PART – E

STRATEGY AND TECHNOLOGY

Big Data
Contents:
 What is big Data?
 Characteristics of Big data (3Vs)
 Types of Big Data
 How to make use of Big Data
 Value of Big Data in creating transparency, market segmentation and customization,
decision making and in new products and services
 Big Data and customers
 Limitations of Big Data
 Application of Big Data and digitization in knowledge-based organizations
 Link of digitization and business value
 The value of digitization to businesses
 Digitization and “the internet of things”
 Benefits or advantages of Big Data
 Drawbacks or disadvantages of Big Data
What is big Data?
Big data defined
The definition of big data is data that contains greater variety, arriving in increasing volumes and
with more velocity. This is also known as the three Vs.
Put simply, big data is larger, more complex data sets, especially from new data sources. These
data sets are so voluminous that traditional data processing software just can’t manage them. But
these massive volumes of data can be used to address business problems you wouldn’t have been
able to tackle before.

Characteristics of Big data (3Vs)

The three Vs of big data

Volume The amount of data matters. With big data, you’ll have to process high
volumes of low-density, unstructured data. This can be data of unknown
value, such as Twitter data feeds, clickstreams on a web page or a mobile
app, or sensor-enabled equipment. For some organizations, this might be
tens of terabytes of data. For others, it may be hundreds of petabytes.

Velocity Velocity is the fast rate at which data is received and (perhaps) acted on.
Normally, the highest velocity of data streams directly into memory versus
being written to disk. Some internet-enabled smart products operate in real
time or near real time and will require real-time evaluation and action.

Variety Variety refers to the many types of data that are available. Traditional data
types were structured and fit neatly in a relational database. With the rise
of big data, data comes in new unstructured data types. Unstructured and
semi structured data types, such as text, audio, and video, require
additional preprocessing to derive meaning and support metadata.

Types of Big Data

Now that we are on track with what is big data, let’s have a look at the types of big data:

a) Structured
Structured is one of the types of big data and by structured data, we mean data that can be
processed, stored, and retrieved in a fixed format. It refers to highly organized information
that can be readily and seamlessly stored and accessed from a database by simple search
engine algorithms. For instance, the employee table in a company database will be structured
as the employee details, their job positions, their salaries, etc., will be present in an organized
manner.

b) Unstructured
Unstructured data refers to the data that lacks any specific form or structure whatsoever. This
makes it very difficult and time-consuming to process and analyze unstructured data. Email is
an example of unstructured data. Structured and unstructured are two important types of big
data.

c) Semi-structured
Semi structured is the third type of big data. Semi-structured data pertains to the data
containing both the formats mentioned above, that is, structured and unstructured data. To be
 precise, it refers to the data that although has not been classified under a particular repository
(database), yet contains vital information or tags that segregate individual elements within the
data. Thus, we come to the end of types of data.

How to make use of Big Data

Big data use cases

Big data can help you address a range of business activities, from customer experience to
analytics. Here are just a few.

Product Companies like Netflix and Procter & Gamble use big data to anticipate
development customer demand. They build predictive models for new products and
services by classifying key attributes of past and current products or services
and modeling the relationship between those attributes and the commercial
success of the offerings. In addition, P&G uses data and analytics from focus
groups, social media, test markets, and early store rollouts to plan, produce,
and launch new products.

Predictive Factors that can predict mechanical failures may be deeply buried in
maintenance structured data, such as the year, make, and model of equipment, as well as in
unstructured data that covers millions of log entries, sensor data, error
messages, and engine temperature. By analyzing these indications of potential
issues before the problems happen, organizations can deploy maintenance
more cost effectively and maximize parts and equipment uptime.

Customer The race for customers is on. A clearer view of customer experience is more
experience possible now than ever before. Big data enables you to gather data from
social media, web visits, call logs, and other sources to improve the
interaction experience and maximize the value delivered. Start delivering
personalized offers, reduce customer churn, and handle issues proactively.

Fraud and When it comes to security, it’s not just a few rogue hackers—you’re up against
compliance entire expert teams. Security landscapes and compliance requirements are
constantly evolving. Big data helps you identify patterns in data that indicate
fraud and aggregate large volumes of information to make regulatory
reporting much faster.

Machine Machine learning is a hot topic right now. And data—specifically big data—is
learning one of the reasons why. We are now able to teach machines instead of
program them. The availability of big data to train machine learning models
makes that possible.

Operational Operational efficiency may not always make the news, but it’s an area in
efficiency which big data is having the most impact. With big data, you can analyze and
assess production, customer feedback and returns, and other factors to
reduce outages and anticipate future demands. Big data can also be used to
 improve decision-making in line with current market demand.

Drive Big data can help you innovate by studying interdependencies among
innovation humans, institutions, entities, and process and then determining new ways to
use those insights. Use data insights to improve decisions about financial and
planning considerations. Examine trends and what customers want to deliver
new products and services. Implement dynamic pricing. There are endless
possibilities.

Value of Big Data in creating transparency, market segmentation and

customization, decision making and in new products and services
Big Data plays a pivotal role in various aspects of business operations, providing substantial value in
creating transparency, market segmentation and customization, decision-making, and in the
development of new products and services. Here's how:

Creating Transparency:

Data Accuracy:

Big Data enables businesses to have accurate and up-to-date information about various aspects of
their operations. This transparency ensures that decisions are based on reliable data rather than
assumptions or outdated information.

Supply Chain Transparency:

It allows companies to track and trace products throughout the entire supply chain, ensuring
authenticity, compliance with regulations, and ethical sourcing.

Market Segmentation and Customization:

Targeted Marketing: Big Data analytics allows businesses to segment their customer base based on
various criteria, such as demographics, behavior, and preferences. This enables highly targeted
marketing campaigns, increasing the likelihood of success.

Personalization: Through the analysis of Big Data, businesses can tailor products, services, and
marketing messages to individual customers. This level of personalization enhances customer
satisfaction and loyalty.

Decision Making:

Data-Driven Insights: Big Data analytics provides actionable insights derived from large volumes of
data. This enables businesses to make informed decisions, mitigating risks and maximizing
opportunities.

Real-time Analytics: With the capability to process and analyze data in real-time, businesses can
respond swiftly to market changes, customer preferences, and operational issues.

New Products and Services:

Innovation and Ideation: Big Data analytics can uncover trends, unmet needs, and emerging
market demands. This information can be used to develop innovative products and services that
address these opportunities.

Iterative Development: Feedback and usage data from existing products can be analyzed to refine
and enhance offerings, leading to better customer satisfaction and competitive advantage.
Enhancing Customer Experiences:

Customer Feedback Analysis: Big Data tools can analyze customer feedback from various sources,
such as social media, surveys, and reviews. This information helps businesses understand customer
sentiment and preferences, allowing for improvements in products and services.

Predictive Customer Service: By analyzing historical data, companies can predict customer needs
and issues, allowing for proactive customer service and support.

Risk Management:

Fraud Detection: Big Data analytics can identify unusual patterns or anomalies that may indicate
fraudulent activity. This is particularly crucial in financial transactions and e-commerce.

Compliance and Regulatory Adherence: Big Data systems can monitor and ensure compliance with
industry regulations and standards, reducing the risk of fines or legal complications.

Operational Efficiency:

Process Optimization: Big Data can be used to optimize internal processes, reducing waste,
improving resource allocation, and increasing overall efficiency.

Inventory Management: By analyzing sales data, businesses can better manage inventory levels,
reducing excess stock and associate carrying costs.

In conclusion, Big Data is a powerful tool that provides valuable insights and capabilities for
businesses across various industries. Its impact extends from improving customer experiences to
driving innovation, enhancing operational efficiency, and ultimately contributing to the overall
success and competitiveness of a company.

Big Data and customers

Big data plays a crucial role in understanding, engaging, and serving customers in today's data-
driven world. It enables businesses to gather, process, and analyze vast amounts of customer-
related data to derive valuable insights and enhance customer experiences. Here are several ways
big data impacts customer relations:

1. Customer Profiling and Segmentation:

Big data allows businesses to create detailed customer profiles based on demographics, behavior,
preferences, and purchase history.

Segmentation enables businesses to tailor marketing messages and offerings to specific customer
groups, leading to more personalized and relevant interactions.

2. Personalized Marketing and Recommendations:

With big data analytics, businesses can deliver personalized marketing messages, product
recommendations, and promotions to individual customers.

This increases the likelihood of customer engagement and conversion.

3. Customer Journey Analysis:

Big data analytics helps in tracking and analyzing the entire customer journey, from the initial
contact through to conversion and post-sale interactions.

Understanding this journey allows for optimization and improvement of touchpoints and
processes.

4. Predictive Analytics for Customer Behavior:

By analyzing historical data, businesses can use predictive analytics to forecast future customer
behavior and preferences.
This helps in proactive planning and decision-making.

5. Real-time Customer Engagement:

Big data technologies enable real-time monitoring and analysis of customer interactions across
various channels.

This allows for immediate responses, providing a better customer experience.

6. Customer Feedback Analysis:

Analyzing customer feedback from sources like surveys, social media, and reviews provides
valuable insights into customer satisfaction and pain points.

Businesses can use this information to make improvements and address concerns.

7. Customer Lifetime Value (CLV) Optimization:

Big data helps in estimating the potential value a customer brings over their entire relationship
with a company.

This informs decisions on resource allocation and marketing strategies.

8. Churn Prediction and Retention:

Big data analytics can identify early signs of customer churn (customers likely to leave).

By intervening with targeted offers or support, businesses can work to retain these customers.

9. Compliance and Data Privacy:

Big data technologies also play a role in ensuring that customer data is handled in compliance with
relevant regulations (e.g., GDPR, CCPA).

This builds trust and credibility with customers.

10. Competitive Advantage:

Businesses that effectively leverage big data in customer relations can gain a significant
competitive edge.

They can adapt quickly to changing customer needs and preferences.

11. Product and Service Innovation:

Insights derived from big data can inform the development of new products or services that better
meet customer demands.

Remember, while big data offers immense potential, it's crucial to handle customer data
responsibly and ethically. Transparency and consent are paramount in maintaining trust with
customers.

Limitations of Big Data

Big Data Analytics is the new development in the IT market. Currently across the globe
organizations are planning to collect large scale data and how does a customer decide based on
marketing strategy. Here is a list of limitations for marketing analytics:

1. Biased fundamental User Data

Since the consumer base is large there is a limitation in getting all the information about the
consumer.

2. User-Level Execution
Attribute level targeting is done, since there are lots of platforms to apply.
3. User-Level Results cannot be estimated directly
The analytics can be done through visualization techniques with the help of flow diagram.

4. Defining Algorithms is difficult

One way of analyzing complex data is by breaking it into smaller components and then analyzing
the small data set. So, we can make predictions and changes for the same. We can use algorithmic
methods to analyses the data.

5. Insufficient User Data

We need to apply model to tap the customer segments.

6. User-Level Data
The data has to be monitored regularly. Data must be free from noise since it takes a lot of time to
clean up the data.

7. Inaccessible User Data

Since security is the major reason, data is not accessible for anybody and it should be properly
transferred from one machine to the other machine. For this reason, technical know-how is
essential, so that we handle data in an efficient manner when it comes to big data. So, working
with big data requires a lot of efforts.
We can see there are lots of limitations while working on big data, we must understand that big
data has the potential to work more effectively on smaller chunks on data since analysis is easier.
But nevertheless, big data holds a great future in IT market in the coming years. So, try investing
your capabilities in big data for the future.

Benefits or advantages of Big Data

 Big data analysis derives innovative solutions. Big data analysis helps in understanding and
targeting customers. It helps in optimizing business processes
 It helps in improving science and research
 It improves healthcare and public health with availability of record of patients.
 It helps in financial trading, sports, polling, security/law enforcement etc.
 Anyone can access vast information via surveys and deliver answer of any query.
Every second additions are made.
 One platform carries unlimited information.

Drawbacks or disadvantages of Big Data

 Traditional storage can cost lot of money to store big data.
 Lots of big data is unstructured.
 Big data analysis violates principles of privacy.
 It can be used for manipulation of customer records.
 It may increase social stratification.
 Big data analysis is not useful in short run. It needs to be analyzed for longer duration to
leverage its benefits.
 Big data analysis results are misleading sometimes.
 Speedy updates in big data can mismatch real figures.

Link of digitization and business value

What is the relationship between big data and digital transformation?
 Big data is the huge volume of data that is collected by organizations every day. This is making it
harder to process using conventional data management practices. Because of this, the role of big
data in digital transformation is requiring new and innovative data processing methods.

In the following subsections, the terms “big data management” and “digital transformation” are
analyzed in more detail.

Big-Data Management
The term “big-data management” refers to a set of data management practices. It is a mixture of
old and new practices, skills, teams, data types, and functionality. With big data, businesses were
forced to change, as it was difficult to manage vast amounts of data, and this change has led to the
expansion of data management skills and software, and business process automation, bringing to
the surface both technological and business issues.

The transfer from the management of a traditional volume of data to the management of big data
requires a change within the company. There are five areas of interest:

 Leadership: The leadership team, which sets clear goals, determines success, and asks the right
questions must also lead the company to an effective big data management system. Big data
require the need for human guidance on the road to change and success. Evaluating information
and extracting knowledge that can lead to successive business decisions is a science in itself,
requiring visionary leadership.

 Talent management: The complexity and management of big data has to do both with the
technology and the processes, and with scientific and professional personnel, the key persons
whose job it is to implement, integrate, and keep operational such systems. The selection of
specialized professionals and data scientists is necessary.

 Technology: Big-data management technology has constantly improved during the last few years.
A series of tools have been developed for professional and scientific work, while open-source
tools are available for the wide community of big-data management enthusiasms (e.g., Hadoop).
So, IT departments have a variety of tools and solutions to integrate them with the rest of the
organization’s systems, but implementing and operating big data management systems also
require significant skills that employees must acquire and constantly develop.

 Decision making: Information and decision making are inter-related elements in the everyday
work and operational life cycle of an organization. Information is created and transferred within
the organization through data processing. That is why it is important for people who manage and
process data to work with people who are responsible for understanding the company’s
problems, finding solutions and making decisions.
 Company culture: A company’s culture is shaped or reshaped by the way that data (and big data)
are managed. Big data may lead a company nowhere, but transforming big data into valuable
information and decision-making knowledge means a series of internal changes to organizational
culture. Being sensitive to external environmental information (big data transformed into
information) requires significant changes in terms of company culture.
Digital Transformation
The term “digital transformation” refers to the use of technology to gradually improve the
performance of a business. Digital technologies and techniques such as analytics, mobility, social
media, and smart devices are used with traditional technologies in order to change customer
relationships, internal processes, and value propositions [57].

Before companies start to implement changes to move into the digital age, it is important to
understand the logic of digitization and how digital transformation affects business. Figure 1 shows
the drivers of digital transformation and the four levels in which it has an effect. These four levels
are as follows.

The value of digitization to businesses

What is the value of digital technology to a business?
Increased agility

Digital transformation makes organizations more agile. Borrowing from the world of software
development, businesses can increase their agility with digital transformation to improve speed-
to-market and adopt Continuous Improvement (CI) strategies.

What are the advantages of digitalization?

Organizations all throughout the world are adjusting their operations to be digitally compatible.
Many businesses have realized the importance of digitalization and already converted or invested
in new business models. Consider communication, music, eBooks, and online shopping. This
change will not spare any industry.
It is no secret that businesses must continually change in order to stay viable. In our current digital
world, organizations don’t have any choice but to embark on the digital transformation journey.
Organizations may run more effectively, save expenses, and boost production are some of the
advantages of digitalization in business. In summary, it is a matter of life and death for them.

The advantages of digitalization are:

#1- Streamline processes

Every business is continuously looking for innovative methods to improve efficiency. If you want to
become more efficient in business, you will need to embark on the digitalization journey.
When a business process is automated, you can expect reliable outcomes every time. Automating
processes and related business rules will help your organization achieve greater transparency and
fairness.
Efficiency is defined as how well time, effort, and money are utilized to complete a task or achieve
a goal. One of the most significant advantages of digitalization is that it reduces the time it takes to
complete a task, the effort necessary to complete it, and the cost of doing it correctly.

#2- Higher productivity

When you automate manual repetitive processes, you free your employees from monotonous job
tasks and allow them to focus on more difficult and innovative initiatives that will help your
business function more efficiently.

With business process automation systems, tasks may be done more faster and with fewer
mistakes. Finally, process automation enables employees to make better use of their time at work.

#3- Reduce operational costs

Every business owner’s objective is to save time and, more importantly, money. Manual tasks and
processes are intrinsically slower than automated activities and processes since they are
conducted one at a time.
Inefficient processes cost organizations up to 30% of their annual revenue. When business
procedures are done manually, there is a far greater chance of resources being squandered.
Digitalization enables the most efficient and cost-effective use of your core resources.
Digitalization has the potential to save up to 90% on operational expenses.

4- Increase transparency
Depending on the process you’ve decided to automate (financial, billing, collections, sales, and/or
support), critical metrics can be gathered and reported on to provide you with the crucial
information you want.
Transparency in business processes is critical for long-term success. If processes and their status
are digitally monitored, higher management will have more faith in how things are done.
Well-documented processes and transparent workflow boost an organization’s visibility. Managers
don’t have to worry about employees forgetting what they’re supposed to be doing since
everyone understands what they’re supposed to be doing at all times. When leaders visualize
processes, they can immediately identify bottlenecks and opportunities.

5- Quality and consistency

One of the most important advantages of digitalization is that it guarantees that each operation is
carried out in a consistent manner, resulting in high-quality, dependable output.
If you automate your customer service follow-up process, for example, your consumers will
receive the same quality of support from your company every time.
Because of the assurance of quality and consistency, as well as the time and efficiency benefits,
you may begin designing higher-quality, more feature-rich products with little or no increase in
manufacturing time and costs.

6- Less human error

When operations are automated, the likelihood of human error is considerably decreased.
When it comes to doing tasks, humans are more prone to error than machines. Machines never
weary and can run constantly 24 hours a day. So let us assign what we don’t want to perform to
computers and concentrate on more challenging tasks.

7- Governance and reliability

Because automated processes are consistent, you can rely on them to
 Run your business
 Provide reliable procedures to your clients, giving you a competitive edge.
Workflow automation’s dependability guarantees that critical corporate governance operations
are carried out 100 percent of the time and in compliance with the law.

8- Enhanced agility
Businesses, now more than ever, must stay up with the fast-paced digital environment. They must
be able to swiftly respond to any market shift, upheaval, or new opportunity.
Organizations should be agile enough to shift directions rapidly and to do so, agile techniques
should be adopted across all departments, and when business processes are automated, it allows
to modify and adapt to changes at a relatively fast pace.
9-Improved employee morale
When employees are required to focus on manual repetitive tasks, it reduces their ability to learn,
develop, and advance professionally. Employees benefit from digitalization since it automates
these repetitive activities, allowing them to engage in more significant initiatives and so enhancing
their morale.

10- Better decision making

Digitalization and information management work hand in hand; as information is analyzed, it
transforms into knowledge, and knowledge leads to better decisions.

11- Personalization
Personalization has significant impact on how your customers connect with your brand. Through Bi
tools and advanced data analytics, your organization can understand better the insights of its
customers experience and craft a highly tailored experience for individual users.
In addition, it allows to understand the history of your customers interaction so it could suggest
products or content that align with their past behaviors and preferences. Without digitalization,
this could not ever happen!

12- Eliminate bottlenecks and bureaucracy

Digitalization plays a role in eliminating process bottlenecks and tackling bureaucracy within
organizations. By effectively automating tasks and optimizing workflows, BPA tools minimize the
chances of bottlenecks caused by errors or delays. It also facilitates sharing of real time data and
foster collaboration ensuring smooth information flow across departments.
Moreover, digitalization often brings transparency providing insights, into processes and decision
making. This should reduce bureaucracy of decision making within your organization as it becomes
easier to visually track and optimize workflows.

13- Security
One of the most critical topics that organizations are trying to minimize is the increase of data
breaches through effective security measures applied on digital assets. There are a lot of options
that you could implement such as role-based access control, encryption, watermarks, and two
ways authentication to protect and secure your most critical data.

Digitization and “the internet of things”

How the Internet of Things Impacts Digital Transformation

The Internet of Things (IoT) is the interconnection of physical devices, vehicles, machines,
buildings, and other items with computers or other devices over the internet.
It is an emerging technology that has impacted lifestyles and has changed the way we think and
act, and the way we interact with each other. It has also changed the way we work as it enables
very large-scale monitoring, control, and automation, and has impacted the digital
transformation of organizations in different industries.

How Does IoT Work?

The Internet of Things (IoT) allows objects and everyday products to be connected in a digital
network, enabling sensors to gather information about the device, software to monitor its
performance and collect data, and users to control it.
One of the most crucial components which characterize IoT is the connectivity between all IoT
devices which are part of what is known as the IoT ecosystem. The IoT ecosystem consists of IoT
devices, security, network, gateway, the cloud, application, and users.
IoT devices sense information from their surroundings and collect them as data that is stored in
cloud servers. This is done by using sensors that are implanted in physical objects such as mobile
phones, smart watches, smart home devices, car devices, etc.
After getting information from the environment, IoT sensors share the gathered data with the
cloud. This connection between the sensors and the cloud can be executed through cellular,
satellite, Bluetooth, internet, or other connection options.
Once the data is transmitted to the cloud, the cloud is responsible to process, analyze, and send
back the outputs. The complexity of the processes depends on the information received from the
environment, the system, and the product. For example, checking the temperature in the room is
considered a simple task. On the other hand, home security-related events, such as identifying an
intruder, are a more complex process.
In the final stage, the output is transmitted to the users, for example through an alert, text
messages, etc. At this stage, the user might have to proactively interact with an IoT device or
actions can be automatically performed.
The process of IoT and its main components are explained below.

How Does IoT Enable Digital Transformation?

Digital transformation is an ongoing process helping organizations integrate and increase the use
of digital technology to achieve long-term growth and be aligned with the fast-paced evolving
industry.
Without a doubt, a variable that is significantly affecting digital transformation is IoT. IDC predicts
that by 2025, there will be 55.7 billion connected IoT devices generating almost 80 billion
zettabytes (ZB) of data.
All the valuable data generated by IoT devices can be used by organizations to accelerate their
digital transformation. For example, they can be used to assess their customers’ needs and then
provide services on that basis. Furthermore, it can increase interactivity with clients, hence
increasing their satisfaction. IoT can also assist the staff and make it possible for operations to be
done anywhere and at any time. It also enables the implementation of new tools and strategies.
IoT impacts organizations’ digital transformation as it opens up new investment opportunities,
reduces operational costs, improves customer experience, improves productivity, efficacy, and
efficiency, improves decision-making, empowers business models, and increases revenue.
IoT is becoming the future of digital transformation in different sectors like healthcare,
government and education, security, communication, agriculture, and transportation – to name a
few.

Accelerating Digital Transformation through IoT Top Trends

Digitalization has made great progress over the past few years, resulting in a higher number of
opportunities and resources for individuals and organizations worldwide. This digitalization is
highly connected with the newest innovations in IoT and its top trends:

1. Artificial Intelligence of Things (AIoT) – Digital transformation is highly driven by the

powerful combination of AI and IoT. On one hand, using machine learning and various
advanced algorithms AI adds value to IoT and improves its activities. On the other hand,
IoT gives AI connectivity and data-based inputs. Together, they enable digital
transformation by offering big data and providing insights that enhance productivity and
efficiency.
2. Blockchain – It is a technology that enables a decentralized network and has the potential
to address the security concerns of IoT. This technology can be used in many industries as a
platform to safely store enormous amounts of data. Moreover, it enables organizations to
optimize their processes, manage documents digitally, track orders, improve digital
collaborations, etc.
3. 5G technology IoT – The fifth-generation technology of mobile networks is making a big
impact on the Internet of Things as it enables faster, more secure, and more reliable
connectivity than ever before.
4. Digital twins – In a nutshell, these are virtual replicas of physical objects, devices, and
systems that use real-time Internet of Things data, and apply AI and data analytics in order
to optimize performance. Digital twins are mostly being used in the digital transformation
of manufacturing, automotive, and healthcare.
5. Wearable IoT technology – This technology allows people to easily connect with other
digital devices and systems making it possible for them to monitor, control, and evaluate
different processes and make smart decisions.
6. Internet of Behavior (IoB) – This technology in the field of research and development
helps monitor and track individual and collective human behavior at a level like never
before. It aims to analyze and understand more about the reasons and methods why and
how humans use technology, information which can be helpful in converting leads into
sales.

Benefits of IoT and Digital Transformation

Digital transformation and the use of IoT are highly beneficial for organizations that want to
remain competitive. They help organizations achieve greater efficiency, cost-saving, and customer
engagement. Furthermore, they can be used to automate many tasks and activities which
automatically allow employees to focus more on strategic tasks, use their time more wisely, and
increase their productivity.