Why Big-Data is important
Why is Data is important for a company? What are the effects?
Competitive advantage:
All companies obtain information on their customers or on their product. All these information may help a business to develop new strategies. They can also forge ahead by treating these big data. All companies have in their possession those information, so use it can be very useful. A company can identify for example their weaknesses and can improve their strategy to become the best on the market. It will help to create more opportunities for the company and maybe create a real competitive advantage.
Big Data allows a segmentation of customers and therefore much more precisely tailored products or services:
Effectively, big data provides the companies with the opportunity to know and understand their customers. With Big Data, a company holds a lot of information about their customers, such as their habits, what is the product they prefer, the time they make purchases, how many products they buy and what kind of promotion their prefer. Then they can make a relation with who the person is, age, gender. Thus they can adapt their offer to the customer. If you are a good client, you can have private discount, or more discount. The objective is to know personally your customer to make them feeling unique.
Big Data can unlock significant value by making information transparent:
A lot of data are not on a digital mode. (A lot is still on a paper format.) So that kind of information is very difficult to find. Some studies explain that it is nearly 25% of the effort of some employee. If all information would be easy to find on easy networks companies will win in transparency of the information. Because this effort is real...
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...ch Reips. ““Big Data”: Big Gaps of Knowledge in the Field of Internet Science.” International Journal of Internet Science 7.1 (2012): n. pag. Web. 16 Mar. 2014.
Friedman, Uri. “Big Data: A Short History.” foreignpolicy.com. Foreign Policy, 8 Oct. 2012. Web. 16 Mar. 2014.
Sources: http://iveybusinessjournal.com/topics/strategy/why-big-data-is-the-new-competitive-advantage#.UyZOJ_SwYb0 http://www.sas.com/news/feature/big-data-benefits.html https://www.atkearney.com/strategic-it/ideas-insights/article/-/asset_publisher/LCcgOeS4t85g/content/big-data-and-the-creative-destruction-of-today-s-business-models/10192 CIO- http://www.cio.com/article/733698
TDWI Business Intelligence and Data Warehousing- http://tdwi.org/articles/2012/06/26/big-data-best-practices.aspx
American Civil Liberties Union- https://www.aclu.org/blog/technology-and-liberty/eight-problems-big-data
The author is this article is Kalev Leetaru, he is known as an American internet entrepreneur and academic. He is also a contributor to Foreign Policy, where he discusses current political events worldwide. He was appointed adjunct assistant professor at Georgetown university which is ranked #6 internationally and is an extremely well respected university in Washington DC.
Taylor, James Stacey. "In Praise of Big Brother: Why We Should Learn to Stop Worrying and Love Government Surveillance." Public Affairs Quarterly July 2005: 227-246.
...rces of Big Data . This huge amount of data possible for researchers to know the consumer behavior of customers , thereby refining the Internet of Things devices more suitable , we began serving daily lives of us more effectively . It can also be used for the production , thereby reducing human involvement . In the words of Daniel Kaufman predicted it " will do little more human " by Big Data .
Personal data is quickly becoming a commodity in today's high technology world. This information is used by banks, investment and brokerage companies, credit card merchants, government agencies (local, state and federal), and consumer product-based companies. Most people probably don't realize the amount of information that's shared between companies, or how often it's done. Many companies sell and share customer data to help sell products and find out what new products they should produce. Other uses include gathering information about inventory levels to help better determine what types of products are bought at which store, when and how often. This can be used for inventory and production, to make sure that the store (or stores for chains, like Safeway and Long's Drugs) can have the products available when they're needed.
Data can give you quite a bit of information about your customers. By examining it, you will be able to begin to see patterns and learn the habits of your customers. This could mean that you are able to provide the correct number of products at the perfect time instead of having a shortfall or being left with additional stock long after interest has fallen in the product.
If auditors can look at a complete population, they may not have a great defense if they missed a “smoking gun” since they looked at all the data (Alles and Glen). However, this data may not be valid which raises the importance of the auditor understanding where the data came from and how reliable it is. Not only this, it will be interesting to see how standards consider big data evidence. While it most likely will not be as reliable as confirmations, it would be a challenge to figure out how much the auditors could rely on it. Furthermore, higher education would most likely play a role in helping their graduates understand data and how to use technology to be not only more efficient but also ensure they are able to use sound professional judgement while using big data.
You may ask what big data analytics is. Well according to SAS, the leading company in business analytics software and services describes big data analytics as “the process of examining big data to uncover hidden patterns, unknown correlations and other useful information that can be used to make better decisions.” As the goal of many companies which is to seek insights into the massive amount of structured, unstructured, and binary data at their disposal to improve business decisions and outcomes, it is evident why big data analytics is a big deal. “Big data differs from traditional data gathering due to that it captures, manages, and processes the data with low-latency. It also one or more of the listed characteristics: high volume, high velocity, or high variety. Big data comes from sensors, devices, video/audio, networks, log files, web, and social media which much of it is generated in real time and in a very large scale.”(IBM) In other words, companies moving towards big data analytics are able to see faster results but it continues to reach exceptional levels moving faster than the average person can maintain.
It has been observed since the inception of Marketing that marketers target to only specific market and how they identify such market. There are certain criteria or base they use to identify the consumers who they would be serving to. Customers do have unique requirements satisfaction levels and aspirations. Some customers however are similar with respect to their requirements of goods and services. In such case if their needs are identified and they can be grouped in quantities of a specific size then it can be segmented. Now each customer group have specific expectations and businesses must cater to the needs of the segmented that has been targeted.
Thus, customers can get and receive information from each other instead of communicating to the corporations or the companies and as result they can easily spread information about company products as well as information about new arrivals
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
3. New technology allows marketers to track the specific purchase and usage behavior of their customers.
Today 's generation is all about social media. It is the new way to have instant connection to thousands all over the world. Today 's company are now doing less traditional television, radio, and print advertisement and more promotion via Twitter, Facebook and/or Instagram. Companies are invested in getting famous people to post pictures or tweet about their products, knowing that, one person can connect with millions with just one post. Over half of the world has access to social media, making them great consumers. Social media benefit marketing by giving the companies the opportunity to learn their audience/consumers, having access to instant feedback and bring awareness to here product.
For example, a restaurant chain could mine customer purchase data to determine when customers visit and what they typically order. This information could be used to increase traffic by having daily specials.