Big Data and Analytics

Data Analytics is as old as the data itself. Extracting information from data is as ancient as one can think of. However, there is a major hype around Big Data, Web Analytics in the recent past. What has changed–

(a)   Most businesses across the globe have implemented some form of ERP and transaction automation solutions. Customer Relationship Management (CRM) solutions have been in existence for more than a decade and a large number of organizations have crossed the bridge in terms of integrating different systems across the organization. It is now practically feasible to understand a customer in terms of her journey across the organization from a lead, to sales pitch, to customer, service/product delivery and fulfillment.

(b)   Transactional data is large in volume, often captures the demographic information and behavioral information in terms of likes (products purchased represent a Like behavior). Large volume of data naturally can be used to identify patterns and patterns can be used to characterize customers. For example, a customer purchasing lot of sugar free items is possibly health conscious or may be diabetic. Customer buying lot of sports goods is obviously interested in sports.

(c)    Analyzing Retail transaction data and interpreting basis the purchase history was subject of intense analysis in Research in the Nineties. Since then Ecommerce has provided additional input from data analysis perspective. Ecommerce companies can track the browsing behavior of customers on their site. Which products they looked at, compared and what did they finally purchase.  Now this is enough to characterize customers as price conscious, style conscious etc. While transactional data can be used to derive similar inferences, click data is more definitive as it captures the customer’s exploration of products prior to making a decision. In the end, objective of all analysis to drive business decisions which can help the customer as well as the business.

(d)   It’s been more than a decade of big data and analytics in the Western world and Indian companies are now catching up. ERP which was big in early part of the last decade is now commonplace. Consultants are now keen on selling Analytical Tools and making a pitch of analytics. In the end, transactional automation solutions were also sold with the promise of data analytics. Customers are also demanding results from the same vendors.

The hype around big data and analytics is probably here to stay, unlikely to go away in a hurry. If a business analyzes several projects it undertakes, it does not take too long to realize than RoI from analytics projects is probably the highest.  As one of my friends once said “If you did not find the patterns in data that you were looking for, you did not look hard enough”. Data always throws patterns, patterns drive understanding of customer behavior, and hence, better decision making.