My thoughts…

Big data. Why have it? What does it show? Is it really helpful? As a huge aspect of management and retailing big data allows companies and large organisations to truly find out what their customers needs and desires are. According to Andrew McAfee Erik Brynjolfsson it is because of big data that managers are able to find ways to improve their businesses and translate knowledge into performance.

Traditionally, retailers were incapable of delving into the minds of its customers. The ability to track purchases and see what products were popular was present, however, this is where the exploration met its end. Businesses were essentially unable to meet to each buyer’s expectations, as retailers could simply not access this sort of information.

The move to online retailing however, has truly made a break through in the world of retailing. With the power of data, online retailers are able to track the likes and dislikes of its customers and potential buyers. Retailers are now able to generate algorithms that make the process of online buying a one to one and personal journey. Online retailers are now able to predict what types of books customers would want to read next; an algorithm, which performed even better each time the customer, selects or ignores recommendations.

Companies such as Amazon inhibit a power that in one generation was not even dreamt about.

Big data is not just statistics and analytics. Big data is intelligence that companies can use to their competitive advantage. As of 2012, about 2.5 exabytes of data are created each day, a number that doubles ever 40 months.

To be continued…

URL LINK:

http://hbr.org/2012/10/big-data-the-management-revolution/ar