- Twitter and Facebook mine unstructured comments to develop psychographic profiles of users and deliver highly targeted advertisements (e.g., promoted Tweets) that have much higher conversion rates than traditional advertising approaches based on demographic segmentation alone.
- The Facebook “Like” button, now so pervasive on Websites ranging from online stores to leading news media outlets to political blogs, offers far more accurate (and quicker) insights into buyer preferences and public opinion than traditional focus groups and straw polls.
- New online and mobile banking options from startups like Square are capitalizing on the convergence of mobile, cloud and social to foster entirely new payment models. Such that enable a consumer to— through their mobile device—use geo-location information, detect when its owner is in his favorite coffee shop, use the cloud to automatically place an order and virtual financial networks to settle out between the customer, the shop’s register and the bank. If the consumer is so inclined, he can include a tip and even post a rating or comment on his visit via integrated social channels.
And through the new “Internet of things,” companies can become more efficient and unleash a host of new data that can be used for everything from social research to targeted marketing to post-sale service. Through leveraging the hundreds of billions of dollars of financial transactions and transactional data along with relationship history that resides in business networks, for instance, buyers and sellers can make more informed decisions by detecting changes in buying patterns or pricing trends and provide confidence and qualifying information on a potential—yet unfamiliar—trading partner.
“Big Data presents an opportunity for companies to run better with new real-time insights via the end-to-end acquisition, acceleration and analysis of one or more Big Data sets,” said Steve Lucas, Executive Vice President & General Manager SAP Analytics, Database & Platform, SAP.
Sommer agreed, confirming that it is through the power of analytics, specifically analytic applications that use both internal and external data, which permits companies to gain insights into product usage; customer consumption data; competitor activity; social sentiment; and more.
“The insights into these kinds of questions give businesses outsized opportunities to widen their profit margins, extend their market share and otherwise disrupt the economic stability and underpinnings of their competitors,” he said.
The multi-lever approach
So how can you get these insights and put them to work for your company?
According to Tumin, there is no single, right approach for managing big data—or harnessing its power. But there are some key strategies for success.
- Have a vision, a non-debatable business goal, around which all can rally. The move to data-driven business is a journey and every journey needs a goal everyone can rally round and aim for. Having one gives you a reason to take that first step together and press on over the inevitable bumps in the road.
- Create a plan that is right-sized for action and gets value in the hands of users fast. You can’t do everything at once. With huge volumes of data potentially available, right-sizing your best next move is especially important.
- Select a platform—a clearing—that can support doing business the data-driven way. Platforms “provide infrastructure and rules that facilitate groups’ transactions and can take many guises,” as referenced by Harvard Business School’s Tom Eisenmann. “Above all, they are trusted, discoverable and usable.”
- Like numbers, data doesn’t lie. It also doesn’t talk. Making the most of big data still requires human intervention. So bring your A-team, know what makes them tick and understand their limitations.
- Manage the politics. Success with data-driven decision-making requires moving the right people toward a non-debatable goal, business-driven, with a feasible plan, well-incented and operating over strong platforms. That takes negotiation and persuasion, the twin arts of political management.