Page 319 - (DK) The Business Book

DELIVERING THE GOODS 317

See also: Finding a profitable niche 22–23 ■ Study the competition 24–27 ■ Internet cookies
Gaining an edge 32–39 ■ Forecasting 278–79 ■ The right technology 314–15
Sales figures are an excellent
example of “big data.”
“Big data” comprises the US online retailer Amazon
huge amount of information Customer
consumers give away transaction collects the browsing histories
whenever they use their credit details and purchasing data of its 152
or debit cards, play games or million customers on a daily
browse online, or stream TV. basis. Amazon uses “cookies,”
This information is analyzed text files saved in a customer’s
by companies to target their browser, which help to track
products more specifically. what kind of items each of its
customers are interested in.
This information is used to
Personal data send recommendations that
Web-browsing mined from TV- are likely to appeal to the
histories of actual BIG viewing, video-
and potential DATA gaming, and customer, and so are likely
customers smartphones to create additional sales for
the company.
Cookies are used to create
a unique ID that stores the
customer’s name, address,
and credit-card number on the
Attitudes hard drive of their computer.
and values When a customer returns to
revealed to the website, the ID stored on
companies the customer’s computer is
via social
media sent back to the business,
which enables it to identify
the customer and greet him or
her by name. The ID also
car has braked suddenly or retailers can assess the effectiveness enables the online retailer to
recall the customer’s address
accelerated rapidly. The collected of their TV advertising campaigns.
and credit-card details quickly,
data is then sent, via a GPS signal, speeding up the transaction
to the insurer for analysis. In theory, Product development
and increasing customer
Progressive’s use of “big data” will Netflix, the US media-streaming
satisfaction with the site.
help them cherry-pick the most provider, has used “big data” to
profitable customers in the market— drive product development. In 2011,
those with safer driving habits, after evaluating the viewing habits
who pay their premiums but are of its 33 million subscribers, the
unlikely to make expensive claims. company decided to remake a BBC
TiVo, a US company that makes series called House of Cards.
digital video recorders, has used Netflix knew from its “big data”
“big data” to create a new revenue that it would be wise to spend $100 It is a capital
stream. TiVo’s boxes are connected million on a US version of the show mistake to theorize
to the Internet. This enables the because the original had been before one has data.
business to collect huge volumes heavily downloaded. “Big data” was Arthur Conan Doyle
of data on TV-viewing habits at also used to make production
UK author and physician (1859–1930)
a relatively low cost. The data is decisions, including choosing
subsequently sold by TiVo to director David Fincher. Fans of
advertisers. By correlating this House of Cards also enjoyed
data with sales figures collected watching Kevin Spacey movies, so
from barcode readers at checkouts, he was cast in the lead role. ■