Big Data and Big Corporations
What is big data and how are companies using this tool to benefit business performance? In an interview with the Economist (2012) Andrew Chung highlighted ‘corporations use it within leveraging actions through data gathered from the internet or internal databases.’ Once consumer information is collected it can be scientifically processed to discover useful strategies to support plans and decisions made. Jason Silva (Economist, 2012) indicates ‘this data helps organisations to understand consumers, or even whole civilisations and how best organisations can connect with them.’
https://www.youtube.com/watch?v=ahZGEusG13A
These actions are currently being implemented by traditional media such as television networks. Within this process new media, such as social media platforms are incorporated within televised programming. This information from these touch-points, is allowing data to be gathered through social media by the sponsors of the television programmes. Master Chef is a great example of this were vast sponsorship is paid by Coles – for the benefit of product placement, internal branding and the company’s own social media and online stores being promoted. “Master Chef’s Facebook page has over one million likes and it has a Twitter profile with 80,000 followers, which is connected to Coles who can then reap the rewards” (Glasner, 2013). When consumers then access these online touch-points, a data market is created and this information is gathered, processed then analysed. Through business intelligence, visualisation can then be used from these analytics to understand the behaviour of consumers and predict their needs and wants. Strategies can then be implemented and strengthened – such as marketing tactics, or even predicting volumes of stock to supply increased demand for products. This allows Coles to be more prepared and strengthens its chances within its internal environments. Raj Dalal chief executive of big data research firm Big Insight, recently stated in an interview with Business Review Weekly (2013) that, “Coles has used big data not only to pick the best locations to build expensive supermarkets, but also to better guide its marketing campaigns to make them more specific.”
http://www.experian.com.au/blogs/marketing-forward/2013/02/11/cooking-up-a-winning-sponsorship/
The ethics of how to store and use big data is becoming a huge contentious debate. This is particularly when corporations are taking and trading consumers information through the internet without many consumers understanding that there information is being recorded. Juri Han from IBM (2012) highlighted ‘there is a lag between market adaptation and the appropriate legislative frameworks. Until this is rectified is even more important that big data is managed ethically.’ An example of this is how Target can use its big data resources, to predict when their customers are pregnant, with the purchases they make. With this information Target created promotions which ended up being pushed towards a sixteen year old pregnant women even before her parents had even discovered she was actually pregnant. Reporter Nina Golgowski (2013) indicated ‘this ended up being a very awkward situation for the family and even more embarrassing for Target, when the family confronted the business. It has since turned into a public relations nightmare for the company.’ This situation only supports the fact that big data does create huge power for these corporations – however this power has come from sometimes private information and with all power come responsibility. As this technology is growing rapidly within many industries, it is surely not going to be the last nightmare businesses with this magnitude will encounter.
http://www.dailymail.co.uk/news/article-2102859/How-Target-knows-shoppers-pregnant--figured-teen-father-did.html#ixzz31PlY2KC4
Reference List:
Chung Andrew, (2012), Economist, ‘What is big data,’ sourced from; https://www.youtube.com/watch?v=ahZGEusG13A
Glasner Mathew, (2013), Experian Marketing Solutions, ‘Cooking up a winning sponsorship,’ sourced from; http://www.experian.com.au/blogs/marketing-forward/2013/02/11/cooking-up-a-winning-sponsorship/
Golgowski Nina, (2012), The Daily Mail, ‘How Target knows when its shoppers are pregnant - and figured out a teen was before her father did,’ sourced from; Read more: http://www.dailymail.co.uk/news/article-2102859/How-Target-knows-shoppers-pregnant--figured-teen-father-did.html#ixzz31PlY2KC4
Han Juri, (2013), IBM, ‘Living Ethics: Newsletter of the St. James Ethics Centre’
Mercedes Ruehl, (2013), Business Review Weekly, 11 June 2013, ‘Coles, Woolies and the big data arms race,’ sourced from; http://www.brw.com.au/p/tech-gadgets/coles_woolies_and_the_big_data_arms_4I2P2oieDKZGdev5aY778H
Silva Jason, (2012), Economist, ‘What is big data,’ sourced from; https://www.youtube.com/watch?v=ahZGEusG13A















