Harnessing the power of Big Data, and finding the right set of tools that will enable your business to efficiently generate value from it comes with its challenges. Successfully utilising the power of technology starts with a shift in culture, adopting a data-driven mindset and clearly identifying the business challenges you are looking to address with data analytics.
“The biggest challenge of making the evolution from a knowing culture to a learning culture—from a culture that largely depends on heuristics in decision making to a culture that is much more objective and data driven and embraces the power of data and technology—is really not the cost. Initially, it largely ends up being imagination and inertia.” – Murli Buluswar: Chief Science Officer at AIG
Businesses can use information derived from data to increase their efficiency and success in many ways, like automating processes and gaining in-depth knowledge of target markets. This month, we’ve gained insights from five businesses who are front-runners in the data analytics game.
#1 – AMAZON
“The next time you contact the Amazon help desk with a query, don’t be surprised when the employee on the other end already has most of the pertinent information about you on hand. This allows for a faster, more efficient customer service experience that doesn’t include having to spell out your name three times.” Eleanor O’Neill: Writer at ICAS.
Amazon, the online retail giant, has mastered the art of ecommerce. By embracing cutting edge technology to analyse and make use of the massive amount of customer data they have access to, they have become the pros of supply chain optimisation, price optimisation and fraud detection. With sophisticated advertising algorithms, and leveraging their
Amazon Elastic MapReduce platform for machine learning, the company has built an empire by providing goods to their customers faster and cheaper than their competitors, as well as exceptional customer service.
“Amazon.com Inc is a leader in collecting, storing, processing and analysing personal information from you and every other customer as a means of determining how customers are spending their money. The company uses predictive analytics for targeted marketing to increase customer satisfaction and build company loyalty.” – Jennifer Wills: Owner of JDW Writing.
#2 – GOOGLE
“Google is of course an expert in Big Data. They have developed many open source tools and technologies that are widely used in the big data ecosystem. Using many different Big Data techniques, it is capable of sifting through millions of websites and petabytes of data and to give you the right answer within milliseconds. How do they do that?” – Datafloq.
Aside from their impressive search engine, google’s strategy of mining data and placing targeted ads in front of customers who have used free google products before has been a key factor in their success, allowing them to track customers based on their behavior and interests. Google’s service offering to businesses looking to get their ads in front of the right customers has been a huge revenue builder for the organisation.
“Google has not only significantly influenced the way we can now analyse Big Data (think MapReduce, BigQuery, etc.) – but they probably are more responsible than anyone else for making it part of our everyday lives. I believe that many of the innovative things Google is doing today, most companies will do in years to come. Although these days Google’s Big Data innovation goes well beyond basic search, it’s still their core business.” – Bernard Marr: Founder & CEO of Bernard Marr & Co.
#3 – NETFLIX
With a user base of approximately 99 million, data scientists at Netflix collect and analyse a colossal amount of behavioral data to reveal insights for decision-making in a way that differentiates them from competitors like Stan and Amazon Prime Video.
“From predicting the kind of content that would garner high viewership to recommending content to specific users, Netflix uses data everywhere. In fact, since its days of being a DVD-by-mail service, Netflix placed prime importance on collecting user data and building a recommendation system. Cinematch was the first algorithm behind their recommendation system. After launching their streaming media service in 2007, it took them 6 years to collect enough data to predict the sure-shot success of their first original production ‘House of Cards’. Data accumulated from numerous sources influence decisions regarding shows. Not only user data, Netflix also observe data generated by piracy sites. “Prison Break” is a hit show on that front.” – Toai Chowdhury: Author at upX Academy.
#4 – AMERICAN EXPRESS
“The AMEX team now comprises 800 data scientists globally. American Express claims the lowest fraud loss rate on their records, and among the lowest in the industry. The company states that benefits from fraud improvement alone have paid for their investments in Big Data.” – Randy Bean: CEO & Founder of NewVantage Partners LLC.
AMEX has improved their identification of customer attrition using IBM’s SPSS predictive analytics modelling software. The model delivers a list of prospective customers at highest risk, which allows the organisation to communicate with methods such as direct marketing and follow-up calls.
“American Express increasingly is moving away from focusing on its traditional function of providing credit for consumers and providing merchant services for processing transactions, and toward actually making the connection between consumers and the businesses that want to reach them. The company is using its vast data flows to develop apps that can connect a cardholder with products or services. One app looks at past purchase data and then recommends restaurants in the area that the user is likely to enjoy.” – Bernard Marr: Founder & CEO of Bernard Marr & Co.
#5 – APPLE
“With the help of Big Data Analytics and Hadoop cloud, Apple has positioned itself as not just one of the best tech companies around, but one of the best companies period. That reign will likely continue into the future as Apple utilises Big Data in new and exciting ways.” – Jonathan Buckley: Founder & Principal of The Artesian Network LLC.
Apple’s partnership with enterprise experts like Cisco, Deloitte, IBM and SAP has impacted their success as a powerful presence in the mobile market, with millions of loyal customers around the world. The wide range of apps they have released for banking, insurance, travel and entertainment; and the launch of wearable devices like the iWatch, Apple is collecting more customer data than ever before.
“As well as positioning itself as an ‘enabler’ of Big Data in other people’s lives, it has also been put to use in its own internal systems. Apple has often been secretive about the processes behind its traditionally greatest strength – product design. However it is known that Big Data also plays a part here. Data is collected about how, when and where its products – Smart phones, tablets, computers and now watches – are used, to determine what new features should be added, or how the way they are operated can be tweaked to provide the most comfortable and logical user experience.” – Bernard Marr: Founder & CEO of Bernard Marr & Co.
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