Structured Vs Unstructured Data: What You Need To Know
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Data is often described as a vast and ever-growing ocean of information, with over 2.5 quintillion bytes of data created every single day. Just like an ocean filled with countless landmasses, understanding what makes up this digital landscape can be overwhelming for those without a proper map.
Structured and unstructured data are two major types of data that differ in their formats and how they are organized. Structured data is like the well-defined islands within the ocean, while unstructured data is like the coral reef spread out below the surface.
By exploring these two distinct areas of the data ocean, we can gain insight into how best to navigate through its depths.
What is Structured Data?
Structured data is information that has been organized into a specific format and stored in an easily retrievable form. Most quantitative data is structured to allow for easy access.
This type of data typically follows the rules of a standard database, which organizes data into tables with columns and rows. Structured data also adheres to predefined sets of values, making it easier to search for related items.
Some examples of structured data include:
Machine Learning Algorithm Training - If AI uses supervised learning to grow, programmers will utilize structured data when writing and augmenting it. Because the machine uses such strict formatting, it needs data that follows the same guidelines.
Transactional Records - Many businesses use structured data to track customer purchases and store them in databases for later analysis. This type of information is essential for understanding customers’ buying habits and creating accurate marketing strategies.
Hotels' Online Booking - Hotels utilize structured data to store customer information, including name, address, credit card number, and other details. This enables customers to quickly reserve a room online without having to repeat the same information over and over again.
Having an understanding of structured data and how to use it is vital for all forms of business. Without it, you can easily get lost in a sea of information.
How Structured Data Helps Businesses
Structured data is the foundation on which successful business decisions are made. It allows companies to quickly and accurately interpret the results of their analyses, resulting in more confident decision-making.
Organizations using structured data can make better use of their resources by automating processes that would otherwise require manual labor.
Other benefits include:
Improved Tool Access - Structured data is easier to access and process efficiently by tools such as databases, analytics software, and machine learning algorithms.
Easy Sharing - Structured data makes sharing information between different departments or platforms simple. This includes sharing customer profiles across different systems within an organization, and sending reports from team to team.
Security - Structured data is more secure because it follows a standardized format, making classification a breeze. This makes it easier to identify and protect against potential threats, such as hackers or malicious software.
Straightforward Analytics - Structured data can be analyzed more quickly and accurately than unstructured data, making it ideal for businesses that need to make decisions quickly.
Without structured data to act as landmarks, it’s easy for a business to get lost at sea.
Drawbacks of Structured Data
Despite the many advantages of structured data, there are some drawbacks to consider.
Lack of Flexibility - Structured data is often more rigid and inflexible than unstructured data. It can be difficult to adjust or add new types of information if needed.
Time-Consuming Setup - Setting up a structured database system takes time and resources that may not be available for smaller businesses or those with limited budgets.
Data Quality Issues - Data quality is key for accurate analysis and decision-making, but it can be difficult to ensure the accuracy of structured data due to its rigid format. This can lead to incorrect or incomplete information.
These issues contribute to the importance of having multiple types of data at your team’s disposal.
What is Unstructured Data?
Unstructured data is information that does not follow any specific format or structure. Most qualitative data and ideas are stored this way. It may include text documents, emails, images, videos, audio files — and even ideas and concepts.
Unstructured data also includes web pages and social media posts containing complex ideas and concepts. Unlike structured data which follows a set of rules, unstructured data can be difficult to search through without the help of natural language processing (NLP) technologies.
Some examples of unstructured data usage include:
Data Mining - This is the process of gathering large amounts of data and analyzing it for patterns and trends. This type of analysis can be used to uncover hidden insights about customer behavior, purchasing patterns, and more.
User-Generated Content - User-generated content (UGC) is any content created by customers themselves, such as reviews on products or services. This type of content is unstructured and can be difficult to analyze, however it’s vital for any attempts at user driven innovation.
AI Chatbots - Chatbots are artificial intelligence-powered programs that can simulate conversations with humans. They often use unstructured data, such as natural language processing, to respond accurately and appropriately to user questions or inquiries.
In order to become a data mature company, you must have an understanding of both structured and unstructured data.
How Unstructured Data Helps Businesses
Unstructured data is often more creative in nature, and provides a richer source of detail than structured data. It can also be used to generate insights that may not be readily apparent from structured data alone.
For example, unstructured data can include customer feedback, social media posts, images, and videos that offer valuable insights into customer behavior. Unstructured data can also help businesses identify trends or patterns in the market by analyzing large amounts of unstructured information quickly and accurately.
Other benefits include:
Flexibility - Unlike structured data which is rigidly organized, unstructured data allows for greater freedom when it comes to exploration and discovery. This can be especially helpful for businesses that aim to explore new markets or products, or explore disruptive innovation.
Extensive Details - Unstructured data provides a more detailed insight into customer behaviors and preferences, which can help companies better understand their customers and make more informed decisions.
Ease of Automation - While structured data is used for many types of automation, unstructured data can be used to automate more eclectic processes such as customer service or lead generation.
Personalized Data - Unstructured qualitative data provides insights into how customers think and feel, which can help businesses better target their marketing efforts and personalize their services.
Having processes in place to deal with unstructured data will help your company explore all the color and majesty that the sea of data has to offer.
Drawbacks of Unstructured Data
Although unstructured data can be easier to work with in some cases, there are also drawbacks to consider.
Inconsistent Formatting - It can take extra time and resources to clean up and make sense of unstructured data before analysis can begin.
Difficult To Search - Unstructured data is not searchable by traditional methods like keyword searches or filters, making it hard for researchers or analysts to access specific information quickly.
Data Quality Issues - As mentioned, data quality is key for accurate analysis and decision-making. Unstructured data can often suffer from a lack of accuracy due to its free-form nature.
Time Consuming Processing - Unstructured data requires more time and effort to process than structured data, which can add up over time if not managed properly.
Having only one way of collecting and processing data is never a good idea. There is always something more that you can access by utilizing a mix of techniques.
The Bottom Line
Ocean navigation isn’t simply about getting where you’re going. A competent captain will be able to recognize all the islands on the horizon, while also knowing where to jump in and explore the reefs below.
In order to get the most out of the vast amounts of data coming in to your company every day, you must understand both structured and unstructured data. Having tools like Stormboard that enable the utilization of both is a great way to get started. Our storms are an easy way to capture all your unstructured data, and instant reports help to turn that data into something that can be quantified.
By understanding both structured and unstructured data, you can be sure that your company will stay on course while also making use of all the treasures hidden beneath the surface.
Data isn’t always 1s and 0s — it can be a complex, evolving mixture of multiple data types from dozens of sources. Stormboard is the first — and only — data-first digital whiteboard solution available.
Whether your business just needs a centralized platform to make sense of the data you already have, or you’re looking for a more efficient way of turning data into actionable outcomes, Stormboard is purpose-built to help.
Get in touch with one of our experts for a no-obligation product demo customized to your organization’s unique needs and see how we can help turn data of any type into more actionable outcomes.
About the author:
A programmer by trade, Nick Saraev is a freelance writer and entrepreneur with a penchant for helping people excel in their careers. He's been featured on Popular Mechanics & Apple News, and has founded several successful companies in e-commerce, marketing, and artificial intelligence. When he's not working on his latest project, you can find him hiking or painting.
