Chapter 1. Introduction
Over the past few years, there has been a fundamental shift in data storage, management, and processing. Companies are storing more data from more sources in more formats than ever before. This isn’t just about being a “data packrat” but rather building products, features, and intelligence predicated on knowing more about the world (where the world can be users, searches, machine logs, or whatever is relevant to an organization). Organizations are finding new ways to use data that was previously believed to be of little value, or far too expensive to retain, to better serve their constituents. Sourcing and storing data is one half of the equation. Processing that data to produce information is fundamental to the daily operations of every modern business.
Data storage and processing isn’t a new problem, though. Fraud detection in commerce and finance, anomaly detection in operational systems, demographic analysis in advertising, and many other applications have had to deal with these issues for decades. What has happened is that the volume, velocity, and variety of this data has changed, and in some cases, rather dramatically. This makes sense, as many algorithms benefit from access to more data. Take, for instance, the problem of recommending products to a visitor of an ecommerce website. You could simply show each visitor a rotating list of products they could buy, hoping that one would appeal to them. It’s not exactly an informed decision, but it’s a start. ...
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