{"id":4503,"date":"2022-04-08T11:51:41","date_gmt":"2022-04-08T11:51:41","guid":{"rendered":"https:\/\/solutionsreview.com\/enterprise-resource-planning\/?p=4503"},"modified":"2024-05-01T20:07:01","modified_gmt":"2024-05-01T20:07:01","slug":"what-is-a-data-lake-and-how-can-it-improve-your-business","status":"publish","type":"post","link":"https:\/\/solutionsreview.com\/enterprise-resource-planning\/what-is-a-data-lake-and-how-can-it-improve-your-business\/","title":{"rendered":"What is a Data Lake and How Can it Improve Your Business?"},"content":{"rendered":"

\"Data<\/p>\n

As part of Solutions Review\u2019s\u00a0Contributed Content Series<\/a>\u2014a collection of articles written by industry thought leaders in maturing software categories\u2014Craig Kelly, the Vice President of Analytics at Syntax<\/a>, shares some insights on data lake implementation and the value it can add to an organization’s existing enterprise technologies.<\/span><\/span><\/strong><\/em><\/p>\n

The term “data lake” was <\/span>first coined<\/span><\/a> over a decade ago. Since then, industry-leading research consultancies from <\/span>PwC<\/span><\/a> to <\/span>McKinsey & Co.<\/span><\/a> have championed the concept as a means for better data-based decision-making. <\/span>At a high level, a data lake is a cloud-based centralized data repository. The term “lake” refers to how data is stored\u2014raw and unrefined information populates a data lake, making for an extensive (but not necessarily clear) body of water. As organizations’ data volume expands, data lakes help improve information quality, access, and usability.<\/span>\u00a0<\/span><\/p>\n

Despite the splash data lakes have already made, there’s still quite a bit of confusion about how the technology compares to traditional data stores, the benefits, and what’s involved in implementation. Fifteen years in enterprise data and analytics has given me more clarity than most to wade through the waters of data lakes. Let’s dive in.<\/span>\u00a0<\/span><\/p>\n

More Data Doesn’t Always Equal Clearer Insights<\/span><\/b>\u00a0<\/span><\/h3>\n

As of 2021, the world produces five exabytes of data every day. That number is <\/span>expected to skyrocket<\/span><\/a> to 463 exabytes per day in just four years. For context, the most recent iPhone’s maximum storage option is one terabyte. One terabyte is the same as 1000 gigabytes (most iPhones only have 64GB), which is .000001 of an exabyte.<\/span>\u00a0<\/span><\/p>\n

That’s more than a 9,000-percent increase in data growth in just four years. Imagine the amount of data your organization produces today and multiply that by 92.6. That number is roughly how much information you can expect to generate by 2025.<\/span>\u00a0<\/span>All of this data growth must be a good thing, right? After all, data fuels an enterprise’s Business Intelligence (BI)<\/a><\/strong> and business analytics (BA)<\/a> programs which helps companies make better, faster, and more informed decisions.<\/span>\u00a0<\/span><\/p>\n

While more data <\/span>can<\/span><\/i> be beneficial, it’s not a given. Organizations’ data volume and sources are growing faster than most know what to do with it, meaning most organizations aren’t getting the total value out of their data. In fact, between 60-percent and 73-percent of all data collected by enterprises is <\/span>never analyzed<\/span><\/a> and remains untouched.<\/span>\u00a0<\/span><\/p>\n

Without a convenient way to collect, store, and access data, organizations miss out on opportunities to drive profitability, operational efficiency, and innovation. But with more data than ever coming from dozens of distinct sources, enterprises need a more strategic place to flow their data into. <\/span>\u00a0<\/span><\/p>\n

Data Lakes vs. Traditional Solutions<\/span><\/b><\/h3>\n

As data grows, so must an organization’s data store maturity. Otherwise, you won’t be able to take advantage of the data you already produce and the benefits that come with data-driven decision-making.<\/span>\u00a0<\/span><\/p>\n

Before diving into what a data lake is and its advantages, let’s first discuss the two most common data store methods and how these traditional solutions aren’t measuring up. <\/span>\u00a0<\/span><\/p>\n