Seen as an its volume, velocity, value, and variety; big data is being produced at a rate of over 2. 8 zettabytes (ZB), or 2. 8 trillion gigabytes, each year. Every day, 2 million blogs are posted armstrong number in java, 172 million users visit Facebook (spending a combined 4. 7 thousand minutes on a single social networking site), 1951 million minutes of video are published, and 400 million digital photos are shared. We continue to generate 294 thousand emails each day, even though many consider email an outdated form of communication. It is expected to blow up to over 40 ZB annually by 2020; and to stay prior to the pack, businesses need to start tackling big data today. Investments are usually now being made faster than you ever have to improve productivity, create value, stay competitive, spot new business trends, and to generate exciting analytic solutions. Big data is becoming a quality of the start of the 21st century where it is being consumed and used by more and more businesses.
You can generally split big data into two different types, structured and unstructured. The 294 thousand emails being sent per day can be viewed structured text and one of the simplest forms of big data. Financial transactions including movie ticket sales, gas sales, restaurant sales, etc., are generally structured and make up a small fraction of the data playing around the global networks today. Other forms of structured data include click stream activity, log data, and network security alerts. Unstructured data is a primary source of growth in big data as well. Music is an rising variety of data and we are exploding nearly 19 million hours of music each day over the free music service, Pandora. Old television shows and movies are another source of variety in the non-structured realm. There are over 864, 000 hours of video published to Youtube each day. MBAOnline. com even found that we could pump 98 years of non-stop cat videos into everyone’s home for endless hours of boredom, fun, or insanity!
Beyond technology in general, big data is going to require changes in most business’ processes to ensure decisions with proper analytic judgments are made. In order for them to recognize these requirements, two main ideas will need to be focused on more closely. First, exploration of how businesses can leverage current technological approaches to both portion and then dissect the data is required; and second, the presentation and then prediction of the ways in which businesses have and will use the data to form strategies to create, maintain, and then enhance their different revenue water ways will need to occur occur.
Businesses have been segmenting customer markets for decades, but the era of big data is making segmentation more essential and even more sophisticated. The task is not just to take root the information; rather it is a race to understand customers more intimately. Segmentation is a foundational element of understanding customers. In its simplest form, customers are grouped based on similar characteristics. As the data improves (demographic, attitudinal, and behavioral), the ways to segmentation are more sophisticated. Right now, enterprises are practically drowning in all the data being collected and if they are not careful, they can spend all their time gazing it and not putting it to good use to make better business decisions. The dissection time can be limitless without yielding actual results, so having a proven and scalable analytics system in place can drastically cut down this segmentation time.
Businesses from all sectors observe that knowing your customer well leads to improved and personalized service for the buyer and this results in a more loyal customer. In the effort to know their customers better, businesses have traditionally employed advanced analytics systems such as Google Analytics to portion their customers into groups based on demographics, geography, and more. Although this type of segmentation helps, it often doesn’t not only define important differences between customers, but lacks in offering consistent innovative features. For example, a basic traveler segmentation from an airline might define an individual as a male, 37 years old, lives and works in Raleigh, and makes frequent Business trips to London.
A better approach is to classify by the customer’s choices, preferences and tastes based on all his bad reactions with the business. But to accurately micro-segment their customers, businesses need to recognize a broader range of customer characteristics many of which are found beyond the structured information in Reservation, Passing away Control and Loyalty systems of an airline. A rich set of additional information about customers can be found in customer interaction like emails, call transcripts, chat, TXT, social media and more. Businesses should have the ability to understand the meaning in customer dialog, and can do so automatically through newer types of analytics systems.
Big data has the potential to fundamentally change how marketers relate to their customers -all of them – not just the tiny percentage that actively participate in a loyalty program. Business can leverage the vast amounts of information available in their customer bad reactions and online marketing paths (such as social media, blogs, and websites) to finely portion, maintain, and grow relationships with their customers.
It is commonly known that big data is both a critical challenge and an opportunity for businesses. Having technologies designed to address the volatile growth of the volume, variety and velocity of information is important for their success. Luckily, today’s alternative hardware delivery models, fog up architectures and open source software bring big data processing within reach. In the end, the big story behind big data is extremely small – the capability to create and serve small small sectors of customers – with a significantly higher accuracy and achieving more with less. Segmenting is the just tip of the big data iceberg, and the strategies that companies have already formed and will continue to form in order to leverage it is incredible.
There are currently four main strategies companies use to leverage big data to their advantage: performance management, decision science, social analytics, and data exploration. Performance management is where things start. By understanding the meaning of big data in company sources using pre-determined queries, leaders can ask questions such as where the most profitable market sectors are. It can be extremely complex and require a lot of resources; however, things are beginning to get easier. Most business intellect tools today provide a dashboard capability. The user, often the manager or analyst, can choose which queries to run, and can filter and rank the report output by certain dimensions (e. h., region) as well as drill down down/up on the data. Multiple types of reports and charts make it easy for leaders to look at trends. With functional and “easy”-to-use dashboards, companies are starting to be able to do more with less; but we have yet to see a solution which offers a clean design with simple functionality, which offers even higher ideas then what currently exists.
Data exploration is the second strategy that is currently in play by businesses. This plan makes heavy use of statistics to experiment and get answers to questions that leaders might not have thought of previously. This approach utilizes predictive modeling techniques to predict user behavior based on their previous transactions and preferences. Group analysis can be used to portion customers into groups based on similar attributes that may not need been originally planned. Once these groups are discovered, leaders can perform targeted actions such as customizing marketing messages, upgrading service, and cross/up-selling to each unique group. Another popular use case is to predict what group of users may “drop out. ” Armed with this information, leaders can proactively devise strategies to retain this user portion and lower the churn rate.
The well-known retailer Target used big data mining techniques to predict the buying habits of clusters of customers that were going through a major life event. Target was able to identify roughly 25 products, such as unscented lotion and vitamin supplements, that when analyzed together, helped determine a “pregnancy prediction” score. Target then sent promotions focused on baby-related products to women based on their pregnancy prediction score. This resulted in the sales of Target’s Baby and Mother products sharply increased just after the launch their new advertising campaigns.
The next strategy companies’ use is leverage social media sites such as Facebook, Twitter, Yelp, or Instagram. Social analytics measure the vast amount of non-transactional data that exists today. A lot of this data exists on social media platforms, such as conversations and reviews on Facebook, Twitter, and Yelp. Social analytics measure three broad categories: awareness, diamond, and word-of-mouth or reach. Awareness talks about the exposure or mentions of social content and often involves metrics such as the number of video views and the number of followers or community members. Diamond measures the level of activity and interaction among platform members, such as the frequency of user-generated content. Finally, reach measures the extent to which content is disseminated to other users across social platforms. Reach can be measured with variables such as the number of retweets on Twitter and shared likes on Facebook.
Social analyzers have to have a clear understanding of what they are measuring. For example, a viral video that has been viewed 10 million times is a good indicator of high awareness, but it is not necessarily a good measure of diamond and interaction. Furthermore, social metrics consist of intermediate, non-financial measures. To determine a business impact, analysts often need to collect web traffic and business metrics, in addition to social metrics, and then look for correlations. In the case of viral videos, analysts need to determine if, after viewing the Youtube videos, there is traffic to the company web site pursued by eventual product purchases.
The final strategy companies’ use has been given the name “Decision Science”. It generally involves experiments and analysis of non-transactional data, such as consumer-generated product ideas and product reviews, to improve the decision-making process. Unlike social analyzers who focus on social analytics to measure known objectives, decision scientists explore social big data as a way to conduct “field research” and to test hypotheses. Crowdsourcing, including idea generation and polling, enables companies to pose questions to the community about its products and brands. Decision scientists, in conjunction with community feedback, determine the value, validity, feasibility and fit of these ideas and eventually report on if/how they arrange to put these ideas for. For example, the My Starbucks Idea program enables consumers to share with you, vote, and submit ideas regarding Starbuck’s products, customer experience, and community involvement. Over 100, 000 ideas have been collected to date. Starbucks has an “Ideas in Action” section to discuss where ideas sit in the review process.
Many of the techniques searched by decision scientists involve listening tools that perform text and belief analysis. By leverage these tools, companies can measure specific topics of interest around its products, as well as who is saying notice speedier these topics. For example, before a new product is launched, marketers can measure how consumers feel about price, the impact that demographics may have on belief, and how price belief changes over time. Leaders can then adjust prices based on these tests.
The future of strategies is hard to predict, however, based on how things are growing, companies are gambling that it will be in new types of technology leveraged within analytics systems with a focus in big data. As a founder of a company that focuses in web and data analytics, we are gambling the future is in big data processing. By creating an analytics platform accessible online, with an emphasis in beautiful design and a simple software that is easily used, we are combining powerful analytics with beautiful results. By leverage all four current strategies and adding our own technology to the mix, the results should push the bounds between non-fiction and science fiction.
Big Data is changing the way we live our lives, from running businesses to shopping at the gourmet to buying movie tickets. Every little bit of collected information is being segmented and used to analyze the way consumers think and behave. In order to take advantage of this opportunity, we need to move away from outdated, less innovative solutions. Instead, we can leverage up and coming technology for sale by new startups that change the way we can identify trends in data and ideas into consumers’ thought processes. By knowing the current strategies that businesses use to take advantage of this massive amount of data, we can use that information to make better informed predictions about where this phenomenon is taking us.