The McKinsey report on big data outlines 5 ways in which companies can capture value from big data (see pg. 5 of the reading). Select ONE of these ways and discuss how it could help an organisation become more competitive (make sure to give an example).
Note: This reading is on Blackboard under the Week 10 resources
One way that companies capture big data is through health care. Issues are presented online and as each instance is different, data is then collect to evaluate them for new insights, as stated in the article. Some customers even charge for their health information on the health websites so that electronic record keeping is both valuable to the user and professionals such as physicians.
ReplyDeleteCreating such medical records can assist in innovation, new medical treatments and also add value in the form of education. Business will remain competitive due to their need to discover new diseases, treatments and/or other associated interests before their competitors. For instance, if someone expressed symptoms of a near cancer disease and a cure were found, this could lead to the further development of a cancer cure. Those to find this first will definitely be rewarded greater than their competitors.
Information through the information is vast as there are millions of users. These users are also global rather than the physical general practitioners finding only local patients. The competition from big data on the Internet is created and magnified due to the possible growth from its use. Researchers will definitely use this to their advantage for further growth in their area of expertise.
Big data can create values by enabling experimentation to discover needs, expose variability, and improve performance. The large amount of data collected by the company will be used into analyzing. By analyzing customers’ behavior, company can calculate and predict what the customer needs and the potential trend of the business. Take Amazon.com as an example, when amazon sell their product online, you can find some useful information that related to the product that you are viewing. For instance, you can see some things like “people who buy this product also bought”, “people buy this product may interest in this links” etc. Amazon.com has been taking the great advantages of the big data to analyze what customers’ needs, and also provide the information related to the product, so the customer may buy more than the product they want.
ReplyDeleteThe use of big data creates innovative new business models, products, and services that helps organisations become more competitive. This means that companies can use data about the way their customers use their existing products and services to enhance the level of service they offer them.
ReplyDeleteFor example, a supermarket such as New World – offers loyalty card called FlyBuys which offers rewards points to customers. This not only benefits the customers but also benefits the company by knowing what the customers are buying and their shopping patterns. Information as such are obtained to understand their customers better and therefore helps provide better tailored products to suit them accordingly. When this information is gathered, coupon deals are made weekly to products in so customers would be interested in buying them again. Customers receive emails and brochures that create the added value as customers come to know the product they want are on specials. This way both the company and customers benefit in the value creation process.
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ReplyDeleteBy capturing big data companies like ‘Steam’ (a digital distribution platform for PC games) can develop video games that are suitable for its audience. By allowing cloud computing and capturing information of people’s computers specifications the developers are able to gain more knowledge about its customers – e.g. CPU, total amount of RAM, GPU are primary components that are needed to be upgraded when new generations of games are released. This information can then be on sold to other video game developers who are looking to make a widely playable games for PC gamers. One of the drawing functions of Steam is how its installation process functions via Cloud computing. No longer do PC users have to rely on the use of a disc that could in the future become damaged through misuse or poor storage. The platform also acts as an online stores and frequently offers online deals to its users. This information (popularity of games, games that could be sold cheaper and gain a wider audience – e.g. Indie games) also plays a huge role in determining when sales occur, who is buying them (initial sign up requires basic information such as - date of birth, location. On a whole, Steam makes the customers experience more personalized and comfortable as the fears of owning hard-copy software becomes redundant.
ReplyDeleteCreating transparency: Simply making big data more easily accessible to relevant stakeholders in a timely manner can create tremendous value. In the public sector, for example, making relevant data more readily accessible across otherwise separated departments can sharply reduce search and processing time. In manufacturing, integrating data from R&D, engineering, and manufacturing units to enable concurrent engineering can significantly cut time to market and improve quality.
ReplyDeleteCreating transparency: ... as an example I remember when I was working for a company and because of not sharing of information between different units, we did not access to workshop department data and also we could not predict correct temperature for material which we should use to make that particular product and that made the process longer and costly.
ReplyDeleteOne of the ways that companies can capture value from big data is through replacing/supporting human decision making with automated algorithms.
ReplyDeleteThis means that instead of relying on human ‘gut feeling’ for crucial business decisions they can use information gleaned from the huge amount of data that organisations capture. For example they could determine the pricing for a product using the sales data from all the products they have ever sold, or they could determine when to put a product on sale to maximise sales. This can be done in real time with big data analytics. I think that at the moment a lot of organisations capture this data but don’t really know how, or have the capacity to use it to its fullest advantage, but with big data they will be able to analyse it very well.
It would help an organisation become more competitive by taking out the risk of pricing products.
Replacing/supporting human decision making with automated algorithms.
ReplyDeleteBy automating the algorithm, human decision making is replaced with a faster and accurate decision. It allows the productivity to improve the competitive advantage of the organisation in the market. Faster decision making also increases the agility of the organisation and allows the responses to be close to real time information being collected.
Automating the algorithm also reduces the human error that may pose a potential threat to wasted time from the employee. By saving the resources required to manage the employee time usage, the organisation can save the resources and distribute them to other areas of the organisation.
Automating the algorithm allows larger quantities of data to be collected. Larger quantities of data would mean the organisation can acquire more information, which they can use to gain competitive advantage over other organisation.