Does my Data look big in this?

 What is ‘Big data’?

It is considered to be the application and usage of data gained from the growing volume, velocity and variety that is now available given the multiple channels and platforms availableTracking and analysing these data means marketers can dig deeper into the minds of the consumer and understand finer details about their preferences and behaviours.

 Data is growth at the rate of approximately 40% per year -McKinsey Chief Marketing & Sales Officer Forum, 2014

 What are the 3 V’s?

Volume is the growth in data coming from online platforms including social media

Example #1 
Online shops can analyse heatmaps to track consumer behaviour, they know their most sought after item based on trackpad or mouse behaviour.
They may not have a high conversion rate, but the heatmap allows businesses to narrow down what the barrier to conversion could be.  Previously, the only data available to physical shop-owners is their own interpretation of what seems popular.heatmap

 

Velocity is the speed in which markets can access data, real-time results are considered to be essential in current analysis.

Example #2
Restaurants can monitor social data and detect certain ‘buzzwords’ during a service period and remedy the issue. A consumer could tweet
‘hate when the service isn’t friendly #disappointed’
and the marketer can receive this in real-time and tell their waiter to be more friendly.

Variety covers the new types of more ‘unstructured data’ (Chaffey and Ellis-Chadwick, 2016) that now exist.

Example #3
An event manager could post an event on Facebook and monitor the responses through comments and shares to determine who the consumers want to share the event with. Trends could be something as simple as special dinners resulting in primarily women tagging men on the platform.

big-data
Growth of Big Data. Source: Soubra (2012)

Is Big Data actually a new idea?

Word Cloud "Big Data"Some researchers argue that the ‘Big Data’ concept isn’t new, it’s simply a term used to push businesses to outsource data-mining and analysis.

This theory is unlikely though, any internet user knows the depth of information available and how specifically targeted some areas can be. This massive amount of information directly relates to the consumer data gathered.

Privacy

The concern of privacy arises regularly when Big Data is concerned. Although websites and platforms have privacy policies to cover them from a legal perspective, there remains ethical issues. Data storage, management and relativity are important from an operational side. Other issues include the level of targeting, purpose of targeting and tracking of personal details.

Big Data is more than an analytical tool for marketers, it also means consumers receive better content that is personally interesting. The mutual benefits align with the growth of a semantic web and mass personalisation.

 

References

Chaffey, D, Ellis-Chadwick, F. 2016, Digital Marketing, 6th Edition. Pearson (Intl), VitalBook file, P. 651

Chen, H., Chiang, R.H. and Storey, V.C., 2012. Business Intelligence and Analytics: From Big Data to Big Impact. MIS quarterly36(4), pp.1165-1188.

McKinsey Chief Marketing & Sales Officer Forum, (2014). Big Data, Analytics, and the Future of Marketing & Sales. USA: Createspace Independent.

Soubra, D. (2012). The 3Vs that define Big Data. [online] Datasciencecentral.com. Available at: http://www.datasciencecentral.com/forum/topics/the-3vs-that-define-big-data [Accessed 10 Sep. 2016].

Steve, L. (2012). The Age of Big Data. 1st ed. [ebook] New York: The New York Times. Available at: http://s3.amazonaws.com/academia.edu.documents/34393761/2_The_New_York_Times_on_The_Age_of_Big_Data.pdf?AWSAccessKeyId=AKIAJ56TQJRTWSMTNPEA&Expires=1473636025&Signature=gSGK1i1w6tIlZwxUAXgW6aIWh3U%3D&response-content-disposition=inline%3B%20filename%3D2_The_New_York_Times_on_The_Age_of_Big_D.pdf [Accessed 10 Sep. 2016].

Wu, X., Zhu, X., Wu, G.Q. and Ding, W., 2014. Data mining with big data.IEEE transactions on knowledge and data engineering26(1), pp.97-107.

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Thinking outside the square: Innovation in business

Dell’s business model through innovation

Dell established themselves successfully in the 1990s by making PCs available for Ansoff-matrixpurchase online. This grew their revenue triumphantly through to the millennium and they have acted creatively to ensure they continue to hold a competitive advantage.

One of the easiest ways to understand a company’s growth strategy is to look at each initiative in terms of Ansoff’s Matrix.

 

Three main initiatives were implemented by Dell 

1. IT consulting service | In addition to hardware and software, Dell looked into the customer service and consulting arena to further their reach to customers. The program was successful and has moved into data storage and management, communications and mobility for flexible IT solutions.

Where does it sit with Ansoff? Market penetration

2. B2B Marketplace | A business to business marketplace where discounted goods could be sold. Although the initiative did not succeed in being a sustainable source of revenue, the concept to provide existing products to a new market was complimentary to the other two innovations.

Where does it sit with Ansoff? Market development

3. Ideastorm | An interesting addition in 2007 which coincided with the beginning of user-generated content (UGC). By allowing users to contribute with ideas and improvements Dell could do multiple things.

  1. Track patterns in improvement suggestions and adapt accordingly
  2. Utilise user’s creativity to grow their product line
  3. Test ideas within an interested and active focus group

Where does it sit with Ansoff? Diversification  

Other Innovation Strategies

Lego ideas

Screen Shot 2016-09-06 at 9.49.41 AMA similar concept to Dell’s Ideastorm site, Lego Ideas encourages users to engage and interact with the brand through a digital medium. The benefits are mutual. Users get the chance to stretch their creative legs and contribute to a community they are involved in, and Lego are able to monitor ideas for future product diversification.

This concept of engaging entrepreneurs and users as idea generators is no uncommon. In fact a multitude of companies have workshops, think-tanks or programs that target small start-ups to help generate ideas.  Some examples are:

 

GE | Ecoimagination Challenges Cisco | Entrepreneurs in Residence Program Google | Entrepreneurs program
Coca-Cola | Accelerator Program Microsoft | Ventures Program Turner/Warners Bros | Media Camp

‘Ideas are the currency of the 21st century’

Try. com

Dell lead the charge in terms of retailers using an online store. They were strategic and knew the tangibility of their product was not the highest priority for consumers.

Unfortunately, clothing retailers do not have the same luxury. There are some some aversions to purchasing online without being able to take the item into a change-room and make sure it looks good.  This means brands need flexible return policies, accurate sizing charts, detailed description of fabric and care.. the list goes on.

A site called Try.com has tackled this issue and partnered with some large retailers to give consumers the chance to literally try before they buy. Zara, Asos, Barneys and Reformation have jumped on board to target the market afraid of the unknown in online shopping.

Screen Shot 2016-09-06 at 9.45.09 AM

References

COSCARELLI, A. (2016). [online] Refinery29.com. Available at: http://www.refinery29.com/try-com-online-shopping [Accessed 4 Sep. 2016].

Dell.com. (n.d.). IT Transformation and Consulting Services | What we offer. [online] Available at: http://www.dell.com/en-au/work/learn/by-service-type-it-consulting#What-we-offer [Accessed 3 Sep. 2016].

Ideas.lego.com. (n.d.). LEGO Ideas. [online] Available at: https://ideas.lego.com/ [Accessed 5 Sep. 2016].

Ideastorm.com. (n.d.). Idea Storm | About. [online] Available at: http://www.ideastorm.com/idea2AboutIdeaStorm?v=1351322692099 [Accessed 5 Sep. 2016].

Lindegaard, S. (2014). 15 Examples of Open Innovation between Big Companies & Startups. [online] Innovationexcellence.com. Available at: http://innovationexcellence.com/blog/2014/08/13/15-examples-of-open-innovation-between-big-companies-startups/ [Accessed 4 Sep. 2016].

Smart Insights. (n.d.). Ansoff matrix – Smart Insights. [online] Available at: http://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-model/attachment/ansoff-matrix/ [Accessed 4 Sep. 2016].