Define data analytics.

Data-centric approach

"As more organizations take a data-centric approach to managing their business, they are increasingly exploiting the potential of Big Data. The number of companies deploying Big Data will double in the near future, with the potential to significantly improve their organizational performance." 1

Data analytics

Data analytics is the process of evaluating data with the purpose of drawing conclusions to address business questions.

Structured vs. unstructured data

Data can either be structured or unstructured. Structured data adheres to a predefined data model in a tabular format. Unstructured data, on the other hand, does not adhere to a predefined format.

Components of data analytics

Data analytics involves the:

Technologies,
systems,
practices,
methodologies,
databases,
statistics, and
applications

used to analyze diverse business data to give organizations the information they need to make sound and timely business decisions.

"The process of data analytics aims to transform raw data into knowledge to create value." 2

Big data

Big data refers to datasets that are too large and complex for businesses' existing systems to handle utilizing their traditional capabilities to capture, store, manage, and analyze these datasets. Big data is characterized by the four Vs.

Volume: The sheer size of the dataset.
Velocity: The speed of data processing and/or the speed at which data is generated.
Variety: The number and types of data.
Veracity: The underlying quality of the data.

Footnotes

1 IMA. 2020. The impact of big data on finance: Now and in the future. Available at: https://www.imanet.org/insights-and-trends/technology-enablement/the-impact-of-big-data-on-finance-now-and-in-the-future?ssopc=1.
2 Richardson, V.J., R.A. Teeter, and K.L. Terrell. 2023. Data analytics for accounting: 3rd Edtition. McGraw-Hill, New York, NY. Page 4.

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