Bus 311 part 2
Terms in this set (75)
90% unstructured, 10% structured
reporting, data exploration/ad hoc queries, and sophisticated data modeling/analysis
BLANK Doubles every 6 months...
data on corporate hard drives
In many organizations, available data...
is not exploited to advantage
Data is often considered a source of..
competitive advantage; however, advantages based on capabilities and easily available data won't last long.
Most important asset: Answers questions or supports decision making
Raw facts and figures: Goal is to convert it into useful information
Information + experience: stronger decisions can be made
Lists of data: created, maintained and manipulated by Database management systems (DBMS)
Table or File
lists of data
Column or Field
Defines the data the table can hold
ex. Name, ID, etc
Row or Record
Single instance of what the table keeps track of
ex. one students records
Primary KEY Field
Unique: cannot be duplicated
ex. ID, SSN, DL etc.
Data includes raw facts that must be..
turned into information in order to be useful and valuable
Databases are created, maintained, and manipulated using programs called..
database management systems (DBMS), sometimes referred to as database software
All data fields in the same database have
several data fields make up
a data record
multiple data records make up
a table or data file
one or more tables or data files make up a
the most common database format
For organizations that sell directly to their customers
transaction processing systems (TPS) represent a source of potentially useful data.
Grocers and retailers can link you to cash transactions if they can convince you to use a loyalty card which, in turn
requires you to give up information about yourself in exchange for some kind of financial incentive such as points or discounts.
Enterprise software (CRM, SCM, and ERP) is a source for
customer, supply chain, and enterprise data
Survey data can be used to
increase operational data.
Data from outside sources + internal data assets =
possible competitive edge
Data aggregators (connecters) are part of a multibillion-dollar industry, providing
helpful data to a wide variety of organizations
Data purchased from aggregators may not yield sustainable competitive advantage since
others may have access to the data. But firm's proprietary (owned) data + third-party data can enhance performance.
Data aggregators can also be big targets for identity thieves, and can potentially
spread incorrect data, and raise privacy concerns
Firms that mismanage their customer data assets risk
lawsuits, brand damage, lower sales, fleeing customers, and can trigger more restrictive rules
raising privacy issues and identity theft concerns due to
people guessing Social Security numbers from public data.
New methods for tracking and gathering user information are
raising privacy issues. This may be addressed through laws that restrict data use
A major factor limiting business intelligence initiatives is
getting data into a form where it can be used (i.e., analyzed and turned into information)
Legacy systems often limit data utilization because
they were not designed to share data, aren't compatible with newer technologies, and aren't aligned with the firm's current business needs.
Most transactional databases aren't set up to be
simultaneously accessed for reporting and analysis. In order to run analytics the data must first be ported to a data warehouse or data mart.
Data warehouses and data marts are
repositories for large amounts of transactional data awaiting analytics and reporting.
Large data warehouses are
complex, can cost millions, and take years to build
The open source Hadoop effort provides a collection of
technologies for manipulating massive amounts of unstructured data. The system is flexible, saleable, cost-effective, and fault-tolerant. Hadoop grew from large Internet firms but is now being used across industries.
Canned and ad hoc reports, digital dashboards, and OLAP are all used to
transform data into information
OLAP reporting leverage data cubes, which take data from standard relational databases, calculating and summarizing data for
superfast reporting access. OLAP tools can present results through multidimensional graphs, or via spreadsheet-style cross-tab reports.
Modern data sets can be so large that it might be
impossible for humans to spot underlying trends without the use of data mining tools.
Businesses are using data mining to
address issues in several key areas including customer segmentation, marketing and promotion targeting, collaborative filtering, and so on
Models influenced by bad data, missing or incomplete historical data, and over-engineering are prone to
yield bad results
One way to test to see if you're looking at a random occurrence in your data is to
divide your data, building your model with one portion of the data, and using another portion to verify your results.
Analytics may not always provide the
total solution for a problem. Sometimes a pattern is uncovered, but determining the best choice for a response is less clear.
A competent business analytics team should possess three critical skills:
information technology, statistics, and business knowledge
Wal-Mart demonstrates how a physical product retailer can
create and leverage a data asset to achieve world-class value chain efficiencies.
Wal-Mart uses data mining in numerous ways
from demand forecasting to predicting the number of cashiers needed at a store at a particular time.
To help suppliers become more efficient, and as a result lower prices, Wal-Mart shares
data with them
Wal-Mart is a mature business that needs to find huge markets or dramatic cost savings in order to
boost profits and continue to move its stock price higher. The firm's success also makes it a high impact target for criticism and activism. And the firm's data assets could not predict impactful industry trends such as the rise of Target and other upscale discounters.
Caesars Entertainment provides an example of
exceptional data asset leverage in the service sector, focusing on how this technology enables world-class service through customer relationship management.
Caesars uses its Total Rewards loyalty card system to
collect customer data on just about everything you might do at their properties—gamble, eat, drink, see a show, stay in a room, and so on.
Individual customers signing up for the Total Rewards loyalty card provide Caesars with
demographic information such as gender, age, and address, which is combined with transactional data as the card is used.
Data mining also provides information about
ninety-plus customer demographic segments, each of which responds differently to different marketing approaches.
If Caesars' systems determine you're a high-value customer, you can expect
a higher level of perks and service.
Caesars' CRM effort monitors any
customer behavior changes.
Caesars uses its information systems and operating procedures to measure employees based on
metrics that include speed and friendliness and compensates them based on guest satisfaction ratings.
Analysts and managers have struggled to realize that dot-com start-up Netflix could actually create
sustainable competitive advantage, beating back challenges from Wal-Mart and Blockbuster, among others.
Data disclosure required by public companies may have attracted
these larger rivals to the firm's market
Netflix operates via a DVD subscription and video-streaming model. These started as a single subscription, but are now viewed as two separate services. Although sometimes referred to as "rental," the model is really a substitute good for
conventional use-based media rental.
Fear of clinging to a sure-to-shrink DVD-by-mail business model prompted Netflix management to split and reprice its services. However, the price increase, a poorly handled rebranding effort, and a process that would have made the firm's services more difficult to use all contributed to
the firm's first major customer contraction and satisfaction decrease.
Durable brands are built through
customer experience, and technology lies at the center of the Netflix top satisfaction ratings and hence the firm's best-in-class brand strength.
Physical retailers are limited by
shelf space and geography. This limitation means that expansion requires building, stocking, and staffing operations in a new location.
Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that
Internet businesses are more scalable. Firms providing digital products and services are potentially far more scalable, since physical inventory costs go away.
The ability to serve large geographic areas through lower-cost inventory means
Internet firms can provide access to the long tail of products, potentially earning profits from less popular titles that are unprofitable for physical retailers to offer.
Netflix technology revitalizes latent studio assets. Revenue sharing allows Netflix to provide studios with a costless opportunity to earn money from back catalog titles: content that would otherwise
not justify further marketing expense or retailer shelf space.
The strategically aligned use of technology by this early mover has allowed Netflix to gain
competitive advantage through the powerful resources of brand, data and switching costs, and scale.
Collaborative filtering technology has been continually refined, but even if this technology is copied, the true exploitable resource created and leveraged through this technology is the
Technology leveraged across the firm's extensive distribution network offers an operational advantage that allows
the firm to reach nearly all of its customers with one-day turnaround.
The shift from atoms to bits is impacting all media industries, particularly those relying on print, video, and music content. Content creators, middlemen, retailers, consumers, and consumer electronics firms are all
Netflix's shift to a streaming model (from atoms to bits) is limited by
access to content and in methods to get this content to televisions.
While the "First Sale Doctrine" allows Netflix to send out physical DVDs to subscribers, this law doesn't apply to
Windowing, exclusives, and other licensing issues limit available content, and inconsistencies in licensing rates make profitable content acquisitions a challenge. Although the marginal cost for digital goods is zero, this benefit doesn't apply to
Netflix makes its streaming technology available to hardware firms, and it has developed streaming apps for a host of consumer electronics devices. As a result, Netflix streaming is available
on more devices than any competing rival service.
Netflix competitors in streaming are large, deep pocketed, and may have different motivations for
offering streaming content (such as generating ad revenue, pay-per-view content sales, or as an incentive to make existing hardware platforms more attractive).
The streaming business also offers Netflix opportunities to explore new revenue models, and it allows for rapid
expansion into international markets