·
So
what is Big Data?
·
How is
it used?
·
What
can SME’s do?
·
How
can Urban Economics help?
I run a jaded eye over the latest
email from Coles Flybuys, and there presented for me are a series of fantastic
looking specials at my local Coles Toowong.
Curiously, these items seem somewhat familiar. I look a little closer, and yes every item on
that list of specials was something that I had bought at my last shop in
store. Cottee’s Cordial - son’s
favourite drink – Check! Mars Bars and chocolate buttons to make my specialty
Mars Bar Slice – Check! All magically on special and emailed directly to
me. Big Data at work.
A study in the US estimated that
retailers applying the information sourced through Big Data analytics would
improve operating margins (McKinsey) by some 60% whilst PWC estimated that in
Australia, there would be some $1.3billion in savings for business investment
when derived through data driven promotion decisions. With headlines like “every company needs a big data strategy to
avoid falling behind” and “Big data
‘vital’ to UK economy” reflecting the push for more informed decision
making, it is not surprising that the demand for big data analysts is projected
to grow exponentially – another 69,000 in the UK by 2017 alone, and that there
are a myriad of specialist programs aimed at assisting businesses mine and
interpret their data.
So what is Big Data and is it
really a Big Deal?
Big Data is essentially the term
applied to the use of technology in extracting insights and information from
the wealth of data that businesses have at their disposal in informing business
decisions. This can include internal sources
such as client invoices and customer accounts, employee records, website
analytics, business traffic counts eg. at a shopping centre etc, as well as
external data sources that can be overlaid to sift through critical pieces and
insights such as ABS data, social media information, financial markets etc.
Probably some of the easiest
observed outcomes of Big Data at work at this point in time are those inspired
emails that are really targeted at individual needs and aspirations, and more
importantly their shopping habits and patterns.
And we as consumers are generally ok with companies having this level of
access to our purchase patterns, where I shop, what I buy, how often, as long
as we feel that we are somehow being rewarded for this or getting some sort of
return. Loyalty programs are central to
this access to customer patterns and preferences for retailers, service
businesses alike.
Analysis of
internal and external information is vital for all businesses big and small!
Big Data analytics might be all
well and good for large organisations and government departments with the
resources, the extensive customer databases, the deep pockets to invest in the
technologies, and such opportunities may seem beyond the possibilities of small
to medium businesses. The reality is
that we all, to varying degrees, utilise data to inform decision processes,
including both internal and external data sources, and it is the advent of
technology with the capacity to drill further into the wealth and breadth of
consumer and business data that is changing the face of business decision
processes and communication strategies. Data
application itself is not new in influencing competitive strategies and
decision processes, rather it is the detailed analysis and application of
numerous extensive data sets that is rapidly changing and for which businesses
really need to be engaging to maintain competitiveness.
For small to medium businesses exploring
their competitive advantages, I think the key really needs to get back to a
focus on information and gathering insights from both your internal and
external sources. Understanding what you
already know is critical. Start a
conversation with yourself and explore your own customer data, what trends are
evident, who are they, where are they, how have they changed? What do you
already know and build on that. Consider a short form survey of your existing
client base to fill in some of the gaps, add a splash of ABS data and watch out
world!
Knowledge as they say is power, and
with that in mind, I do have a dinner party to prepare for, Mars Bar slice on
the menu, I better go shopping and I know just where to go to get a great deal!
I’d be happy to discuss how to
inform and add value to your business decisions through research, insights and
analysis. Let us take the Big Data out
of the equation and put information, insights and recommendations back in.
Kerri Bonwick-Meulman
(07) 3839 1400
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