22 April 2013

It's Bikini Season, Lets Data Diet

A blogpost for my Information Systems class. Enjoy.

Data analytics can make the world a better planet by preventing human trafficking and tracking terrorists. Data analytics can also help your company make right decisions more often, however, I agree with Olenski in his article entitled, "When It Comes to Big Data Is Less More" when he addresses that firm's should go on a data diet. A data diet essentially means cutting back on the amount of data that your firm is collecting. From emails, to social media, to loyalty cards, to mobile devices, we are boggled with an influx of data that marketers don't know how to handle. The Data Revolution has begun, but we don't have enough individuals with the skills that are necessary to mine and analyze this information in order to understand and use it for our advantage.

Upon hiring, HR managers need to realize the importance of data analytics since this data can prove to be invaluable to the firm. However, for the information to be a comparative advantage, the company needs the skills to decode and create relational models. According to the keynote video presented at the SAS Analytics Conference 2012, the world's data is doubling every 1.2 years and 80% of this data is unstructured. This information is too large, too complex, and too disorganized for us to comprehend. One approach to address this issue is to go on a data diet. By minimizing data to data that only gives a company a competitive advantage can save vast amount of resources. First off, they won't be spending money on data storage which is becoming an increasingly costly expense. Secondly, marketers won't be as overwhelmed with information. Furthermore, a huge issue that arose from the popularization of big data, is the issue of privacy. Most individuals feel violated and that their privacy has been breeched since marketers know deeply personal information. However, as Olenski addresses, profoundly personal information does not prove to be an advantage for a firm. But rather they waste valuable time and money gathering this information.
Another issue that needs to be addressed is if behavioral targeting advertising benefits consumers. I know that some individuals are freaked out that websites such as google can target their ads to keywords in your emails and from your web browser history. However, I personally prefer behavioral targeted ads. Why would I want to see ads for hair growing pills when that does not interest me whatsoever. I would much prefer to see ads that interest me, such as online shopping websites, much to my wallet and father's dismay. Every day we perform almost five billion google searches, and by having personalized ads on our sidebars think about how much additional income that could potentially produce to those companies that are highlighted. Furthermore, as a Marketing major, I can see how crucial behavioral targeting can be. It allows you to target consumer's that are potentially interested in your goods or services based upon their web browser history. This means of advertising will save time and be the cost effective way to grow your business from the online perspective.

Source: http://www.forbes.com/sites/marketshare/2013/04/22/when-it-comes-to-big-data-is-less-more/ 

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