How to create new products and services with Big Data
By 2020, the Big Data revolution will be over; instead, there will be companies that have actively embraced data analytics as a core business process, and there will be those companies that have elected to go out of business, according to Christopher Surdak in his book Data Crush: How the Information Tidal Wave is Driving New Business Opportunities.
According to the author, there are six major trends which are driving the growth and significance of online data for both individuals and organisations:
- Mobility, as we are increasingly connected by mobile devices including phones and tablets
- Virtual living, as our relationships are increasingly occurring through the Internet
- Digital commerce, as we are increasingly acquiring goods and services online
- Online entertainment, as the Internet is supplying an increasing proportion of our entertainment
- Cloud computing, which is making all of our information digitally accessible; and
- “Big Data”, which is primarily being created by our online activities
The key question for businesses is how to find valuable business insights by sifting through the Big Data. The author describes six ways of creating benefits out of the data:
- Contextification, in which a marketing event can occur in response to a person’s location at a particular time
- Socialfication, in which vendors develop a deep understanding of their customers’ habits and preferences
- Quantafication, in which business processes are broken down into discrete steps which can be repackaged and outsourced
- Appification, in which simple, cheap apps provide quick solutions to every need
- Cloudification, in which more and more business operations are commoditised and outsourced to the Cloud; and
- Thingification, in which all types of objects become smart devices
The book ends with some entertaining future scenarios, prefaced with the amusing warning: “Some of my predictions may be a bit off, but I suspect not.”
I suspect that some of the author’s facts and predictions are a little bit rough around the edges, but I found this to be a very helpful and inspiring book, filled with original ideas for creating products and services which benefit from Big Data.
What exactly is Big Data, and how can you benefit from it? This book describes where Big Data comes from and how you can take advantage of it.