Big data refers to extremely large data sets that cannot be processed by traditional databases due to their volume, variety, and velocity. It has been defined by the 3 V's - volume of data, variety of data types, and velocity of data processing. While the term big data is new, the concept of collecting and storing large amounts of information for analysis has existed for decades. Organizations can use big data to gain insights and make more informed decisions, but it also presents challenges related to data types, processing, storage, security, and separating meaningful from meaningless information. When applied effectively, big data can provide benefits like cost savings, time reductions, and competitive advantages, but its limitations must be considered.