measures. If you’re storing your Big Data on the cloud, it’s absolutely essential to use cloud security.  

The Many Benefits of Big Data

Big Data plays a significant role in most business sectors, as the ability to keep and store data grows. This includes customer information, statistics, analytical information, and so much more. Big Data allows your business to profit from a computer’s ability to analyze all your stored data, and use the results to be more tactical and meet strategic objectives.  

Big Data is bigger than big; its ability to store and analyze is infinite. Tech Republic breaks it down like this: “Big Data represents a noun – ‘the data’ – and a verb – “combing the data to find value.’” The more data you store, the better your profitability will be.

If you’re in a customer driven business, you can use the data you store to define exactly who your primary customers are. What are their interests? What motivates them to work with you? When you’ve answered these questions, you’ll be able to better target customers for future sales.

In the same Wall Street Journal article, it was reported that Netflix used Big Data to improve their streaming service. Netflix was able to analyze its customer’s viewing preferences, which in turn allowed the service to create an algorithm capable of matching shows and movies to the customer’s taste level. It can only be assumed this ability to instantly target a customer’s specific taste level resulted in increased customer loyalty.  

Collecting Big Data the Legal Way

Now you understand what Big Data is, how it can improve your business, where it should be located (on the cloud, obviously), and how to secure it. There’s one last thing you should know about Big Data – it’s not always legal to collect it.

You must collect customer data within the bounds of the law. Laws vary jurisdiction to jurisdiction, but there are many federal laws regarding data collection. According to Nolo.com, “This area of law is undergoing a great deal of change, so it is important to stay current on your compliance obligations.” This may mean seeking out an attorney who understands the intricacies of data collection.  

If you give your customers more options, in terms of what they disclose and how it’s used, you’ll end up with happier customers. Be as transparent as possible, as this will please your customers and protect you from a lawsuit down the road. Moreover, do whatever it takes to keep your customer’s data secure. A single hacking breach can ruin everything you’ve worked hard for.